LIC halts distribution of NPS scheme, approaches IRDA
Press Trust of India / New Delhi May 15, 2009, 18:44 IST
Life Insurance Corporation of India (LIC) today said it has halted distribution of the New Pension System to employees other than government staff following a directive from the sectoral regulator IRDA.
"We have halted the operation following the IRDA circular. We have approached the regulator to find out if there could be any exception," LIC managing director A K Dasgupta told PTI.
When LIC had applied before interim pension regulator PFRDA to undertake activity of Points of Presence (PoP), there was no such circular, he said, adding that, however, the company will abide by the regulatory order.
Earlier this week, IRDA asked insurance companies to set up a subsidiary if they want to be PoP under the New Pension System.
"No insurance company can act as PoP," IRDA circular had said.
PoPs are contact and collection points for customers wanting to be part of NPS.
LIC is only life insurance company which has been shortlisted by the PFRDA as one of the PoPs. The other 21 PoPs include, State Bank of India, ICICI Bank, IDBI Bank, Oriental Bank of Commerce, Axis Bank and Union Bank of India.
The other life insurance company which was given license for PoP earlier was Bajaj Allianz Life Insurance. However, subsequent to the IRDA circular, Bajaj Allianz's name was withdrawn from the original list of 23 PoPs.
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