Insurance Malpractices LIC Withdraws 34 Policies

I have seen people, in the middle of an Insurance Agents sales talk, inform him/her, to set some parameters like safe,good returns Policy.

Merrily the Sales person obliges.

Insurance policies change.
Changes in Insurance Policies.

What happens next is that you are sold a Policy on which the Agent gets a hefty commission.

Though the commissions are said to be uniform some policies do attract a better commission than the others because of the high risks to the insured and better returns to the insurer.

Many simply sign on the dotted lines, asking the agent to fill in the necessary details, and hand him over the originals even for photocopying.

As it is there is fine print, where your risks are mentioned in such a corner and in such a font type you can not read it, even if you read you can hardly understand it, such is the jargon.

The Agent if asked to explain will normally say it is just for the records and you will get your returns or use further confusing arguments.

So much so the complaints against Insurance mal practices, forgery have increased, as disclosed by IRDA.

Insurance complaints,
Insurance Complaints received by IRDA.

Now LIC has decided to stop selling 34 Policies from January 2014.

One big lie currently doing the rounds is that some of the best-selling plans from LIC are going to be discontinued after the new Irda guidelines come into effect. From 1 January 2014, claim the rumours, policies will become costlier because you will have to pay service tax as well. In the following pages, we separate the facts from the fiction.

 Agents have effectively used these half-truths to make people rush to buy insurance before the guidelines come into force. In September, the LIC sold new policies worth Rs 8,434 crore. This was 55% higher than the premium from new plans sold in September 2012. Sources reveal that Rs 2,000 crore of this amount was collected in the last two days of the month. Private insurance companies, too, were not far behind. They sold policies worth Rs 2,785 crore, up 29% from the previous year.

The original deadline of 30 September has now been extended till 31 December. This has given a lease of life to insurance companies. In fact, the Life Insurance Council says it may seek a further extension if companies are not able to launch new products that comply with the revised guidelines. The period from January to March is considered the festive season for insurance in India and no insurer wants to miss the party…

Soon, these good plans will not be available.

Some of the most widely sold endowment policies and money-back plans will soon go off the shelves. However, if you buy them before 31 December, you can enjoy their benefits. The first statement is true. The second is only partially true. While many insurance policies will be discontinued, they will be replaced by better, more customer-friendly plans. Irda’s new guidelines for traditional plans have not only enhanced the surrender value of a policy, but also lay stress on longer terms and higher covers.

LIC to withdraw 34 Policies.

Insurance giant Life Insurance Corporation (LIC) has decided to stop selling as many as 34 policies, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines. 

These policies are withdrawn in December as they are not in conformity with the provisions of new regulations on non-linked insurance products, linked insurance products and health insurance products, a senior LIC official said. 

Of the 34 products, LIC will stop sale of Jeevan Am .. 

Of the 34 products, LIC will stop sale of Jeevan Amrit from December 7, Jeevan Surabhi from December 14 while two other schemes from December 21 and December 28 respectively. 

Remaining 28 policies will go off LIC’s shelves from December 31. 

Last month, LIC had withdrawn 14 policies including Convertible Term Assurance, Children Deferred Endowment Assurance. 

These policies are being discontinued as part of regulatory compliance. 

The Insurance Regulatory and .. 


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