LIC OF INDIA
Non payment of interest on accrued bonus

At present LIC (and other life insurance providers) declare bonus annually/periodically on with profit life insurance policies, which is payable on maturity or on death which ever is earlier. Accrued bonus becomes a substantial sum of money available to insurer till payment. However LIC does not pay any interest on such accrued bonus though it earns it on such balances. Since accrued bonus belongs to the policy holders, in all fairness, reasonable interest should be paid by insurer on such accrued bonus.