Write back: Clarifications,rejoinders,suggestions

* We object to the manner in which Executive Director Saroj Dikhale’s version has been projected. Dikhale has given the information not as an interview as projected in the article,but has only signed a letter in her official capacity as CPIO designated for the organisation.

* The author of the article has obtained this information only in his personal capacity as an individual under RTI Act and has misused his official position with the newspaper to present an entirely distorted version with malicious intent for reasons best known to him. The data supplied by us has been deliberately misinterpreted in a manner prejudicial to the image and performance of a venerable national institution like the LIC. Not to say that Shaymlal Yadav never thought it necessary to take our version,as a responsible journalist,by contacting the official spokesperson.

* As per IRDA regulations,any amount which is payable to policyholders will be a permanent liability in the books of any insurance company and cannot be forfeited. Hence the headline itself is misleading. All out efforts are made by LIC to pay such amounts to the policyholders.

* As per our policy conditions of non-forfeiture regulations,if premiums have been paid for a minimum stipulated period or more,then the policy acquires a paid up value which is payable on the date of maturity or death,whichever occurs earlier,along with vested bonus,if any. Single premium policies will continue to remain in force till date of maturity or death,whichever is earlier. Only for policies where premiums have not been paid for the stipulated period,as per non-forfeiture regulations,mentioned in the policy bond,nothing is payable.

Hence the contention of your news article on this issue is absolutely wrong.

* As per policy conditions,if the premium is not paid within the days of grace,the policy will lapse and such policies can be revived within five years from the date of first unpaid premium,on submission of proper evidence of good health and arrears of premium with interest. Even after the expiry of five years period,if a policyholder wishes to revive the policy,the same is allowed after scrutinising the request for revival and submission of acceptable proof of good health and arrears of premium with interest. The revival of lapsed polices is an ongoing process.

The data showcased by your reporter is only for the limited period of special revival campaign and not the regular revivals running into lakhs.

* Further,as regards the policies which have matured and are still outstanding,payments are routinely made after the receipt of the claim requirements,if any. Every month,new maturity claims fall due for payments and old claims are getting settled. Settlement of outstanding maturity claims is,thus,a continuous process. For any claim which remains pending,as on date of maturity,the policy-holders are regularly contacted through reminder letters,agents,development officers and our staff,personally,for getting the requirements to ensure that the claims are settled.

Our correspondent Shyamlal Yadav replies:

The report clearly stated that the information was based on the reply given in response to an application filed under the RTI Act. The article carried quotes from Saroj Dikhale’s reply. Since it already had the version of a senior official,it did not make sense to approach LIC again for comments.

The RTI Act doesn’t make any categorisation as pointed out by the LIC. The application mentioned that the query was from a journalist. There was no misrepresentation of any fact and the report was based entirely on the figures provided by LIC. In fact,this newspaper-and many others-often do stories based on information obtained through RTI by others.

The report talked about the number of policies for which premium was discontinued for more than five years.

While the Corporation is right about the incorrect use of the word “forfeiture”,it refuses to reveal the amount remaining in LIC’s books as “permanent liability.” In fact,Dikhale’s response cites several examples of information sought and denied on the amount from discontinued policies.