Human resource management is a strategic function that plays a vital role in enhancing employee performance and organizational effectiveness, particularly in service-oriented sectors such as insurance. This study examines employees’ perceptions of HR practices in the Life Insurance Corporation of India, with specific reference to Prakasam District. The research focuses on key HRM practices including recruitment and selection, training and development, performance appraisal, compensation management, employee relations, career development, and work–life balance. The study is based on a survey method, using a structured questionnaire administered to 150 employees, of whom 135 valid responses were analyzed. Primary data were collected using a Likert scale, while secondary data were obtained from books, journals, and dissertations. The findings reveal that LIC follows structured HR practices aimed at ensuring employee efficiency and organizational effectiveness. However, statistical analysis indicates that demographic variables such as gender, age, education, designation, work experience, and salary do not significantly influence employees’ satisfaction towards HR practices. Despite this, descriptive results show slight variations in satisfaction levels across different employee groups. The study also identifies gaps between HR policy formulation and implementation, along with issues related to transparency, communication, and employee involvement. Overall, the study concludes that while LIC has strong and well-established HR systems, improvements are required in performance appraisal transparency, employee engagement, communication systems, and career development opportunities. Enhancing these areas will lead to higher employee satisfaction, better organizational commitment, and improved service quality. The study highlights the importance of aligning HR practices with employee expectations to achieve long-term organizational success in the insurance sector.