The Life Insurance Corporation of India (LIC) has issued a notice to its policyholders in response to a recent news about a company offering to acquire LIC policies through sale, transfer, or assignment.
LIC also requested policyholders to be extremely cautious before taking any decision about their policies that could affect their financial security and risk cover for their families.
“This is with reference to recent news articles and other publications relating to product/service offerings by certain entities offering to acquire (by way of sale/transfer, assignment or otherwise) policies held by existing policyholders of Life Insurance Corporation of India (LIC), as an alternative to surrender of policies to the LIC,” the insurer said in an official notice to its policyholders on Monday (June 24, 2024).
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The insurer clarified it is not associated with these entities or products and services they offer, and it urges policyholders to exercise caution and consult LIC officials before making any policy decisions.
LIC has issued following clarifications:
No Association with Third-Party Entities
LIC is not affiliated with these entities or their offerings. Statements made by former LIC employees are their personal opinions. We disclaim any responsibility.
Compliance with the Insurance Act, 1938
Any sale, transfer, or assignment of LIC policies must comply with the Insurance Act of 1938, including Section 38.
Also Read: IRDAI’s New Rule: Insurers Can’t Sell ULIPs, Index-linked Products As Investment Schemes
LIC may refuse transactions if they are deemed not genuine, against the policyholder’s interest, public interest, or for policy trading purposes.
Policyholders are advised to consult with LIC officials at their branches to ensure that they receive accurate and reliable information.
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Disclaimer: The above content is for informational purposes only. The 1% News recommends consulting a SEBI-registered investment advisor before making any investment decision.
