The Life Insurance Corporation of India (LIC) recently issued a notice to its policyholders regarding unauthorised transactions involving their insurance policies. LIC has become aware of certain entities attempting to acquire policies from LIC policyholders as an alternative to policy surrender. In response, LIC has cautioned its policyholders against these transactions and clarified its stance on the matter.
LIC’s Non-Affiliation with Unauthorised Entities
LIC has explicitly stated that it is not affiliated with these entities or their offerings. Any statements made by former employees or individuals regarding such transactions are considered personal and are not endorsed by LIC. The corporation wants to ensure that its policyholders are aware of this and do not engage in any transactions without proper verification.
LIC’s Disclaimer and Compliance with Legal Provisions
LIC has also disclaimed any responsibility or liability related to these unauthorised transactions. The corporation emphasizes compliance with the Insurance Act, 1938, particularly Section 38. According to LIC, any sale, transfer, or assignment of policies must strictly adhere to the legal provisions outlined in the act. LIC is empowered to decline any sale or transfer of policies if it has sufficient reason to believe that the transaction is not bonafide, not in the interest of the policyholder or the public, or intended for the purpose of trading insurance policies.
Protecting Policyholders’ Financial Security
LIC’s main concern is the financial security of its policyholders and the continuity of their family’s risk cover. To ensure this, LIC advises its policyholders to exercise caution and carefully evaluate any offers or requests related to their insurance policies. By being vigilant, policyholders can safeguard their financial interests and avoid any potential risks associated with unauthorised transactions.
LIC’s notice serves as an important reminder for policyholders to remain informed and make informed decisions when it comes to their insurance policies. If policyholders have any doubts or concerns, they are encouraged to reach out to LIC directly for clarification and guidance.
It has been seen that pension policy has not followed the rules of commutation as per center Government. The deduction of commutation is not restored after 15 years, whereas all the amounts paid as commutation recovered in 15 years. When the pension rules are as per Central Government the commutation must be restored after 15 years .