Markets

LIC leaves 2 crore policyholders high and dry

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The crores of insured persons have been trusting the LIC since it has been claiming that “there is no alternative to LIC’. There is truth in this claim to some extent. However the LIC has given a blow to over 2 crore policyholders having its “ Jeevan Saral Endowment Policy (with profits) Table No. 165”, Sprouts’ Special Investigation Team, has reliably learnt.

Around 2003, the LIC introduced the “Jeevan Saral” (With Profits) Table No 165 in the market with much fanfare. This policy was meant for the people in the age group of 20 – 60 years. As per the information in the leaf-let circulated with the policy, the investors were supposed to receive double the amount invested after the maturity of the policy.

Lured by this rosy offer, over 5 crore consumers bought this policy. They comprised nearly 2 crore senior citizens. The policyholders paid the premium from time to time. After the Jeevan Saral was withdrawn in 2014, about 2 lakh insurers (senior citizens) were given one third of the amount (far from double) and others were left high and dry.

The Sprouts’ SIT has received an end number of complaints in this regard. Some of the senior citizens including Suresh Rao, complained repeatedly to the Prime Minister, Union Finance Minister, LIC, Insurance Regulatory and Development Authority (IRDA) and Central Bureau of Investigation (CBI) in the past several years. But to no avail and their complaints seem to be relegated to a dustbin.


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