Q.What are the major objectives of LIC ?

LIC, set up in 1956 by nationalising life insurance, aims to spread insurance to all (especially rural and poor areas), mobilise household savings, give security to policyholders, invest funds for national development and serve the insured public as a trustee with economy and efficiency.

Background

The Life Insurance Corporation of India was established in 1956 by nationalising private life-insurance companies under the LIC Act, as a public-sector institution in the services sector.

Major objectives of LIC

1. Spread life insurance widely, especially to rural areas and socially and economically weaker sections, at reasonable cost.
2. Mobilise people's savings through insurance-linked saving, channelling them into productive use.
3. Provide security to policyholders and their families against risk, death and old age.
4. Invest funds in government securities, infrastructure and industry for the benefit of the community and national development.
5. Act as a trustee of the insured public, keeping their interests paramount. …