Wednesday 16 October 2013

RECYCLING FROM ULIP SURRENDERS FOR NB CIRCULAR

Saturday, 12 October 2013


RECYCLING FROM ULIP SURRENDERS FOR NB CIRCULAR

Ref: CO/CRM/PS/2013-14/36 03/10/2013
To,
All Zonal Managers,
All Regional Managers (CRM)
All Sr/Divisional Managers,
M.D.C., Audit & Inspection

Re: Reinvestment of amount of ULIP (full/partial) Surrender amount towards
Proposal Deposit

We have issued a circular letter ref : CO/CRM/PS/18 dated 16th February, 2013
restricting recycling of any amount for New Business Proposal deposit from
Surrender and Loan amount.
The matter has since been reviewed and it has now been decided modify
instructions partially to allow reinvestment of amount for New Business from
full/partial surrender of ULIP policies. For allowing reinvestment, the following
procedure should be followed strictly at the time of Surrender of the policy.
1. Written request from the policyholder specifically mentioning about the
reinvestment of surrender amount towards NB proposal.
2. Certification on the above letter by Head of the Branch/ABM (S)/HOD (NB)
with specific wording that “ Life assured has been educated about the
reinvestment decision and has confirmed his acceptance for the same” as
per the proforma enclosed.
3. Reinvestment of surrender amount should be allowed only for proposals
introduced on the life of his/her own life or on the life of spouse /children.
4. The actual amount to be reinvested should be specifically mentioned in the
application.
5. Amount less than actual ULIP Surrender amount can also be allowed to be
reinvested and the balance amount can be paid to policyholder by
NEFT/cheque.
6. Reinvestment should be strictly processed though module only.
As per present module provisions, there is no option to recycle the amount directly
towards Proposal Deposit. SDC will come up with the modular provision to recycle
amount of ULIP Surrender. The intimation regarding modular provision will be
given as soon as the same is released by CO-ITSDC.
Please bring this to notice of all the offices under your jurisdiction.
Executive Director (CRM)

Format of Letter to be submitted by policyholder for Reinvestment of ULIP
Surrender Amount towards New Business proposal.


The Chief/Sr/Branch Manager,
LIC of India,
Branch

Sir/Madam,

Re: Reinvestment of ULIP surrender for NB proposal deposit.
I wish to Partially/Fully Surrender my ULIP policy number ------------------- on my
own life and want to reinvest from this Surrender amount, the amount of RS -----
----------- (Amount to be reinvested) towards new proposal, on the life of -------------
-----------------------( Name of a person on whose life new insurance is proposed)
relation ------------------- (Wife/husband/son/daughter).
I hereby confirm that I have been educated in respect of reinvestment of surrender
amount and have my consent for the same.
Yours faithfully,

Signature of Life Assured
Certification 

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