The Life Insurance Corporation of India (LIC) holds a significant position as the oldest and largest insurance company in India. Its roots can be traced back to the establishment of Oriental Life Insurance Company in Kolkata in 1818. Over the course of 200 years, this company evolved into the formidable LIC
Life Insurance Corporation (LIC), in its modern form, came to India from England in 1818. Oriental Life Insurance Company started by Europeans in Calcutta (now Kolkata) was the first life insurance company on Indian soil, which catered to the growing number of Britishers in India
All the insurance companies established during that period were brought up with the purpose of looking after the needs of the European community and Indian natives were not being insured by these companies. However, later with the efforts of people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives
Despite all efforts, Indian lives were being treated as substandard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of the first Indian life insurance company in 1870. Later in 1896, Bharat Insurance Company was also inspired by nationalism
The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance in Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company, The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period
In 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The first two decades of the 20th century saw a lot of growth in the insurance business. From 44 companies with total business-in-force as Rs 22.44 crore, it rose to 176 companies with total business-in-force as Rs 298 crore in 1938
The demand for nationalisation of the life insurance industry gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. In 1956, 245 Indian and foreign insurers and provident societies were taken over by the central government and nationalised. Life Insurance Corporation of India was formed by an Act of Parliament with a capital contribution of Rs 5 crore from the Government of India
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. From about Rs 200 crore of new business in 1957, LIC crossed Rs 1,000 crore only in the year 1969-70, and it took another 10 years for LIC to cross Rs 2,000 crore mark of new business. By 1985-86, LIC had already crossed Rs 7,000 crore Sum Assured on new policies
Throughout its history, LIC introduced several pioneering initiatives in the Indian insurance landscape. In 1989, LIC launched its first Unit Linked Insurance Plan (ULIP), offering a combination of insurance coverage and investment opportunities. This marked a significant shift in the insurance industry, providing customers with investment options alongside insurance protection
In 2022, the government raised Rs 20,557 crore by diluting its 3.5% stake in the LIC through the initial public offering (IPO). LIC shares were listed at a discount of 8.62% at Rs 867.20 apiece on BSE over the issue price of Rs 949 a share