Q.Write a short note on: LIC

The Life Insurance Corporation of India, set up in 1956 by nationalising life insurance, is a major public-sector institution that provides life-insurance protection to people and channels their savings into government and development investment. It is an important part of India's services and financial sector. This is an AP Intermediate 2nd-year Economics topic on the tertiary (services) sector.

LIC is the short form of the Life Insurance Corporation of India. Its main points are:

1. It was established in 1956 when the Government of India nationalised the life-insurance business by merging a large number of private life-insurance companies into a single state-owned corporation.
2. Its main function is to provide life-insurance cover to policyholders, giving financial security to families against the risk of death and against old age through various policies.
3. It mobilises the small savings of millions of people by collecting premiums.
4. These funds are invested in government securities, infrastructure and development projects, so LIC is also a major source of long-term finance for the economy. …