Wednesday, June 13, 2012

How to Surrender an LIC Policy ?

In the era of online affordable term plans, I am sure most of us would be evaluating our existing LIC endowment/money back policies to ensure that they meet our current insurance needs. After a careful examination of your insurance needs, should you feel the need to surrender your LIC policy, your first step should be to find out relevant information from the LIC India official website http://www.licindia.in/. However very soon you will realize that the information you are looking for is not present on the website. As of today, I have not been able to find any information on how to surrender an LIC policy on the LIC portal. The Downloads section has everything but the Policy Surrender Forms. Currently LIC does not have any facility to surrender an LIC Policy online. Here is what you can do to surrender your policy:

Visit the nearest LIC Branch in your region LIC Branch Locator and collect the following three forms:


(You can alternately also download a copy from my post and use a printout of the same)

The forms are self explanatory. Fill up all the forms. It is a good practice to attach a covering letter mentioning your policy details and a list of all the documents you are submitting. You may use the following sample letter: LIC_Surrender_Request_Letter

Please remember to provide your Bank Account information in the NEFT Mandate form. This will facilitate LIC to credit the surrender value (if any) into your Savings Bank Account via NEFT. You also need to enclose a cancelled cheque (Do not strike on the Account Number of Branch Address on the cheque). In case your Cheque Book does not have your name, enclose a copy of the first page of your passbook (This will indicate that that you are the rightful owner of that Savings Account).

Once you have all these documents ready, you need to send them along with your Original Policy Certificate to the Branch where you hold your LIC Policy. It is not important for you to submit these documents personally. All you need is a reliable courier service that could deliver the documents at the right place. This is important because you would be sending your Original Policy Document along with it. You can also submit these documents through your LIC Agent if you are remotely located.

I hope that you found this information helpful.

Please note: This post does not aim at urging people to surrender their LIC Policies. This only documents the procedure of doing so, should you ever feel the need, depending on your financial situation.
  

79 comments:

  1. Hi Neeraj,

    Very useful post. Thanks a lot. I know you personally how you are good at office and helping others and share your knowldege to others. This blog you started to do your noble servercie in wide-range. Really great, hats-of to you.

    Please do atleast min 4 post per day. After some time, if any one wants some information, they need to refer this blog only. So keep blogging..

    Warm Regards
    Senthil V

    ReplyDelete
    Replies
    1. Thanks for your motivation Senthil ! :)

      Delete
    2. Mr.Neeraj

      Presently i am out of india. I would like to surrender my policy..i paid all the dues..its maturity about after 10 years..
      now i want surrender via online...(Tamil nadu).. is it really required the policy holder to be there for surrender or i can fill up the Forms and send it by courier.. your valuable suggestion is much appreciated..

      thanks
      Bala

      Delete
  2. Excellent information. Can we use the form in any state? The form says Bangalore division.

    Appreciate for clarifying

    ReplyDelete
  3. I see the form is having Bangalore Division. Can we use the form in Tamil Nadu branch?

    ReplyDelete
    Replies
    1. I am not very sure if you can use Bangalore's form in Tamil Nadu. Walk down to the nearest LIC office and collect the form from there. It is a very easy and simple process and officials are very helpful. It is strange though that they do not have this form available for download on their website. You can also call up the Helpdesk and inquire if you can submit Bangalore's form in Tamil Nadu. Good luck !

      Delete
  4. Are you sure the surrender process can be done by speed post? also can u upload the forms required for a surrender in mumbai-thks ankur

    ReplyDelete
    Replies
    1. Yes I am sure that the surrender process can be done by speed post because that is how I surrendered by LIC policy. I stay in Bangalore and I had sent the documents via Speed Post to Kolkata. Walk down to the nearest LIC office and collect the form from there. It is a very easy and simple process and officials are very helpful !

      Delete
  5. Does the second form 3510/5074 need to be filled by me or lic officials as it seems more of a receipt of the surrender value also i already have done a Neft mandate with lic so do i need to just send the application for surrender value with the original policy-thks ankur

    ReplyDelete
    Replies
    1. I would suggest you walk down to the nearest LIC office and speak to them with the procedure. I followed the above steps and the refund was easy. I dont have a background on how old is your policy and when you had done the NEFT mandate.

      Delete
  6. Excellent information. Thank you so much. You save me lot of time and trouble :-)

    ReplyDelete
    Replies
    1. I am glad the information saved you some time :)

      Delete
  7. sir my mom willing to surrender 3 poilcies due to some financial problems which are
    jeevan tarang from 28/09/07 to 28/09/17 dues paying 10776 in mar and sep.
    jeevan anand from 28/10/2003 to 28/10/19 paying 4115 in apr and oct.
    jeevan sneha form 24/12/97 to 24/12/17 paying 7480 in dec only.
    but she got a loan from tarang and anand for a sum of 1,20,000.
    by surrending tat hw much they vil return?

    ReplyDelete
    Replies
    1. Hi, Please go to the nearest LIC offic, provide the above details and ask them what would be the refund amount.

      Delete
  8. I don't think we need to send Original Policy Document, along with the filled forms. Only a cancelled cheque is needed along with the mandate form, can be sent through any reliable courier or Postal department.

    ReplyDelete
    Replies
    1. Hi Thitherwards, we do need to send the original Policy Document along with the filled forms. I had sent mine. You can however reconfirm at a local LIC office. If you are cancelling your policy you would not need the original policy document anyways.

      Delete
  9. hi,Is there any way to block the surrender value through online?

    ReplyDelete
    Replies
    1. There is very limited information about surrendering an LIC policy on the website so the online options are very limited for closing or surrendering an LIC policy

      Delete
  10. Hi Neeraj,

    Thanks for info..

    ReplyDelete
  11. Hello,

    Just a basic query, bit associated to what people have been quoting above.
    The problem here is that the LIC agent, who gets the commission on regular basis should assist us in all policy associated matters. In my case, he (the agent) logged the policy from 'his' hometown which is like 300 kms away from my residence and ever-since has not even contacted, his contact number has also changed.
    It should be on Agent to assist the clients, and LIC should enforce this as well.

    ReplyDelete
    Replies
    1. I agree that the agent should assist you with your queries. I am not very sure if there is any option to change an agent for LIC. However, if you have posted this question with regard to Policy Cancellation, you should be able to pursue this independently without an agent's intervention.

      Delete
  12. Surrender form for Delhi can be downloaded from link below.
    http://lichelpline.com/blog/wp-content/uploads/2011/12/Surrender-form-form-no.-5074.pdf

    ReplyDelete
  13. Replies
    1. Hi Angshuman, I could not find any calculator for calculating refund online. However, you can call up LIC Customer care and they should be able to help you how much refund you would get when you cancel.

      Delete
  14. Hi Neeraj,

    Can you please tell as of how many days did it take for the money to be credited to your account ?

    ReplyDelete
    Replies
    1. Hi Rani, As far as I recollect, it took around 15-20 days for me to get back my money. LIC is very prompt and fast with NEFT so now you can directly get your money into your account via NEFT provided you have given them correct Bank Account Details.

      Delete
  15. Hi

    Thanks for this wonderful blog. I just printed the forms and started to fill. In the application to surrender form there is "name and address of paying authority", designation badge number etc. Since I am paying this premium and its in my name, can I leave these field blank?

    ReplyDelete
    Replies
    1. Hey Avi,

      It has been long back I filled in these forms. I would suggest you to check with the nearest LIC office. Good luck !

      Neeraj

      Delete
  16. Its awesome information. It will be very helpful for everyone of us:)

    ReplyDelete
  17. Hi Neeraj, thanks for sharing some useful information, its very beneficial for all.

    ReplyDelete
  18. Can a LIC policy which is not in force be surrendered?

    ReplyDelete
    Replies
    1. Hi, I feel you should be able to but please check with you nearest LIC office.

      Delete
  19. Can we surrender the lapsed policies which has bonus accumulated?

    ReplyDelete
    Replies
    1. I feel you should be able to. Please check with your nearest LIC office.

      Delete
  20. Hi Neeraj,

    I have just taken a LIC Money back policy but after anaysing this policy i have found that it is not beneficial for me and now i want to cancel this policy Could you plz help me out.

    ReplyDelete
    Replies
    1. Hi, I wrote this post with my experience on surrendering my LIC policy. I hope this helps you too. Let me know if you have any specific question.

      Delete
  21. Hi Neeraj,

    This is a very helpful thread you started for policy holders like me. True, even I scanned through the LIC site but couldn't find any info on cancellation.

    I want to cancel my LIC Jeevan Saral policy, having paid only the first premium in April 2012. The second premium was again due in April 2013. But I haven't paid it yet due to some constraints and my agent told me that I have 6 months to pay the premium to keep the policy valid.

    But now I have decided to cancel the policy totally and wanted to know how much will be deducted from the premium amount when I get a refund. Also, can my agent help me cancel the policy or do I need to follow the steps you mentioned for a speedier refund?

    ReplyDelete
    Replies
    1. Hi Salim, You can approach your agent to cancel your policy. I filled up my form and submitted the same through my agent and the processing happened in around 20 days. Good Luck !

      Delete
  22. Thank you for giving the information.

    ReplyDelete
  23. Neeraj, Truly appreciate for sharing valuable information. Thanks

    ReplyDelete
  24. Hi, Thanks for the information.
    Even i want to prematurely end my LIC Policy.
    Do they deduct any penalty if i do so.

    ReplyDelete
    Replies
    1. You can call up the LIC Call Center and check for the refund you will receive. Do a cost benefit analysis and then make a call. You can check with them on the penalty.

      Delete
  25. Hi Neeraj,

    Very useful information, Thanks for this.
    Can you please also tell me how many days it took for you to get the amount credited.

    Regards,
    Hari

    ReplyDelete
    Replies
    1. Hari, The money got credited into my savings account in about 20 days. LIC is very prompt with online money transfer.

      Delete
  26. Neeraj, this is very useful information & best one I googled for. I am off to LIC office to surrender my policy.
    Thanks.

    ReplyDelete
  27. Hi,Neeraj...just came across your blog while searching in google for LIC policy surrender ...have gone through surrender application form which you have uploaded ,kindly could you please tell what is meant by
    Name and address of paying Authority ........................
    Designation ..............
    Present Badge No and Department No .............
    Previous place of working ..................
    Thanks

    ReplyDelete
  28. I have taken loan against the policy some 8 month ago. Can I still surrender my policy? How much annual premium is advisable to pay befor surrendering the policy?

    ReplyDelete
    Replies
    1. Alok, You should be able to get this information from your nearest LIC office.

      Delete
  29. your post is very much useful.-
    LIC should understand their customers as you did not being a part of lic..
    Thanks

    ReplyDelete
  30. Hi Neeraj ,

    I have a question; I took 2 policys last year and i had paid 5 months premium of both the policy then i haven't paid any,its been a year now. Is there any chance of withdrawing my money ? or shall i forget about it! Thanks in advance .

    ReplyDelete
  31. The information is very clear and de-mystifying.

    ReplyDelete
  32. Dear Neeraj,
    my Policy and my agent are in Bangalore, i transferred to Tamilnadu. When i try to surrender the policy at pudukkottai branch, they said the policy informations are not available online, so they ask me to contact my agent or my branch. I don't have the agent contact number and i can't travel to bangalore only for this purpose. Can you guide me how to surrender my policy?

    ReplyDelete
  33. dear sir,my original policy bond is lost and i want to surrender policy plz help

    ReplyDelete
  34. very helpful!!! atleast its understood.. i called up in LIC branch and she was unable to understand English n neither i was able to understand her language... Thanks!!!

    ReplyDelete
  35. also need to ask that the lady says to courier it at kamala nagar branch!! is it or any branch we can do ??

    ReplyDelete
  36. Hi, I just took a Jeevan Saral Policy last month. First monthly premium paid. Now I want to close my policy for personal reasons. That agent tells me that I would be handed a letter saying that I can't take another policy with LIC for the next four years. Is this a clause? Or is the agent not being true to me?

    ReplyDelete
    Replies
    1. This sounds ridiculous to me. You should check with a local LIC office directly.

      Delete
  37. Hi I surrendered my policy on 18 Dec,the LIC branch person was saying that the money will be tranfered by 19Dec.It hasn't credited yet.How long does it take to credit.

    ReplyDelete
  38. Very useful post .. Considering LIC doesnt give any info on policy surrender procedures , this post is very much helpful ..

    ReplyDelete
  39. It was really very helpful information i got on this blog..I was thinking long time, how the policy can be surrendered.It gives me an idea to processd further on right way thanks a lot for saving unnecessary queries and time .

    ReplyDelete
    Replies
    1. Hello Sir,
      Once i submit all my lic docs to cancel the policy, how many days they take to refund my policy amount?

      Delete
  40. Hello Neeraj,

    I have a LIC policy maturing on april 2015, i have paid premiums until last year for 14 years now. Can i surrender the policy and get the money this year. what would be the charges deducted.

    ReplyDelete
  41. Dear Friends i surrendered my policy on 21/01/2014. How many days it will take for credited the money in my bank account

    ReplyDelete
  42. Hi Neeraj,
    Thank you for the information and confirming my findings that there is no information available about surrendering on the LIC website!
    I have one question, While surrendering, do we need to sign anywhere on the original policy document ?

    ReplyDelete
  43. It is very helpful Blog. Keep it up . Thanks ..

    ReplyDelete
  44. Dear Sir, my policy belongs to Berhampur division. To surrender my policy, can i use Sambalapur division form.

    ReplyDelete
  45. Dear Sir, my policy belongs to Berhampur division. To surrender my policy, can i use Sambalapur division form.

    ReplyDelete
  46. Hi Neeraj,

    I'm planning to surrender my policy for which I'd paid third year premium in Feb 2014. I hope I can surrender. Please clarify if you are aware of.

    Also, my policy itself is accumulation of 20 policies...which all will mature one by one after I attain 56 age.
    Should I surrender all these 20 policies?. Let me know.

    TIA.

    ReplyDelete
    Replies
    1. Hey it is very important to do a Cost Benefit Analysis of whether you are going to get a justifiable refund when you close your policies. Please do this analysis before closing any of your policies. If you have linked policies, I would advise you check with your nearest LIC Office. Good luck !

      Delete
  47. Very helpful. I used all the above tips on surrendering my LIC WealthPlus policy which I had foreclosed after 1-1/2 years of premium. Secondly, for a few clarifications, used the customer zone helpline of LIC. They were extremely helpful in sending me surrender form via email as I had moved of the state where I had my policy taken. What was the most amazing thing was that on May 12, 2014, the courier with the policy certificate and other forms was delivered and on May 14, 2014 (within 48 hours), the surrender value money was in my banking account.

    ReplyDelete
  48. I have taken 3 LIC polices during Sep'2011 (quarterly payment mode). I paid four quarters till Sep'2012, after that i stopped paying since i came across this LIC is waste one and i took HDFC Click 2 Protect plan.
    Could you please advice me is there any way to get my money back now?

    Policy details:
    Policy1 (Jeeven Saral)- 3675
    Policy2 - 3555
    Policy3 (Jeevan anand)- 3911

    ReplyDelete
    Replies
    1. Bala, please check this at the nearest LIC office. I closed my existing policies and do not much idea on your scenario.

      Delete
  49. very very useful

    ReplyDelete
  50. If Surrender of lic policy at this time pan number will be required or not

    ReplyDelete
    Replies
    1. Hi Raj - Even if PAN card is required I don't think there should be any issue providing that information. However I do not recollect if I provided my PAN card during closure. You can check this at the nearest LIC Office.

      Delete