Life Insurance Corporation of India (LIC) is one of the largest insurance companies in India and has been operating for several decades. While it is difficult to make a definitive statement about the overall customer-friendliness of LIC, there might be some factors that have led to such perceptions. Here are a few possible reasons:
- Bureaucracy and administrative processes: As a large organization, LIC may have complex bureaucratic procedures and administrative processes that can sometimes be time-consuming and inconvenient for customers. Lengthy paperwork and documentation requirements may lead to a perception of slow service.
- Lack of technological advancements: In today’s digital age, customers expect convenient and user-friendly online services. If LIC’s digital platforms and systems are outdated or not as advanced as those offered by some private insurance companies, it may create difficulties for customers and result in a perception of being less customer-friendly.
- Limited product offerings: LIC primarily focuses on life insurance products and may have a narrower range of offerings compared to some private insurers. If customers are seeking more diverse insurance options such as health insurance, travel insurance, or specialized plans, they may perceive LIC as less customer-friendly due to limited choices.
- Customer service experiences: Individual experiences with customer service representatives can significantly influence customers’ perception of an organization’s friendliness. If customers have encountered unhelpful or unsatisfactory experiences with LIC’s customer service department, it could contribute to a negative perception of the company’s customer-friendliness.
It’s important to remember that these reasons are speculative and based on general observations. To form a comprehensive opinion about LIC’s customer-friendliness, it would be beneficial to consider a range of customer reviews and experiences.
LIC’s dividend is decided by its board of directors, who consider a number of factors, including the company’s financial performance, its capital requirements, and its regulatory obligations. In the case of LIC, the board of directors may have decided to pay a lower dividend than the company’s profit would have allowed in order to conserve capital or to meet regulatory requirements.
Here are some possible reasons why LIC has given only 3 rs of dividend even after 6 times of profit:
- Capital requirements: LIC is a large company with a large number of policyholders. It needs to maintain a certain level of capital in order to meet its obligations to its policyholders. Paying a higher dividend would reduce the company’s capital, which could make it more difficult for LIC to meet its obligations.
- Regulatory obligations: LIC is subject to a number of regulations, including those governing the amount of dividend that it can pay. Paying a higher dividend could violate these regulations.
- Shareholder expectations: LIC’s shareholders may have different expectations for the company’s dividend policy. Some shareholders may prefer that the company pay a higher dividend, while others may prefer that the company conserve capital or meet regulatory requirements. The board of directors may have decided to pay a lower dividend in order to meet the expectations of the majority of its shareholders.
What I feel is it’s totally unfair when you are earning in multiple folds but at the same time not giving benefits to its investors.
- It is unfair to shareholders: LIC’s shareholders have invested their money in the company with the expectation of receiving a dividend. By paying a lower dividend than the company’s profit would have allowed, LIC is not fulfilling its obligation to its shareholders.
- It could damage the company’s reputation: LIC’s decision to pay a lower dividend could damage the company’s reputation with investors. Investors may be less likely to invest in LIC in the future if they believe that the company is not willing to share its profits with its shareholders.
- It could discourage retail Investors: LIC’s retail Investors have entrusted their money to the company with the expectation of receiving a return on their investment. By paying a lower dividend than the company’s profit would have allowed, LIC could discourage retail Investors from retaining them invested in LIC. Also, most of the retails investors are policyholders too.
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