The Corporation considers its stakeholders as partners in success and remains committed to delivering value to stakeholders. The Corporation believes that a sound corporate governance mechanism is critical to retain and enhancing stakeholders’ trust.
1. Introduction
The Corporation conducts its business while adhering to various corporate governance practices to help ensure that there is operational transparency, information sharing, accountability and continuous dialogue with all our stakeholders. The Corporation has standard operating procedures or manuals in place that detail procedures to be followed for each function.
2. Corporation’s Philosophy on Corporate Governance
Life Insurance Corporation of India (“LIC of India” or “Corporation”) strongly believes in good governance practices, ethics, and fairness and ensures ethical and efficient conduct of the affairs of the Corporation transparently, building trust and confidence and helping in maximizing the value for its Stakeholders.
The Corporation follows governance and disclosure requirements as per the provisions of the LIC Act, 1956 and other applicable provisions including the provisions of SEBI (LODR) Regulations, 2015. The Corporation has, inter-alia, a well-defined policy framework for implementation of the Corporate Governance consisting of, inter-alia, the following:
Code of Conduct for Board Members and Senior Management Personnel
LIC’s Code of Fair Disclosure, Policy for Determination of Legitimate Purposes, Code of Conduct for Prevention of Insider Trading and Policy on Leakage and of UPSI
Enterprise Risk Management Policy
Whistle Blower Policy
Policy on Protection of Policyholders’ Interests.
Policy on Related Party Transactions (includes Material RPT)
Policy for determining Material Subsidiaries
Policy for Preservation of Documents
Policy for Senior Management personnel Disclosure of Material Commercial and Financial Transactions
Policy for Directors’ Qualification, Nomination, Appointment, Remuneration, Evaluation and Board Diversity Policy.
Policy for Determination of Materiality and Disclosure of Events/Information
3. Role of Independent Directors
Independent Directors have been familiarized with their roles, rights and responsibilities in the Corporation as well as with the nature of the Industry through induction programs and also through presentations on Finance, Actuarial Valuation, Corporate Governance, Marketing, Customer Relationship Management, etc from time to time.
4. Risk Management
LIC is committed to the best practices in the areas of Corporate Governance. Through the framework of internal audit and inspection mechanism, the Corporation exercises stringent control on working and ensures the compliance of business units to applicable laws. The Whistleblower policy provides a framework to promote responsible and secure whistle-blowing. It protects employees wishing to raise a concern about serious irregularities within the LIC.
Risk management is defined as the process under which the Corporation addresses Investment risks associated with the corporation’s financial assets under its management by identifying, measuring and mitigating such risks. Risk Management encompasses an understanding of all the factors and the extent to which they can be threats to success. The process will also endeavor to bring about the Risk culture in the organization so that the employees feel the importance of putting a Risk management system in place and each employee involves himself in appropriately addressing the concerned risks.
5. Board of Directors and its Committees
The Board of Directors provides the overall guidance on Risk Management in the Corporation and the Corporation has a well-defined Risk Management Policy. The Policy is reviewed from time to time and is made available on the Corporation’s website. The Policy is also reviewed by the Audit Committee.
The Corporation has several Board sub-committees that overlook the Corporation’s corporate governance and enhance brand equity, strengthen the stakes of Shareholders and maintain a healthy working environment within the
6. Management
The Corporation has a robust management structure in place, with a team of experienced and skilled professionals at the helm. The management is responsible for the day-to-day running of the Corporation and is accountable to the Board of Directors for the performance of the Corporation.
The management has in place systems and procedures to ensure compliance with all relevant laws and regulations, and to ensure that the Corporation’s operations are conducted ethically and transparently.
7. Corporate Social Responsibility
The Corporation recognizes its responsibility to the communities in which it operates and is committed to being a responsible corporate citizen. The Corporation has implemented some initiatives to give back to the community, including education and training programs, health care initiatives, and environmental sustainability initiatives.
8. Disclosure and Transparency
The Corporation is committed to transparency and disclosure and ensures that all relevant information is disclosed to its stakeholders in a timely and accurate manner. The Corporation has a well-defined policy for determining the materiality and disclosure of events and information and adheres strictly to this policy.
9. Stakeholder Engagement
The Corporation recognizes the importance of engaging with its stakeholders and is committed to maintaining open and transparent communication with all its stakeholders. The Corporation regularly holds stakeholder meetings and maintains an active presence on social media to ensure that stakeholders are kept informed of the Corporation’s activities and performance.
10. Conclusion
In conclusion, the Corporation is committed to delivering value to its stakeholders through sound corporate governance practices, transparent disclosure and transparency, and active stakeholder engagement. The Corporation believes that a strong corporate governance framework is critical to maintaining the trust and confidence of its stakeholders and will continue to prioritize this in all its operations.
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