The role of LIC India in promoting financial inclusion and literacy in India

Published on: Wed Mar 15 2023

The role of LIC India in promoting financial inclusion and literacy in India

LIC India, or Life Insurance Corporation of India, is India's largest life insurance company, with a presence in nearly every part of the country. LIC has played a critical role in promoting/encouraging financial inclusion and literacy in India since its inception in 1956.

The availability of financial services, such as banking, insurance, and credit, to all segments of society, particularly the marginalized and underprivileged, is referred to as financial inclusion. Financial literacy is the ability to effectively understand and manage one's finances. These two concepts are inextricably linked, and LIC has played an important role in promoting both in India.

LIC promotes financial inclusion by providing life insurance products that are affordable and accessible to all. LIC has a variety/range of policies that cater to various segments of society, ranging from rural farmers to urban professionals. The company has also launched a number of micro-insurance products to meet the specific needs of the low-income population. Jeevan Madhur, for example, is a micro-insurance policy that provides women with life insurance at a low cost. Similarly, Jeevan Mangal is a micro-insurance policy that offers life insurance to economically disadvantaged members of society.

In addition, LIC has been at the forefront of promoting financial literacy in India. The company runs a variety of financial literacy programmes across the country, with a particular emphasis on rural areas. These programmes aim to educate people on the importance of saving, investing, and effectively managing their finances. LIC has also launched a number of initiatives aimed at increasing financial literacy among schoolchildren. For example, the company has launched the "LIC Kids Money Back Plan," which is intended/aimed to instill in children the habit of saving and financial planning.

Another way that LIC promotes financial inclusion is through the use of technology. LIC Online, which allows customers to buy and manage policies online, is one of several digital initiatives launched by the company. LIC Mobile, a mobile app that allows customers to access policy-related information, pay premiums, and file claims from their phones, has also been launched by the company. These initiatives have made it easier for customers, particularly/especially those in remote areas, to access LIC's services.

Through its social security schemes, LIC has also played an important role in promoting financial inclusion. The company has launched several schemes to assist financially vulnerable members of society, such as widows, disabled people, and senior citizens. For example, the "Varishtha Pension Bima Yojana" is a pension scheme for senior citizens that provides a guaranteed pension for ten years.

Through its Corporate Social Responsibility (CSR) activities, LIC has also been actively involved in promoting financial inclusion. The company has launched a number of CSR initiatives aimed at improving society's financial well-being. LIC, for example, has established the "LIC Micro Insurance Agents Welfare Fund," which provides financial assistance to micro-insurance agents in the event of an unforeseen event.

Finally, LIC India has been crucial in encouraging financial inclusion and literacy in India. The company has introduced a variety/range of affordable and accessible life insurance products aimed at various segments of society. LIC has also run a number of financial literacy programmes across the country, with a particular emphasis on rural areas. The company has used technology to make it easier for customers, particularly those in remote areas, to access its services. LIC has also launched a number of social security schemes and CSR initiatives aimed at improving society's financial well-being. Overall, LIC's efforts have assisted millions of Indians in becoming financially literate and included.

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