The District Consumer Disputes Redressal Forum, South Goa, has indicted the LIC of India, Vasco division, of negligence in a case where a client was paid only 90% of the total amount due to her on maturity of a policy.

Sandhya Naik had purchased a Jeevan Dhara policy from LIC and was due to be paid Rs. 1,08,000 on maturity of the policy, along with certain guaranteed maturity additions. She had sent LIC a letter dated December 2, 2014, stating that she was surrendering the pension option of the scheme, as she wanted the full amount due to her when the policy matured on April 1, 2015.

The staff at the office interpreted this to mean that Naik wanted to surrender the policy from the date mentioned on the letter, and paid her only Rs. 94,436, which was Rs. 17,619 short of the figure expected by Naik.

The branch manager, LIC of India, Vasco, was cited as the opposite party in the case.

The Forum noted that LIC of India had accepted premiums from the client on the policy upto February 2015, and so did not have any grounds to interpret Naik’s December 2014 letter as meaning that she wanted to surrender the policy.

The Forum also noted that there were some cancellations and entries in the client’s letter, but the client had not signed against these amendments.

“Such an arbitrary and capricious behaviour of the insurance company clearly shows that the staff who prepared the status report and the opposite party are not only guilty of deficiency of service but also of malpractice. As such, we are of the opinion that officers responsible for such malpractice are required to be made answerable,” the Forum said.

The opposite party has been directed to pay the remaining sum of Rs 17,619 and a compensation of Rs. 20,000 to the complainant, in addition to a further sum of Rs. 5,000. It also said LIC of India was free to recover the Rs. 20,000 compensation amount from the company’s divisional manager or from the officers responsible for the problem.


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