The Hindu : Tamil Nadu News : Clarification from LIC

Online edition of India's National Newspaper
Thursday, Oct 14, 2004

Tamil Nadu

Tamil Nadu

Clarification from LIC

With reference to the letter from Sri. K. Balasundaram captioned `LIC's negligence' in Readers Mail column of The Hindu dated 13.10.2004 the Senior Divisional Manager, Life Insurance Corporation of India, Coimbatore says:

In this connection we would like to clarify the position as under:

The two policies mentioned in the letter were taken under `Bal Vidya Plan' meant for children up to age 12 providing monthly survival benefits after the child completes 5 years of age with stepped up benefit accruing at ages 10 and 18.

Up to 9 years - 12% p.a. (of Sum Assured) payable monthly.

10 to 17 years - 20% p.a. (of Sum Assured) payable monthly.

18 to 21 years - 40% p.a. (of Sum Assured) payable monthly.

Further on completion of 18 years of age additional survival benefit equal to the Sum Assured is payable as lump sum and on completion of 23 years the policy matures for payment of Sum Assured with Guaranteed Additions and loyalty additions, if any.

In the referred cases, under Policy No. 762866092 (S. Amarnath Life Assured & Senthil Kumar Proposer), the survival benefit payment @ Rs. 500/- per month commenced from 3/2004.

The monthly payments up to June 2004 were settled by our Gobi branch. Subsequently the policy was transferred to our R.S. Puram branch as requested by the proposer and 9 (monthly) post-dated cheques (bearing Nos. 112854 to 112862 drawn in favour of Mr. Senthil Kumar on Corporation Bank, R.S. Puram, Coimbatore) had been despatched and the cheque dated 1.9.2004 was encashed by the client on 12.9.2004.

In case of other Policy No. 762865421, (Sri. K. Tharun, Life Assured & Sri. B. Senthil Kumar, Proposer) the survival benefit will commence only from 1.3.2007.

Both the policies are now being serviced by our R.S. Puram branch office on their transfer from the Gobi branch.

Hence Sri. K. Balasundaram's contention that LIC branch at R.S. Puram has not taken any action for paying annuities is not true and contrary to the facts mentioned above.

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