Shillong, December 19, 2013: Following the new guidelines of the Insurance Regulatory and Development Authority (IRDA), 34 plans of the Life Insurance Corporation of India (LIC) will be withdrawn as of 31st December 2013.
However, customers who have availed of the products can still enjoy the benefits while new customers would henceforth directly have to borne Service Tax with rates as high as 12.36% on the premium.
In a press conference held at the Shillong Press Club this afternoon, LIC Senior Division Manager Ashim Bhuyan announced the withdrawal of plans saying that one of the major implications of these changes are that Service Tax would be directly borne by the customers with rates as high as 12.36% on the premium, and not by LIC anymore.
Bhuyan told media persons that “increased life cover may lead to the possibility of premium being higher as well as the minimum level of premium, and the customers who purchase the existing products would be in a position to enjoy the reserves, surplus and profits of the Corporation of over 57 years.”
The LIC Senior Division Manager further said, “These are sweeping changes that are taking place due to the guidelines stipulated in the Insurance Regulatory and Development Authority, which is the insurance market regulator in the life insurance industry.”
Customers are now queuing up to purchase LIC products because they are aware that they can continue to avail the benefits of blockbuster products.(SP News)
