Q.Write a short note on: LIC

The Life Insurance Corporation of India (LIC) is a public-sector institution set up in 1956 by nationalising life insurance; it collects people's savings through insurance policies and invests them in industry, infrastructure and government securities, making it a major source of long-term finance.

LIC is studied among the institutional sources of industrial finance in the AP Intermediate 2nd-year Economics course (aligned with the NCERT/CBSE commerce curriculum).

Meaning and role. The Life Insurance Corporation of India was established in 1956 when the life insurance business in the country was nationalised and brought under a single public-sector corporation. LIC performs two important functions. First, it provides life insurance protection to millions of people, giving financial security to families. Second, and importantly for the economy, it mobilises a huge volume of household savings through insurance premiums and invests these funds in industrial securities, infrastructure projects and government bonds. In this way LIC acts as a major i …