Insurance firm told to pay Rs 1.25 lakh relief to elderly woman

Ishrat S Banwait

Tribune News Service

Chandigarh, June 25

The consumer forum provided relief to a 78-year-old spinster. The woman was duped by the agent of an insurance company six years ago.

Birla Sun Life Insurance Company was fined Rs 1.25 lakh for not refunding her money, which was used to issue her a new policy while she had paid the money for renewing an ongoing policy.

Sneh Prabha Arora, a resident of Sector 8, had taken a policy on November 27, 2012. The policy was taken through an agent and a sum of Rs 25,000 was paid for its renewal. However, a new policy was issued to her instead of renewing the ongoing one. Arora sent an e-mail on January 1, 2013, to cancel the new policy and adjust the premium amount against the old policy but in vain and only Rs 25,000 was refunded to her.

In the meanwhile, her ongoing policy lapsed as the premium was not paid for its renewal. Arora said in August 2013, two persons - Girvinder and Agnihotri - approached the complainant for the issuance of insurance policies and two cheques for Rs 25,000 each were given by her and they were encashed. However, no policies were received.

The company in its reply said the complaint was not bonafide as it had returned the money after her cancellation request was received. However, the company did not receive the premium for her other insurance and thus it was cancelled.

The forum observed that due to degenerative changes in body and mind, a person becomes frail and “there is vulnerably and probability of being exploited at the hands of agents of the insurance company.” The documents submitted by the complainant were taken into account that since 2013, she had made various correspondences with the company.

The forum thus decided the case in Arora’s favour and the insurance firm was directed to refund Rs 75,000 of the policies. It was also directed to pay compensation of Rs 30,000 for mental and physical harassment to the complainant along with Rs 15,000 as litigation costs.