LIC Term Insurance Amount reduced and premium refund

POSTED BY harry ON October 5, 2013 7:23 pm COMMENTS (6)


I had applied for LIC’s Amulya Jeevan(plan no 190) term plan for 35 years,sum assured 25 lakh for my Wife(Age 26 Years,premium 7600, Annual salary 5.6 lak ) and myself (Age 27 years, premium 8600, Annual Salary 5.8 lakh).

I have submitted the proposal form along with all the documents. The medical has also been done for both and the reports are all fine.The premium amount has already been deposited to the LIC. Now the LIC agent says that the LIC can give insurance cover of only 15 lakhs for my wife and 10 lakh for me. The premium will be reduced to 6254 for my wife and 3356 for me and the balance amount will be refunded.

Please let me know if LIC can reduce the insurance cover for a plan whose minimum insured amount itself is 25 lakh. What are the implications of accepting the the reduced cover. Will it impact if in future I have a take another insurance plan from LIC or some private company.

6 replies on this article “LIC Term Insurance Amount reduced and premium refund”

  1. ashalanshu says:

    Dear Harry, I smell a RAT here. Please do tell me, why are you purchasing insurance? For the fina ncial safety, security of your loved ones. Do you really feel that LIC people are working in your interest while handling your case? you need to seriosuly think over your own image of LIC.



  2. harry says:

    Today I talked to the development officer and the branch manager. They told me that they are willing to give the original Amulaya Jeevan plan but the underwriters at Head office are not giving as they say are receiving many life term claims. So they are not accepting any new Amulaya Jeevan term plan. They asked me to drop a mail at their official Branch email id and assured me that they would take up the matter with the head office.
    Please let me know what are the options here.
    Thanks & Regards

  3. ashalanshu says:

    Dear Harry, do you still feel this LIC agent is good for your family in your absence. Please file a written complaint to your LIC Branch office against this agent for his cheating and misguiding things with you.



  4. harry says:


    I dropped a mail to LiC bo of the area. They called me back told me that the Sum assured cannot be reduced below the minimum sum assured for that particular plan. They asked for my propoal details and the agents number and are looking into this issue.
    When I met the agent today he did not directly tell me about the whole story, only on specifically asking him whether the new sum asssured and premium is of some other plan, did he tell me that the new details are for Anmol jeevan which is for 25 years only. He was intentionally withholding information from me and wanted me to give him a approval letter of acceptance of new sum assured. Have asked him to get the originally planned Amulaya Jeevan with 25 lakhs cover only.
    Lets hope he does his bit now.

  5. harry says:

    Thanks for the quick response Ashalanshu. Will check with the LIC office directly.

  6. ashalanshu says:

    Dear Harry, there seems some mischief by your agent. For Amulya Jeevan the basic sum assured can not be reduced below 25L Rs.

    Please contact LIC branch office directly.



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