Life Insurance Corporation of India (LIC) will cease the marketing of 14 life insurance policies, as part of the country’s Insurance Regulatory and Development Authority (IRDA) order to implement the new product guidelines.
The life insurer, which has already discontinued seven policies, including Convertible Term Assurance and Children Deferred Endowment Assurance, with effect from November 16, will further stop marketing of Jeevan Mitra and Anmol Jeevan, media sources reported.
Approximately five policies including Jeevan Mitra, Jeevan Paramukh Plan, LIC’s Bima Account I and II have been reportedly discontinued from 23 November.
Two more policies, New Jeevan Nidhi and Anmol Jeevan I, will go off LIC’s shelves from 30 November.
In February 2013, Irda said in a circular, "All the existing group policies and all the existing individual products not in conformity with the provisions of this regulation shall be withdrawn from August 1, 2013 and January 1, 2014, respectively."
IRDA had extended the deadline for implementation of new individual product regulations for the life insurance industry by three months to 31 December.
Irda asked insurers to implement news regulations recommend for traditional insurance products, as well as unit-linked products (Ulips).
Furthermore, it prohibited insurers from selling the highest net asset value products, as such those that do not provide transparency in terms of underlying fund’s investments and strategy.
The firm has already withdrawn 19 products, including Jeevan Nischay, Market Plus I, Wealth Plus, Jeevan Nidhi, Jeevan Vaibhav (Single Premium Endowment Assurance Plan), Child Fortune Plus and Jeevan Sugam, among others, according to LIC’s website.