LIC stops selling 14 life policies over IRDA diktat

Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

India's largest insurance company has decided to stop selling as many as 14 policies, including Jeevan Mitra and Anmol Jeevan

Life Insurance Corporation (LIC) has decided to stop selling 14 policies, including popular ones such as Jeevan Mitra and Anmol Jeevan, in order to comply with the Insurance Regulatory and Development Authority (Irda)'s order to implement the new product guidelines.

Five policies, including Jeevan Mitra, Jeevan Pramukh Plan and LIC's Bima Account I and II, will go off the shelves from Saturday. Further, two others, New Jeevan Nidhi and Anmol Jeevan I, will be discontinued from November 30.

Industry sources pointed out that seven out of the 14 products that LIC has decided to stop selling, have been withdrawn with effect from November 16. These include Convertible Term Assurance and Children Deferred Endowment Assurance, among others.

Irda had brought out a new set of guidelines for life insurance products in February 2013. While the minimum death benefit and surrender value was altered for traditional product customers, who stay invested in a policy for a longer period, in the case of unit-linked products (Ulips), insurers will have to intimate customers about changes in the yield of the Ulip every month. The rules had also banned the sale of highest net asset value products, on the ground that these are not in the consumer interest.

While notifying the guidelines, Irda had said life insurers had to be compliant with the new norms by October 1, 2013. Following a representation from the life insurers to extend the deadline, the new deadline was changed to January 1, 2014, to implement the new product guidelines. LIC officials said there was nothing significant about the decision to stop selling 14 products.

"This is part of our compliance to the new product norms. There is no cause for worry. New products will be launched to substitute them," said a senior LIC official. He, however, refused to comment on the exact number of plans withdrawn. Irda had also extended the deadline to phase out group products not complying with the new guidelines from July 1. Later, this deadline was extended to August 1.

According to LIC's website, it has already withdrawn 19 products that include Jeevan Nischay, Market Plus I, Wealth Plus, Jeevan Nidhi, Jeevan Vaibhav (Single Premium Endowment Assurance Plan), Child Fortune Plus and Jeevan Sugam, among others.

India's largest insurance company collected new premiums of Rs 37,906 crore for the April-September 2013 period, compared to Rs 35,341.53 crore in the year-ago period — a growth of 7.25 per cent. The insurance sector collected Rs 50,056.56 crore of new premiums during this period, with a rise of 6.5 per cent over the last year.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund