From 1st Jan the life insurance industry will see a huge change in the business . After IRDA’s latest guidelines more than 400 life insurance plans currently marketed by life insurance companies in the market will be withdrawn and new revised schemes will be launched by companies in the new year.
The motive behind this big change is considered as the customer-friendly and transparent life insurance products. In past miss-selling and poor after sales services has shaken the life insurance customer’s faith in the life insurance products.
Recently TRAI has also issued notice to various life insurance companies for unwanted telemarketing.
Life Insurance Corporation (LIC), the leader, has decided to stop selling as many as 34 policies, including Jeevan Anand, Jeevan Madhur and Jeevan Saral, to comply with new regulatory guidelines. LIC stopped the sale of Jeevan Amrit from December 7, Jeevan Surabhi from December 14 and will end other schemes from December 21 and December 28. The remaining 28 policies will go off LIC’s shelves from December 31. LIC had withdrawn 14 policies including Convertible Term Assurance and Children Deferred Endowment Assurance in November.