“ We want to clarify that LIC has introduced products that align with the New Product Regulations set by IRDAI, effective from October 1, 2024, keeping policyholders’ interests at the forefront .” said Siddhartha Mohanty, CEO & MD, LIC
Kumud Das
New Delhi/Mumbai; State owned Life Insurance Corporation (LIC) has come out with elaborate clarifications on some of the concerns of Leader of Opposition Rahul Gandhi regarding recent changes in rules by the IRDAI that he assumed making insurance less affordable for the poorest and most marginalised communities and weaken the position of agents.
Gandhi had met a delegation of LIC agents on Wednesday at his office in Parliament House complex.
“I met a delegation of LIC agents from around the country at Parliament House. They spoke candidly about their concerns regarding recent changes in rules by IRDAI and LIC, which make insurance less affordable for the poorest and most marginalised communities and weaken the position of agents,” the former Congress president said in a post on his WhatsApp channel.
Gandhi had asserted that the LIC was formed in 1956 with the aim to provide affordable insurance to all Indians and said he will raise this issue in Parliament to ensure the inclusive vision of the LIC is protected.“
In a late night press release, Siddhartha Mohanty, CEO & MD, LIC, said, “We want to clarify that LIC has introduced products that align with the New Product Regulations set by IRDA, effective from October 1, 2024, keeping policyholders’ interests at the forefront,”
“The corporation is committed to broadening life insurance coverage, LIC has consistently focused on reaching rural areas and economically and socially disadvantaged sections. Our aim is to extend financial protection to every insurable individual at an affordable cost .” said Mohanty said.
Mohanty further added that with a diverse portfolio catering to various customer segments and different strata of society, LIC fully complies with all regulatory requirements.
As an example, our Micro Bachat plan offers a minimum sum assured of ₹1 lakh and is exempt from GST, ensuring accessibility. Post changes in product regulations, the commission has not been reduced for agents, it has been given in staggered manner, ” explained LIC chief
LIC remains dedicated to providing financial security to its policyholders while also supporting the well-being of its agency force, added Mohanty.
” LIC always prioritizes the well-being of its policyholders and dedicated agents. LIC believes in inclusive growth, empowering everyone to prosper. With a commitment to the nation’s progress and its people’s welfare, LIC strives to make a positive impact.
We are proud to be a part of LIC of India, where everything is possible with dedication and hard work.
LIC – Serving the Nation, Securing the Future!”
LIC always takes care of its employees and agents
Accept your words madam
Due to the new tax regime where up to Rs 12,000,00 of inome is tax free. maximum policies are getting surrendered and customers are telling life insurance not required now
Focus on maturity.. IT Sec 10(10d) and 194DA.
Not on Sec 80C.
Changes are inevitable.
Clea should be given salary increase and salary allowance
LIC Chairman has cleverly not spoken about the reduction in commission of agents.
Govt. of india GST can withdraw from Health insurance and Term insurance for people.
Lic only focusses on maturity and agents commission in the first year.
Restore claw back commission for agents and proactively increase agency commission
It is true that LIC was formed for pushing people to save and not get into unnecessary spending
yes it is a correct comment
Life Insurance is for the benefit of family members who are left behind after the untimely demise of the breadearner. Secondarily it is a forced savings to meet both planned and unplanned need of the family when the life assured survives. Income Tax benefit is an additional benefit which people can enjoy.
Savings is a natural tendency of human being and people are ready to pay Income Tax on the income generated from this savings. On the other hand the Bonus earned by policyholders which is nothing but growth on savings are free from Income Tax for most of the common people.
Correct. For getting subscribed, a policy everyday has to give incentives or gifts. If LIC gives some return to policy holders, they will return back to the corporation.
LIC is back bone of Indian Economy and always protects interest of policy holder
This government doesn’t not think that way
No family mediclaim to take care LIC agents at present
Indian government is ignoring the leak agent
In Hindi
लिक एजेंट को नजरअंदाज कर रही है भारत सरकार
Kindly remove GST on premiums… Increase maturity value with good bonus……. also kindly introduce products with minimum Rs 1 lakh sum assured for poor families…..i
yes
LIC only takes care of its employees, ignores welfare of agents who are backbone of LIC.
LIC take care of its Employees not Agents.
Not really partly
If we leave micro insurance, other policy premiums are very high. When everything was right going on, was there a need of changing the Agent’s Commission?
Will GST not affect the Policy Holders ? Will Income Tax rebate on Policies not affect the Policy Holders? Are saving encouraged by taking Insurance Policies ? Can a normal person feel Premium is less while taking LIC policies . In another words, selling policies have become too difficult for Agents.
LIC of India always gives importance to the need of the policy holders. At the same time internal customers like agents have been taken care a lot at all levels.
They have been taken care with lot many club benefits as per their club status. LIC of India is always proactive for its internal as well as external customers.
By increasing of sum assured it is difficult to sale lic policy in rural market as well as urban.
Decreasing of agency commission has discouraged to the agent.
Rahul is right. LIC, on an average, gives the lowest returns. Central govt policies have made things worse
You are absolutely right. Policy holder does not get anything in LIC. LIC is treating LIC agents as bonded labourers.
In Hindi
बिल्कुल सही कहा आपने l Licमें पॉलिसी होल्डर को कुछ भी नहीं मिलता है l Lic एजेंट को बंधवा मजदूर समझ रही है एलआईसी l
Yes people are not willing to take policies as they need quick return not giving importance to their life coverage
You are correct this is to dismantle lic and handing over its assets to the corporates. This is what birla plan presented at the time of after indipendence
LIC HAS PRODUCTS FOR ALL SEGMENTS OF SOCIETY AND WORKING ALWAYS FOR THE WELFARE OF INDIAN PEOPLE.
Customer bonus rates should be increased, old commission structure of LIC agents should be restored and all endowment plans should be extended up to 55 years onwards.
In Hindi
CUSTOMER KA BONUS RATE BADHANA CHAHIYE, LIC AGENT KA OLD COMMISSION STRUCTURE BAHAL HONA CHAHIYE, AUR ENDOWMENT KE SABHI PLAN KO 55 AGE TAK KARNA CHAHIYE
LIC gives fake promises. My father during 80s bought an 20-year insurance for my handicapped brother but no return as yet. It will be available only after my father death.
Lic of india always committed to serve the poorer with best plans and returns
Exactly right
Are you a IRDA agent
When we talk about affordability, except for a single plan, the minimum Sum Assured has been increased to two lakhs rupees and Single plans to One lakh rupees recently. Also the premiums have also gone up, leaving the common man’s affordability behind. Reduction of paid up term to one year as per IRDA guidelines is a welcome move, but reduction of agents first year commission is not justifiable because procurement costs of getting a policy due to high cost of living is increasing at an alarming rate. Agents income is coming down whereas payroll staff income has increased many fold.
LIC is providing low cost insurance security in rural areas LIC always keeps policy holders well being a priority.
We are proud of LIC for providing insurance cover to millions of people.
Lic of India fully covered Indian people with world level policy today. Nobody can reach LIC’s greatness.
They removed 1lakh sum assured all the plans except micro…… Premieum also hiked
Ceos keep their own interest at the forefront.
Lic should fix premium not more than sum assured and the maturity value should accrue good bonus.
Despite risk coverage the maturity value is not good over the total premium paid to lic.
Except micro policies all policies are having 2 lacs S A , it should be 1 lac minimum exclusively for poor people.
Agents commission should not be re aligned. It should be static as it was since 1956.
To penetrate more insurance coverage the agents commission should not be charged and mediclaim facility should be given to all confirmed agents. So the industry will run taking the economic development of people, employees and agents. But lic is not thinking deep concern for agents community. This is reason agents are feeling depressed and frustrated with the recent changes being adopted by Lic management. The ethics of Lic since inception is now somewhere missed.
First of all means ( LIC & GOVT.) should think to save the policy holders first, then automatically employees & agents will get the benefits or remunerations whatever it may be.
IRDAI should guide the INSURERS not to float a scheme, where maturity will be zero.
After 3 or 5 years of principal deposit amounts the surrender value shouldn’t be less than the principal deposit value with minimum 3% CAGR.
Actually LIC makes huge growth & financial benefits but gradually employees were benefited financially yearly basis & AGENTS community were suffering loss by decreasing commission % on a regular intervals.
IRDAI should adopt the system of ULIP from UTI to every INSURENCE COMPANIES where the public at large get the stock market benefits by bearing a less expense ratio. There is a chance to get the double digit returns. If INSURANCE companies were unable to provide this type of benefits,then ULIP businesses should be handed over to MUTUAL FUND industries.
NRUSINGHA NARAYAN PATRO
M.COM, MBA, CIS, NISM
MOB NO – 9861188166 / 9776396400
Corporation should look into customer benefits. Now-a-days very poor maturity returns are coming.
Agents are pillars of the corporation InsteAd of increasing the benefits, corporation is reducing the benefits.If things go like this, soon LIC will be in trouble.
Liked the comments by Chairperson of LIC
Liked the comments by chairperson of LIC
Like
All are Good
1)Agent Commission
2)Minimum SUM ASSURED
3)Premium Rates
LIC should consider on
1)Extending Maximum Entry Age
2)Extending Maximum Maturity Age
3)Premium Rates for TERM PLAN Age above 45
4)Premium Rates for TERM PLAN on Lowest SUM ASSURED so that many can buy TERM PLAN
No interest in lic policy because not enough commisson& not enough Bonus.
While appreciating the efforts on product designing in line with the IRDA guidelines, efforts to diffuse the disappointment among the Agency force with proactive initiatives must continue by LICI.
Like
Excellent
LIC IS THE BEST LIFE INSURANCE COMPANY IN INDIA .
Great
Excellent.
Exactly right
Affordability of insurance for the general public is a matter of concerned for the Govt- as it has ignored GST reduction in insurance premium in various meetings. just to show that Govt is interested in the insurance sector reforms have to be undertaken . But no results as yet. .
Govt has already provided IT rebate up to 12 lakh. So no one needs to save in insurance which is giving poor return at maturity.
Young people are investing in Equity. Govt is also promoting investment in PF,NPS,NPS Vastlya [newly introduced] It seems people are securing their future with Equity investment and not buying insurance.
I support Mr.Rahul Gandhi. All LIC product gives less returns due to inflation and waiting period of the most policies are long. Inflation erodes money’s value. Also agents’ commissions get reduced. They suffer a lot due to rejection by the people. Out of 10 people one meets only 2 may agree with LIC
All lic policies are deliberately designed in the way the policy holders money will be maximum utilized applying time advantage for company and in return policy holders will get lesser sum lesser value as prolonged maturity period erodes money value.
Excellent
Like👍
LIC always cater insurance for all sects of society
All the decisions taken by the Chairperson and the depth knowledge he has about the current scenario is commendable.
Excellent
WE ALL LOVE LIC, AND OUR LOVE FOR LIC WILL NEVER DETER.
BUT A PERSON IS HOLDING THE ED CADRE,ZM(S) ,WITH FAKE CASTE CERTIFICATE OF SCHEDULE TRIBE AND HAS DONE MANY CORRUPTION SINCE LAST YEAR.
HE NEEDS TO BE PUNISHED AND THROWN OUT OF THE LIC.
HINT-BA**I
Great
When Govt. asked LIC to give Rs.150K cr. to Railways at a very low interest and with that money Railways gives bonus, salary, free commute to its employees, why can’t interests of LIC employees and general public be also considered?
By increasing of sum assured, it is difficult to sale lic policy in rural markets as well as urban areas .
Decreasing of agency commission has discouraged the agents.
Great
Excellent
Life insurance is primarily a protection product, but insurance companies mis-sell it as an investment instrument. So please sell term plans without return of premium, such that the customer gets huge life cover at a low cost. Any spare money can be invested in MFs. But agents loathe to sell term plans due to very low commission on them
You have said the right thing.
Comment * बिल्कुल सही कहा आपने
I wonder what made those lic agents go to that most intelligent person on earth.
LIC follows the instructions of the regulator IRDA, as IRDA has closed all the old plans on 30 September 2024 and started a new plan from 1 October 2024 as per the instructions of IRDA.
In Hindi
LIC ,रेगुलेटर IRDA के निर्देश का पालन करती है, चूंकि IRDA ने 30 सितंबर 2024 को पुराने सभी प्लान बंद कर, 1 अक्टूबर 2024 से नया प्लान IRDA के निर्देश से शुरू किया है।
Liked the comments by chairperson of LIC
LIC ALWAYS THINKs AND TAKEs DECESION IN THE WELFARE OF ITS CUSTOMERS AND AGENTS.
LIC needs to re- introduce policy Viz. Jana Raksha or New Jana Raksha policy for farmers & poor .
Entry age upto 60/65 to be raised/ reintroduced.
Min.SA to be reduced to Rs 1(one) lakh only.
LIC always works for is customers and Agents.
LIC agents are pillars of the corporation. But sometimes there are things which are not good for Lic agents. Irda’s new rules and regulations are not in favour of agents and public. What is good for agents is good for LIC
LIC has always kept the interest of its existing and prospective customers at the forefront. Its agents benefited through various schemes. It has increased the sum assured after a long gap of 10 years during which the purchase capacity of average Indian has increased. Also the commission structures have been redesigned, not reduced and that also without any claw back clause. In this new genre of policies everyone is going to be benefitted.
Very prompt response from the Chairperson is most welcome step to clarify on RaGa’ S statement.
But, is IRDAI authorised under Parliament Act to amend and Set Rules which can be amended only in form of a Bill or Amendments in Parliament?
Can IRDAI Change or Amend Insurance Act, 1938, LIC Act, 1956 or LIC Agents Regulation?
First, Chairman of IRDAI has very categorically stated the facts recently about the limited Regulatory Control of IRDAI.
Premium of Customers can not be increased just by drop of a hat. Same way, why only Commissions of Agents are staggered to be paid afterwards? To compensate 1st Year Surrender Value, To enhance Bonus Rates, LIC Management must control and reduce Expenses of Management than depriving poor Agents of their livelihood.
Very nice sir
Once in every 3years LIC changes
the Table numbers of LIC PLANS
along with it, the premiums are increased showing it as New
POLICY.
Expenses must be controlled and reduced. Advertising must be reduced. Agents hard work brings in policies not your ADVERTISEMENTS.
LIC has taken care of its agents only not share holders after 4 years it’s shares have suffered 15% loss
All are Good
1)Agent Commission
2)Minimum SUM ASSURED
3)Premium Rates
LIC should consider on
1)Extending Maximum Entry Age
2)Extending Maximum Maturity Age
3)Premium Rates for TERM PLAN Age above 45
4)Premium Rates for TERM PLAN on Lowest SUM ASSURED so that many can buy TERM PLAN
5)Bonus Rates & GA Rates to be hiked.
There is no concerns whatsoever as Mr. Gandhi is talking about, LIC is always and only insurer who is taking care of their policyholders and their Agents, in fact LIC considered their Agents as part of its family. Even Commission Income of LIC Agent are also not decreasing the way it is talked about. LIC is the BEST.
Very well said sir. LIC always thinks and works for is customers and Agents.
LIC is looting customers by decreasing the Bonus rates.
For all policies from 20 yrs
and above the Bonus rate must begin with Rs50/-1000
per year.
Rahul Gandhi is having only one work to oppose Modi government schemes as Modi jee has launched MCA(Bima sakhi yojna &giving 7000/-month to empower the women.
I support Mr.Rahul Gandhi. All LIC products give less returns due to inflation and waiting period of the most policies are long. Inflation erodes money’s value. Also agents’ commissions get reduced.so they affect all Agents.
Agent is back bone of LIC, so save agent save LIC
Request to honourable CEO, plz think about 1300000 agents family future & future of LIC
Request to honourable CEO, plz think about 1300000 agents family future & future of LIC
Day by day,returns on LIC policy have became very low. It has happened due to abnormal expenditure from policy holder money for LIC employee which is rare for any financial institutions at present in our country.
Opposition leaders views are very correct at present
Minimum sum assured in a good policy in lic basket is 2 Lakh. It is not affordable to common man.
Recently LIC introduced one policy in table no 712 like that micro bachot schame for sum assured of Rs 100000 for filling the quota of short fall but like other policies, insurance holders have no profit. This is only encouraging just mis selling of policy to fill up the target.
Lic’s internal situation is becoming very poor day by day. It lost market share.If LIC is not thinking for policy holder benefit, then time is not far when it will become sick.
Regarding death claim LIC’s record is not good. In public they have said that claim settlement ratio of is 97 percent but it is partially correct.
My request is that IRDA should enquiry all the matters and check the expenditure from policy holder money in this regard.
All actions to save LIC are well come by common man but in competitive market day by day LIC will lag behind.
Once public start buying term insurance which is the real insurance then LIC could not have this kind of high expenses for administration.
So my suggestion, more good products including pension sectors.At present Jeevan Shanti is a good policy.It is never in competition with mutual fund SWP scheme .
Lic ‘s low premium term plan is designed for reaching people only but kept away from the needy low income group.
LIC, which has assets worth over Rs 60 lakh crore due to the hard works of agents, employees and officers.
Everyone knows the difficulties faced by agents in selling insurance. Still, due to GST and S-T on premiums, they have become expensive. Earlier, there was no tax on maturity, now? Further 100% foreign investment has increased the difficulties. Such a huge institution is facing dilemma due to these reasons.
In Hindi
LIC जिसने 51लाख करोड़ की संपदा एकत्रित की है, मुख्य रोल, अभिकर्ताओं, कर्मचारियों व अधिकारियों का है। अभिकर्ता किन मुश्किलों से बीमा बेचते हैं,सब जानते हैं।फिर भी प्रीमियम पर जीएसटी,औरएस एसटी लगने से प्रीमियम मंहगा हो गया।मेच्योरिटी पर पहले टेक्स नहीं लगता था, अब?
अब 100% विदेशी निवेश से मुश्किलें बढ़ा दीहैं।
ईतने विशाल संस्थान को इन कारणों से दुविधा है।
LIC Chairman has spoken nothing on the drastic reduction in the Commission structure of Agents. The agents have rightly approached RG for redressal of their Grievance.
Sir, please tell me which LIC policy you will buy for your children..
Because today you are not eligible to buy any policy in your name and if the maturity of any policy is more than the inflation rate, please tell me.. Do not fool the public by beating around the bush..!!
In Hindi
सर, ये बतायें कि आप अपनें बच्चों के लिये LIC की कोनसी पालीसी लेंगे..
क्योंकि आज की तारीख में आप अपने नाम पर तो कोई पालीसी लेने लायक हो ही नहीं..
और कोई भी पालीसी की मेच्योरीटी अगर इन्फ्लेशन रेट से ज्यादा हो तो बताये..
बातों को गोल गोल घुमाकर पब्लिक को बेवकूफ ना बनाये..!!