In India, there is hardly anyone who hasn’t heard about LIC. The line ‘Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi’ is a part of our childhood as well as adulthood. From radio to television, to newspapers, and the internet, it is anywhere and everywhere, and honestly, with its presence on every media platform, it is quite hard to not get noticed.
Life Insurance Corporation owns LIC and comes under the Ministry of Finance. It is India’s biggest life insurance company and has over 70% of the market share.
LIC was founded in the year 1956 and since then has played the role of a constant supporter for most of the people seeking life insurance in India. The importance of life insurance is growing throughout the country.
LIC can grow at a faster rate if the organizational and operational efficiency of LIC can be improved, new kinds of insurance covers are introduced, its services are extended to smaller lesser-known places and the general price level is kept stable. LIC’s assets under management (AUM) have increased by 16.48% year-on-year, reaching INR 51,21,887 crore by the end of March, up from INR 43,97,205 crore at the end of FY23.
Now LIC is not just an insurance company anymore, it has many subsidiaries that serve different sectors. In this article, we will find out about the subsidiaries of LIC. So let’s get started with it.
LIC Housing Finance
LIC International
LIC Cards Services
LIC Mutual Fund
LIC Pension Fund
IDBI Bank
IDBI Bank Limited Step Down Subsidiaries:
LIC Housing Finance
| LIC Subsidiary | LIC Housing Finance |
|---|---|
| Established | 1989 |
| Headquarters | Mumbai |
| Revenue | INR 200 billion (2023) |
This subsidiary of LIC was established in the year 1989 and is said to be one of the biggest Housing Finance Companies in the country. They provide long-term financial services to their consumers so that they can purchase or construct their choice of residence. The headquarters is situated in Mumbai and it has over 2103 people working under it as of 2019.
Apart from that, the company also provides finance to the people who want to renovate and repair their residential places. LIC Housing Finance went public in the year 1994 and has over 450 centers across the country. As of 2023, LIC Housing Finance revenue is 200 billion INR.
LIC International
| LIC Subsidiary | LIC International |
|---|---|
| Established | 1989 |
| Headquarters | Manama, Bahrain |
| Revenue | – |
Established in the year 1989 on the 23rd of July in Bahrain, the main objective of this subsidiary of LIC is to provide life insurance to the Indian people living in the GCC countries. As of now, LIC International is operated in four countries, that is Bahrain, Kuwait, Oman, and UAE.
Apart from this, LIC also has a license to sell life insurance to people from any other country in some selected markets. As of 2016, LIC International is said to be a billion-dollar company that ruled the Kingdom of Bahrain for several years. Such is the impact that it has won several awards amongst them, it has won the MEIF 2012 award from the Central Bank of Bahrain.
LIC Cards Services
| LIC Subsidiary | LIC Cards Services Limited |
|---|---|
| Established | 2008 |
| Headquarters | New Delhi |
| Revenue | INR 8.2 trillion (2023) |
This subsidiary was established in the year 2008 on the 11th of November. LIC launched its Credit cards in the market. Four different types of credit cards are offered here with some common features and some distinct features that make them unique. It is mainly suited for those who pay a large LIC premium. The cards offer lots of unique features to its users and attract users by providing reward points and cashback.
The headquarters is situated in New Delhi, India, and the total revenue as of the company is INR 8.2 trillion (2023).
The types of LIC cards are:
- LIC Gold Credit Cards (for regular users)
- LIC Platinum Credit Cards (for shopping and rewards)
- LIC Titanium Credit Cards ( for travel and hotel booking)
- LIC Signature Credit Card (for premium services)
| Fee/Charge | Amount/rate |
|---|---|
| Finance Charges on Revolving Credit and Cash Advance | 3.25% p.m. (46.78% annual) |
| Free Credit Period | Free Credit Period Up to 50 days |
| Cash Withdrawal Fee | 2.5% of the amount withdrawn (min. Rs. 500) |
| Cash Payment Fee | Rs. 100 |
| Over Limit Fee | 3% of the amount (min. Rs. 500) |
| Foreign Currency Mark-up Fee | 3.5% of the transaction amount |
There are certain criteria that the financial institution looks into before accepting your credit card application. Your credit score, age, monthly income, location, etc. are some of the parameters that you should keep in mind before you apply for a credit card. To apply for an LIC credit card, you should be over 18 years old and should either be an LIC agent or an LIC policyholder. The documents required to apply for an LIC credit card are:
- Proof of Identity: PAN Card, Aadhaar card, Driver’s License, Passport, Voter’s ID, Overseas Citizen of India Card, Person of Indian Origin Card, Job card issued by NREGA, Letters issued by the UIDAI.
- Proof of Address: Aadhaar card, Driver’s License, Passport, Utility Bill not more than 3 months old, Ration Card, Property Registration Document, Person of Indian Origin Card, Bank Account Statement.
- Proof of Income: Latest one or 2 salary slips (not more than 3 months old), Latest Form 16, Last 3 months’ bank statement.
LIC Mutual Fund
| LIC Subsidiary | LIC Mutual Fund |
|---|---|
| Established | 1989 |
| Headquarters | Mumbai |
| Revenue | INR 59.88 crore (2022) |
LIC Mutual Fund Ltd. started its journey in April 1989; it is a direct subsidiary of LIC and is one of the premium brands that provide financial security services to its customers. It is said to be managed over INR 15002.38 crore worth of assets. It offers a total 25 numbers of schemes. The Headquarters is situated in Mumbai, India and the company’s revenue was INR 59.88 crore (2022). Dinesh Pangtey is the CEO of LIC Mutual Fund Ltd.
LIC Pension Fund
| LIC Subsidiary | LIC Pension Fund |
|---|---|
| Established | 2007 |
| Headquarters | Mumbai |
| Revenue | – |
LIC Pension Fund Limited is India’s first pension fund. Established in the year 2007 on November LIC Pension Fund is the Subsidiary of LIC and is considered India’s first pension fund. This fund is to secure the future related to the finances of the people after their retirement. LIC is one of India’s three public sector pension fund managers and has a one-third share in all investments made through Central and State Government NPS. It is also open to the private sector as a fund manager. LIC Pension Fund is the first Pension Fund Company in India to be incorporated and to receive a commencement of business certificate.
These four schemes are provided by the LIC Pension Fund. There is Jeevan Shanti, LIC Jeevan Akshay-VII, Pradhan Mantri Vaya Vandana Yojana, and Saral pension. Its headquarters is situated in Mumbai, India. Smt. Priti Panwar is the current CEO of LIC Pension Fund Ltd.
The government of India introduced the New Pension System (NPS), with effect from 2004. Pension Fund Regulatory And Development Authority (PFRDA) through a process of competitive bidding, has appointed Life Insurance Corporation (LIC), State Bank of India (SBI), UTI Asset Management Company (UTI –AMC), and as The Pension Fund under the NPS. “NPS-Lite Model” is designed to ensure ultra-low administrative and transactional costs, to make such small investments viable.
National Pension System NPS Lite makes pensions possible for small investors. It is an initiative of the Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by the Government of India to regulate and develop the pension sector in India. NPS extends help to the weaker and economically disadvantaged sections of society with their limited investment potential. This is why PFRDA has launched NPS Lite to specifically target marginal investors and promote small savings during their productive lives. It also aims at building up a corpus sufficient enough to buy an annuity for their old age.
Tripti Agarwal
IDBI Bank
| LIC Subsidiary | IDBI Bank |
|---|---|
| Established | 1964 |
| Headquarters | Mumbai |
| Revenue | INR 303.7 billion (2024) |
IDBI Bank was established in the year 1964 and has been providing banking and financial services since then. Apart from that, they are constantly offering digital services to their customers and have a wide range of ATM networks all across the country. In 2019, RBI has categorized it as a private bank.
As of September 2023, IDBI Bank has over 18,283 employees working for it and the bank has 2005 branches and 3353 ATMs all across the country as on 26th April 2024. Apart from that, it also has one overseas branch in Dubai. Since 2018, Rakesh Sharma has been the CEO of IDBI Bank.
IDBI Bank Ltd., as a full-service universal bank provides a wide amount of financial products and services encompassing deposits, loan payment services, and investment solutions. The Bank also has an established presence in associated financial sector businesses including capital market, investment banking, and mutual fund business. IDBI’s very business philosophy is to provide relevant financial solutions and ensure maximum customer convenience through easy access to branches and ATMs as well as digital offerings and excellence in customer service.
The vision is to be the most preferred and trusted bank enhancing value for all stakeholders defining and shaping our day-to-day business, helping us to build long-lasting relationships. IDBI Bank Limited has been categorized as a ‘Private Sector Bank’ for regulatory purposes by the Reserve Bank Of India with effect from January 21, 2019, consequent upon Life Insurance Corporation Of India acquiring 49.24% of the total paid-up equity share capital of the bank. To cater to its ever-expanding needs, IDBI Bank has formed subsidiaries and joint ventures across diverse areas of the Banking and Financial System.
Some of its subsidiaries are:
IDBI Capital Markets and Securities Limited (ICMS)
Its businesses include Merchant Banking, Stock Broking, Distribution of Financial Products, Corporate Advisory Services, Debt Arranging and undertaking, Portfolio management of pension, and Research Services.
IDBI Intech Limited (IIL)
The major business activities of the company are Information technology services, information security practices, a national contact center, and an outbound sales team.
IDBI Asset Management Limited (IAML)
IAML is the investment manager of schemes launched by IDBI Mutual Fund. The Fund offers a bouquet of product inequity and risk profiles of investors.
IDBI Trusteeship Services Ltd (ITSL)
The company operations are acting as trustees to securitization transactions, acting as Bond/Debenture trustees, Security trusteeship assignments, Share pledge Trustee, Venture Capital Fund, Safe Keeping, and other trusteeship services.
IDBI Federal Life Insurance Company Limited (IDBI Federal)
The Company’s life insurance business comprises individual life and pension and group life, including non-participating, health, and linked segments.
Damini Bhandary
Conclusion
LIC has established itself as a brand in India, with so many subsidiaries; it has been trying to keep up with its name of being one of the biggest companies in India. It is doing everything, from providing mutual fund services to banking services to pensions as well. LIC is taking every chance to serve its customers in the biggest and best way possible and take the company to the top.
FAQ
When was LIC established?
LIC was established in the year 1956.
Is LIC government or private?
LIC is a government organization and the government of India owns a 100% stake in the insurance company.
What is the subsidiary of LIC?
IDBI Bank, LIC Mutual Fund, LIC Pension Fund, LIC Housing Finance, LIC Cards Services, and LIC International are some of the subsidiaries of LIC.
How many types of Cards does LIC provide?
LIC provides 4 types of cards as below:
- LIC Gold Credit Cards (for regular users)
- LIC Platinum Credit Cards (for shopping and rewards)
- LIC Titanium Credit Cards ( for travel and hotel booking)
- LIC Signature Credit Card (for premium services)
