The controversy, the Ulip controversy has been on for a while now but that has not stopped the oldest and the strongest state-owned player in the insurance industry; Life Insurance Corporation of India (LIC) has plans to submit new unit-linked insurance plans (Ulips) with the regulator as its two plans are at the final stage.
They usually file new products mid year which gives ample time to market the product. The corporation has seen exceptional sales in April 2010 with premium from new policies growing 97% Year on year.
They target to cover 10 crore lives this year against 6.5 crore in FY10, which includes coverage under group schemes.
LIC discontinued its endowment plan – Wealth Plus and is closing another pension plan – Market Plus in next month end. So to keep sufficient variety of products in the market they plan to float new schemes soon.
Incidentally, LIC is not among the 14 life insurance companies which have been asked to stop selling Ulips by Sebi. Also, LIC is in a unique position that every policy sold by the corporation is guaranteed by the government under the LIC Act, 1956.
Mr. Vijayan said, “We are not affected by the guidelines on surrender charges as we never had these charges on Ulips. We believe that funds belong to the policyholder and should be credited to his account”.
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