NATARAJAN SRINIVASAN (SELF-EMPLOYED) 26 February 2012
I have received notification from LIC office to confirm the source of income ( by sending any proof i.e autitors certification, tax returns, bank statement etc) for the single premium for LIC policy which i have paid on 08- January 2006 for the amount of 4 lakhs only.
The policy is still in force and i dont know why i have been asked after 5 years.
I have been asked by LIC to provide the response within 15 days.
Please suggest what i should.
Kumar Doab (FIN) 26 February 2012
-Are you a NRI/PIO and di you make the payment from FCNS a/c?
“As for as the Foreign Exchange Management Act, 1999 is concerned, in terms of Section 6 sub-section 5 you can continue any of your property acquired while you were Resident in India. However, continued acceptance of LIC Policy depends on the terms and conditions, if any, imposed by LIC in this regard. You may disclose your correct status now to LIC and ask for procedure to be complied specifically with regard to LIC policies.”
-To the best of understanding the proof of source of funds or any other questionnaire is to be raised before the proposal form is accepted or during underwriting ( financial underwriting) before the issuance of policy and in case proposer is unable to furnish the details the insurance company can decline to issue the policy.
or
after the period of 2 years the policy can not be called back.
However if you have been filing ITR and have genuine source of income e.g. business income, agriculture income/J form, salary etc you may oblige the company.
You can also ask LIC on the basis of which Rules Corporation has demanded this document from you after expiry of 6 years.
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