CHENNAI: A consumer forum here directed a mutual fund company and a public sector insurer to pay Rs 50,000 as compensation to a senior citizen for deficiency in service.
The petitioner, J A L Ganesan of Kilpauk moved the Forum stating that his wife, S Valliammal, came across an advertisement about a Senior Citizen Unit Plan (SCUP) of a mutual fund company for persons in the age group 58 to 60 years.
According to the scheme, a unit holder and his/her spouse would be entitled for medical coverage up to Rs 5 lakh and five per cent of the insured amount as bonus for every claim-free year for a maximum of 10 unclaimed years.
In addition, the policy holder and his/her spouse were eligible for medical benefits during their entire life, Ganesan added.
S Valliammal joined the scheme by paying Rs 33,000 on May 23, 1997 as one-time payment and received a duplicate log book-cum-identity card on June 9, 1998. Endorsements of bonus earned from time to time were made in the book from May 23, 1999 and to 2006.
As the couple had no children, Valliammal made Vijayalakshmi, daughter of her sister as her nominee. Subsequently, Valliammal died on May 30, 2005.
Ganesan, informed the mutual fund firm about his wife’s death and approached them to withdraw the proceeds of the policy. But the firm rejected his application stating that he could not withdraw the sum as Vijayalakshmi was the nominee.
Aggrieved by this, Ganesan approached the North Chennai District Consumer Forum, contending that he was a joint member in the policy along with his wife as per the policy agreement and that he was eligible to withdraw the sum. He further sought a compensation of Rs 15 lakh for the mental agony suffered by him.
The firm argued that the petitioner was barred by limitation, as the cause of action was in 1995 when the unit certificate was issued in the name of S Valliammal. Ganesan remained only as a prospective consumer and the scheme was terminated on February 18, 2008. Hence, the petition was not maintainable under law, the firm added.
Allowing the complaint partly, the consumer forum directed the mutual fund firm and the insurer to jointly and severally extend the lifetime mediclaim insurance to Ganesan.
The forum further directed the mutual fund firm to return the residual amount of the policy to the complainant and pay Rs 50,000 as compensation within six weeks.