In fact, for the Rs 100,000 crore organisation, lack of any exit route for its customers and the resultant dormant policies is fast becoming a major source of revenue and strength. A survey conducted by 42 consumer groups under Consumer Coordination Council has revealed that awareness regarding the policies is badly needed among LIC staff as well as policy holders. Policy holders have identified delays in payment assured and claim settlement, non-receipt of premium notice, late receipt of policy document and procedural bottlenecks as some of the major problemsfaced by them, the survey said. Though in a belated move the Corporation has decided to hire international management consultants to restructure its mammoth organisation, customers and agents say that they are waiting for private operators to enter the insurance sector.
Customers complain of lapsed policies, delays in remittances, cheques sent in wrong account numbers.
The CCC survey confirms the consumers' complaints and lack of any effective complaint redressing mechanism. The corrosion in goodwill for LIC is its own making. Even though the branches are now computerised and networked, customers have to travel to that branch where the policy has been issued. The survey has suggested that LIC should spend its hugeunclaimed amount due to policy lapses for creation of consumer awareness and upgradation of services. When contacted, top LIC officials admit that they are lacking in customer services and efforts are on to serve then better.