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What is the Difference between LIC and GIC? (5 Key Differences)

Life Insurance Corporation (LIC) is the largest insurance company in India, having assets under management of over ₹39 lakh crore as of 2021. Along with having the most assets under management, LIC also boasts of the most policyholders under a single company. It has over 290 million policyholders as of 2019. This number is so large that its larger than most countries of the world.

GIC on the other hand is a reinsurance company. In fact, GIC stands for General Insurance Company of India (GIC). GIC is one of the largest listed PSU general insurance companies in India, having a total income of over ₹12 thousand crores of 2022.

GIC head office
GIC Head Office in Mumbai

The most fundamental difference between LIC and GIC lie in the spectrum of business they undertake. LIC deals with life insurance while GIC majorly deals with reinsurance.

Let us understand the top 5 key differences between LIC and GIC below:

Difference between LIC and GIC

 

LIC

GIC

Type of business

LIC majorly deals with life and term insurance. They also offer:

GIC majorly deals with reinsurance. Reinsurance basically means providing insurance to other insurance companies. GIC is the only Indian reinsurance company. GIC has clientele in the following industries:

  • Airlines
  • Healthcare
  • Reality
  • Agriculture
  • Marine
  • Energy

Full form

Full form of LIC is Life Insurance Corporation of India. LIC was formed on 1st September 1956.

Full form of GIC is General Insurance Corporation of India. GIC was formed on 22nd November 1972.

Objectives

LIC objectives include:

  • Increasing the penetration of life insurance in India
  • Providing a framework for Indians to indulge in savings and investments
  • Act as a trustee to policyholders

GIC objectives include:

  • Increase their footprint in the reinsurance sector
  • Increase profitability of the corporation in a sustainable manner
  • Increase shareholder value

Investments

LIC of India has AUM of over ₹39 lakh crore as of 2021

GIC has AUM of over US$15 billion as of 2020

Ownership

96.5% of LIC is owned by The Government of India

85.78% of GIC is owned by The Government of India

Lakh Crores
AUM of LIC
$ Billion
Assets under management of GIC
% ownership
of LIC Is with Government of India

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Frequently asked questions

  • What is the full form of LIC?

    LIC stands for Life Insurance Corporation of India.

  • What is the full form of GIC?

    GIC stands for General Insurance Corporation of India.

  • When is the major difference between LIC and GIC?

    The major difference between LIC and GIC is the fact that LIC is a life insurance company whereas GIC is a reinsurance company.

  • When was LIC formed?

    LIC was formed on 1st September, 1956.

  • When was GIC formed?

    GIC was formed on 22nd November, 1972.