LIC advises to its policyholders to follow Insurance Act

Mumbai, June 25: Any sale/transfer or assignment of LIC policies need to be undertaken in accordance with Insurance Act, 1938, including Section 38 thereof, LIC has said in a statement.

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.

This is with reference to recent news articles and other publications relating to product/service offerings by certain entities offering to acquire (by way of sale/transfer, assignment or otherwise) policies held by existing policyholders of Life Insurance Corporation of India (LIC), as an alternative to surrender of policies to the LIC.

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 therewith.

We urge all policyholders to exercise complete caution before making any decision on their policy which may jeopardise their financial security and the risk cover for their family. Before responding to any offers, kindly consult with any of our LIC officials in our branches, an LIC statement said.