In a recent press release, the Life Insurance Corporation of India (LIC), the country's largest life insurance provider, has issued a strong warning to its policyholders against engaging in unauthorized transactions or transfers of their life insurance policies. The insurance behemoth has clarified that it is not associated with any entities or individuals offering to buy policies from current policyholders, and has urged its customers to exercise extreme caution before making any decisions that could compromise their family's financial security and risk coverage.

 

According to the LIC press release, the company has become aware of news reports suggesting that some businesses were considering buying policies from current LIC policyholders instead of having them surrendered directly to LIC. In response, the PSU insurer has made it clear that it is not affiliated with any such entities, nor with the products and services being offered by them. The company has also stated that any statements made by former employees or personnel of LIC are personal to those individuals, and that LIC disclaims any responsibility or liability in connection with such activities.

 

LIC has emphasized that any sale, transfer, or assignment of its policies must be undertaken in accordance with the Insurance Act, 1938, including Section 38. The company has stated that it may decline to act upon any such transactions if it has sufficient reason to believe that the sale or transfer is not bona fide or is not in the interest of the policyholder, the public interest, or is for the purpose of trading insurance policies.

 

In its press release, LIC has urged all policyholders to consult with its officials before responding to any offers or proposals related to their policies. The company has emphasized the importance of keeping the policy bond safe, as it will be required at the time of maturity or survival benefit, and for availing of a loan or assigning the policy. LIC has also advised policyholders to inform their spouse, parents, or children about the location of the policy bond, and to update their address with the company whenever they change residences to ensure timely communication.

Additionally, LIC has provided a list of important dos and don'ts for its policyholders. The dos include verifying the correctness of policy information through the LIC website or by contacting the nearest branch, registering a police complaint with details of any suspicious calls, and reporting such calls to LIC through email. The don'ts include not entertaining calls from unverified sources, not getting tempted by exaggerated promises or offers of extra benefits, and not parting with policy details or other information to any caller.

 

The life insurance giant has made it clear that it is not associated with any entities or individuals offering to buy policies from current policyholders, and that any such transactions may not be in the best interest of the policyholder or the public. LIC has reiterated its commitment to protecting the financial security and risk coverage of its policyholders, and has encouraged them to exercise caution and seek guidance from its officials before making any decisions about their policies.