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LIC fails to notice a negative return policy?

What clients failed to notice and what even the insurance agents failed to understand was that the LIC’s Jeevan Saral policy initiated way back in 2003 actually yields less money to the policyholders than the premiums they pay.

The agents further disclosed to our Sprouts’ Special Investigation Team (SIT) that when they queried LIC’s senior management, they too lacked clarity on the issue and were unable to respond.

The repeated complainant, Suresh Rao informed our SIT that on maturity many senior citizens received less than one-third of the money they had paid as premiums.

SIT was further informed that it’s not sure whether by design or accident, the maturity amount was not mentioned in the policy document in some cases.

A specific instance was brought to notice where nearly a lakh of rupees had been paid in premiums and the policyholder received a paltry sum of INR 24,575 on maturity.

The policyholders disclosed to our SIT that regardless of age, be it young or old, all are duped of the hefty sum they pay as a premium and receive an insignificant amount on their policies maturing.

This blatant case of negative returns from an insurance policy floated by a government-run insurance firm is setting a bad precedent. In the future people will not feel inclined to invest with LIC.

► LIC’s Jeevan Saral turns into a colossal losses –

► LIC leaves 2 crore policyholders high and dry –

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