The Life Insurance Corporation of India (LIC) has responded to news reports implying that certain companies are thinking of buying policies from existing LIC subscribers instead of having them surrendered to LIC. In addition to stressing the significance of policyholders’ family risk coverage and financial stability, LIC advises exercising utmost caution before making any policy-related decisions.
LIC’s Clarification on Unaffiliated Entities
LIC has made it clear that it is not associated with any businesses or individuals offering to buy policies. Any statements made by former LIC employees are personal opinions and not endorsed by LIC. The organization disclaims any responsibility for such claims.
Legal Guidelines for Policy Sale or Transfer
According to LIC, any sale, transfer, or assignment of policies must comply with the Insurance Act, 1938, particularly Section 38. LIC has the right to decline any sale or transfer if it believes it is not genuine, not in the policyholder’s interest, or aimed at trading insurance policies.
Consultation and Caution Advised
LIC strongly advises policyholders to consult with LIC officials before responding to any offers. This precaution is to ensure that decisions made do not compromise financial security or risk coverage for their families.
Key Points for LIC Policyholders
- Keep the policy bond safe, as it is required for maturity or survival benefits, loans, or policy assignments.
- Make sure your spouse, parents, or children know where the policy is kept.
- Notify LIC of any changes in your residence to avoid delays in receiving important communications.
- Ensure the nominee’s name is correctly mentioned in the policy bond.
- Check the policy bond for premium due dates and pay on time to avoid lapses.
- Obtain a written acknowledgment when handing over your policy bond to anyone, including LIC offices.
- If you do not receive survival or maturity benefit intimations within a month of the due date, inform LIC to take necessary action.
- Reach out to your LIC agent or branch for any policy-related doubts.
Important Dos and Don’ts for LIC Policyholders
Dos
- Verify policy information on the LIC website or contact the nearest LIC branch.
- Report suspicious calls to the police and to LIC via spuriouscalls@licindia.com.
Don’ts
- Do not entertain calls from unverified sources.
- Avoid calls persuading you to surrender your policy for extra benefits.
- Ignore exaggerated promises about policy benefits.
- Do not share policy details with unknown callers.
LIC is committed to safeguarding its policyholders’ interests and ensuring their financial security. Stay informed, cautious, and consult LIC officials for any policy-related decisions.
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