LIC to stop selling Jeevan Mitra, Anmol Jeevan, 12 other policies
23 Nov 2013 10:16 PM GMT
Country's insurance giant Life Insurance Corporation has decided to stop selling as many as 14 policies, including Jeevan Mitra and Anmol Jeevan. Of these 14 products, LIC has already withdrawn seven policies, including Convertible Term Assurance, Children Deferred Endowment Assurance, with effect from 16 November.
As many as five policies including Jeevan Mitra, Jeevan Paramukh Plan, LIC's Bima Account I and II will go off LIC's shelves from 23 November. Besides, two policies New Jeevan Nidhi and Anmol Jeevan I will be discontinued from 30 November.
Many of these policies are being discontinued as part of regulatory compliance, a senior official of LIC said. 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 31 December.
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policies and all the existing individual products not in conformity with the provisions of this regulation shall be withdrawn from 1 August, 2013 and 1 January, 2014, respectively,’ IRDA had said in a circular.
With regard to group policies, the life insurers have been asked not to enroll these policies after the immediate policy anniversary due after July 2013. However, it said, all group policies at the time of renewal shall be given an option to switch over to the modified version of the group product, if any, once introduced. LIC has outperformed its private sector peers by recording 7 per cent growth in premium collection during the first half of the current fiscal.
It witnessed 7.26 per cent growth in premium income to Rs 37,906 crore during the six months ending September. As per the company's website, LIC has so far withdrawn 19 other policies, including Jeevan Astha, Market Plus I and Jeevan Nischay and Jeevan Varsha.
As many as five policies including Jeevan Mitra, Jeevan Paramukh Plan, LIC's Bima Account I and II will go off LIC's shelves from 23 November. Besides, two policies New Jeevan Nidhi and Anmol Jeevan I will be discontinued from 30 November.
Many of these policies are being discontinued as part of regulatory compliance, a senior official of LIC said. 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 31 December.
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 1 August, 2013 and 1 January, 2014, respectively,’ IRDA had said in a circular.
With regard to group policies, the life insurers have been asked not to enroll these policies after the immediate policy anniversary due after July 2013. However, it said, all group policies at the time of renewal shall be given an option to switch over to the modified version of the group product, if any, once introduced. LIC has outperformed its private sector peers by recording 7 per cent growth in premium collection during the first half of the current fiscal.
It witnessed 7.26 per cent growth in premium income to Rs 37,906 crore during the six months ending September. As per the company's website, LIC has so far withdrawn 19 other policies, including Jeevan Astha, Market Plus I and Jeevan Nischay and Jeevan Varsha.
Next Story
