LIAFI-SG/GOI-057/14 15 July 2014
Shri. Arun Jaitely,
Minister of Finance,134, North Block,
NEW DELHI-110 001
Sub: Apprehension about Functioning of LIC of India.
Our apprehension is that the Management of LIC is trying to dilute the strong faith of policyholders in the Corporation. In order to introduce policyholder friendly, and for their financial benefits, IRDA directed the insurance companies to withdraw all the Plans by 30 September 2013. IRDA issued a notification to this effect on 16-02-2013 and directed that NEW PLANS are available from 01-10-2013.
LIC continued the old plans until 31-12-2013 instead of 30-09-2013. Forty-eight Individual Insurance Plans (Non-linked) were withdrawn by LIC. Though LIC was aware that NEW Plans were to be made available from 01-10-2013, it submitted only one product for consideration of IRDA before 30-09-2013. One more product was submitted before 31-12-2013. i.e., they have submitted two products only for consideration of IRDA. We are enclosing a copy of reply given by LIC under RTI.
The above negligence clearly indicates the uncaring attitude towards the policyholders. Any wise Management that has the knowledge of winding up of forty-eight products will be alert and plan for new products. The Management of LIC failed miserably to get the approval of new products well in advance. At present only nine products are available for marketing.
We the LIC Agents are finding it difficult to market the products out of which only two or three products are popular. LIC may boast that they are retaining the market share. We the Agents for our survival are convincing the prospects and marketing. This in turn is keeping the LIC flag high.
Sir, LIC is a golden goose. Let them not kill it. We hope you will take necessary steps to enquire why and how it happened.
For Life Insurance Agents Federation of India