LIC issues warning over entities offering to buy life insurance policy

Mumbai : The Life Insurance Corporation of India (LIC) has sounded an alert for its customers over news reports that some entities were offering to acquire policies from existing LIC policyholders as an alternative to having them surrendered to LIC.

LIC has issued a press statement in the interest of all its policyholders to clarify that it is not associated with any such entity, or the products and services being offered by such entities and any statements made by former employees of LIC are personal to such individuals.

"We disclaim any responsibility or liability in connection therewith," the LIC statement said.

"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," the LIC statement added.

The LIC has urged 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.

The public sector insurance giant has also urged its policyholders to consult any LIC official in its branches before responding to any offers.