Page 8 - Insurance Times November 2021

LIC of India

News

Shri B C Patnaik takes It is available for loans sanctioned from "So the delay or the time that is being
September 22 to November 30, 2021, consumed is not due to the lack of
charge as Managing Direc- provided the first disbursement is political will to go ahead with the
tor of LIC availed on or before December 31, stated policy," she said.
BC Patnaik has taken charge as Man- 2021, it said.
aging Director of Life Insurance Corpo- The home financier's Managing Direc- Insurance claim liable to
ration of India. "He was appointed as tor and CEO Y Viswanatha Gowd said be rejected if lapsed on
Managing Director by Government of the lender has been an early mover in
India notification dated July 5, 2021," offering 6.66 per cent on home loans account of non-payment
LIC said in a statement. up to Rs. 50 lakh from July 1, 2021 and of premium: SC
Prior to taking charge as Managing now it has extended the same rate for An insurance claim can be rejected
Director of LIC, Patnaik was Secretary loans up to Rs. 2 crore. if the policy has lapsed on account
General, Council for Insurance Om- Govt pushing for LIC IPO of non-payment of premium, said
budsmen, (CIO) Mumbai. He joined LIC the Supreme Court which stressed
of India in March 1986 as a Direct on time that the terms of an insurance policy
Recruit Officer. The government is pushing to launch have to be strictly interpreted.
the initial public offering of Life Insur- The apex court observation came
LIC Housing Finance ex- ance Corporation of India by next while setting aside an order of the
March. National Consumer Disputes
tends lowest home loan Redressal Commission (NCDRC) that
"We are pushing to have it done,"
interest Sitharaman said in an interaction when ordered additional compensation in
a road accident case.
LIC Housing Finance extended its low- asked if it will manage to complete
est home loan rate of 6.66% for the within the current financial year. "The A bench of Justices Sanjiv Khanna
festive season. Customers can avail problem is not that we don't want it and Bela M Trivedi said it is a well-
themselves of home loans for up to Rs. or we are pussy-footing on it now, it is settled legal position that in a con-
2 crore. In July this year, it had an- more a question of doing the due pro- tract of insurance there is a require-
ment of Uberrima fides i.e. good
nounced to offer home loans at an in- cess."
faith on the part of the insured.
terest rate of 6.66% for an amount up The internal valuation that's needed
to Rs. 50 lakh to new borrowers. "almost annually" for a company of "It is clear that the terms of insur-
ance policy have to be strictly con-
The new offer announced is available LIC's size, "hasn't been done," strued, and it is not permissible to
for all borrowers with CIBIL score of Sitharaman said. Given that the 65- rewrite the contract while inter-
700 and above, irrespective of their year-old insurer hasn't ever been val- preting the terms of the policy," the
occupation i:e salaried or professional/ ued, the process will take time, she bench said.
self-employed, a release said. said.

8 The Insurance Times, November 2021