Around 1.25 lakh people of Moradabad who have taken life insurance policies will get a big relief as after paying the first year’s premium, they were not able to pay the second year’s installment due to some reasons or were closing the policy.
There will be a big relief for about 1.25 lakh people of Moradabad who have taken life insurance policies and who were unable to pay the second year’s installment after paying the first year’s premium due to some reasons or were closing the policy. The money of all such people will now be saved from sinking. On completion of the policy period, they will get back the amount deposited as the first premium.
Sanjeev Kumar, manager of LIC’s Ramganga Vihar branch in Moradabad, said that as per the guidelines issued by IRDA, a new system has been implemented in all life insurance companies. According to which, on taking a life insurance policy, there will be an option to close the policy only after paying the first premium. The policy was allowed to be closed only after paying the first two years’ installment. Those policyholders who were unable to pay the second installment after paying the first year’s premium, the amount of their premium was lost.
They were not able to get this amount back at the time of maturity of the policy. There was a provision to get this amount on maturity of the policy only if the instalment for two years was paid. In Moradabad, about twenty percent of the life insurance policy holders have shown a tendency of not depositing the second instalment after paying the first year’s premium.
