LIC to stop selling 34 life insurance policies in December

Dec 01 2013, 11:56 IST
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LIC has decided to stop selling as many as 34 policies, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines. LIC has decided to stop selling as many as 34 policies, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines.
SummaryLIC has decided to stop selling as many as 34 policies, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines.

Insurance giant Life Insurance Corporation (LIC) has decided to stop selling as many as 34 policies, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines.

These policies are withdrawn in December as they are not

in conformity with the provisions of new regulations on

non-linked insurance products, linked insurance products and

health insurance products, a senior LIC official said.

Of the 34 products, LIC will stop sale of Jeevan Amrit

from December 7, Jeevan Surabhi from December 14 while two

other schemes from December 21 and December 28 respectively.

Remaining 28 policies will go off LIC's shelves from

December 31. Last month, LIC had withdrawn 14 policies including Convertible Term Assurance, Children Deferred Endowment Assurance.

These policies are being discontinued as part of

regulatory compliance.

The Insurance Regulatory and Development Authority (IRDA)

had extended the deadline for implementation of new individual

product regulations for the life insurance industry by three

months to December 31.

The new guidelines are aimed at making insurance policies

more customer-friendly.

"All the existing group policies and all the existing

individual products not in conformity with the provisions of

this regulation shall be withdrawn from August 1, 2013, and

January 1, 2014, respectively," IRDA had said in a circular.

With regard to group policies, life insurers have been

asked not to enroll these policies after the immediate policy

anniversary falling due after July 2013.

However, it had said all group policies at the time of

renewal of such policy shall be given an option to switch over

to the modified version of the group product, if any, once

introduced.

LIC has outperformed its peers in the private sector by

recording a 7 per cent growth in premium collection during the

first half of the current fiscal.

The company witnessed a 7.26 per cent growth in premium

income to Rs 37,906 crore during the six-month period ending

September.†

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