Page 37 - Life Insurance Today February 2018

LIC told to pay up over faulty increase in annual pre- AU Small Finance Bank

mium signs MoU with LIC to of-
District Consumer Disputes Redressal Forum directed Life Insurance Corpora- fer PMJJBY
tion of India to refund around Rs 82,500 along with
9% interest per annum and pay Rs 35,000 as com- Banking finance company AU Small
pensation for changing the annual premium amount Finance Bank
of the insurance midway, despite assurance that it has signed a
will remain the same till the end of the policy term. MoU with LIC
to offer
The complainant Mahesh Kumar Goyal, stated that Pradhan Mantri Jeevan Jyoti Bima
he had taken Amulya Jeevan-I policy with an annual Yojana (PMJJBY), a company official
premium of Rs 16,050 for a term of 25 years. At the time of taking the policy, said. Under the MoU, LIC will give a
the complainant was specifically told by the agent that the premium would not life cover of Rs 2 lakh in case of
be changed till the date of last premium that was November 28, 2035. There- death to the customer at a nominal
after, the complainant paid premium for five years.
premium of Rs 330 per annum.
It was alleged that LIC through its letter dated July 21, 2016 unilaterally raised
The company will also offer loans
the premium from Rs 16,050 to Rs 25,350 per annum and desired the com-
under government's affordable
plainant to pay arrears of Rs 46,500 towards difference of premium. He sub-
housing and subsidy schemes like
mitted a complaint to LIC against the said enhancement, but to no avail.
Pradhan Mantri Awas Yojana, he
LIC in its reply said, "The insurance policy was underwritten by the zonal of- added. He said the customers can
fice and as per the underwriting decision the actual premium came out to be avail loans up to Rs 1 crore. The
Rs 25,350 instead of Rs 16,050. However, inadvertently at the time of accept- product will be targeted for both
ing the proposal, the revised premium of Rs.25,350 was not corrected in the salaried and self- employed (profes-
computer system, so the premium of Rs 16,050 was continued to be paid by sional and non-professional) cus-
the complainant until pointed out by the audit team in the year 2016-17. tomers in urban, semi-urban, and
LIC was then directed to refund the entire amount of premiums paid by Goyal rural areas which is the bank's core
along with interest at the rate 9% per annum. They were also asked to pay Rs market segment.
25,000 as relief and Rs 10,000 as litigation cost.
LIC Housing Fin net dips a
LIC adds Rs 60,000 cr to government's disinvestment tad

kitty so far this fiscal LIC Housing Finance reported lower
net profit of Rs. 491
Life Insurance Corporation of India (LIC), the country's largest insurer has put
crore in the third
almost Rs 60,000 crore in disinvestment op-
portunities offered by the government so far quarter ended De-
this fiscal. A senior LIC official said the com- cember 31, 2017,
pany has booked Rs 20,000 crore as profit against Rs. 499
from the equity market. crore in the year-ago period. Net in-
terest income dipped 2 per cent year-
"Compared to last year, when we had booked on-year (y-o-y) to Rs. 898 crore (Rs.
around Rs 19,000 crore as profit from the eq- 915 crore in the year-ago period).
uity market. This year, driven by the buoyancy During the quarter, disbursements
in the markets, we have crossed Rs 20,000 crore," he said. in the individual loan category rose
The life insurer has set a target of Rs 38,000 crore as first premium income for 32 per cent to Rs. 11,324 crore. To-
FY18. In FY17, LIC had invested Rs 47,000 crore in the equity market. Its total tal disbursements, including devel-
assets saw a growth by 14 percent to Rs 27.25 lakh crore for the six months oper loans, were up 27 per cent at
ended September 30, 2017 compared to same period last year. Rs. 12,301 crore. Gross non-per-
forming assets nudged up to 0.87
Data from the Life Insurance Council showed that LIC had collected Rs 99783.33
crore of first year premium for the April 1 to December 31, 2017 period, show- per cent of total loans against 0.56
ing a growth of 19.5 percent growth over same period last fiscal. per cent in the year-ago quarter.
Life Insurance Today February 2018 37

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