About
Life Insurance Corporation of India
Life Insurance Corporation of India was established on September 01, 1956 under the Life Insurance Corporation Act, 1956. The Corporation obtained Certificate of Registration, to undertake the business of life insurance by a Certificate dated September 20, 1956 issued by the Controller of Insurance in accordance with the provisions of the Insurance Act. The Corporation obtained the Certificate of Registration from the IRDAI to undertake life insurance business on January 1, 2001 which was renewed on an annual basis under Section 3A of the Insurance Act. Further, pursuant to amendment to Section 3A of the Insurance Act with effect from December 2014, the process of annual renewal of Certificate of Registration was discontinued.
The Corporation is governed by provisions of the governing Act; it is also registered with the Insurance Regulatory and Development Authority of India (IRDAI) and is subject to such provisions of Insurance Regulatory and Development Authority (IRDA) Act, 1999 as amended, and regulations that are not inconsistent with the Act. The Corporation is engaged in the business of Life Insurance in and outside India. The Corporation's life insurance business comprises of individual life and group business, including participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group immediate annuity, unit-linked insurance products, variable insurance products, health and micro insurance.
In 1956, nationalization of 245 Companies and LIC came into being on 1st September. The Corporation established foreign branches in Fiji and Mauritius to sell life insurance.
In 1959, the Corporation constructed a 14 storey Sky scraper building for housing Southern Zonal Office.
In 1960, the Corporation established foreign branch in United Kingdom. Officer's Training College was founded by the Corporation at Nagpur on 16th May.
In 1961, First Camp for On the Spot policies was organized on 15th August in Rohtak District. The first batch of Direct Recruit Officers joined the Corporation.
In 1962, the Corporation inaugurated the Pilot scheme of Premium Collection Through Post Offices in village Chandlai on 25th March, 1962.
In 1963-64, the Corporation undertook initiatives in becoming pioneer in installing computers with installation of two computer systems - one in Mumbai and one in Kolkata, with an aim to improve operations. Yogakshema', an architectural landmark, Corporate Office of LIC was inaugurated by Prime Minister Pandit Jawaharlal Nehru on 26th December. LIC started doing General Insurance business.
In 1965, Policy Holder's Council was set up in each Division by the Corporation and The Central Coordination Committee for Sports was formed.
In 1967, IBM 1401/1410 Computer was installed at Mumbai. The EDP Department started functioning.
In 1969, Officer's training college was shifted from Nagpur to Borivali, Mumbai.
In 1970, Commemorative Stamp and Post Card was issued through Indian Posts and Telegraphs depicting Indian Life Insurance. 1870-1970.
The concept of Agents Clubs was introduced in 1971.
The first Career Agents' Branches were set up in 1972 and the Corporation formulated the LIC of India(Agents) Regulations.
In 1978, the Corporation started a Joint Venture Kenindia Assurance Co. Limited. A Scheme of Incentive Bonus to Development Officers came into existence.
In 1980, the Corporation began to recruit Development Officers and The National Insurance Academy(NIA) sponsored jointly with GIC and its subsidiaries, was founded.
In 1981, the Corporation implemented Reorganization Policy' to give effect to operations decentralization and proper decision-making. Jana Raksha Policy was launched to cater to the rural masses. Installation of Microprocessors was first initiated in October by the Corporation and the recruitment under sports quota started.
ECIL-2958 Mainframe was installed at Mumbai in 1982.
In August 1987, the Corporation introduced Landless Agricultural Labourers' Group Insurance (LAGLI). On November 25th, LIC's prestigious Jeevan Bharati Building was inaugurated by the then Union Finance and Commerce Minister Shri N.D. Tiwari.
In 1989, an associate recognized as LIC Housing Finance Limited was set up by the Corporation. LIC turned into a financial conglomerate. The Corporation established LIC Mutual Fund as a trust on 20th April 1989. The Corporation established a subsidiary, Life Insurance Corporation (International) B.S.C. (c), in Bahrain.
Software Development Centre was established at Corporate Office in 1993 and Front End Applications Package was introduced on 17th July in 17 BOs.
The Rural Group Life Insurance Scheme (RGLIS) was launched on 15th August, 1995.
In 1997, the Corporation introduced Corporation's Metro Area Network' (MAN)and Wide Area Network' (WAN) resulting in linking network of all branches on 22nd November.
First IVRS was inaugurated in Mumbai on 21st August 1998 by the Corporation and 150 touch screen based Information Kiosks were set up across the country enabling Customers to get information about policies, new plans, bonus etc. in 1998.
LIC (International) EC extended its operations to Qatar with effect from 28th September 1999.
In 2000, the Corporation set up a subsidiary, Life Insurance Corporation (Nepal) Ltd., in Nepal. For faster dissemination of information, LIC launched its website www.licindia.in and intranet Site Jeevan Sanchar'.
In 2001, the First unit linked Insurance Plan(ULIP) Bima Plus' was launched on 12th February. LIC signed its first strategic alliance with Corporation Bank on 6th June. Krishi Shramik Samajik Suraksha Yojana launched on 30th June. Premium payment facility through internet introduced on 12th September. Shikshan Sahyog Yojana was inaugurated on 31st December. LIC (Nepal) Ltd, was inaugurated as a joint venture between LIC and Vishal Group in Nepal on 3rd December.
In 2002, LIC's first Info Centre was inaugurated in Mumbai. Call Centres were set up at 8 locations across the country. IVRS accessible through Unified Access Number 1251 was integrated with Call Centres on 12th April. Corporate Messaging Solution was implemented. The business through Bancassurance commenced and there was a strategic tie-up with Corporation Bank. A Joint Venture LIC (Lanka) Ltd was formed.
In 2003, LIC (Lanka) Ltd was inaugurated as a joint venture between LIC and Bartleet Group of Sri Lanka on 1st March. Varishtha Pension Bima Yojana was launched on 14th July. LIC's first ever Premium Payment Facility through ATM was inaugurated in collaboration with Corporation Bank on 20th December.
In 2004, premium payment through ECS and Kiosk commenced. SMS Service initiative was launched. MOU was signed for establishing a joint stock company in Saudi Arabia on 20th December. (SICCI). Vidyanet (an Online training Portal for Agents) was launched.
In 2005, LIC and IndusInd Bank tie up for providing first ever group insurance scheme to account holders of the bank in October. LIC's First Satellite Sampark Office (later renamed as Satellite Office) inaugurated in Rajendra Nagar, New Delhi (Delhi DO-1), NZ on 2nd September. The Corporation launched Enterprise Document Management System (EDMS) and Corporate Active Data Warehouse.
In 2006, the Corporation Established LIC's Golden Jubilee Foundation' to support projects like construction of hospitals, schools, buildings, class rooms, old age homes and scholarships etc. and provide scholarships to meritorious students from marginalized communities.
In 2007, the Corporation established a subsidiary, LIC Pension Fund Limited. During the year, the Corporation signed an agreement for implementation of Enterprise Document Management System' (EDMS) to convert all policy records into digital format. LIC HFL Financial Services Ltd, wholly owned subsidiary of the Corporation was incorporated on 31st October.
The Corporation established a subsidiary, LIC Cards Services Limited, to provide credit card services in 2008. CLIA Channel started in 2008. LIC Pension Fund was launched. LIC HFL Asset Management Company Ltd. (AMC) was incorporated on 14th February 2008.
In 2009, the Risk Management Department was set up. LIC launched Credit Card LIC Card'. Alternate Channels of premium payment was started. New CRM initiatives like Relationship Renewal program, Help desk, Exclusive CRE, Help book started. Direct Marketing Channel, established in August 2009 with 6 Units, has 119 Units spread across all Divisions of the Corporation. The initiative was aimed at creating new systems for Business Generation, Sales Process monitoring and Digital Marketing with a view to reach out to untapped Markets and providing new buying experience to the Customers, especially to young, tech-savvy Millennial and High Net worth Individuals.
In 2010, online paperless underwriting, SMS Enquiry Service for proposal status was started by the Corporation.
Integrated Complaint Management System (ICMS) was launched in 2011.
In 2012, the Corporation established a wholly owned subsidiary, Life Insurance Corporation (Singapore) Pte Ltd, in Singapore. LIC's officially developed mobile app for Android based Smartphones was deployed for general public on 23rd March 2012 and Jeevan Akshay VI-first policy of LIC was made available for online sale by the Corporation.
In 2013, the Corporation launched ODS and Customer & Merchant Portal, Remote Audit, Results Framework Document System for HRD/OD, Automation of Employee Information Management and Syndicate Bank signed MOU on 27 June 2013 as Corporate Agent of LIC to sell LIC products.
In 2014, the Corporation introduced Club Galaxy for Agents. Collection of Micro Insurance Premium through Mobile App was launched.
In 2015, the Corporation established a subsidiary, Life Insurance Corporation (LIC) Bangladesh Limited, in Bangladesh. E-APAR, Legal management system was introduced by the Corporation. The Corporation launched three social security schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana, (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension yojana (APY).
In 2016, Bima Diamond Plan was launched on 1st September. LIC's eServices, compliant to IRDA regulations was launched on 1st February. The Corporation announced a 'One time Diamond Jubilee Special Reversionary Bonus' for policyholders whose policies were in force as on 01 September 2016.
In 2017, Enterprise Risk Management (ERM) Concept was launched. The digitization of policy records for 29 Crore customers was completed. SMS based customer helpline started. Premium payment through wallets, BHIM, UPI enabled.
In 2018, LIC training centres (MDC, ZTCs) and CO OD/HRD was awarded ISO 9001:2015 certificate and BIS accredition approved by the Corporation. LIC mobile app was launched for agents by the Corporation and LIC call centre services were launched.
In 2019, the Corporation completed the acquisition of 51% stake in IDBI Bank. The Corporation infused Rs.47,430.00 million into IDBI Bank, currently one of its Associates on October 23, 2019 using policyholders' funds. IDBI Bank raised Rs. 14,351.80 million on December 19, 2020 by way of a qualified institutional placement. IDBI Bank became a subsidiary of the Corporation with effect from January 21, 2019. Multy utility cash card 'SUVIDHA' was launched in collaboration with IDBI bank. Agent recruitment app was launched and Subsidiaries Department was formed at Central Office of the Corporation.
In 2020, the Corporation was designated as Domestic Systemically Important Insurer (D-SII). Online and Paperless Process of completion of Micro Insurance Policies was launched on 6th March. IPO Cell/PMU Department was formed at Central Office. Uninterrupted Service to Customers through online services during Pandemic was introduced by the Corporation. There was Awareness Campaigns in lockdown and post lockdown period of COVID-19 epidemic situation and various customer friendly measures were taken to serve policyholders in view of lockdown.
In 2021, the Corporation launched Atma Nirbhar Agents New Business Application. Deposit Collection Management Centre was launched on 5th January. The Dena Bank Building in Bandra Kurla Complex was acquired by the Corporation.
During the year 2020-21, the Corporation under Individual New Business, has procured 2,09,75,439 Policies with a First Year Premium
Income of Rs 56,406.51 Crore.
Currently the channel has tie-up with 8 PSU Banks, 6 Private Banks, 13 Regional Rural Banks, 41 Cooperative Banks and 1 Foreign Bank under Corporate Agency agreement with 57,919 outlets of these Banks all over the country. In addition to Banks, the channel has tie-up with 69 other Corporate Agents, 79 Brokers and 145 Insurance Marketing Firms (IMF). During the year 2020-21, 4 Banks, 6 Corporate Agents and 24 Insurance Marketing Firms were added to the channel.
During the year 2021, the Corporation introduced 5 individual products viz. LIC's Jeevan Akshay-VII, LIC's New Jeevan Shanti, LIC's Bima
Jyoti, LIC's Bachat Plus and Pradhan Mantri Vaya Vandana Yojana (Government sponsored pension scheme). In addition, the Corporation also introduced modified versions of 2 Individual Health products viz. LIC's Cancer Cover, LIC's New Jeevan Arogya and 1 Health Rider viz. LIC's Critical Illness Rider in order to make them compliant with the Guidelines on Standardization in Health Insurance, issued by IRDAI.
During the FY 2020-21, the Corporation has completed 3 nos Branch Offices (Washim, Yamunanagar and CBO IV Mysore), 8 nos Residential units across the Country. Construction works are in progress for DO building at Bhubaneswar, 9 nos BOs and 90 nos Officers Quarters at various locations, Sales Training Centre building at Warangal & Bareilly and Investment Buildings at CP-3 Lucknow, GIFT CITY Gandhinagar & EM Bypass Road Kolkata. Planning initiated for Construction of major Investment Buildings at Ludhiana and Scheme 54 Indore and building for Sales Training Centre at Bhilai. The installed capacity of rooftop Solar PV till 31st March 2020 was 2,184 KWp and added 955 KWp capacity during the FY 2020-21.
In the F.Y. 2020-21, 2 plots were purchased, of which 1 was purchased by the Southern Zonal Office and 1 by North Central Zonal Office. The total area is 36,177.9 sq. ft. and the total cost involved is Rs. 11.99 crore. Besides this, the Western Zonal Office has purchased 1 ready built premises with land area admeasuring 2,878.36 sq. mtrs. and total built up area admeasuring 10,189.75 sq. mtrs. The premises have been purchased for Rs 380 crore.
During the year 2021-22, the Corporation under Individual New Business, has procured 2,17,18,695 Policies with a First Year Premium
Income of Rs. 54,821.27 Crore.
During the year 2021-22, the Overseas Branches put together issued 7,491 policies with a First Premium Income of Rs. 120.41 crore.
Total Premium Income increased by 6.10% to Rs. 4,27,419.21 Crore in FY 2022.
During the year 2022, the Corporation has allotted 6,324,997,701 equity shares to President of India which includes 6,224,997,701 Bonus share.
During financial year 2021-22, the Corporation introduced 5 new products including 4 Individual Products viz. LIC's Saral Jeevan Bima, LIC's Saral Pension, LIC's Arogya Rakshak, LIC's Dhan Rekha and 1 Group Product viz. LIC's Group Assurance Plan. In addition, the Corporation also introduced modified versions of eight products including six Individual Products LIC's Bima Jyoti, LIC's Jeevan Akshay VII, LIC's New Jeevan Shanti, LIC's Saral Pension, LIC's Bhagya Lakshmi, LIC's New Jeevan Mangal and two Group Products viz. LIC's New One Year Renewable Group Term Assurance Plan I and LIC's New One Year Renewable Group Term Assurance Plan II.
As at the end of the financial year 2021-22, the Corporation had 33 Individual Products, 16 Group Products and 7 Individual Riders available for sale.
As on 31 March, 2022, there were 8 Zonal Offices located at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur, Bhopal and Patna. There were 113 Divisional Offices, 2,048 Branch Offices, 1564 Satellite Offices (SOs) and 1,170 Mini Offices.
The Shares of the Corporation were listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE) w.e.f. May 17, 2022.
As on 31.03.2023, there were 8 Zonal Offices located at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur, Bhopal and Patna.
There were 113 Divisional Offices, 2,048 Branch Offices, 1580 Satellite Offices (SOs) and 1,169 Mini Offices.
During the financial year 2022-23, the Corporation introduced 7 new Individual products viz LIC's Bima Ratna, LIC's Dhan Sanchay, LIC's New Pension Plus, LIC's Dhan Varsha, LIC's New Tech -Term, LIC's New Jeevan Amar, LIC's Jeevan Azad and 1 Group Rider viz. LIC's Group Accident Benefit Rider. In addition, the Corporation also introduced modified versions of 5 Individual Products viz. LIC's Aadhaar Stambh, LIC's Aadhaar Shila, LIC's New Jeevan Shanti , LIC's Jeevan Akshay -VII and LIC's Saral Pension.
During year 2022-23, the Corporation under Individual New Business, has procured 2,04,28,937 Policies with a First Year Premium Income of Rs 58,662.11 Crores. The Overseas Branches put together issued 9,443 policies with a First Premium Income of Rs. 107.68 Crore.
Life Insurance Corporation of India
Company History
Life Insurance Corporation of India was established on September 01, 1956 under the Life Insurance Corporation Act, 1956. The Corporation obtained Certificate of Registration, to undertake the business of life insurance by a Certificate dated September 20, 1956 issued by the Controller of Insurance in accordance with the provisions of the Insurance Act. The Corporation obtained the Certificate of Registration from the IRDAI to undertake life insurance business on January 1, 2001 which was renewed on an annual basis under Section 3A of the Insurance Act. Further, pursuant to amendment to Section 3A of the Insurance Act with effect from December 2014, the process of annual renewal of Certificate of Registration was discontinued.
The Corporation is governed by provisions of the governing Act; it is also registered with the Insurance Regulatory and Development Authority of India (IRDAI) and is subject to such provisions of Insurance Regulatory and Development Authority (IRDA) Act, 1999 as amended, and regulations that are not inconsistent with the Act. The Corporation is engaged in the business of Life Insurance in and outside India. The Corporation's life insurance business comprises of individual life and group business, including participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group immediate annuity, unit-linked insurance products, variable insurance products, health and micro insurance.
In 1956, nationalization of 245 Companies and LIC came into being on 1st September. The Corporation established foreign branches in Fiji and Mauritius to sell life insurance.
In 1959, the Corporation constructed a 14 storey Sky scraper building for housing Southern Zonal Office.
In 1960, the Corporation established foreign branch in United Kingdom. Officer's Training College was founded by the Corporation at Nagpur on 16th May.
In 1961, First Camp for On the Spot policies was organized on 15th August in Rohtak District. The first batch of Direct Recruit Officers joined the Corporation.
In 1962, the Corporation inaugurated the Pilot scheme of Premium Collection Through Post Offices in village Chandlai on 25th March, 1962.
In 1963-64, the Corporation undertook initiatives in becoming pioneer in installing computers with installation of two computer systems - one in Mumbai and one in Kolkata, with an aim to improve operations. Yogakshema', an architectural landmark, Corporate Office of LIC was inaugurated by Prime Minister Pandit Jawaharlal Nehru on 26th December. LIC started doing General Insurance business.
In 1965, Policy Holder's Council was set up in each Division by the Corporation and The Central Coordination Committee for Sports was formed.
In 1967, IBM 1401/1410 Computer was installed at Mumbai. The EDP Department started functioning.
In 1969, Officer's training college was shifted from Nagpur to Borivali, Mumbai.
In 1970, Commemorative Stamp and Post Card was issued through Indian Posts and Telegraphs depicting Indian Life Insurance. 1870-1970.
The concept of Agents Clubs was introduced in 1971.
The first Career Agents' Branches were set up in 1972 and the Corporation formulated the LIC of India(Agents) Regulations.
In 1978, the Corporation started a Joint Venture Kenindia Assurance Co. Limited. A Scheme of Incentive Bonus to Development Officers came into existence.
In 1980, the Corporation began to recruit Development Officers and The National Insurance Academy(NIA) sponsored jointly with GIC and its subsidiaries, was founded.
In 1981, the Corporation implemented Reorganization Policy' to give effect to operations decentralization and proper decision-making. Jana Raksha Policy was launched to cater to the rural masses. Installation of Microprocessors was first initiated in October by the Corporation and the recruitment under sports quota started.
ECIL-2958 Mainframe was installed at Mumbai in 1982.
In August 1987, the Corporation introduced Landless Agricultural Labourers' Group Insurance (LAGLI). On November 25th, LIC's prestigious Jeevan Bharati Building was inaugurated by the then Union Finance and Commerce Minister Shri N.D. Tiwari.
In 1989, an associate recognized as LIC Housing Finance Limited was set up by the Corporation. LIC turned into a financial conglomerate. The Corporation established LIC Mutual Fund as a trust on 20th April 1989. The Corporation established a subsidiary, Life Insurance Corporation (International) B.S.C. (c), in Bahrain.
Software Development Centre was established at Corporate Office in 1993 and Front End Applications Package was introduced on 17th July in 17 BOs.
The Rural Group Life Insurance Scheme (RGLIS) was launched on 15th August, 1995.
In 1997, the Corporation introduced Corporation's Metro Area Network' (MAN)and Wide Area Network' (WAN) resulting in linking network of all branches on 22nd November.
First IVRS was inaugurated in Mumbai on 21st August 1998 by the Corporation and 150 touch screen based Information Kiosks were set up across the country enabling Customers to get information about policies, new plans, bonus etc. in 1998.
LIC (International) EC extended its operations to Qatar with effect from 28th September 1999.
In 2000, the Corporation set up a subsidiary, Life Insurance Corporation (Nepal) Ltd., in Nepal. For faster dissemination of information, LIC launched its website www.licindia.in and intranet Site Jeevan Sanchar'.
In 2001, the First unit linked Insurance Plan(ULIP) Bima Plus' was launched on 12th February. LIC signed its first strategic alliance with Corporation Bank on 6th June. Krishi Shramik Samajik Suraksha Yojana launched on 30th June. Premium payment facility through internet introduced on 12th September. Shikshan Sahyog Yojana was inaugurated on 31st December. LIC (Nepal) Ltd, was inaugurated as a joint venture between LIC and Vishal Group in Nepal on 3rd December.
In 2002, LIC's first Info Centre was inaugurated in Mumbai. Call Centres were set up at 8 locations across the country. IVRS accessible through Unified Access Number 1251 was integrated with Call Centres on 12th April. Corporate Messaging Solution was implemented. The business through Bancassurance commenced and there was a strategic tie-up with Corporation Bank. A Joint Venture LIC (Lanka) Ltd was formed.
In 2003, LIC (Lanka) Ltd was inaugurated as a joint venture between LIC and Bartleet Group of Sri Lanka on 1st March. Varishtha Pension Bima Yojana was launched on 14th July. LIC's first ever Premium Payment Facility through ATM was inaugurated in collaboration with Corporation Bank on 20th December.
In 2004, premium payment through ECS and Kiosk commenced. SMS Service initiative was launched. MOU was signed for establishing a joint stock company in Saudi Arabia on 20th December. (SICCI). Vidyanet (an Online training Portal for Agents) was launched.
In 2005, LIC and IndusInd Bank tie up for providing first ever group insurance scheme to account holders of the bank in October. LIC's First Satellite Sampark Office (later renamed as Satellite Office) inaugurated in Rajendra Nagar, New Delhi (Delhi DO-1), NZ on 2nd September. The Corporation launched Enterprise Document Management System (EDMS) and Corporate Active Data Warehouse.
In 2006, the Corporation Established LIC's Golden Jubilee Foundation' to support projects like construction of hospitals, schools, buildings, class rooms, old age homes and scholarships etc. and provide scholarships to meritorious students from marginalized communities.
In 2007, the Corporation established a subsidiary, LIC Pension Fund Limited. During the year, the Corporation signed an agreement for implementation of Enterprise Document Management System' (EDMS) to convert all policy records into digital format. LIC HFL Financial Services Ltd, wholly owned subsidiary of the Corporation was incorporated on 31st October.
The Corporation established a subsidiary, LIC Cards Services Limited, to provide credit card services in 2008. CLIA Channel started in 2008. LIC Pension Fund was launched. LIC HFL Asset Management Company Ltd. (AMC) was incorporated on 14th February 2008.
In 2009, the Risk Management Department was set up. LIC launched Credit Card LIC Card'. Alternate Channels of premium payment was started. New CRM initiatives like Relationship Renewal program, Help desk, Exclusive CRE, Help book started. Direct Marketing Channel, established in August 2009 with 6 Units, has 119 Units spread across all Divisions of the Corporation. The initiative was aimed at creating new systems for Business Generation, Sales Process monitoring and Digital Marketing with a view to reach out to untapped Markets and providing new buying experience to the Customers, especially to young, tech-savvy Millennial and High Net worth Individuals.
In 2010, online paperless underwriting, SMS Enquiry Service for proposal status was started by the Corporation.
Integrated Complaint Management System (ICMS) was launched in 2011.
In 2012, the Corporation established a wholly owned subsidiary, Life Insurance Corporation (Singapore) Pte Ltd, in Singapore. LIC's officially developed mobile app for Android based Smartphones was deployed for general public on 23rd March 2012 and Jeevan Akshay VI-first policy of LIC was made available for online sale by the Corporation.
In 2013, the Corporation launched ODS and Customer & Merchant Portal, Remote Audit, Results Framework Document System for HRD/OD, Automation of Employee Information Management and Syndicate Bank signed MOU on 27 June 2013 as Corporate Agent of LIC to sell LIC products.
In 2014, the Corporation introduced Club Galaxy for Agents. Collection of Micro Insurance Premium through Mobile App was launched.
In 2015, the Corporation established a subsidiary, Life Insurance Corporation (LIC) Bangladesh Limited, in Bangladesh. E-APAR, Legal management system was introduced by the Corporation. The Corporation launched three social security schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana, (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension yojana (APY).
In 2016, Bima Diamond Plan was launched on 1st September. LIC's eServices, compliant to IRDA regulations was launched on 1st February. The Corporation announced a 'One time Diamond Jubilee Special Reversionary Bonus' for policyholders whose policies were in force as on 01 September 2016.
In 2017, Enterprise Risk Management (ERM) Concept was launched. The digitization of policy records for 29 Crore customers was completed. SMS based customer helpline started. Premium payment through wallets, BHIM, UPI enabled.
In 2018, LIC training centres (MDC, ZTCs) and CO OD/HRD was awarded ISO 9001:2015 certificate and BIS accredition approved by the Corporation. LIC mobile app was launched for agents by the Corporation and LIC call centre services were launched.
In 2019, the Corporation completed the acquisition of 51% stake in IDBI Bank. The Corporation infused Rs.47,430.00 million into IDBI Bank, currently one of its Associates on October 23, 2019 using policyholders' funds. IDBI Bank raised Rs. 14,351.80 million on December 19, 2020 by way of a qualified institutional placement. IDBI Bank became a subsidiary of the Corporation with effect from January 21, 2019. Multy utility cash card 'SUVIDHA' was launched in collaboration with IDBI bank. Agent recruitment app was launched and Subsidiaries Department was formed at Central Office of the Corporation.
In 2020, the Corporation was designated as Domestic Systemically Important Insurer (D-SII). Online and Paperless Process of completion of Micro Insurance Policies was launched on 6th March. IPO Cell/PMU Department was formed at Central Office. Uninterrupted Service to Customers through online services during Pandemic was introduced by the Corporation. There was Awareness Campaigns in lockdown and post lockdown period of COVID-19 epidemic situation and various customer friendly measures were taken to serve policyholders in view of lockdown.
In 2021, the Corporation launched Atma Nirbhar Agents New Business Application. Deposit Collection Management Centre was launched on 5th January. The Dena Bank Building in Bandra Kurla Complex was acquired by the Corporation.
During the year 2020-21, the Corporation under Individual New Business, has procured 2,09,75,439 Policies with a First Year Premium
Income of Rs 56,406.51 Crore.
Currently the channel has tie-up with 8 PSU Banks, 6 Private Banks, 13 Regional Rural Banks, 41 Cooperative Banks and 1 Foreign Bank under Corporate Agency agreement with 57,919 outlets of these Banks all over the country. In addition to Banks, the channel has tie-up with 69 other Corporate Agents, 79 Brokers and 145 Insurance Marketing Firms (IMF). During the year 2020-21, 4 Banks, 6 Corporate Agents and 24 Insurance Marketing Firms were added to the channel.
During the year 2021, the Corporation introduced 5 individual products viz. LIC's Jeevan Akshay-VII, LIC's New Jeevan Shanti, LIC's Bima
Jyoti, LIC's Bachat Plus and Pradhan Mantri Vaya Vandana Yojana (Government sponsored pension scheme). In addition, the Corporation also introduced modified versions of 2 Individual Health products viz. LIC's Cancer Cover, LIC's New Jeevan Arogya and 1 Health Rider viz. LIC's Critical Illness Rider in order to make them compliant with the Guidelines on Standardization in Health Insurance, issued by IRDAI.
During the FY 2020-21, the Corporation has completed 3 nos Branch Offices (Washim, Yamunanagar and CBO IV Mysore), 8 nos Residential units across the Country. Construction works are in progress for DO building at Bhubaneswar, 9 nos BOs and 90 nos Officers Quarters at various locations, Sales Training Centre building at Warangal & Bareilly and Investment Buildings at CP-3 Lucknow, GIFT CITY Gandhinagar & EM Bypass Road Kolkata. Planning initiated for Construction of major Investment Buildings at Ludhiana and Scheme 54 Indore and building for Sales Training Centre at Bhilai. The installed capacity of rooftop Solar PV till 31st March 2020 was 2,184 KWp and added 955 KWp capacity during the FY 2020-21.
In the F.Y. 2020-21, 2 plots were purchased, of which 1 was purchased by the Southern Zonal Office and 1 by North Central Zonal Office. The total area is 36,177.9 sq. ft. and the total cost involved is Rs. 11.99 crore. Besides this, the Western Zonal Office has purchased 1 ready built premises with land area admeasuring 2,878.36 sq. mtrs. and total built up area admeasuring 10,189.75 sq. mtrs. The premises have been purchased for Rs 380 crore.
During the year 2021-22, the Corporation under Individual New Business, has procured 2,17,18,695 Policies with a First Year Premium
Income of Rs. 54,821.27 Crore.
During the year 2021-22, the Overseas Branches put together issued 7,491 policies with a First Premium Income of Rs. 120.41 crore.
Total Premium Income increased by 6.10% to Rs. 4,27,419.21 Crore in FY 2022.
During the year 2022, the Corporation has allotted 6,324,997,701 equity shares to President of India which includes 6,224,997,701 Bonus share.
During financial year 2021-22, the Corporation introduced 5 new products including 4 Individual Products viz. LIC's Saral Jeevan Bima, LIC's Saral Pension, LIC's Arogya Rakshak, LIC's Dhan Rekha and 1 Group Product viz. LIC's Group Assurance Plan. In addition, the Corporation also introduced modified versions of eight products including six Individual Products LIC's Bima Jyoti, LIC's Jeevan Akshay VII, LIC's New Jeevan Shanti, LIC's Saral Pension, LIC's Bhagya Lakshmi, LIC's New Jeevan Mangal and two Group Products viz. LIC's New One Year Renewable Group Term Assurance Plan I and LIC's New One Year Renewable Group Term Assurance Plan II.
As at the end of the financial year 2021-22, the Corporation had 33 Individual Products, 16 Group Products and 7 Individual Riders available for sale.
As on 31 March, 2022, there were 8 Zonal Offices located at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur, Bhopal and Patna. There were 113 Divisional Offices, 2,048 Branch Offices, 1564 Satellite Offices (SOs) and 1,170 Mini Offices.
The Shares of the Corporation were listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE) w.e.f. May 17, 2022.
As on 31.03.2023, there were 8 Zonal Offices located at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur, Bhopal and Patna.
There were 113 Divisional Offices, 2,048 Branch Offices, 1580 Satellite Offices (SOs) and 1,169 Mini Offices.
During the financial year 2022-23, the Corporation introduced 7 new Individual products viz LIC's Bima Ratna, LIC's Dhan Sanchay, LIC's New Pension Plus, LIC's Dhan Varsha, LIC's New Tech -Term, LIC's New Jeevan Amar, LIC's Jeevan Azad and 1 Group Rider viz. LIC's Group Accident Benefit Rider. In addition, the Corporation also introduced modified versions of 5 Individual Products viz. LIC's Aadhaar Stambh, LIC's Aadhaar Shila, LIC's New Jeevan Shanti , LIC's Jeevan Akshay -VII and LIC's Saral Pension.
During year 2022-23, the Corporation under Individual New Business, has procured 2,04,28,937 Policies with a First Year Premium Income of Rs 58,662.11 Crores. The Overseas Branches put together issued 9,443 policies with a First Premium Income of Rs. 107.68 Crore.
Life Insurance Corporation of India
Directors Reports
Dear Members,
Your Board of Directors (Board) are pleased to present the 66th Annual
Report of Life Insurance Corporation of India ("the Corporation"/
"LICI"/"LIC"), together with the audited financial statements for
the year ended March 31, 2023.
1. HIGHLIGHTS OF FINANCIAL PERFORMANCE:
The Highlights of the Standalone financial performance of the Corporation for financial
year under review, are presented below: ( in crore)
Particulars |
2022-23 |
2021-22 |
Growth |
New business Premium (Net of Reinsurance) |
|
|
|
First Year Premium |
39,054.94 |
36,615.35 |
6.67% |
Single Premium |
1,92,960.65 |
1,62,282.83 |
18.90% |
Renewal Premium |
2,41,989.02 |
2,28,521.03 |
5.90% |
Total Premium |
4,74,004.61 |
4,27,419.21 |
10.90% |
Investment & Other income |
3,14,048.03 |
2,93,683.36 |
6.93% |
Total Income |
7,88,052.64 |
7,21,102.57 |
9.28% |
Profit after Tax (PAT) |
36,397.39 |
4,043.12 |
800.23% |
Other Key Parameters:
Particulars |
2022-23 |
2021-22 |
Growth |
Corporation's Annual Premium Equivalent (APE) ( in crore) |
56,682.00 |
50,390.00 |
12.49% |
Assets under Management |
43,97,204.59 |
40,84,600.65 |
7.65% |
Embedded Value ( in crore) |
5,82,243.00 |
5,41,492.00 |
7.52% |
* Solvency Margin |
1.87 |
1.85 |
- |
* Solvency margin is calculated before considering the proposed final dividend for
the FY, which is subject to shareholders' approval in AGM.
Your Corporation witnessed consistent performance and growth in FY2023. Some of the
other key financial parameters of the Corporation are as follows:
Gross NPA has decreased by 55.58% from 27,087.11 crore in FY 2022 to 12,031.36 crore in
FY 2023.
Net NPA has decreased by 96.63% from 175.81 crore in FY 2022 to 5.93 crore in FY 2023.
Basic & Diluted EPS for the FY 2023 is 57.55.
Net retention ratio for the FY 2023 is 99.86%
COVID 19:
In view of the changed claim experience during last two years and uncertainty of change
in claim experience, additional COVID reserve was provided for, in the valuation for the
years ended March, 2021 and March, 2022. However, with the COVID related claims now
significantly coming down and in view of improving overall claim experience, no additional
COVID reserve has been provided for the valuation as at March, 2023, as the mortality
assumptions are adequate.
2. DIVIDEND AND RESERVES:
The Board of Directors of the Corporation has recommended a final dividend of 3/- per
equity share of the face value of 10/- each, subject to approval of the members of the
Corporation in Annual General Meeting. This translates into a dividend pay-out ratio of
5.22%.
The Corporation has formulated a Dividend Distribution Policy', which has been
approved by the Board of Directors. In terms of Regulation 43A of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing
Regulations'/'SEBI(LODR) Regulations, 2015') the Dividend Distribution Policy' is
hosted on the website of the Corporation at https://
licindia.in/documents/20121/46602/Dividend-distribution-policy.pdf/a099808b-9f30-9c88-29cd-1d3e63d19456?t=1665744390416
The Corporation has carried forward a profitamounting to 35,448.64 crores during the
FY2023 to the Reserves. The Corporation has accumulated profit of 39,462.97 crores as at
March 31, 2023.
The Corporation has uploaded the details of unpaid and unclaimed dividend of FY 2021-22
as on March 31, 2023 on the Corporation's website at
https://licindia.in/documents/d/guest/lic_unclaimed-dividend-fy-2021-22_31-03-2023
3. CAPITAL AND SHAREHOLDING:
The Authorised Share Capital of the Corporation is 25,000 crore divided into 2,500
crore shares of 10/- each. The issued, subscribed and paid-up equity share capital of the
Corporation as at March 31, 2023 is 63,249,977,010 comprising of 6,324,997,701 equity
shares of the face value of 10/- each.
During the year ended March 31, 2023, the Corporation had made an Initial Public
Offering (IPO), of 221,374,920 equity shares of 10 each at a price of 949 per share
(including Share Premium of 939) through an offer for sale by the President of India,
acting through the Ministry of Finance, Government of India (selling shareholder').
The above offer included a reservation of 1,581,249 equity shares for subscription by
eligible employees and a reservation of 22,137,492 equity shares, for subscription by
eligible policyholders of the Corporation. The equity shares, under employee reservation
portion and policyholders reservation portion were offered to eligible employees and
policyholders at a discount of 45 per share and of 60 per share respectively. A discount
of 45 per share was also offered to retail shareholders. Post public issue, shareholding
of President of India as on March 31, 2023 was 96.50%.
Pursuant to Regulation 32 of the SEBI (LODR) Regulations, 2015, no monitoring agency
was appointed to monitor utilization of funds as the offer was an offer for sale and the
entire proceeds were transferred to selling shareholder after deducting the offer expenses
and relevant taxes thereon. The Corporation has not received any proceeds from the offer.
The shares of the Corporation have been listed on BSE Limited (BSE) and the National
Stock Exchange of India Limited (NSE) w.e.f. May 17, 2022.
4. PRODUCTS:
Your Corporation offers a wide variety of products, which fulfil the needs of different
customer segments of the society. During the financial year 2022-23, the Corporation
introduced seven (7) new Individual products viz LIC's Bima Ratna, LIC's Dhan Sanchay,
LIC's New Pension Plus, LIC's Dhan Varsha, LIC's New Tech Term, LIC's New Jeevan Amar,
LIC's Jeevan Azad and one (1) Group Rider viz. LIC's Group Accident Benefit Rider.
In addition, the Corporation also introduced modified versions of five (5) Individual
Products viz; LIC's Aadhaar Stambh, LIC's Aadhaar Shila, LIC's New Jeevan Shanti, LIC's
Jeevan Akshay VII and LIC's Saral Pension.
As at the end of the financial year 2022-23, the Corporation had thirty seven(37)
Individual Products, eleven (11) seven (7) Individual Riders and 1 Group Rider available
for sale.
5. CUSTOMER RELATIONSHIP MANAGEMENT: (A) Policy Servicing:
Servicing of policies is one of the important aspects in the value chain of life
insurance, due to the nature of its long-term contract. Our customer service facilities
start with our Branch Offices/ Satellite Offices through which the all the required
services, like nomination, assignment, change of address, loan, surrender etc. In an
endeavour to provide best services to our Customers we have taken many initiatives like
Anywhere Services' where policy holder can avail services at branches other than
servicing branch, customer portal has been created to avail online facility of premium
paid certificate, online loan, change in address, mode of paying premium, NEFT
Registration and validation of E-NACH. There are many alternate channels available for
payment of premium which includes digital payment through net banking, credit card, debit
card, UPI, e-wallets on LIC Customer portal, Premium can also be paid through Auto Debit,
NACH and Electronic Bill pay process. Offline channels where premium can be paid in cash
or through Cheque are enabled at IDBI Bank, City Union Bank, Common Service Centre (CSC),
Suvidha Infoserve and APT Online and Premium paying points operated by selected Agents.
LIC has centralized call center which is operational 24x7 by calling at 022-68276827.
Services are available in eight Regional languages (Bengali, Guajarati, Kannada,
Malayalam, Marathi, Oriya, Tamil and Telugu) in addition to English and Hindi.
There are 74 Customer Zones operative across India which functions from 8.00 AM to 8.00
PM. Customer can also connect now through our new WhatsApp services No.8976862050.
An initiative called LICHELP, where policyholders can SMS LICHELP<POLICYNO> on
officialfrom 9222492224.An Customer Zone mapped to the servicing branch of the policy,
contacts the customer and support for any service requirement. The Corporation has an
online system wherein a policyholder registered on the Customer Portal of LIC of India can
register complaint and track its status through LIC's e-services available on our website
www.licindia.in The Complaints registered under IRDAI's Grievance Management System-BIMA
BHAROSA are synced with LIC's Complaint Management System. The Corporation has Grievance
Redressal Officers(GROs) at Branch/ Divisional/Zonal/Central Office levels to redress
grievances of customers. Their names are available on our website. The respective GROs are
available at their personal interaction with the customers on all Mondays between 2.30 PM
to 4.30 PM. Customers can meet the GROs on other days with prior appointment. Customers
may also send their grievances through Post, by email etc. to the respective servicing
offices / GROs.
(B) Claims Related Performance: Settlement of Claims:
LIC's Claims Settlement ratio has been the best in post COVID Era, both in Maturity as
well as in Death Claim and there is a declining trend in unclaimed amounts.
During the year, the Corporation has settled 225.51 lakh claims amounting to `
2,09,938.63 Crore (Including Individual, Micro Insurance and Pension & Group Schemes).
All payments were made through digital mode i.e., 100% payment through NEFT. All Claims
reported under COVID Claims were settled. The figures in respect of settlement of claims
for the last three years are provided in the Management Discussion & Analysis report
which forms part of the annual report.
6. INFORMATION TECHNOLOGY:
Technology is the key differentiator in today's era. Technological innovation in the
insurance sector has led to
LIC's operations. Information Technology vertical of the Corporation is working towards
imbibing new digital initiatives, upgrading digital capabilities and automating LIC's
operational processes. The Corporation has launched customized mobile Applications for our
customers, intermediaries and supervisory officials, for on boarding of customers, Agents'
performance monitoring, Performance Review for Line Managers, Pre-recruitment App for
agents, Artificial Intelligence (AI) Powered App for submission of Existence Certificate
for availing annuities.
Customer Portal and LIC Digital mobile app provide service functionalities for more
than 210 lakh registered users (Premier/ Normal) for creation and updating of profile,
viewing policy and proposal images, premium payments including advance premium payments.
Online Service request modules such as for loan Interest payments, loan repayments, change
of address, mode change, ULIP fund switch, eNACH, Online PAN and NEFT data registration,
register and track a grievance, etc. enable submission and fulfillment of various customer
servicing requests. eFEAP, the core insurance solution of the Corporation developed
in-house, enables all the offices of the Corporation to carry out activities right from
the start of policy life cycle at New Business stage to Policy Servicing and ultimately to
Claim settlement and also HR & CRM related activities.
Upgradation of the infrastructure of the core insurance solution (eFEAP-Next) was
undertaken successfully with consolidation of hardware infrastructure of 113 Mini Data
Centers and various Non-DC setups using the HCI based technologies and setting up
private-cloud at four professionally managed Co-location Data Centers spread
geographically in east, west, north and south Tier III Co-location data centers. Two
Disaster Recovery (DR) setups were also created as part of this exercise.
Artificial Intelligence (AI) powered 24x7 Chatbot LIC Mitra' and Jeevan
Saakshya mobile application facilitate the submission of digital existence life
certificate for Individual Pension Plan (IPP)Annuitants and Staff Pensioners of LIC.
Apart from these, Corporation could enable seamless integration with outside platforms
like Aadhaar, PAN, UMANG, Digilocker, etc., for the benefit of our customers, Electronic
Document Management System (EDMS) allows upload and archive images of policy/agency docket
and is integrated with eFeap for docket view, endorsement capturing. eFeap archival also
enables viewing of policy document thus enabling anywhere / anytime servicing of policy.
LIC has implemented a robust network through two service providers for uninterrupted
network availability using MPLS. For seamless connectivity and availability of services
through internet, the internet outbreak links have been procured at multiple locations
through multiple service providers. We have also established Communication channels for
productivity enhancement viz. dedicated VC Solution and email setup to provide
collaboration among internal and external stakeholders.
To ensure a secure environment, the infrastructure and access controls are managed
through an enterprise level Anti-virus, Active Directory, Biometric /OTP based
authentications. The internal systems and resources are protected from external attacks
using state-of-art firewalls.
To optimize the utilization as well as allocation of resources for multiple
applications and services, private cloud technology has been implemented.
Corporation is also planning many initiatives for supporting the stakeholders ranging
from internal users, intermediaries to the prospective customers. Thus, information
technology acts as a key enabler for the Corporation resulting in efficiency, security and
transparency thereby achieving the Digital India mission.
7. PERSISTENCY:
The 13th month persistency for Individual Regular Premium Business, by premium, for
2022-23 is 77% as against 76% for 2021-22 and the 61st month persistency for the same is
62% for 2022-23 as against 61% for 2021-22 The 13th month persistency for Individual
Regular Premium Business, by number, of policies for 2022-23 is 64% as against 63% for
2021-22 and the 61st month persistency for the same is 50% for both 2022-23 and 2021-22.
8. HUMAN RESOURCE:
As on March 31, 2023, the Corporation has a total of 98,463 employees on roll which
includes 23,157 female employees (constitutes approx. 23.52% of total employees). The
details are as under:
Particulars |
Male |
Female |
Total |
CLASS-1 |
23,244 |
7,085 |
30,329 |
CLASS-2 |
17,863 |
1,142 |
19,005 |
CLASS-3 |
32,971 |
14,552 |
47,523 |
CLASS-4 |
1,228 |
378 |
1,606 |
Total |
75,306 |
23,157 |
98,463 |
9. PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE:
In accordance with the Sexual Harassment of Women at Work Place (Prevention,
Prohibition and Redressal) Act 2013, the Corporation has initiated various steps to
improve the status of women and worked for their economic empowerment.
At every level of the Corporation, women officers/employees have contributed
significantly. In the Corporation, Committees for prevention of sexualharassment effectivelyat
Central Office, Zonal Office and Divisional Office level.workplacearefunctioning The
summary of cases as at March 31, 2023 are as under:
No of cases pending at the end of previous Financial Year |
No of cases received during the year |
Total cases |
Cases disposed off during the year |
No of pending cases as on 31.03.2023 |
04 |
14 |
18 |
14 |
04 |
10. ENTERPRISE RISK MANAGEMENT:
LIC has robust Enterprise Risk Management framework to conduct business in an orderly
fashion taking into account the risks faced by the Corporation and controlling its
business effectively with defined responsibilities and adequate risk management
procedures. Board has delegated the responsibility relating to Risk Management to Risk
Management Committee of the Board (RMCB). The ERM framework has robust and efficient
mechanism for the identification, assessing, mitigation and monitoring the risks. RMCB
reviews Enterprise Risk Management activities executed across the organization on
quarterly basis.
Key Risk Management Tools are Risk Appetite Statements, Risk Registers, Incident
Management Framework & Operational Loss database, Top Risks and Key Risk Indicators.
The mitigation strategy with respect to various risks as covered under the current
Enterprise Risk Management framework is: Market Risk, Liquidity Risk, Credit risk,
Insurance Risk, and Operational Risk.
11. INSPECTION:
Your Corporation has a Board approved Inspection Policy which stipulates that every
office of the Corporation in India shall be inspected at least once a year by Officers of
systemic lapses.
During the financial year 2022-23, we introduced a Performance Matrix for Branch
Offices encompassing the Key Result Areas of performance aligned to the Corporate goals.
The need for such a matrix was felt to sensitize all our units to have equal focus on both
marketing & Customer Services which would not only enable them to align their
activities with the objectives of the Corporation but at the same time would also enable
them to achieve "Excellent" rating in Inspection.
Keeping with the pace of improving our systems and procedures, with the intervention of
technology, further development was made in the Remote Inspection Package, whereby a
substantial portion of inspection job can be completed before the commencement of
Inspection of Units, thereby saving on precious time.
During the year of review, your Corporation has completed the inspection of all
Satellite Offices, Branch Offices, Divisional Offices, Zonal Offices and Central Office by
March 15, 2023 and 82% Branch "Excellent". Common Irregularities were shared
with Heads of Departments of Central Office for necessary systemic improvement
12. INTERNAL AUDIT AND COMPLIANCE FRAMEWORK:
Your Corporation's Internal Audit functions are overseen by the Internal Audit
Department at the CentralOffice twelve Audit Centers which conduct the audit. The CO Audit
department besides monitoring the operations of the Audit Centers, arranges for the audits
of various Departments of Central Office.
To bring in professional approachtowardstheauditingofOffices,during the year 2022-2023,
1/3 rd of the DivisionalOfficesand the Branches under those Division including P&GS
units were audited by CA firms. rd of Divisions and its Branches including P&GS units
through CA firms in the coming years so that in three years period all Divisions and all
Branches of the Corporation including P&GS units will be audited by CA firms.
Audit is carried out in all the Units based on Department-wise Questionnaires developed
for this purpose which includes IFC questions in respect of each tier of the Corporation
viz. Branch, Division, Zone and Central Office.
Major findings during the Internal Audit are regularly shared with Departments
concerned of Central Office, which issue necessary instructions to the operating units and
also introduce further systemic controls wherever required.
Further, as per our fraud monitoring framework, the fraud reported for value of more
than ` 1 Crore is placed to the Risk Management Committee through the Central Fraud
Monitoring Committee and Committee of Executives for Risk Management. Each Auditee Unit is
audited every year. The audit activities is reported to the Audit Committee on bi-monthly
basis. A summary of the reports of the auditors is placed before the Audit Committee after
the close of the financial year.
13. INTERNAL FINANCIAL CONTROLS:
The Corporation's internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. The Corporation's internal financial control
over financial policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflects the transactions and
dispositions of the assets of the Corporation, (2) provides reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Corporation are being made only in accordance with authorizations of
management and directors of the Corporation, and (3) provides reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the Corporation's assets that could have a material effect on the financial statements.
14. RELATED PARTY TRANSACTIONS:
The Corporation has a Board approved Policy on Related Party Transactions (RPTs). The
Policy intends to ensure that proper reporting, approval and disclosure processes are in
place for all related party transactions. During the year, pursuant to notification of
amendments to Listing Regulations, amongst other changes, the scope of related party
transactions has been widened significantly and the said Policy was amended to align it
with all the applicable amendments. The updated Policy on dealing with RPTs as approved by
the Board is disseminated on the Corporation's website at
https://licindia.in/documents/20121/46602/Revised-RPT-Policy-Version3.pdf/8c03ebdf-e096-8cf1-6485-f58f89a14eba?t=1674020688256
All RPTs are placed before the Audit Committee for approval and review. Prior omnibus
approval is obtained for RPTs that are of repetitive nature and / or entered in the
ordinary course of business and are at arm's length. Details of material related party
transaction(s) which require approval of the shareholders of the Corporation have been
detailed in the notice convening the 2nd AGM.
The details of related party transaction during the FY 2022 23 are available at page
no. 438-451 of the Annual Report.
15 Ind AS IMPLEMENTATION
Ind AS 117 is yet to be notified by MCA. Insurance Regulatory and Development Authority
of India (IRDAI) has issued instructions/ guidelines to the insurers regarding
preparedness of Ind AS including engagement of professionals to facilitate the process of
implementation of Ind AS.
The Corporation has floated the Request for Proposal (RFP) for engagement of Consultant
for GAP analysis and its impact assessment on implementation of Ind AS and evaluation for
the same is under process.
16. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:
As on date of this report, the Corporation's Board comprises of fifteen (15) Directors
viz., One (1) Government Nominee Director, Nine (9) Independent Directors and five (5)
Whole Time Directors including Whole Time Chairperson and four Managing Directors. The
Directors' Policy' is hosted on the website of the Corporation at
https://licindia.in/documents/20121/46602/Director-s-Policy.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609
A) Changes in Board Composition:
Appointment of Directors:
(i) Mr. Siddhartha Mohanty (DIN: 08058830): The Government of India, vide its letter
dated March 11, 2023, had entrusted financial and administrative powers and functions of
Chairperson of Life in the interim to Mr. Siddhartha Mohanty, Managing Director in
addition to his own duties, for a period of three months w.e.f., March 14, 2023, or till
assumption of the charge by the regular appointee to the said post, or until further
orders, whichever is the earliest.
Further, the Government of India, vide its notification dated April 28, 2023, has
appointed Mr. Siddhartha Mohanty, Managing Director & in-charge as Whole Time
Chairperson of Life Insurance Corporation of India w.e.f., April 29, 2023 till June 29,
2024 and thereafter, as Chief Executive Officer and Managing June 07, 2025, i.e., upto the
date of his attaining the age of 62 years or until further orders, whichever is earliest.
The Board of the Corporation took note of the same.
The necessary resolution for appointment of Mr. Siddhartha Mohanty as Whole Time
Chairperson Corporation along with his brief profile has been included in the notice of
the 2 nd AGM, for formal approval of the members.
(ii) Mr. Jagannath M. (DIN 10090437): The Government of India vide their
notification dated March 13, 2023, had appointed Mr. Jagannath M. as Managing Director of
the Corporation w.e.f., March 13, 2023 till the date of his superannuation or until
further orders, whichever is earliest. The Board of the Corporation took note of the same.
The necessary resolution for appointment of Mr. Jagannath M. as Managing Director of the
Corporation along with his brief profile has been included in the notice of the 2 nd AGM,
for formal approval of the members. (iii) Mr. Tablesh Pandey (DIN 10119561): The
Government of India, vide their notification dated March 13, 2023, had appointed Mr.
Tablesh Pandey as Managing Director of the Corporation w.e.f., April 01, 2023 till the
date of his superannuation or until further orders, whichever is earliest. The Board of
the Corporation took note of the same. The necessary resolution for appointment of Mr.
Tablesh Pandey as Managing Director of the Corporation along with his brief profile has
been included in the notice of the 2 nd AGM, for formal approval of the members. (iv) Dr.
Maruthi Prasad Tangirala (DIN: 03609968) : The Government of India, vide their
notification dated June 28, 2023, had appointed Dr. Maruthi Prasad Tangirala as Government
Nominee Director of the Corporation with immediate effect and until further orders, in
place of Mr. Suchindra Misra. The Board of the Corporation took note of the same.
The necessary resolution for appointment of Dr. Maruthi Prasad Tangirala as Government
Nominee Director of the Corporation along with his brief profile has been included in the
notice of the 2nd AGM, for formal approval of the members
(v) Mr. Sat Pal Bhanoo (DIN: *Not Applicable): The Government of India vide their
notification has appointed Mr. Sat Pal Bhanoo as Managing Director of the Corporation
w.e.f., the date of assumption of charge and upto the date of his superannuation (i.e.,
December 31, 2025), or until further orders, which ever is earlier. Mr. Sat Pal Bhanoo
took charge as Managing Director of the Corporation on July 20, 2023. The Board of the
Corporation took note of the same. The necessary resolution for appointment of Mr. Sat Pal
Bhanoo as Managing Director of the Corporation along with his brief profile has been
included in the notice of 2nd AGM, for formal approval of the
(*Section 153 of the Companies Act, 2013 and the rules thereunder pertaining to
holding of DIN by a Director are not applicable to the Corporation. However, Mr. Bhanoo
will be obtaining DIN in due course of time.)
Cessation of Directors:
(i) Mr. Raj Kumar (DIN: 06627311): Mr. Raj Kumar ceased to hold office as Managing
Director of the Corporation, with effect from the close of business hours on January 31,
2023, upon expiry of his extended service and term beyond superannuation, in terms
ofGovernmentofIndia'searliernotification . dated January 30, 2022 (ii) Mr. M. R. Kumar
(DIN: 03628755): Mr. M. R. Kumar ceased to hold office as Whole Time Chairperson of the
Corporation, with effect from the close of business hours on March 13, 2023, upon
completion of his term, in terms of Government of India's notification dated January 30,
2022 read with letter dated March (iii) Mr. Bishnu Charan Patnaik (DIN: 08384583): Mr.
Bishnu Charan Patnaik ceased to hold office as Managing Director of the Corporation,
w.e.f. March 31, 2023, after close of office hours, upon his superannuation, in terms of
Government of India's Notification dated July 05, 2021.
(iv) Mr . Suchindra Misra (DIN: 01873568): The Government of India, vide their
notification dated June 28, appointed Dr. Maruthi Prasad Tangirala as Government Nominee
Director of the Corporation with immediate effect and until further orders, in place of
Mr. Suchindra Misra. Accordingly, Mr. Suchindra Misra ceased to be a Government Nominee
Director of the Corporation w.e.f, June 28, 2023 The Board acknowledges the invaluable
contributions made by Mr. M.R. Kumar, Mr. Raj Kumar, Mr. Bishnu Charan Patnaik and Mr.
Suchindra Misra during their tenure as Whole Time Chairperson, Managing Directors and
Government Nominee Director respectively and places its deep appreciation for their
guidance and leadership to the Corporation. from M/s S.N.The Ananthasubramanian Corporation
obtained & Co., Practicing Certificate Company Secretaries (Firm's Registration
No. P1991MH040400), confirming that none of the Directors of the Corporation are debarred
or disqualified from being appointed or continuing as Director on the Board by the
Securities and Exchange Board of India, Ministry of Corporate Affairs or any .authority
such other
Independent Directors: Your Corporation has received declarations from all
the Independent Directors confirming that they meet the Criteria of Independence' as
laid down under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made
thereunder.
The Board is of the opinionthatall fulfillthe conditions relating to their
status as Independent IndependentDirectors
Director as specified under Section 4(3) of the LIC Act, 1956 read with the Rules and
Regulations made thereunder and applicable provisions of the SEBI Listing Regulations and
are independent of the management.
The current Board Composition as well composition of Board during FY 2022-23, are
furnished in the Corporate Governance Report annexed to this report.
B) Key Managerial Personnel (KMP's) and changes, if any
In terms of the guidelines on Corporate Governance issued by IRDAI, the following
senior management employees of the Corporation were holding positions of KMPs as on March
31, 2023 and July 20, 2023:
|
|
KMP's holding positions (as on July 20, 2023) |
S. No. |
Name of KMP |
Designation |
1 |
Mr. Siddhartha Mohanty |
Whole Time Chairperson |
2 |
Ms. Mini Ipe |
Managing Director |
3 |
Mr. Jagannath M |
Managing Director |
4 |
Mr. Tablesh Pandey |
Managing Director |
5 |
Mr. Sat Pal Bhanoo |
Managing Director |
6 |
Mr. Pawan Agrawal |
Company Secretary & Compliance Officer |
7 |
Mr. Sunil Agrawal |
Chief Financial Officer |
8 |
Mr. P. Kumresan |
Executive Director (Audit) & Chief Internal Auditor |
9 |
Mr. R. Sudhakar |
Executive Director (Marketing) & Chief MarketingOfficer |
10 |
Mr. Dinesh Pant |
Executive Director (Actuarial) & Appointed Actuary |
11 |
Mr. Krishna Kumar. S |
Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance
Officer |
12 |
Mr. Ratnakar Patnaik |
Executive Director (Investment Front Office) & Chief Investment
Officer |
13 |
Mr. Pratap Chandra Paikray |
Executive Director (ERM) & Chief Risk Officer |
|
|
KMP's holding positions (as on March 31, 2023) |
S. No. |
Name of KMP |
Designation |
1 |
Mr. Siddhartha Mohanty |
Managing Director & In-charge |
2 |
Ms. Mini Ipe |
Managing Director |
3 |
Mr. Bishnu Charan Patnaik |
Managing Director |
4 |
Mr. Jagannath M |
Managing Director |
5 |
Mr. Pramod Ranjan Misra |
Executive Director (Investment Front Office) & Chief Investment
Officer |
6 |
Mr. Tablesh Pandey |
Executive Director (ERM) & Chief RiskOfficer |
7 |
Mr. Pawan Agrawal |
Company Secretary & Compliance Officer |
8 |
Mr. Sunil Agrawal |
Chief Financial Officer |
9 |
Mr. P. Kumresan |
Executive Director (Audit) & Chief Internal Auditor |
10 |
Mr. S Thiruvenkatachari |
Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance
Officer |
11 |
Mr. R. Sudhakar |
Officer ExecutiveDirector(Marketing)&ChiefMarketing |
12 |
Mr. Dinesh Pant |
Executive Director (Actuarial) & Appointed Actuary |
Performance Evaluation of the Board:
In terms of Section 19B of the LIC Act, 1956, Nomination & Remuneration Committee
(NRC) will carry out the evaluation of performance of Directors appointed under section
4(2) (f) and (g) of the LIC Act 1956. In terms of Regulation 17 of SEBI (LODR)
Regulations, 2015, the evaluation of Independent Directors shall be done by entire Board.
Further, in terms of Regulations 25 of the SEBI (LODR) Regulations, 2015, the Independent
Directors shall review the performance of non-Independent Directors, Chairperson and the
Board of Directors as a whole.
Pursuant to the foregoing provisions of LIC Act, 1956 and SEBI (LODR) Regulations,
2015, the entire Board including the members of NRC of the Corporation, undertook the
performance evaluation of Independent Directors for the financial year ended on March 31,
2023.
Further, Independent Directors met separately, without the attendance of
non-Independent Directors and members of the management, and inter-alia reviewed the
performance of the non-independent Directors, Board as a whole; and that of the
Chairperson of the Corporation. They further assessed the quality, quantity and timeliness
of the flow of information between the Corporation, management and the board.
The evaluation of the Individual Performance of Directors, the Board, and the
Chairperson of the Board was undertaken by circulation of questionnaires through an
iOS-based application meant for evaluation.
Fit and Proper' criteria: compliance All theDirectorsoftheCorporationhaveconfirmed
with the fit and proper' criteria on the format prescribed under the
Director's Policy approved by the Board.
Directors & Officers Liability Insurance:
As per Regulation 25 (10) of the SEBI (Listing Obligations & Disclosure
Requirement) Regulations 2015 requiring the Companies to take Directors and Officers
Liability Insurance (D&O) for all its Independent Directors, the Corporation has taken
D&O Insurance for all its Directors and Members of the Senior Management Team for such
quantum and risks as determined by the Board.
Succession Planning:
In terms of the Board approved policy on succession planning, the Nomination &
Remuneration Committee of the Board oversees matters related to succession planning of
KMPs, Senior Management and other key executives of the Corporation. Nomination &
Remuneration Committee also recommends the appointment of Independent Directors to fill
vacancies on the Board.
Meetings of the Board and its Committees, attendance and constitution of various
Committees:
The details of meetings of the Board and Committees of the Board held during the year,
attendance of Directors and constitution of various Committees of the Board, forms part of
the Corporate Governance Report, which is annexed to this report.
Remuneration Policy:
Pursuant to the provisions of Section 19C of LIC Act, 1956, the Board has approved the
remuneration policy as recommended by the Nomination & Remuneration Committee of the
Board. The Policy is placed on the website of the Corporation at
https://licindia.in/documents/20121/46602/Director-s-Policy.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609.
Further, details about remuneration to Directors including Whole-time Directors are
provided under report on Corporate Governance, which is annexed and forms part of this
Annual Report.
Secretarial Standards:
The Corporation is obliged to comply with Secretarial Standards on Meetings of the
Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company
Secretaries of India (ICSI) in terms of provisions contained under Life Insurance
Corporation Act, 1956 read with Rules & Regulations made thereunder.
17. CORPORATE GOVERNANCE:
The Corporation considers its stakeholders as partners in success, and remains
committed to delivering value to stakeholders. The Corporation believes that a sound
corporate governance mechanism is critical to retain and enhance stakeholders' trust. It
is committed to exercise overall responsibilities rigorously and diligently throughout the
organisation, managing its affairs in a manner consistent with corporate governance
requirements and expectations.
The Corporation conducts its business while adhering to various corporate governance
practices to help ensure that there is operational transparency, information sharing,
accountability and continuous dialogue with all our stakeholders. The Corporation has
standard operating procedures or manuals in place that detail procedures to be followed
for each function. The Corporation has several Board sub-committees that overlook
Corporation's corporate governance and enhance brand equity, strengthen the stakes of
Shareholders and maintain a healthy working environment within the organisation.
Pursuant to the provisions of the SEBI (LODR) Regulations, 2015, a
ReportonCorporateGovernancealongwithCertificatefrom
Auditors regarding compliance of conditions of Corporate Governance has been appended
to this report and forms part of this Annual Report.
18. LIC GOLDEN JUBILEE FOUNDATION (LICGJF):
LIC Golden Jubilee Foundation (LICGJF) was established in the year 2006 as a part of
LIC's Community Service initiatives.
The objectives of the Foundation are Relief of Poverty or Distress, Advancement of
Education, Medical Relief and Advancement of any other object of General Public Utility.
During the year, your Corporation has provided 100/- crore to the foundation and as on
March 31, 2023, LICGJF's total corpus was of 360 Crore. The interest earned on the corpus
is utilised for funding various projects for charitable purposes. Since inception, the
Foundation has supported NGOs located across the country and dedicated to the above
objectives through 723 projects amounting to 145.52 Crores. During 2022-23, the
Foundation has sanctioned 18.49 Crore for 77 projects. The Foundation has reached out to
many deprived sections of society through infrastructural support provided in the above
areas. LIC Golden Jubilee scholarship Scheme provides scholarships to children from
economically weaker sections of the society, amounting to 20,000/- p.a for regular
students for pursuing higher education and 10,000/- p.a to special girl child for pursuing
10 + 2 education. During 2022-23, scholarship of 10.04 crore was disbursed. Since
inception, LICGJF has disbursed scholarships of 59.02 crore to 24,875 students.
19. P ARTICULARS OF INVESTMENT IN TERMS OF SECTION 27A OF INSURANCE ACT, 1938:
Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the investments
as at March 31, 2023 are mentioned in Table No. 6 and the investments in infrastructure
and social sector for the year 2022-2023 are mentioned in Table No. 7 at page no. 316-317
of the Annual Report.
20. SUBSIDIARY, JOINT VENTURES AND ASSOCIATE COMPANIES:
As on March 31, 2023, the Corporation has three wholly owned subsidiary companies,
four subsidiary companies, six associate companies and two joint venture companies:
S. No. |
Name of the entity |
Nature of entity |
Business activity |
% of shares held by the LIC |
1 |
LIC Cards Services Limited ("LICCSL") |
1 Wholly owned subsidiary |
LICCSL is engaged in the business of issue and development of credit
cards, smart cards, charge cards and other types of cards, or any other payment products
such as domestic and international travelers' cheques and gift vouchers of all
descriptions. |
100% |
2 |
LIC Pension Fund Limited ("LICPFL") |
1 Wholly owned subsidiary |
LICPFL is engaged in the business of pension fund for pension fund
schemes, as regulated by the Pension Fund Regulatory and Development Authority, Government
of India. |
100% |
3 |
Life Insurance Corporation (Singapore) Pte. Limited
("LIC Singapore") |
2 Wholly owned subsidiary |
LIC Singapore is engaged in the business of life insurance. |
100% |
4 |
Life Insurance Corporation (International) B.S.C. (c)
("LIC Bahrain") |
3 Subsidiary |
LIC Bahrain is engaged in the business of life insurance in Bahrain
and GCC countries. |
99.66% |
5 |
Life Insurance Corporation (Lanka) Limited ("LIC
Lanka") |
3 Subsidiary |
LIC Lanka is engaged in the business of life insurance. |
86.49% |
6 |
Life Insurance Corporation (Nepal) Limited ("LIC
Nepal") |
3 Subsidiary |
LIC Nepal is engaged in the business of life insurance. |
55% |
7 |
Life Insurance Corporation (LIC) of Bangladesh Limited
("LIC Bangladesh") |
3 Subsidiary |
LIC Bangladesh is engaged in the business of, among other things, life
insurance services by carrying out life and supplementary health coverage, providing
accident benefit and pension insurance business under individual and group schemes and all
kinds of guarantee and indemnity business. |
83.33% |
8 |
LIC Mutual Fund Trustee Private Limited ("LICMF
Trustee") |
4 Associate |
LICMF Trustee is engaged in the business of acting as a trustee for
mutual funds. |
49% |
9 |
LIC Mutual Fund Asset Management Limited
("LICMF") |
4 Associate |
LICMF is engaged in the business of investment management. |
45% |
10 |
LIC Housing Finance Limited ("LICHFL") |
4 Associate |
LICHFL is engaged in the business of providing long term finance to
persons, in particular to holders of policies issued by our Corporation, for the
construction or purchase of houses for residential purposes. |
45.24% |
11 |
LIC HFL Asset Management Company Limited ("LICHFL AMC") |
4 Associate |
LICHFL AMC is engaged in the business of, inter alia, managing,
advising and administering all kinds of venture / mutual funds, capital and private equity
funds. |
5.38% |
12 |
IDBI Bank Limited ("IDBI Bank") |
4 Associate |
IDBI Bank is engaged in the business of banking in all forms within
and outside India |
49.24% |
13 |
IDBI Trusteeship Services Limited ("ITSL") |
4 Associate |
ITSL is engaged in the business of providing trusteeship services. |
29.84% |
14 |
Kenindia Assurance Company Limited ("KACL") |
5 Joint Venture |
KACL is engaged in the business of life and non-life insurance. |
10.21% |
15 |
Saudi Indian Company for Co- operative Insurance ("SICCI") |
5 Joint Venture |
SICCI is engaged in the business of life and non-life insurance. |
4.98% |
1Indian wholly owned subsidiary companies; 2foreign wholly owned
subsidiary company; 3foreign subsidiary companies; 4Indian associate companies and 5foreign
joint venture companies
The Corporation also operates directly through its branch offices in Fiji (Suva and
Lautoka), Mauritius (Port Kingdom (Watford) Pursuant to the provisions of Listing
Regulations, the Board has approved the policy for determining the materiality of
subsidiaries within India and outside India. The policies are placed on website of the
Corporation are as under:
Within India |
https://licindia.in/documents/20121/46602/Policy-for-determining-Material-Subsidiaries-in-India.pdf/84ecdaa9-
f927-7a18-26ef-f2af9430e11a?t=1668407223421 |
Outside India |
https://licindia.in/documents/20121/46602/Policy-on-Material-Subsidiaries-outside-India.pdf/a6377617-f33a-
6dd3-9f0d-82589934140c?t=1668407278203 |
The financial position and performance of each of the Corporation's wholly owned
subsidiary companies, companies and associate companies is given in the annual report.
21. CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with Section 24B of the LIC Act, 1956 and SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, Consolidated Financial Statements (CFS) of the
Corporation consisting of subsidiaries and associates have been prepared. The CFS have
been prepared in accordance with the Insurance Regulatory and Development Authority of
India (Preparation of Financial Statements and Auditor's Report of Insurance Companies)
Regulations, 2002 and the circulars issued thereafter and the applicable Accounting
Standards i.e. AS 21: Consolidated Financial Statements and AS 23: Accounting for
Investments in Associates in CFS issued by Institute of Chartered Accountants of India
(ICAI) and forms part of Annual report.
22. RURAL AND SOCIAL SECTOR OBLIGATIONS:
As per the regulatory requirements, the Corporation has met its Rural and Social
obligations for FY 2023. As against the minimum of 20%, the Corporation has issued 22.25%
policies in affirmsthe Corporation's approach towards life ruralsectorwhich
insurance inclusion. Further, 75,36,725 new lives covered (14.05% of total new lives
covered in preceding year) by the Corporation are from the underprivileged social sector
as against the regulatory requirement of at least 5% of total lives covered in preceding
year. Consequently, the Corporation has met the minimum social and rural regulatory norms
laid down by the IRDAI.
23. MANAGEMENT REPORT:
Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development
Authority (Preparation of Financial Statements and Auditor's Report of Insurance
Companies) Regulations, 2002, the Management Report is placed separately and forms part of
the Annual Report.
24. ST ATUTORY AUDITORS:
Pursuant to Section 25 of the LIC Act, 1956, the Corporation has appointed the
Statutory Auditors of the Corporation for the FY
2023 after due recommendations and approvals. The details of the Statutory Auditors are
annexed at page no.319 of the Annual Report.
25. STATUTORY AUDITORS' REPORT:
The Statutory Auditors' Report (including annexure thereof) to the Members does not
contain any qualification, reservation, adverse remark, or disclaimer hence do not call
for any further comments u/s 24C(1)(f) of the LIC Act, 1956. There were no reportable
frauds identified by the statutory auditors during the FY2023.
26. SECRETARIAL AUDITORS' REPORT:
Pursuant to Regulation 24A of SEBI (LODR) Regulations, 2015, the Corporation has
appointed M/s S.N. Ananthasubramanian & Co., Practicing Company Secretary, Mumbai as
the Secretarial Auditor of the Corporation. The Auditor has not made any qualification,
reservation or adverse remark or disclaimer in his report for FY 2023. The detailed report
on Secretarial Audit of the Corporation for FY 2023 from part forms part of this Annual
Report.
27. CERTIFICATE FROM COMPLIANCE OFFICER (UNDER THE IRDAI CORPORATE GOVERNANCE
GUIDELINES, 2016):
A Compliance Certificate, for complying with IRDAI Corporate Governance Guidelines,
issued by the Executive Director (Corporate Governance/GJF/Regulatory Compliance),
designated as the Chief Compliance officer under the IRDAI Corporate Governance
Guidelines, is annexed and forms part of the Corporate Governance Report is appended to
this Annual Report.
28. MATERIAL EVENTS, CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE
CORPORATION:
There have been no material changes and commitments, affecting from the end of the
financial year to which the Balance Sheet relates and the. date ofthisreport
29. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS
IMPACTING THE
GOING CONCERN STATUS AND OPERATIONS OF THE CORPORATION:
During FY 2022-23, no significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and operations of the
Corporation.
30. DIRECTORS' RESPONSIBILITY STATEMENT:
In terms of Section 24C(2) of LIC Act, 1956 and the Corporate Governance Guidelines,
your Directors confirm that; (a) in the preparation of the annual accounts for the year
ended March 31, 2023, the applicable Accounting Standards have been followed along with
proper explanation relating to material departures; (b) they have selected such accounting
policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the
Corporation as of theprofit date; ofthe Corporationforthe year ended onthat (c) they have
taken proper and sufficient care for the maintenance provisions of the LIC Act, 1956 for
safeguarding the assets of the Corporation and for preventing and detecting fraud and
other irregularities; (d) they have prepared the accounts for the current financial year
ended March 31, 2023 on a going concern basis; (e) the vigilance administration referred
under Section 8(1)(h) of the Central Vigilance Commission Act, 2003 is in operation in the
Corporation under the superintendence of the Central Vigilance Commission and in addition
they have laid down internal financial controls to be followed by the Corporation and that
such internal financial controls are adequate and were operating effectively; (f) they
have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively.
31. INVESTOR RELATIONS:
The Corporation has always valued its customer and stakeholders' relationships and it
is our endeavour that all stakeholders should have access to complete information
regarding its position to enable them to accurately assess its future potential. The
Corporation disseminates information on its operations and initiatives on a regular basis.
The Corporation's website (www.licindia.in) serves as a key awareness facility for
all its stakeholders, allowing them to access information at their convenience. It
provides comprehensive information on the Corporation's strategy, financial latest press
releases.
The Corporation publishes financial results on a quarterly basis. The financial results
of the Corporation are prepared and posted on the website of the Corporation for the
current as well as previous years.
32. MANAGEMENT DISCUSSION AND ANALYSIS REPORT, REPORT ON THE CORPORATE GOVERNANCE AND
BUSINESS
RESPONSIBILITY & SUSTAINABILITY REPORT:
Pursuant to Regulation 34 of the SEBI Listing Regulations, Management Discussion and
Analysis (MD&A) Report and Business Responsibility & Sustainability Report (BRSR)
are presented in separate sections and form part of Annual report. In compliance with SEBI
Listing Regulations, a Report on the Corporate Governance framework of the Corporation,
with certifications as required under applicable Regulations (including guidelines on
Corporate Governance issued by IRDAI) is annexed hereto and forms part of this Annual
report.
33. IRDAI LICENSE:
The Insurance Regulatory and Development Authority of India (IRDAI) have renewed the
annual licence of the Corporation to continue the Life Insurance Business for the FY 2024.
34. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:
The Corporation believes to conduct the affairs in a fair and transparent manner by
adopting highest standards of professionalism, honesty and ethical behavior and committed
to develop a culture where it is safe for all stakeholders to raise concerns about any
poor or unacceptable practice and any event of misconduct.
In accordance with the provisions of LIC Act, 1956, IRDAI Corporate Governance
Guidelines, 2016 and Regulation 22 of SEBI
Listing Regulations, the Corporation is required to establish a Vigil Mechanism for
Directors and employees for adequate safeguard against victimization of Directors,
Employees or any other person who report genuine concerns. The Corporation has a Policy
for Prevention, Detection and Investigation of Frauds and Protection of Whistle Blowers
("the Whistle Blower Policy"), which also encourages its employees and various
stakeholders to bring to its notice any issue involving compromise/ violation of ethical
norms, legal or regulatory provisions, actual or suspected fraud etc., without any fear of
reprisal, discrimination, harassment or victimisation of any kind. The details of Whistle
Blower complaints/ concerns received, if any, and subsequent actions taken and the
functioning of the Whistle Blower Mechanism is reviewed quarterly by the Audit Committee
of the Board.
The complaints received through CVC-CMS portal (Complaint Management System) are being
redressed through portal itself. The Whistle Blower Policy is hosted on the Corporation's
website at
https://licindia.in/documents/20121/46602/Whilstblower-policy.pdf/6b7b20c3-9f37-8a16-1bd2-789c4a2f920d?t=1668407087077.
35. AWARDS & RECOGNITIONS:
Your Corporation has received various awards and accolades during the year under review
in areas of Customer Service, Claim Service, Training etc., including the awards for Most
Trusted Brand in insurance. Some of the key ones are listed below:
National award for leadership & excellence in BFSI under four categories namely
Insurance Company of the year-Life, Claims services leader-large, Customer Service
Excellence & Best persistency award.
ET Ascent Presents - National Award for Excellence in CSR and Sustainability under two
categories namely Brand Excellence Award and Award for Customer Service and Loyalty.
Berkshire Media India's Best Company of the year.
IBC Infomedia India's Most trusted Brand.
Kantar Most Purposeful Non-FMCG Brand in India.
ASSOCHAM Moment of Truth (Claims Experience) Life Insurance.
Navbharat BFSI Awards 2022 Best Life Insurance Company in Claims settlement.
World BFSI Congress and Awards under three categories namely Insurance Company of the
year, Excellence in Claims Service and Customer Service Excellence award.
Golden Peacock National Training Award
LIC of India is the top ranked Indian Firm on latest Fortune Global 500 list- ranked
98th as per August/September 2022 issue.
36. BOARD POLICIES:
The details of the policies approved and adopted by the Board of Directors of the
Corporation as mandated under the LIC Act, 1956 and Securities and Exchange Board of India
(SEBI) regulations are annexed to this report.
37. ACKNOWLEDGEMENTS AND APPRECIATIONS:
The Directors express their sincere thanks to the Hon'ble Parliamentary Committees
which visited its offices, the Hon'ble Union Finance Minister, Hon'ble Union Minister of
State for Finance (Expenditure, Banking and Insurance), the Insurance Division of the
Ministry of Finance, Department of Economic Affairs for their active support, advice and
co-operation on various issues. The Directors are grateful to the Insurance Regulatory and
Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI),
Reserve Bank of India (RBI) and Government of India (GOI) for their continued
co-operation, support and advice. The Directors would also like to take this opportunity
to express their sincere gratitude to the valued Policyholders and Shareholders for their
continued trust and patronage.
The Directors also express their gratitude for the advice, guidance and support
received from time to time, from the Auditors, and Statutory Authorities. The Directors
express their deep sense of appreciation to all the Employees, Agents, Corporate Agents
and Brokers, Distributors, Re-insurers, Bankers and the Registrars who continue to display
outstanding professionalism and commitment, enabling the organization to retain market
leadership in its business operations.