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LIC hai to jaana kahan....(Consumer Forum is where you need to go) This is the tag line of LIC’s promotional campaign and tries to establish the credibility of Life Insurance Corporation in Indian market. The monopoly of LIC comes both as boon and bain for the population. While on one hand LIC comes across as the most established of the PSUs ‘Public Sector Unit’, its monopoly has virtually dwarfed the growth of the industry, on the other. One can have a feel of LICs authoritarian style of working by a small de tour to community blogging sites on claim processing. Majority of the views would identify LIC for ‘not’ being able to perform business ethically. The organization receives a lot of flak for ‘mal-intentionally’ rejecting death claims. Often the LIC complaints would mention the reason on rejection as unsubstantiated, unethical, fabricated, mala fide and unsupported. These complaints come on different aspects of LIC’s functionality. 1. Fabricated reasons on rejection: ‘A death claim got rejected because the insured was investigated for high BP, 8 years prior to taking the policy’. Farcical! Indeed. Ironically, LIC, for a good 55 years of experience, can very creatively reject a Death claim. Imagine the adversities that a widow had to face, both emotionally and financially, when LIC rejected the death claim on her Husband’s untimely death. Not a hint of sympathy. 2. Delay on processing Instead on all the advancements in Information-technology, LIC has only been a laggard in adopting the same. The counterparts such as SBI Life Insurance and ICICI Pru have been instrumental on this, in spite of them being a newbie. The policy document will arrive days after producing your documents / premium in time. Complaints are abundant which speak about how the policy documents get lost or delayed while on transit. 3. Non-commitment to client servicing The Development Officers / Agents have earned notoriety for they being non-commitment to their duties. Consumer Forum would reveal an ‘n’ number of complaints about how an agent lost the policy bond, delayed payment of insurance premium, exploited policy commission and behaved rudely with the policy holder. 4. Un-explained charges on policy administration The recent introduction of ULIPs ‘Unit Linked Insurance Plans’ were majorly criticized for ‘not’ explaining the mortality charges, file processing charges and policy administration charges. Often the appreciation on a policy (addition to units) got negated by a simultaneous deduction of these charges. The policy holder stood in dark about why the fund value didn’t grow an inch. LIC was however very prompt on declaring these charges in rather ‘miniscule’ font size. The clause on condition apply did seem to work for LIC, and not so for the poor policy holder. 5. Falsification of facts Remember the gold minting machine called ‘Money Plus’ which claimed to accelerate interest by 25% each year for the next 15 years. Most LIC complaints on Money Plus mentioned about how the LIC agents used this projection to show a rather ‘attractive’ projection of the fund value. Ironically, Money plus could successfully mint gold for LIC but not for the poor policy holder. Author Bio: LIC Complaints : Life Insurance Corporation of India (LIC) Complaints: File complaints against Life Insurance Corporation of India(LIC). Misled by Life Insurance Corporation of India (LIC) Insurance policy holder was mislead or documents not delivered on time or premium issue, for Undelivered Policy Document Or Mislead By Life Insurance Corporation of India (LIC) agent. For more information log on to Akosha.com
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