IPO in sight, LIC Chairperson's tenure extended
- The extension of LIC Chairperson MR Kumar is for a further period beyond March 13, 2022 or till he attains the age of superannuation, or until further orders, whichever is the earliest.
- The extension is to facilitate the launch of LIC’s IPO which is expected in March this year. LIC IPO is expected to be the largest in the history of Indian capital market.
- The Appointments Committee of the Cabinet (ACC) has cleared the extensions.
Life Insurance Corporation of India (LIC)
- The Life Insurance Corporation of India (LIC) was created in 1956 by an act of the Indian Parliament that nationalised the country's private insurance industry.
- Around 245 insurance companies and other provident societies were merged to become LIC.
- The Life Insurance Corporation of India (LIC) is in charge of the world's largest number of insurance policies.
Objectives of LIC
- To spread life insurance coverage across the country, particularly in rural areas, with a special focus on socially and economically disadvantaged people. Its goal is to give adequate financial protection against mortality at reasonable expenses.
- To increase the mobilisation of people's savings by making insurance-linked savings appealing to them.
- To fulfil the primary responsibility to policyholders while also considering the interests of the community as a whole and meeting responsibilities related to national priorities.
- To address the diverse life insurance needs of individuals and the community as a whole, while remaining responsive to the country's changing social and economic environment.
- To function as a trustee of the insured public's funds, both individually and collectively.
- To foster a sense of involvement, job satisfaction, and pride among LIC employees by ensuring that their duties are carried out diligently in order to achieve the company goal.
Salient features of LIC
- The LIC's headquarters are in Mumbai, with seven other zonal offices in Delhi, Chennai, Kolkata, Kanpur, Hyderabad, and Bhopal. It has over 2048 branches around the country and 100 divisional offices in major cities.
- With offices in England, Mauritius, and Fiji, among other places, LIC is actively active in the worldwide market.
- Yogakshemam Vahamyaham is LIC's Sanskrit motto, which means "your welfare is our responsibility."
- Through its investments in the five-year plans, LIC has made a significant contribution. It contributed Rs. 184 crores in the second five-year plan (1956-1961), which climbed to Rs. 7,52,633 crores in (2012- 2015).
- LIC had a monopoly in the Indian life insurance business, contributing over 7% of India's GDP by 2006. However, after August 2000, the Indian government began liberalising the insurance market, and LIC's monopoly in the life insurance sector came to an end.
- LIC buys shares, bonds, and debentures from a variety of enterprises and corporations and lends them money. It functions as a share market downward stabiliser since it has the potential to buy shares even when the market is relatively weak because to the constant flow of new funds.
About Cabinet committee on Appointment
- Head of the Committee – Prime Minister
- This panel makes appointments to posts of three service chiefs, Director General of Military Operations, chiefs of all Air and Army Commands.
- It also makes appointments to the posts of –
- Director General of Defence Intelligence Agency
- Scientific Advisor to the Defence Minister
- Director General of Armed Forces Medical Services
- Director General of Ordnance Factories
- Director General of Defence Estates
- Controller General of Defence Accounts
- Director of Institute for Defence Studies and Analyses
- Solicitor-General
- Governor of the Reserve Bank of India
- Chairman and Members of the Railway Board
- Chief Vigilance Officers in Public Sector Undertakings
- Secretariat posts of and above the rank of Joint Secretary in the Central Government
- It also makes all crucial empanelment and shifting decisions for officials serving on Central deputation.