LIC Provides a Contract of Good Faith

insurance

LIC was founded in 1956; two hundred operating companies were merged to form the consortium. The institution was formed to offer a wide range of insurance services to citizens of India with long term and short term objectives. LIC has launched many unique insurance plans, including traditional endowment plans, term insurance and tailor-made ULIPs and money back and pension plans. The company has introduced a digital payment gateway and portal for the convenience of businesses and customers. The major accomplishment of the company is the acceptance of life insurance policies by the large insurable sector of the Indian population. The claim settlement of ratio of 98.62% in FY2020-21 shows the resilience and reliability of the company.

Return on investment 

LIC Assistant Notification 2022 on the official website in pursuance of the outstanding service to customers. The collaboration with leading bankers of India to facilitate online payment of premium is another milestone towards customer satisfaction. More than 1.5 lakh agents serve the country, reaching the doorstep of insured persons. LIC covers the life risk of the insured in lieu of a premium. The composed premium is invested in various market-related instruments and government bonds and securities. The return on investment is utilized to pay death settlements, maturity and survival benefits of the policyholder.

Negates the life risk

The core business of LIC is insurance. The company tries to reap the maximum return from investment to provide comprehensive life coverage to an economically backward segment of society. The fund is allocated judiciously between high risk and low-risk instruments and encourages forced saving to its patrons through ULIPs, endowment and pension plans. LIC formulates an agreement between policyholders and insurers, negating the life risk of the insured by pledging the assured sum to dependents. Life coverage, to an extent, substitutes the loss of income of the policy holder`s family. The affordable premium ensures the economic safety of the policy holder`s family in case of unfortunate death.

Contract of good faith

Once a person enters into an agreement with LIC, the company provides a contract of good faith to monetarily protect the family of the policyholder in case of untimely demise. LIC guarantees to cover the risk of death of the insured provided all information furnished is true. Any fabricated, false information can lead to a breach of contract of the insurance.

The Premium

The premium of the life insurance policy depends on many factors such as the income of the policyholder, age, risk profile, number of dependents and the sum assured. Nonpayment of premium after the due date nullifies the contract. 75% of the amassed premium is invested in government securities and bonds, ensuring sovereign guarantee and assured return. The rest part is invested in blue-chip securities, equity and corporate bonds. The return on investment is utilized to settle death and maturity settlements.

LIC Assistant Notification 2022 provides relevant information about the exam. If you aspire to be a LIC employee, you must follow these notifications periodically. From these announcements, you come to know about the course outline, the pattern of the exam, and previous question papers give you a glimpse of the current trend.

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