Q.Write a short note on: LIC

LIC is India's state-owned life insurance corporation, established in 1956, that provides life insurance to the public and channels the large savings it collects into long-term investment in industry, infrastructure and government securities.

This is a 2-mark short note in the AP Intermediate 2nd-year Economics industrial-finance unit.

The Life Insurance Corporation of India (LIC) was established in 1956 when life insurance business in the country was nationalised and brought under one public-sector corporation. Its two roles are important: first, it gives life insurance cover and financial security to crores of policyholders and their families; second, it is a giant institutional investor. The premiums it collects become a huge pool of long-term funds, which LIC invests in shares and debentures of companies, in infrastructure and in government securit …