The ‘abnormal rate’ of interest being collected by the Life Insurance Corporation of India (LIC) on loans being given to policyholders has drawn flak from the Life Insurance Agents’ Federation of India.
In a letter to Union Finance Minister Nirmala Sitharaman, the Federation secretary general N. Gajapathi Rao sought that interest rate on loans given to policyholders and that charged on late payment of premium, should be reduced. He expressed regret that the LIC interest rates are the highest when compared to the banking sector and recognised financial lenders.
He said it was unfortunate that the State-controlled Corporation is doing interest-business, ignoring the objectives of LIC and bringing a black mark on the Union government.
