Twitter
Advertisement

LIC ordered to refund premium

The complainant was wrongly told by company that his cheque had bounced.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

President of additional Pune district consumer disputes redressal forum, Pranalee Sawant, on March 17 ordered the Life Insurance Corporation of India (LIC) to refund the premium of Rs10,000 with 9% interest and pay costs of Rs5,000 to the complainant..

Bhosari resident Anil Vasantrao Girme, who purchased a market plus unit linked insurance policy from the Nigdi branch of the LIC, had approached the forum.

Girme purchased an insurance policy of Rs50,000 on December 31, 2009. He was to pay premium of Rs10,000 annually, which he paid by cheque issued on his account with Dena Bank’s Bhosari branch.

After the cheque was credited to the LIC, the policy was opened in Girme’s name on January 5, 2010. However, when he visited the LIC office in December 2010, he was told the cheque had been dishonoured. He brought it to their notice that his bank account showed a debit entry for the cheque issued to the LIC.

Girme requested the LIC to continue the policy or refund Rs10,000 with interest. The LIC branch transferred the matter to its central office for settlement.

LIC told Girme that due to a wrong entry, the computer system showed Girme’s cheque had been dishonoured. But he would get all the benefits of the policy from day one. However, Girme then insisted on getting a refund of the premium with interest.

During the hearing, LIC admitted it was its mistake and offered to continue the policy. However Girme sought its cancellation.

The consumer forum directed the insurance company to refund to Girme Rs10,000 along with 9% interest from January 5, 2010 and ordered it to
pay Rs5,000 as compensation to Girme.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement