Life Insurance Corporation of India (LIC) is one of the oldest and largest life insurance providers in India. With a range of life insurance products, it caters to the insurance needs of a wider section (including urban and rural) of Indian society. However, LIC of India does not provide commercial insurance policies that protect businesses from various liabilities. This article helps you understand the differences between life insurance policies offered by the LIC and corporate insurance policies.
The differences between LIC (Life Insurance Corporation of India) and corporate insurance can be understood by examining their purpose, types of products offered, scope, and target customers. Here are some of the key differences between LIC and corporate insurance:
Purpose
LIC of India mainly deals with life insurance products. It is a government-owned company providing life insurance and investment solutions to individuals. Its products include term insurance that offers life cover against uncertainties, and endowment plans that offer both life cover and investment options. LIC also offers whole-life policies to provide lifetime cover, money-back policies, and pension plans to accumulate wealth for various milestones of life.
On the other hand, corporate insurance refers to insurance policies designed to offer financial protection for companies, by insuring their employees and assets. It includes corporate health insurance, property insurance, general liability insurance, worker compensation insurance, and other coverage that helps businesses manage risks.
Types of Products in LIC & Corporate Insurance
Some of the important offerings of LIC are:
- Life Insurance: The term plans and whole life insurance policies offered by the LIC of India are designed to protect the policyholder against the uncertainties of life such as death and disabilities. New tech term plans, LIC’s life celebration plans, etc. are currently available for online purchase.
- Endowment Plans: LIC offers various endowment policies that give dual benefits of life cover and wealth creation for the future.
- Money-Back Plans: LIC offers various money-back policies with various unique features to help you fund your children’s education at different phases.
- Pension Plans: LIC’s pension plans mainly cater to your retirement needs and planning.
- Unit-Linked Policies: Policies that combine insurance with investment opportunities, like ULIPs (Unit Linked Insurance Plans) give market-linked returns to help you build a corpus over the long term.
Some of the important corporate insurance products are:
- Corporate Health Insurance: It provides health coverage for members/employees of a group/organisation.
- Liability Insurance: Businesses can avail of this to protect themselves from legal liabilities.
- Property Insurance: This insurance plan covers the physical assets of a company.
- Workers’ Compensation Insurance: This is mandatory insurance for companies to protect themselves from the liabilities arising out of death/injuries/disabilities caused to employees at work.
- Target Customers
LIC of India primarily targets individuals and families looking for life insurance and investment-cum-insurance products. You can buy their insurance products by visiting the LIC office or online. You can also check LIC policy details online.
On the other hand, corporate Insurance products have businesses and organisations as their target customers. Companies purchase these policies to protect the business from financial risks.
Premium Payment
LIC allows its policyholders to pay premiums periodically (monthly, quarterly, half-yearly, or yearly) at their convenience. LIC online payments can be done through platforms like LIC’s official website or mobile applications. With the LIC premium payment online option, you can conveniently pay anytime from anywhere.
On the other hand, premiums for corporate insurance policies are typically paid by employers for the entire group of employees. In some cases, employees may contribute fully to the premiums or partially by sharing the cost with employees.
Claims Process in LIC & Corporate Insurance
Policyholders or their beneficiaries can file claims directly with LIC of India in the event of a claim (policy maturity or death). Generally, LIC offices handle the entire claim process by coordinating with the claimant.
On the other hand, claims in corporate insurance policies are usually handled by the human resource or administration department of the organisation/group in conjunction with the insurance provider. However, employees can claim health insurance or accidental insurance benefits under corporate group policies.
Conclusion
To sum up, the main difference between LIC products and corporate insurance products is the purpose they serve. LIC focuses on life insurance and investment-based products for individuals and families, while corporate insurance is tailored for companies or businesses to mitigate risks. The key differences lie in the nature of their policies, the types of risks they cover, and their potential customers.
