LIC@ 70: An institution evolves

LIC completes 70 years, marking seven decades of insurance, financial protection and enduring customer trust.

By R Doraiswamy

On September 1, 1956, a new institution was born with a mission. A mission seemingly simple but of epic proportions: To take life insurance to every corner of India and provide financial protection at a reasonable cost. Life Insurance Corporation of India (LIC) was established under an Act of Parliament, bringing together 245 private life insurance companies and provident societies under one roof, with an initial capital contribution of just ₹5 crore from the government.

On September 1, 2026, LIC completes 70 years of glorious operations. As LIC marks this milestone, the first and most appropriate sentiment is one of gratitude — to its policyholders, agents, employees, shareholders and the government, whose confidence and support have made this journey possible.

The anniversary is, therefore, not merely a corporate milestone, but a moment to look back at seven decades in which India’s economy changed, its society transformed, its aspirations multiplied and its financial landscape was repeatedly reshaped.

For FY26, total premium income, stood at ₹5,35,984 crore (up 9.80%), while the profit after tax rose 19.25% to a record ₹57,419 crore.

The claims figures for the anniversary year are equally telling. LIC processed 25 million individual claims, including 24.1 million maturity and survival benefit claims. Maturity claims amounting to ₹2.80 lakh crore and death claims of ₹24,885 crore were paid during the year, with the individual death-claim settlement ratio at 99.44%.

Leadership that has survived competition

Perhaps LIC’s greatest achievement is not that it became large. It is that it remained a leader after the rules of the game changed.

For decades, LIC operated in an environment where it was the dominant national life insurer, but the liberalisation of India’s insurance sector in 2000 transformed the landscape. Private insurers entered the market, customer choice expanded, technology accelerated, distribution models evolved, products became increasingly sophisticated, and competition grew relentless. LIC no longer had the luxury of standing still; it had to continuously reinvent itself and earn its leadership again, and again, and again.

For FY2025-26, LIC accounted for 56.66% of India’s life insurance market by first year premium income, and an extraordinary 70.11% in group business; its market share by number of policies was 65.16%.

The customer at the center of transformation

Future years cannot be built on the strengths of the past. LIC recognises that today’s customer expects speed, convenience, transparency and digital engagement. This is why the corporation’s digital transformation is significant: The launch of the Milic App in April 2026 puts an LIC office in the customer’s hands, offering policyholders digital access to their portfolio and servicing facilities, alongside the Super Sales Saatchi App for marketing intermediaries.

LIC has also been steadily modernizing its product portfolio. It now has a suite of 52 products and eight riders, including recent launches such as Bama Lakshmi (a plan exclusive to women), Protection Plus (a ULIP), Bama Kavach (a term plan), Jeevan Utsav (a single-premium plan) and, most recently, New Jeevan Sathi (a joint-life plan).

Bima Sakhi: Insurance as empowerment

LIC’s purpose is better illustrated by Bima Sakhi, a mahila career agent scheme that seeks to create employment and financial independence for women while taking insurance deeper into rural India. As at March 31, 2026, the number of active Bama Sakha’s was 2,83,249; during FY2025-26 they completed 2.194 million policies with first tear premium income of ₹3,769 crore. LIC has now covered 59% of India’s Gram Panchayats with at least one Bima Sakhi.

Rewarding shareholders, strengthening the institution

LIC’s evolution into a listed corporation has added a further dimension to its accountability. Since its 2022 listing, it has consistently paid dividends. For FY26, the board recommended a final dividend of ₹10 per equity share of ₹10 face value – equivalent to ₹20 per share on a pre-bonus basis. The 1:1 bonus issue approved in 2026 effectively doubles LIC’s outstanding equity shares, intended to improve liquidity and reward shareholders for their continued confidence in the corporation.

The road ahead: Opportunities & challenges

Customers today have more choices than ever before, and technology has reshaped expectations. The changing factors have been identified and LIC is striving to adapt. The focus areas are: product mix, technology and persistency, distribution mix, asset management and expectations of a listed company.

India remains underinsured, and the country’s economic expansion, rising household incomes, growing financial awareness and increasing longevity will create enormous demand for protection, savings and retirement solutions in the years ahead. Meeting that demand, while adapting its distribution and product mix to a more competitive and digital market, will define LIC’s next chapter.

Measure that cannot be counted

The institution that began in 1956 with ₹5 crore of capital has become a financial giant. But its greatest asset cannot be measured in rupees.

It is trust.

For seventy years, generations of Indians have placed their savings, hopes and family security in LIC. That trust was earned by the institution, but it was also built by its customers, sustained by its employees and agents, and backed, throughout, by the Government of India.

As LIC enters its eighth decade, it stands at the intersection of tradition and transformation, armed with a robust digital infrastructure, a diversified product suite, unmatched financial might, a strong army of dedicated agents, distribution partners, employees and the unconditional love of millions of citizens.