LIC To Go Supreme Court Over Policy Trading Issue

Mumbai: The Life Insurance Corporation of India (LIC) will soon register a special leave petition (SLP) before the Supreme Court to prevent trading in life insurance policies. Last month, LIC had lost a case in the Bombay High Court to bar Insurance Policy Plus Services (IPPS), a Mumbai-based insurance policies trader, from trading in life insurance policies. A division bench of Justice FI Rebello and Justice Anoop Mohta had ruled that insurance policies were movable property and can be traded in by a policyholder. Though LIC admits a policyholder to assign (read transfer of rights) his policy to a bank or financial institution for mortgage or to a family member or a friend, it is against assigning the policy to an organisation for trading purposes.