* A Life Insurance Company is a major instrument for the mobilization of savings of the people, particularly from the middle and lower income groups. These savings are channelised into investments for economic growth.

* LIC, keeping in mind the primary obligation of the Corporation to its policyholders, as enshrined in the objectives of nationalization, the funds of the Corporation are deployed to the best advantage of the policyholders as well as the community as a whole.

LIC’s INVESTMENT IN
SOCIAL SECTOR

* LIC has, over the years been investing a major part of its funds primarily in the Socially Oriented sector. As at 31st March 2002, 87.24% of LIC’s investments were in the Public Sector, 1.03% in Co-operative Sector and 11.73% in Private Sector.

* As at 31.3.2002, the total Life Fund accumulated by the Corporation is Rs.227008.98 crores and not less than 75% of accretions to the fund are invested in Central Government securities and Loans in the Socially Oriented Sector for Approved purposes such as Electricity, Housing, Water supply, road Transport etc

* LIC’s INVESTMENT IN
SOCIAL SECTOR (Inv upto 31.3.2002)

TYPE OF INVESTMENT [Rs. in Crores]
Central Govt securities--109938
State Govt Securities--21463
Power--13447
Housing--19054
Water Supply--4000
Port Railways Roadways--681
Road Transport-- 893
Co-operatives--37
Power (Private Sector)--3797


Insurance & Social security

* Life Insurance Corporation of India also offers “Social security Schemes’ to the people

->Janashree Bima Yojna
->Swarnajayanti Gram Swarojgar Yojna
->Krishi Shramik Samjik Suraksha Yojna 2001
->Shiksha Sahayog Yojna 2001
are some of the Social security schemes offered by LIC.

Janashree Bima Yojna

* The objective of the Social security schemes is to provide Insurance protection to the rural and urban poor persons who are below the poverty line or marginally above it.
50% of the premiums is subsidized from the Social Security fund maintained by LIC and the remaining 50% is contributed by members/ Nodal Agency/ State Government.

* Swarnajayanti Gram Swarojgar Yojna

*This is a scheme designed for borrowers under the central Governments IRDP scheme where the beneficiary is covered for a SA of Rs 5000/- payable on the death of the member and Rs 10,000/- in case of death due to accident. No premiums are charged to the beneficiary.

* Krishi Shramik Samjik Suraksha Yojna 2001

* The object of this scheme is to provide Life Insurance protection , periodical lump sum Survival Benefits and Pension to the agricultural workers.
* The member pays Rs 365/- per annum as contribution
* Double the amount is contributed from the Social Security Fund
An amount of Rs 100/- is contributed for life cover.

* Shiksha Sahayog Yojna 2001

* The scheme is designed to provide at no additional cost, an educational allowance of Rs 300/- per quarter to students studying in Classes 9th to 12th whose parents are below the poverty line and are members of Janashre Bima Yojna.
The scholarship payments will be made by LIC out of the social security Fund maintained by LIC through the Nodal agency concerned.


Role of Insurance in the Development of Economy

* One of the objectives of nationalization of the life insurance industry in 1956 was channelising of the funds for the benefit of the community
* With the formation of LIC of India on the 1st September 1956, it can be said that utilization of peoples money invested in Life Insurance for planned economic development of the country took roots.

* In pursuance of this objective, LIC has, over the years, been investing a major part of its funds primarily in the Socially Oriented sector
As at 31st March 2002,
(a ) 87.24% of LIC’s total investments were in the public sector.
(b) 1.03% were in the Co-operative sector and
© 11.73% in the Private sector

* The life funds, so invested for the benefits of the community at large has accumulated to Rs 2,27,008.98 Crores as at 31.3.2002
The total investment made by LIC in the Socially Oriented Sector including investments in Central State Government securities and Government guaranteed marketable securities upto 31st march 2002 amounted to Rs 1,73,373 crore.