LIFE INSURANCE CORPORATION OF INDIA (LIC)
- LIC of India was incorporated on 1st September, 1956 by amalgamating 243 Companies by an Act called Insurance Act, 1956.
- LIC is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1956 and Insurance Regulatory and Development Authority Act 1999.
- The Corporation has Branch Offices in Fiji, Mauritus and United Kingdom.
- It also operates through Joint Venture (JV) Companies in overseas Insurance Market, namely:
- Life Insurance Corporation (International) registered in Manama (Bahrain);
- Kenindia Assurance Company Ltd. registered in Nairobi;
- Life Insurance Corporation (Nepal) Ltd. registered in Kathmandu;
- Life Insurance Corporation (Lanka) Ltd. registered in Colombo
- Saudi Indian Company for Co-operative Insurance (SICCI) registered in Riyadh
- Life Insurance Corporation (Singapore) Pvt. Ltd. was established in April
- Among the above two joint ventures Kenindia Assurance Co. Ltd. Nairobi, Kenya and Saudi Indian Company for Co-operative Insurance (SICCI), Riyadh, Kingdom of Saudi Arabia are composite companies transacting their respective Stock Exchanges.
SOCIAL SECURITY SCHEME — AAM AADMI BIMA YOJANA (AABY)
- Government of India has floated a highly subsidized insurance scheme, Aam Aadmi Bima Yojana (AABY) which is administered through Life Insurance Corporation of India.
- Under this Social Security Scheme, below poverty line (BPL) and marginally above poverty line citizens are covered under 48 identified occupations.
- The Scheme provides death cover of 30,000/- in case of natural death.
- In case of death or total disability (including loss of 2 eyes/2limbs) due to accident, a sum of 37,500/ – is payable to the nominee / beneficiary.
- All these benefits are paid for a nominal premium of 200 per member per annum, out of which Rs.100 is borne by Central Government through Social Security Fund maintained through LIC of India, and the balance premium of Rs.100 is borne by the member and/or Nodal Agency and / or Central / State Government Department which acts as the Nodal Agency.
- In addition, there is an add-on benefit of Scholarship at the rate of 1200/- per annum per child for two children per family of the insured members studying from 9th to 12th standard (including ITI courses).
DEPARTMENT OF DISINVESTMENT
- The Statement of Industrial Policy of July 24, 1991 laid down the foundation for disinvestment of Central Public Sector Enterprises (CPSEs) in India.
- Accordingly, disinvestment started in the year 1991-92 with the sale of minority shareholding of CPSES to selected financial institutions like LIC, GIC and UTI.
- Later, in April 1993, Rangarajan Committee recommended that percentage equity to be disinvested should generally be under 49% for industries reserved for public sector.
- The current disinvestment policy envisages only minority stake sale in profitable CPSEs while Government retains at least 51% equity and the management control of the CPSE.
- Strategic sale in loss making CPSEs, when all efforts for their revival fail, is taken up on a case by case basis.
- The disinvestment of Government equity in Central Public Sector Enterprises (CPSCs) began in 1991-1992.
- Till 1999-2000 disinvestment was primarily carried out through sale of minority shareholding in small lots.
- From 1999-2004, the emphasis of disinvestment changed in favour of Strategic Sale, sale of large block of shares along with transfer of management control to a Strategic Partner identified through a process of competitive bidding.
- After 2004-2005, disinvestment realizations have been through sale of small portions of equity.
