LIC term insurance cancellation

POSTED BY Prasoon ON April 14, 2011 11:57 am COMMENTS (7)

I had applied for a LIC term insurance in March. Premium Amount got deducted from my account on 5th March 2011 after health checkup.

Received policy number somehow and registered on their portal in April. It is being displayed there – 

Policy commencement date – 19th March 2011

Enrollment date – 7th April 2011

(Confusing!!)

I have not received policy documents yet. Once I receive it, I am planning to cancel it in free look-up period. My questions are – 

1) What will be free look-up date in this case? 15 days from enrollment date/ commencement date or date of receiving the documents? If it is 15 days of actual receiving, how will I prove that I’ve received it late, and 15 days has not been passed already?

2) What will i need to do to cancel it within 15 days?

There is no benefit in calling their customer care as all info-centre executive remain busy always. And not to speak of e-mail, as I doubt that even someone reads it!

7 replies on this article “LIC term insurance cancellation”

  1. ashish9750 says:

    @ramesh…
    open the link ….for the data of claim by lic.
    https://www.financialexpress.com/news/lic-rejects-less-than-1-claims/128294/1

    1. Ramesh says:

      Seems like quite old data (6 years ago).

      Plus there seems to be no distinction between claims of endowment policies and claims of term insurance policies.

      One point to note. 20,000 crore (oh! thats huge) for 1 crore policies. = 20,000 INR for 1 policy on an Average. i dont really think, it is a term insurance.

      I would assume that 99% of the LIC policies are endowment/money-back policies and only 1% are term insurances.
      The term insurance policies would be more or less having the same claim settlement ratios as of other non-LIC companies.

      https://www.licindia.in/publicdiscloser/2010-2011/122010/CO-L40-DEC-10%20(QLY).pdf

      this is the data regarding the lic disclosure of its claims. cannot see which claims are term insurances and which are not. also, there are a large number of claims which have not been settled even after more than 1 year. but this is just the data, the actual information is still hidden.

  2. ashish9750 says:

    dear prasoon,
    keep in mind only policy bond recieving date, so contact to your lic agent to get it, but i want to ask that why u want to cancell this policy. bczz this is best policy in term insurance for claim purpose. lic is a highly claiming company. …….ashish

    1. Ramesh says:

      @ashish

      I would like to see the data where it is shown that LIC is the best company in providing claims for Term Insurances.

    2. Prasoon says:

      @ashish –
      Thanks for your reply.

      Just above your reply I have explained the reason for canceling it. I also trust LIC, and that is why I took the policy.

  3. Prasoon

    Forget all the dates , you are entitled to give back the policy within 15 days from the day of reciept , thats from the day you get it in your hand ,

    I am not sure , but as it comes from courier etc , there will be some proof for the date you got it .

    To cancel the policy , you can take help of your agent , which is very unlikly that he will help . Or you can go to LIC branch and fill up the form, you will get your premium back after cutting stamp duty charges and medical expenses

    https://www.thehindubusinessline.in/iw/2004/05/09/stories/2004050900291100.htm

    Manish

    1. Prasoon says:

      Thank you very much Manish!

      You are correct about the agent help. Actually this whole thing is about my agent. He took the cheque and became unreachable. ‘Will call you back’ type attitude. And, I can’t risk on an un-reachable agent. That is the main reason I’ll cancel my policy.

      Any idea, if I can change the agent without canceling the policy? I don’t want to provide him any benefit, neither for first premium nor for onwards premium.

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