Question

how l.i.c. life insurance policy is used for people write an essay for this topic please

Answer 1

Life Insurance Corporation of India was established on September 1, 1956 to spread the message of life insurance in the country and mobilise people’s savings for nation building activities.

LIC has its central offices at Mumbai, Kolkata, Delhi, Chennai, 109 divisional offices in important cities. 2048 branch offices and 1004 satellite offices as on March 31. 2010.

At present LIC is operating internationally through Branch Offices in Fiji. Mauritius and UK and through Joint Venture Companies in Bahrain, Nepal, Sri Lanka. Kenya and Saudi Arabia

Answer 2

The LIC was established in 1956 by nationalising all the life insurance companies operating in India. Since then in the field of life insurance the LIC has near-monopoly, as the amount of life insurance business through postal insurance and state insurance is relatively much smaller. Life insurance is a very important form of long-term contractual savings. It both promotes savings and results in their institutionalisation or mobilisation.

The income-tax concession provides further incentive to higher-income persons to save through life insurance policies. The total volume of insurance business has also been growing in the country with the spread of insurance consciousness in the country.