LIC vs Other Insurers: Why Choose Life Insurance Corporation of India
The Life Insurance Corporation of India (LIC) has been a stalwart in the Indian insurance market for over six decades. With a rich history and a robust financial framework, LIC sets itself apart from other insurers in several key aspects. This article delves into the reasons why LIC continues to be a preferred choice for many policyholders.
Foundation and Governance
Established on September 1, 1956, LIC is a government-owned organization that has stood the test of time. Unlike its private counterparts, LIC operates under different mandates and regulations. While private life insurance companies are also governed by the Insurance Regulatory and Development Authority of India (IRDAI), which ensures the financial soundness and security of policyholders' funds, the unique composition of LIC provides an additional layer of assurance.
LIC invests the funds from policyholders in both its own business ventures and other financial instruments. This dual revenue stream helps it stay profitable, even amidst market fluctuations. The financial stability of LIC is remarkable, with its market share having consistently remained high over the years, albeit slightly lower than its earlier peak in the early 2000s.
Customer Focus and Service
LIC's penetration is remarkably extensive, reaching the last mile in terms of customer coverage. The organization focuses on both urban and rural areas, ensuring that even the most remote regions can benefit from its services. Customers have the flexibility to engage with LIC through both offline and online channels, making the process convenient and accessible.
A key differentiator for LIC is its handling of claims. Unlike some insurers that may initially hold onto customer funds post-claim, LIC credits claim amounts directly to the account before the maturity date. In cases where the claim is denied, LIC ensures prompt follow-ups with the claimant. This approach builds trust and ensures transparency in the claims process.
Adaptability and Customization
LIC offers plans tailored to the evolving needs of its customers. Over the years, its product offerings have adapted to changes in societal trends and customer preferences, enabling it to maintain its market share. From term insurance to health, accident, and general insurance, LIC provides a wide range of options to cater to diverse needs.
A look at the claim settlement ratio of LIC reveals its superior performance. Unlike many private insurers, LIC has a higher and more favorable claim settlement ratio, reflecting its commitment to fulfilling customer claims without exception. This is a significant advantage that sets LIC apart in today's competitive insurance landscape.
Digital Services and Customer Care
In the digital era, LIC has embraced technology to improve customer experience. Providing numerous services online, including policy claims, premiums, and more, LIC ensures that policyholders can access their services whenever and wherever they need. The customer care services offered by LIC are renowned for their efficiency and accessibility, with quick and hassle-free responses, reducing the need for long waits.
LIC's commitment to its employees and agents is evident during times of crisis, such as the COVID-19 pandemic. The organization has provided financial assistance in the form of PPE kits and financial aid to agents, ensuring their well-being and the continuity of services.
Conclusion
While many private insurers have entered the market and compete fiercely, the financial stability, extensive coverage, and customer-focused approach of the Life Insurance Corporation of India make it a reliable and preferred choice for many. From its government-owned structure to its adaptability and high claim settlement ratios, LIC continues to stand out in the Indian insurance landscape.