life insurance corporation of india
Life Insurance Corporation of India
Life Insurance Corporation of India is a firm which ods. If a person dies the he has the right to claim the povides security to people against the risk to their life and amount equivalent to what he has been insured with by this anporation. Along with insurance of life this corporation also insures property against damage. Under this scheme property is insured and if the property receives any damage then the corporation compensates the losses. This corporarion not only pays for the damages incurred but also provides investment facilities. For example if a person survives the period for which he was insured then at the expiry of the period the entire amount is returned to the person long with a bonus The present investment policy of the corporation :
The present investment policy of the Life
Insurance Corporation is as follows –
1. At least 25% part of the increase in the funds
controlled by the corporation is invested in central government securities and besides this 25% part is invested in state governments and other approved securities.
In this way 50% part of such funds is invested in government and other approved securities.
2.Besides this 25% part of such funds is used
in supplementary projects of social welfare.
3. 10% part of such funds is invested by the
corporation in the company sector which includes equity shares, preferred shares, letters of credit, bonds and direct loans.
4. 8% part of such funds is invested by the cor-
poration in the letters of credit given to its policy holders. In addition to this 2% part is invested by the corporation in building construction and immovable assets.
5.The remaining 5% part of the funds is kept
safe and is not available for investing,
In this way the funds of Life Insurance Corporation of India are being invested in the various sectors of the country and generally no important area of the country’s economic activities is left untouched by investments of the corporation.