- The Life Insurance Corporation of India (LIC) is a government-owned insurance and investment corporation in India. It is India’s largest insurance firm, with a huge customer base. LIC offers a varied range of insurance portfolios catering to various demands of its consumers.
- LIC was formed in 1956 under the Life Insurance of India Act, which nationalised the insurance sector in India and merged as many as 245 insurance companies to form the life insurance behemoth.
- The government of India back then had contributed a capital of Rs 5 crore on incorporation of the company. It is 100 per cent government-owned.
- One of the reasons for the nationalisation of the insurance business was the Industrial Policy Resolution of 1956 that intended to give control of 17 crucial sectors of the economy, including life insurance, to the State.
- The slogan of LIC is ‘Yogakshemam Vahamyaham‘ (your welfare is our responsibility), and is obtained from the 22nd verse of the Bhagavad Gita’s 9th chapter.
- The Government of India (GoI) has proposed sale of a portion of the government’s stake in LIC. The GoI will retain control of the company.
Why in News?
- Life Insurance Corporation initial public offering, IPO, is set to open from 4th to 9th of May for the general public. LIC IPO will be listed on the share markets on 17th May.