LIC issues warning regarding entities offering to buy life insurance policy

Mumbai: THE Life Insurance Corporation of India (LIC) has issued an alert to its customers following reports that some entities were offering to acquire policies from existing LIC policyholders instead of ceding them to LIC.

LIC has issued a press release in the interest of all its policyholders to clarify that it is not associated with any of these entities, nor that the products and services offered by these entities and any statements made by former employees of LIC are personal to these people.

“We accept no liability in connection with this,” the LIC statement said.

“Any sale/transfer or assignment of LIC policies shall be made in accordance with the Insurance Act, 1938, including Section 38 thereof. Under applicable laws, LIC may refuse to act on any sale/transfer or assignment of policies, where LIC has sufficient information. “There is reason to believe that such sale/transfer or assignment is not in good faith or is not in the interest of the policyholder or in the public interest or is intended for negotiation of an insurance policy,” adds the LIC press release.

LIC urged all policyholders to exercise extreme caution before making any decision regarding their policy that could jeopardize their financial security and their family’s risk coverage.

The public sector insurance giant also urged its policyholders to consult LIC officials at its branches before responding to any offers.