“If you want
economical freedom, then take Insurance”- Mr Lokmanya Tilk
Life Insurance
Corporation of India (LIC of India) has decided to stop selling 14 policies,
including popular ones like Jeevan Mitra and Anmol Jeevan, in order to comply
with the Insurance Regulatory and Development Authority (IRDA)’s order to
implement the new product guidelines.
Five policies,
including Jeevan Mitra, Jeevan Pramukh Plan and LIC’s Bima Account I and II,
will go off the shelves.from November 2313. Further, 2 others, New Jeevan Nidhi
& Anmol Jeevan I, will be discontinued from November 30, 2013.
Industry sources
pointed out that seven out of the 14 products that LIC has decided to stop
selling, have been withdrawn with effect from November 16, 2013. These include
Convertible Term Assurance and Children Deferred Endowment Assurance, among others.
IRDA had brought
out a new set of guidelines for life insurance products in February 2013. While
the minimum death benefit & surrender value was altered for traditional
product customers, who stay invested in a policy for a longer period, in the
case of unit-linked products (ULIPs), insurers will have to intimate customers
about changes in the yield of the ULIP every month. The IRDA rules had also
banned the sale of highest net asset value (NAV) products, on the ground that
these are not in the consumer interest.
While notifying the
guidelines, IRDA had said life insurers had to be compliant with the new norms
by October 1, 2013. Following a representation from the life insurers to extend
the deadline, the new deadline was changed to January 1, 2014, to implement the
new product guidelines. LIC of India officials said there was nothing
significant about the decision to stop selling 14 products.
“This is part of
our compliance to the new product norms. There is no cause for worry. New
products will be launched to substitute them,” said a senior LIC of India
official.
IRDA had also
extended the deadline to phase out group products not complying with the new
guidelines from July 1, 2013. Later, this deadline was extended to August 1,
2013.
According to LIC of
India's website, it has already withdrawn 19 products that include Jeevan
Nischay, Market Plus I, Wealth Plus, Jeevan Nidhi, Jeevan Vaibhav (Single
Premium Endowment Assurance Plan), Child Fortune Plus and Jeevan Sugam, among
others.
India’s largest
insurance company, LIC of India collected new premiums of Rs. 37,906 crore for
the April to September 2013 period, compared to Rs. 35,341.53 crore in the
year-ago period a growth of 7.25%. The
life insurance sector collected Rs. 50,056.56 crore of new premiums during this
period, with a rise of 6.5% over the last year.
LIC of India:
Withdraw ALL of its Insurance Policies
LIC of India is
going to withdraw ALL of its Insurance Policies on or before 31 December 2013.
In December if you
are available in Chennai, you can call my mobile number mentioned below.
Life Insurance
Corporation of India,
Mobile: 90257 12903
Email:
psathish.mit@gmail.com
Insurance is the
subject matter of solicitation.
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