The article highlights LIC's rural penetration, inherent problems in implementation, growth over the years, social schemes for the rural poor and the `Bima Gram' program.
On the eve of LIC's birth in 1956, Jawaharlal Nehru, the then Prime Minister of India, said,
"Life Insurance becomes one of the major state undertakings in India. Its objectives will be to serve the individual as well as the state...."
This is exemplified by LIC in their commitment to rural India. The first declaration in their list of objectives accompanying the vision states that they would:
Spread life insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.
For LIC, it has always been a case of `promise backed by performance'. Till date, nearly 55% of its new, individual policies have come from the rural sector. Its performance stands miles ahead of the private players, most of whom have ventured into rural markets only because of IRDA regulations, which have compelled them to do so. During 2004-05, up to January 31, 2005, LIC generated a total income of Rs. 73,342 cr showing a growth of 16.45% over the corresponding period of the previous year. The total premium income of LIC accounts for Rs. 46,531 cr showing a growth of 15%. The growth rate in both total income and total premium income has improved by over 2%, over and above the growth for the corresponding period in the previous year, and LIC's assets crossed the Rs. 4 lakh cr mark taking it to Rs. 4,09,000 cr as on December 31, 2004. |
