LIC warns policyholders over alleged offers to acquire existing policies

LIC warns policyholders over alleged offers to acquire existing policies

Life Insurance Corporation Ltd (LIC) on June 24 issued a clarification over reports of offerings by certain entities to acquire policies held by existing policyholders of LIC as an alternative to surrender of policies to the LIC.

"In the interest of all our policyholders, we wanted to clarify that:
1. LIC is not associated with any such entity, or the products and/or services being offered by such entities, and any statements made by former employees/personnel of LIC are personal to such individuals. We disclaim any responsibility or liability in connection therewith.

"2. Any sale/transfer or assignment of LIC policies need to be undertaken in accordance with Insurance Act, 1938, including Section 38 thereof. Under applicable laws, LIC may decline to act upon any sale/transfer or assignment of policies, where LIC has sufficient reason to believe that such sale/transfer or assignment is not bona fide or is not in the interest of the policyholder OR in public interest or is for the purpose of trading of insurance policy," said the PSU insurer in a press release.

LIC told its policyholders to consult with its officials before responding to any offers.

"We urge all policyholders to exercise complete caution before making any decision on their policy which may jeopardise their financial security and the risk cover for their family. Before responding to any offers, kindly consult with any of our LIC officials in our branches," said LIC.