lic policy surrender

N.Gopalakrishnan (Querist) 11 June 2014 This query is : Resolved
Dear experts
I approached life insurance corporation of india Coimbatore branch to receive my policy payments
The lic offcials asked me to fill an application form and prefix revenue stamp and should sign.Then only my payment against my policy will be paid to my bank c directly via NEFT mode
In this connection i told them if u r paying my amount in my hand either by chque r by cash then only I'll sign otherwise i will sign after i recive my money but they refused topay my money.Just 3 years ago the same thing happened to my cusin and he completed everything as directed by lic officials but the meanwhile his documents were misplaced and he has no proof for submitting his policy at lost he recovered his money without carriying any interest by last year only this is why i did not sign
Now i want to know if lic paying policy repayment to the customers thro bank account only whether customers sign is must in this regard? What the law says? The entire documents were collected by them then only they repaying customers money
Pl inform me

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ajay sethi (Expert) 11 June 2014
LIC is reputed company . it is not a fly by night operator . take xerox copies of documents submitted by you and obtain acknowledgment of receipt of original documents . no harm in signing application form and affixing revenue stamp . you will receive surrender proceeds in your account

Sankaranarayanan (Expert) 11 June 2014
You can give it. It is normal course of procedure only. For your safer side you can get xerox copy of the application and keep as record

Kumar Doab (Expert) 11 June 2014
Submit surrender form with covering letter and obtain acknowledgment with seal and signature and diary number on copy of surrender form, policy document………………..
LIC issues it.
If someone declines approach Manager/DGM-CRM.
Needles to mention no one force to pay by NIFT only.
As per guidelines Life Insurance Companies can make due diligence to identify the customer/policy holder while making the payment and hence Surrender Form describes documents to be submitted along with it.

In case of any doubt visit IRDA website and go thru Notifications and regulations e.g.

‘Regulation of Protection of Policy Holder’s Interest’

>>> You were there to receive the Maturity payment , or to surrender the policy?

Both are two different modes.

If you are surrendering the policy then has the policy been discontinued or within Grace Period?

Guest (Expert) 11 June 2014
Well advised by the Experts

Rajendra K Goyal (Expert) 11 June 2014
Well advised, agree with the expert.

Sudhir Kumar, Advocate (Expert) 11 June 2014
what did your cousine do when he felt duped.

T. Kalaiselvan, Advocate Online

(Expert) 14 June 2014
By observing certain formalities as instructed by LIC towards settlement of claim either by maturity or surrender is always in your interest s that you do not stand losing your money due to any fraud payed by any middle man. Further by furnishing the NEFT details, you do not have run behind the bank to deposit the cheque and again to confirm the clearance etc. As observed by experts, LIC is a mammoth and reputed organisation which will never breach the faith reposed by its customers in it. the incidence cited by you might be a stray incidence and if the said missing of documents was due t the fault of LIC, the interest portion for delay in settlement will be automatically added t the claim amount by the LIC, verify, if not you can claim the penal interest even now within three years of settlement.

lic policy surrender

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