Comprehension:(Que No. 1 - 7)
Directions: Read the following passage and answer the questions given below. Some words may be highlighted for you. Pay attention.
LIC is known as India's largest government-owned life insurance and investment corporation. The main role of LIC is to invest in global financial markets and different government securities after gathering funds from people through their various life insurance policies. At least 75% of these gathered funds are to be invested in Central and State Government securities, as stated by one of the LIC rules. The major functions of LIC are as follows:- Collect people’s savings in exchange for an insurance policy and promote savings in the country. Protect the capital of the people by investing funds into government securities. Issue insurance policies at affordable rates provide various loans like direct loans to industries, housing loans, loans to various national projects at reasonable interest rates. LIC aims to spread awareness about the importance of life insurance among people living in rural areas and people who are a part of socially and economically backward classes. It aims to meet several life insurance needs of the community people who are subjected to change with the changing social and economic environment. It aims to conduct business economically while taking into consideration that the money belongs to the policyholders. It aims to maximization of the mobility of people’s savings through attractive insurance-linked savings. It aims in providing the utmost job satisfaction to all the agents and employees of the corporation and promotes building a cooperative work environment to deliver efficient service with courtesy to its insured public. It aims to deploy the funds to the best advantage of the investors and the community as well.
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 investment policy of the LIC of India should bring a fair return to policyholders consistent with safety. Since the funds at the disposal of the LIC are in the nature of the trust money, they should be invested in such securities which do not diminish in value and give the highest possible return.