LIC ( Life Insurance Corporation) of India was incorporated on 1st September 1956 by amalgamating 243 Companies by the Act of Parliament called Insurance Act, 1956. LIC is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1959, and Insurance Regulatory and Development Authority Act 1999. As on 31st March, 2016, LIC has 8 Zonal Offices, 113 Divisional Offices, 2048 Branch Offices, 73 Customer Zones, 1401 Satellite Offices, and 1240 Mini Offices in India.

The finance minister, Nirmala Sitharaman, announced in the budget 2020 that the government is contemplating listing Life Insurance Corporation of India in the secondary markets by the second half of this year. LIC is the largest insurance company in India with about 28 crore policies in force equalling a sum assured of Rs. 45 lac crores. The annual premium receivable by LIC was Rs. 2 lac crores in the financial year 2018-19. LIC had investments valued at Rs. 30 lac crores as on March 31st, 2019.

The Cabinet Committee on Economic Affairs approved the IPO in July 2021. The centre is set to list LIC on the stock exchanges to help meet disinvestment targets for the year. The GOI is planning to raise funds up to Rs 1 lakh crore through this IPO. The listing of LIC is expected in the third or fourth quarter of 2021-2022.

Will LIC policyholders can get any benefit if they apply?

There are reports that LIC will reserve up to 10% of the issue size in the IPO for LIC policyholders thus providing a greater chance of allotment. There are also reports that the government could offer a discount on the issue price for LIC policyholders. Further details will be known when the DRHP is issued.

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