Why is LIC so popular?

LIC policies are sold aggressively by your neighboured LIC agents because selling such policies come with a high commission. There are several selling points – 1) protection, 2) return on investment and 3) tax benefits. Earlier, when investment options were few, these had become very popular.

Is LIC a monopoly market?

Set up under the Life Insurance Corporation Act of 1956, LIC has remained a fully government-owned corporation to this day. LIC continued to enjoy a monopoly in the insurance sector for 44 years until the sector was opened up to private sector in 2000.

When did the Indian Government liberalized the insurance sector which the monopoly of LIC?

Nationalisation of the life insurance sector took place on 1st September 1956, with issuance of ordinance by Government of India (GoI) to dissolve 245 units (154 Indian insurers, 16 non-Indian insurers and 75 provident societies) into a giant, government-owned, autonomous entity, namely, Life Insurance Corporation of …

Is LIC invest in stock market?

LIC owns a 5.06\% stake in Union Bank of India, according to the shareholding pattern available on BSE’s website. Since the beginning of the July-September quarter, Union Bank’s share price has slipped 9.86\% to now trade at Rs 34.75 per share.

Is LIC in profit or loss?

Life Insurance Corp. of India (LIC) booked a record ₹37,000 crore profit from share sales in 2020-21, the highest in its 65-year history, as the stock market reached record highs. The latest profit is a 44.4\% jump against its ₹25,625 crore profit from stock sales in fiscal 2020.

What is the insurance of the insurance market in Indian insurance market?

The total insurance penetration in India was at 3.76\% in 2019 (life insurance 2.82\% and non-life 0.94\%) and the total insurance density in India was at $78 in 2019-20 (life insurance density: $58, non-life insurance: $19).