THIRUVANANTHAPURAM: The State Consumer Disputes Redressal Commission (SCDRC) has directed the Life Insurance Corporation (LIC) of India to provide ‘promised benefit’ to a Jeevan Saral policyholder.
The commission rejected LIC’s argument to pardon a bona fide error in leaving the column on maturity amount blank in the policy document.
The order came on an appeal petition filed by the LIC against the Pathanamthitta District Consumer Redressal Commission’s order to pay the promised amount with compensation to the consumer.
The policy holder, a woman, took Jeevan Saral for a term of ten years which was due for maturity in May 2017. She paid the entire premium amount of Rs 1,22,480 based on the assurance by the LIC that Rs 2.50 lakh would be payable on maturity.
However, in 2017, the LIC sent a letter to her saying the amount payable would be Rs 1,06,230 which was lower than the premium amount paid.
The company argued that Rs 2.50 lakh was only for death benefit. It also offered a bonus that would take the total maturity amount to Rs 1,43,942. The company said it was an inadvertent error that the column for maturity value was left blank in the document.
The case was heard by a bench comprising SCDRC president B Sudheendra Kumar, judicial member Ajith Kumar D and member K R Radhakrishnan. The policyholder was represented by advocates Sreevaraham N G Mahesh and Sheeba Sivadasan.