The industry of insurance is related to the safety and security of financial value of the assets. It offers protection as well as peace of mind to an individual. It is very important to understand the different products that life and general insurance companies provide before they make a selection as to the product they want to procure. As per the rules, insurance companies whether it is LIC or other private insurance companies have to give the features of the policies at a point of scale. They should also go through the terms and conditions of the policies.
Comparison between Life Insurance Corporation (LIC) and Private insurance companies
- Life Insurance Corporation (LIC) is a substitute for the government to bail out state-owned companies. It is a giant of the insurance sector and its size much more than the private life insurance companies. Though the private companies are expanding and increasing their size but are still very much behind LIC.
- The size of the balance sheet of private life insurance companies lags much behind LIC as balance sheet of LIC is seven times bigger than these private companies.
- LIC due to its excellent service quality and reliability is high acclaimed by the people. Whereas, private life insurance companies are also increasing its customer base but are not so much successful.
- The income of private life insurance companies is negligible when compared to LIC.
- LIC is the oldest player in the insurance market and have a large customer base. The main reason that private life insurance companies lag behind LIC in case of business per branch is that in previous years these have suffer from financial losses.
- When it comes to income per branch, LIC is a champion and is ahead of all the private insurance companies.
- LIC have large number of policy holders, as it is a well established company in the field of insurance. Hence, it is obvious that private life insurance organizations have low number of policyholders.
- LIC has a high growth in the shareholders’ funds as compared to private life insurance companies.
- In LIC there is a biggest collection of group insurance schemes but the private companies don’t have many schemes in comparison to the LIC.
- The claim settlement ratio of LIC is much better than the private life insurers and also scores better with a lapse ratio against them.
- LIC has superior customer friendly nature as compare to the private life insurers.
Some facts about LIC that makes it superior from all the private insurance companies are as following:
- This has as highest insurance professionals or club member agents.
- LIC is world’s number one insurance company in terms of agency and have about 1.1 Million agents.
- This company offers prompt settlement of claims that is 2.21 claims per second.
- In all across the world there are only four countries which have more population than LIC`s policy holders.
- LIC expanding its distribution channel through corporate agencies, Bancassurances, Chief Life insurance Advisor (CLIA) and broker ship.