LIC Agents can collect LIC policy premiums?
As per rules and regulations, LIC Agent is not authorized to collect the LIC policy premium from the policyholder.
“A division bench of the apex court consisting of Justice S C Agrawal and Justice G B Patnaik stated that the payment of premium to the general agents could not be regarded as payment to the LIC.
The judgement pointed out that the LIC had prohibited its agents from collecting premia in a 1982 regulation.
Source :
LIC Policyholders pay their LIC policy premium to the Agents because of the confidence they have in the Agent and the Organization. There are a few agents who don’t pay the premium collected from the policyholder on time to LIC. Many times, the LIC policy may lapse or pay an extra premium.