Life Insurance : LIC Extends Cover to 3rd Gender..!
Introduces 3rd gender option in its proposal form
which has been approved by IRDAI
The Life Insurance Corporation of India (LIC of
India), which controls close to 70% of the life insurance market, has
introduced the third gender as an option in its proposal forms in line with
Supreme Court 2014 verdict recognising it.
Till now, policy buyers could choose between
`male' and `female' as gender options.
Now transgender applicants can opt for
the `third gender' category.
Though the National Pension System (NPS) also
recognises the third gender, other insurance companies and mutual funds do not
seek this information.
The know-your-customer (KYC) process, a
prerequisite for making investments or / opening bank accounts, also does not
accommodate the third gender as an option. Incidentally, the option was
included in Indian passports more than 10 years ago in 2005.
“The honourable Supreme Court, in a landmark
judgement lauded by human rights groups, called on the government to ensure
their (third gender) equal treatment. We have taken up the advice for
implementation,“ said Mr. SK. Roy, Chairman, LIC of India. The Insurance
Regulatory and Development Authority of India (IRDAI) has approved the new
proposal form.
For most insurance companies, introducing the
option may be a trifle difficult. LIC Of India does not have differential
premiums based on gender. But other companies have lower premiums for females
because of their longer life expectancy. These companies will have to grapple
with the issue of pricing premiums for the 3rd gender.
Though LIC of Indai's premium tables for all
three genders are uniform, it has put in place an additional layer of
underwriting for insurance applications from the transgender community.
The opportunity is huge, but if you have to make housing
affordable, you will have to get land prices down.Second is funding of land.
Today, largely private equity investors fund it and the interest rate they
charge is huge. Third, expediting the process of project clearance. There
should be a single-window clearance for approval of projects.
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