Objectives of LIC
To mobilise maximum savings of the people by making insured savings more attractive.
To extend the sphere of life insurance and to cover every person eligible for insurance under insurance umbrella.
To act as trustees of the insured public in their individual and collective capacities.
Promote all employees and agents of the LIC, in the sense of participation and job satisfaction through discharge of their duties with dedication towards achievement of LIC objectives.
To ensure economic use of resources collected from policy holders.
To conduct business with utmost economy and with the full realization that the money belong to the policy holders.
Activities of LIC
The LIC subscribes to and underwrites the shares, bonds and debentures of several financial corporations and companies and grants term-loans. It maintains a relationship with other financial institutions such as IDBI, UTI, IFCI, etc. for coordination of its investment.
The LIC is a powerful factor in the securities market in India. It subscribes to the share capital of companies, both preference and equity and also to debentures and bonds. Its shareholding extends to a majority of large and medium sized non-financial companies and is significant in size.
It is no doubt to say that the LIC acts as a kind of downward stabilizer of the share market, as the continuous inflow of fresh funds enables it to buy even when the share market is weak.