policy surrender

LIC vs agents: 7% commission cut, protests, policy surrender and more

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LIC vs agents: 7% commission cut, protests, policy surrender and more

These modifications follow the Insurance Regulatory and Development Authority of India’s (Irdai) master circular on life insurance products (Insurance Products Regulations, 2024). Key changes include reducing the entry age to buy an endowment plan to 50 years from 55. The minimum basic sum assured has been increased to ₹2 lakh from ₹1 lakh with an … Read more

Exiting your insurance? This expert suggests selling instead of surrendering

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Exiting your insurance? This expert suggests selling instead of surrendering

Perhaps influenced by LIC’s stance, the government amended the Insurance Act, 1938 in 2015 to discourage ‘trading’ in insurance policies.  Mehta approached the Supreme Court to clarify that a ‘one-time assignment’ was not considered ‘trading’ in life insurance. The court ruled in his favour saying that a ‘one-time assignment’ was not considered ‘trading’ in life … Read more