Insurance (life): India

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This article has been sourced from an authoritative, official publication. Therefore, it has been ‘locked’ and will never be thrown open to readers to edit or comment on. After the formal launch of their online archival encyclopædia, readers who wish to update or add further details can do so on a ‘Part II’ of this article.

Life Insurance Corporation of India (LIC)

The Life Insurance Corporation with its Central Office in Mumbai, 8 Zonal Offices at Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Kanpur, Bhopal and Patna, 109 Divisional Offices including one Salary Savings Schemes (SSS) Division at Mumbai, 2048 Branch Offices and 1004 Satellite Offices as on 31 March 2010, spreads the message of Insurance through the length and breadth of India, with the help of 14,02,807 agents.

LIC also transacts business abroad. International Operations were set up with an endeavor to establish global presence and also to acquire the best practices being followed internationally so that LIC may become a world class organization. LIC's endeavour is to further consolidate their Brand Image across the world. At present LIC is operating internationally through Branch Offices in Fiji, Mauritius and UK and through Joint Venture Companies in Bahrain Nepal, Sri Lanka, Kenya and Saudi Arabia. Its Representative Office in Singapore was opened on 06.11.2008. LIC is now in the process of establishing a Wholly-Owned Subsidiary (WOS) there.

In 2009-10, all foreign units put together procured new business of 82,794 policies with First Premium income of Rs 207.92 crores, registering a growth of 31.75 per cent (NOP) and 23.81 per cent (FPI). The total Premium Income of all units in 2009-10 was Rs 736.61 crores.

During the financial year 2009-10, the total First Year Premium under Individual Assurances was approximately Rs 50,527.31 crores under 368.38 lakh policies. The Group Insurance brought a new business premium of approximately Rs 20,542.11 crore under 18,573 schemes covering 2,37,57,262 lives.

The Life Fund, as on 31.3.2010, amounts to approximately Rs 9.98,501 crores. The Corporation made payments of around Rs 7,031.62 crores under Death Claim cases, around Rs 46,917.93 crores under Maturity Claims and around Rs 3,770.41 crores under annuities.

(i) JANASHREE BIMA YOJANA

The Janashree Bima Yojana (JBY) was launched in 10 August 2000. The Scheme has replaced Social Security Group Insurance Scheme (SSGIS) and Rural Group Life Insurance Scheme (RGLIS). 45 occupational groups have been covered under this schme.

The Scheme provides for an insurance cover of Rs 30,000 on natural death. On death/total permanent disability due to accident, the benefit is Rs 75,000/-. On partial permanent disability due to accident, the benefit is Rs 37,500/-. The premium for the scheme is Rs 200/- per member per annum, 50 per cent of which is met out of Social Security Fund. The balance premium is to be borne by the member and/or Nodal Agency. As on 31 March 2010, about 184.43 lakh have been covered. The balance in Social Security Fund as on 31 March 2010 is Rs 618.83 crore. (Provisional)

(ii) SHIKSHA SAHAYOG YOJANA

The Scheme was launched on 31 December 2001, with the object to lessen the burden of parents in meeting the educational expenses of their children. It provides scholarships to students of parents living below or marginally above poverty line and who are covered under Janashree Bima Yojana and children are studying in 9th to 12th standard (including ITRI courses).

A scholarship amount of Rs 600/- per half year per child is paid for a maximum period of four years and for maximum two children of a member covered under Janashree Bima Yojana.

No premium is charged for this benefit. During the financial year 2006-2010 scholarship were disbursed to 9,13,281 beneficiaries amounting to Rs 67.58 crores.

(iii) AAM ADMI BIMA YOJANA

AAM ADMI BIMA YOJNA, a new Social Security Scheme for rural landless households was launched on 2nd October, 2007 by the then Union Finance Minister at Shimla. The head of the family or one earning member in the family of rural landless household is covered under the Scheme.

The premium of Rs 200/- per person per annum is shared equally by the Central Government and the State Government. Head of the family or one earning member of the family aged between 18 and 59 years is covered for an amount of Rs 30,000/- under the Scheme. In case of death or total disability (including loss of 2 eyes/2 limbs) due to accident, a sum of Rs 75,000/- and in case of partial permanent disability (loss 1 eye/1 limb) due to accident, a sum of Rs 37,500/- is payable to the nominee/ beneficiary. As on 31 March 2010, 1,30,45,666 heads of the families of rural landless households were covered under the Scheme.

A free add-on benefit for the children of the members of AAM ADMI BIMA YOJANA is provided under the Scheme in the form of a scholarship at the rate of Rs 100/- per month and is given to maximum two children studying between IX to XII Standard payable half yearly on 1st July and 1st January each year. During the financial year 2009-2010, scholarship were disbursed to 86,906 children amounting to Rs 54.48 Crores.