This advisory follows reports of certain entities seeking to acquire policies from LIC policyholders as alternatives to policy surrender.
According to LIC, it is not affiliated with these entities or their offerings.
The corporation clarified that any statements made by former employees or individuals regarding such transactions are personal and not endorsed by LIC.
LIC also disclaimed any responsibility or liability related to these transactions.
Underlining compliance with the Insurance Act, 1938, particularly Section 38, LIC stated that any sale, transfer, or assignment of policies must adhere strictly to legal provisions.
“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 the interest of policyholders’ financial security and the continuity of their family’s risk cover, the life insurance company advised careful consideration before responding to unsolicited offers concerning their policies.
LIC told its policyholders to consult with its officials before responding to any offers.
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