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Financial System 241<br />

Some of the Private Sector Life Insurance Corporation<br />

• ICICI Prudential Life Insurance Corporation Limited.<br />

• ING Vysya Life Insurance Corporation Limited.<br />

• HDFC Standard Life Insurance Corporation Limited.<br />

• Birla Sun Life Insurance Corporation Limited.<br />

• SBI Life Insurance Corporation Limited.<br />

• Om Kotak Life Insurance Corporation Limited.<br />

• Met Life Insurance Corporation Limited.<br />

• Allianz Bajaj Life Insurance Corporation Limited.<br />

• Max New Yark Life Insurance Corporation Limited.<br />

• Tata AIG Life Insurance Corporation Limited.<br />

• AMP Sanmar Life Insurance Corporation Limited.<br />

Some of the Private Sector General Insurance Corporation in India are as follows:<br />

• CH NBH Assn General Insurance Corporation.<br />

• ICICI Lombard General Insurance Corporation.<br />

• Bajaj Allianz General Insurance Corporation.<br />

• AIG General Insurance Corporation.<br />

• IFFCO Tokio General Insurance Corporation.<br />

• Royal Sundaram General Insurance Corporation.<br />

• Reliance General Insurance Corporation.<br />

LIFE INSURANCE CORPORATION OF INDIA<br />

The Life Insurance Corporation of India (LIC) was set up in the year 1956 by nationalizing<br />

245 insurance <strong>com</strong>panies. The Primary objective of nationalization was to protect the interest<br />

of policy-holders against misuses and embezzlement of funds by private insurance <strong>com</strong>panies.<br />

Secondly, the object of nationalization was to direct investment of funds in government<br />

securities, leaving a meager part for the private sector.<br />

What marks and distinguishes the LIC from other long-term <strong>financial</strong> institutions is<br />

this that it discharges the two fold function of mobilization of long-term savings and their<br />

effective channelisation as well. The other agencies are suppliers of fund obtained from<br />

government and the Reserve Bank of India.<br />

Role of LIC<br />

The activities of the LIC can be broadly classified into two categories. First, it mobilizes longterm<br />

contractual savings. Its policy-holders view the LIC as a trustee of their funds, a source<br />

of emergency fund to guard against any <strong>financial</strong> misfortune and a way to accumulates<br />

funds by the time of retirement from work. As an agency it is designed to the inculcation of<br />

savings for the sake of rainy days.

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