INSURANCE FOR ALL -ECONOMY

WHY IN NEWS?

LIC enters into tie-up with IDFC First Bank under corporate agency arrangement

Tie-up Agreement:

 

·         Date: Agreement signed on July 16, 2024.

·         Parties Involved: Life Insurance Corporation (LIC) of India and IDFC First Bank Ltd.

·         Purpose: Facilitate the purchase of LIC policies by over 1 crore customers of IDFC First Bank through the bank.

 

 

Digital On-boarding:

 

·         Development Phase: Digital on-boarding for LIC policies is in development.

·         Future Plans: Customers will be able to buy LIC policies online via the bank’s website once the development is completed.

 

LIC and IDFC First Bank Combined Strength:

 

·         Branches: LIC has over 3600 branches and satellite offices; IDFC First Bank has over 1000 branches.

·         Goal: Increase life insurance penetration across the country, aiming for full coverage by 2047.

 

LIC Product Range:

 

·         Products: Annuity, ULIP, Savings, and Term Insurance.

·         Target Segments: Plans for all segments of society.

 

Digital Savvy Customers:

 

·         Statement by LIC’s MD: R. Doraiswamy highlighted the partnership’s benefit to digital-savvy customers of IDFC First Bank, offering a wide choice of attractive LIC products.

 

1. About LIC:

·         Full Name: Life Insurance Corporation of India (LIC).

·         Type: Indian public sector life insurance company.

·         Headquarters: Mumbai, India.

 

2. Establishment:

·         Date: Established on September 1, 1956.

·         Legislation: Created by the Life Insurance of India Act, which nationalized the insurance industry.

·         Merger: Over 245 insurance companies and provident societies were merged to form LIC.

 

3.Size:

  • Largest Insurance Company: LIC is India's largest insurance company.
  • Assets: Total assets under management worth ₹41 trillion (US$510 billion) as of May 2022.

 

4. Ownership and Control:

  • Ownership: Owned by the Government of India.
  • Administrative Control: Under the administrative control of the Ministry of Finance.

 

5.Offices:

  • Central Office: Located in Mumbai.

Zonal Offices: Eight zonal offices located in Delhi, Chennai, Mumbai, Hyderabad, Kanpur, Kolkata, Bhopal, and Patna.

 

Source: https://www.thehindubusinessline.com/money-and-banking/lic-enters-into-tie-up-with-idfc-first-bank-under-corporate-agency-arrangement/article68415118.ece