LIC asked to pay up policy holder

The Mumbai Suburban District Consumer Disputes Redressal Forum recently took Life Insurance Corporation of India (LIC) to task for its agent having misled a woman regarding a policy she bought for her mentally challenged daughter.

Neena Rane, a Versova resident, invested in the ‘Jeevan Adhar’ policy in 1996 for her 11-year-old’s education and other needs. The agent said that the policy will mature in a decade with an additional Rs1 lakh for her and her nominee. On January 3, 2006, Rane received a letter from the company, with an attached form, which needed to be filled and sent back to get the benefits.

However, the company informed her that the policy did not mature in 10 years and the handicap nominee or any other dependent mentioned in the form would be given 20% of the amount after her death and a fixed amount would be given every month for the rest of their lives.

The forum came to a conclusion that the company did not fulfil the service conditions and ordered it to pay Rs1.88 lakh, at an interest of 12% per cent 2006 onwards, and Rs10,000 as cost of complaint within six weeks of order.