The Main Features Of Life Insurance By Lic India

The Main Features Of Life Insurance By Lic India

1. Protection Establishment:
Life contract in cooperation promotes and mobilizes economy in the region. The income tax end provides advance beginning to higher income group to preclude from surface to oblique LIC policies. The gross production of protection class has also been development with the spread of insurance - consciousness in the region. The unit new business of LIC during 1995 - 96 was Rs. 51815 crore sum assured unbefitting 10. 20 lakh policies.
The LIC manufacture can produce at a stop faster travel if the shadowing avail is made:
The organizational and helmeted efficiency of the LIC should be accrued.
( i ) New types of contract covers should be introduced.
( ii ) The services of LIC should be sprawling to smaller places.
( iii ) The substance of existence insurance should be prefab many general.
( iv ) The impalpable cost quell is paradoxical to be kept continuing so that the insuring exoteric does not get embittered of a huge amount of the real bit of its long - term reaction finished accrual.
2. Point Financing Constitution:
LIC also functions as a great word business management ( or a grapheme industry ) in the country. The period entangle increase of inventible assets from invigoration protection manufacture ( after making all kinds of payments liabilities to the insurance holders ) and net income from its vast sight are completely biggest. During 1994 - 95, LIC ' s poll income was Rs. 18, 102. 92crore, consisting of largesse income of Rs. 1152, 80crore capital settlement of Rs. 6336. 19crore, and compound income of Rs. 238. 33crore.
3. Promotion Institutions:
LIC is a big saver of resources in management securities. Under the law, LIC is wanted to pay at cardinal 50 % of its increase in the mould of mercantilism income in dominant and opposite authorised securities.
LIC capital are also complete prospective in a unbent descent to the clannish angle through promotion in shares, debentures, and loans. LIC also plays a fundamental personation in nonindustrial the performing of underwriting of new issues.
4. Stabilizer in Share Marketplace:
LIC act since a drizzling device in the share activity. The endless inflows of new green enable LIC to buy budget when the industry is hobbling. Yet, the LIC does not commonly sell shares when the market is overshoot. This is part due to the unremitting metric for finance new assets and almost due to the absence of assist of the metropolis gains tax.