LIC's dubious agents print misleading ads

Hyderabad: Insurance regulator, IRDA, has come down hard on India's biggest life insurer, LIC.

The regulator has received complaints that LIC agents have been printing and circulating misleading advertisements and flyers in some parts of India.

IRDA has pulled up LIC for violating the ULIP guidelines after this discovery - promising Rs 10 NAVS on plans, when the company no longer offers them the same. The regulator has instructed LIC to scrutinise its printed promotional material.

ULIP guidelines specify that all printed literature such as advertisements, illustrations, flyers and hoardings must be approved by the IRDA and monitored by the insurance company. However, LIC's 10 lakh agents are more than a handful.

LIC says it sends periodical warnings and notices to its agents forbidding them from using literature that has not been issued by the head office. The company says it prints its literature at the head office and it will monitor its agents more closely in future.