LIC is not a bank as it does not accept chequeable deposits from the public although if performs the function of lending money.
However, LIC is a financial institution, But not a bank.
For a financial institution to be a bank, it must accept the demand (chequeable) deposits and advance the loans to the general public.
In other words, a financial institution must open the current and savings accounts of the public.
But LIC only advances the loans to the general public.
Note:- nowadays LIC also accepts the demand deposits. But it does not accept demand (chequeable) deposits.