LIC directed to refund policy amount

Hyderabad District Consumer Disputes Redressal Commission-III has directed branch manager of Life Insurance Corporation of India and general manager, Consumer Affairs Department, Insurance Regulatory and Development of India, to pay `35,185 premium amount to a customer, a retired police officer, for not settling his policy.

One R.B. Khanna, retired assistant subinspector of Hyderabad city, resident of Shah-AliBanda, filed a petition that he obtained “Jeevan Saral Policy” vide No.

640681707, which commenced from February 8,

2010, and paid monthly premium of `1,031 for a period of two years and 11 months. Total `35,185 of monthly premium got directly deducted from his salary through ECS / Salary Savings Scheme.

After that, he became sick and had a retroviral infection.

In 2014, he met with an accident, got admitted in Care Hospital, Nampally, Hyderabad, and underwent surgery of right foot. He was discharged from Care Hospital in 2015. Due to being continuously bedridden, his monthly premium of LIC was discontinued through ECS / Salary Savings Scheme. Further, no intimation was given to him for revival of his policy.

On October 28, 2019, the complainant filed a petition with general manager, Consumer Affairs Department, Grievance Redressal Cell, Insurance Regulatory and Development of India, (IRDA), stating the attitude of branch manager, LIC, and the IRDA giving a status report without giving any directions to the Life Insurance Corporation of India.

LIC officials said in the petition that paid premiums cannot be refunded as per the policy terms and conditions. The complainant had failed to continue the policy by paying the premiums for a minimum period of three years to get the paid up value or to get surrender value.

After verification of facts, the commission directed LIC officials to refund the premium amount and pay `10,000 compensation to the customer.