The Life Insurance Corporation of India (LIC) has clarified its
position in response to news reports that some businesses were
considering buying policies from current LIC policyholders instead
of having them surrendered to LIC. The life insurance behemoth
has urged all policyholders to proceed with extreme caution before
making any decisions about their policy that might compromise
their family's risk coverage and financial stability. The message on
the website reads like -
1. LIC is not associated with any such entity, or the products
and/or services being offered by such entities, and any statements
made by former employees/personnel of LIC are personal to such
individuals. We disclaim any responsibility or liability in
connection.
2. 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,"
said the PSU insurer in a press release.
LIC told its policyholders to consult with its officials before responding to any offers.
