PIL Issued to Insurance firms for offering Savings Plan

Savings and investment plans are illegal as life insurance is a business to compensate the nominees in the event of demise of the policyholder and not on survival.

Gujarat
high court, couple of days ago, demanded explanation from the Centre, IRDA and 19 insurance companies, including the Life Insurance Corporation (LIC) of India, over a PIL suspecting the legality of life insurance products offered by the companies.

Read more
Get ₹1 Cr. Life Cover at just ₹449/month+
Term Insurance plans
Save more with upto 10% discount
Covers COVID-19
Policybazaar is
Certified platinum Partner for
Insurer
Claim Settled
98.7%
99.4%
98.5%
99%
98.2%
98.6%
98.82%
96.9%
98.08%
99.2%

+Tax benefit is subject to changes in tax laws. +Standard T&C Apply

++Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

Get ₹1 Cr. Life Cover at just ₹449/month+
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
We are rated
58.9 million
Registered
Consumers
51
Insurance
Partners
26.4 million
Policies
Sold

Petitioner Kailash Maheshwari, a city-based chartered accountant, has asked for action against insurance companies for fooling customers and for criminal conspiracy and to try them under provisions of Prize Chits and Money Circulation Scheme (Banning) Act as well as under anti-corruption laws.

The petitioner has urged that the notification allowing the levy of service tax on the savings part of the premium be taken down and that service tax be allowed only on the risk premium part. The PIL also asked for stay on collection of savings as well as investments by the life insurance companies and to make endowment plans as illegal, and refund the premium.

As per Maheshwari, Savings and investment plans are illegal as life insurance is a business to compensate the nominees in the event of demise of the policyholder and not on survival.

The petition says that according to the law, life insurance business is only meant to be a business to pay an amount to the beneficiaries in case of death of the policyholder. Payment on survival is not the offering of life insurance. Therefore, all the savings as well as investment plans are illegal as the insurance companies do not have the rights to gather savings or investments.

Types of Term Plans


Life insurance articles

Recent Articles
Popular Articles
Post Office Gram Suraksha Scheme Calculator

27 Jun 2022

A Post Office Gram Suraksha Scheme calculator is a useful online
Read more
What happens if you stop paying life insurance premiums?

03 Jun 2022

Buying the best life insurance plan is a wise and learned
Read more
Postal life Insurance Tax Benefits

26 May 2022

Postal Life Insurance is the oldest life insurer in the country
Read more
How to Download PLI Statement Online?

24 May 2022

PLI or Postal Life Insurance was an initiative originally
Read more
Is Life Insurance an Investment?

24 May 2022

The thumb rule to building wealth is to invest your money in
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is not only about the financial protection of the family but also about working for life’s
Read more
How to Cancel SBI Life Insurance Policy?
As per the Insurance Regulatory and Development Authority, you can cancel a life insurance policy taken within 15
Read more
Post Office Gram Suraksha Scheme Calculator
A Post Office Gram Suraksha Scheme calculator is a useful online tool that can be accessed free of cost. It helps
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL