View Full Version : Case Study 18 - Court ordered LIC to pay Rs 5 lakh

14-10-2011, 01:39 PM
The District Consumer Disputes Redressal Forum has directed Life Insurance Corporation (LIC) to pay Rs 5 lakh to a resident of village Manela here after finding deficiency of service on its part. Complainant Pawan Kumar in his complaint said he got his minor son Udesh Partap Singh insured with the LIC on August 4, 2010 for Rs 5 lakh and deposited Rs 15,494 with the LIC as the first premium.

As per terms and condition of the policy, the amount was to be realised either on the date of maturity of the policy (August 4, 2030 or on the death of the person insured, whichever occurs earlier).

At the time of purchase of the policy, the son of Pawan Kumar was not suffering from any disease and was hale and hearty.

But unfortunately, Udesh died on August 7, 2010 and the complainant requested the LIC to release the insured amount but the LIC tried to put off the matter on one pretext or the other, complainant alleged.

The LIC in its reply admitted that the policy was issued on non-medical scheme and the complainant never informed of the death of his minor son. The LIC also denied that the complainant it to release the amount of insurance.

The Forum observed deficiency of service on the part of LIC and it is liable to pay Rs 5 lakh to the complainant from August 7, 2010 till its realisation with interest at the rate of 9 per cent per annum.

It also directed the LIC to give Rs 5 lakh as litigation charges to the complainant within one month of receiving of the order.