Insurance firm fined for deficient service

Chandigarh, August 23

The District Consumer Disputes Redressal Commission, Chandigarh, has directed PNB MetLife India Insurance Company Limited to pay Rs15,000 as compensation for causing mental agony and harassment to a consumer after it failed to pay the premium amount despite repeated requests.

The commission has also directed the company to pay Rs10,000 as cost of litigation to the complainant. Palwinder Kaur, a resident, filed a complaint against PNB MetLife India Insurance Company Limited, Sector 17-B, after she was denied the amount of a policy.

Palwinder alleged that the company not only failed to refund the amount of the policy, but lingered on her application for cancellation of the policy for no valid reasons. She alleged that an official of the PNB, Sector 22, branch allured her to invest Rs2,50,000 in the FDR and Rs1,00,000 with PNB Metlife on February 1, 2018. She was assured to get 12 per cent per annum interest on the amount. Accordingly, she paid Rs3,50,000 to the bank and to the company and they obtained her signatures on blank papers. The opposite parties issued the policy and FD receipt. She was told to wait for one year for refund of the amount with interest. After one year, the complainant approached the company for refund, but instead of refunding the amount, they insisted her to deposit Rs99,999.60, failing which the amount would be forfeited.

The complainant also submitted a letter to the company to cancel the policy, but to no avail. On the other hand, the company denied the charges and claimed that if complainant was not satisfied with the terms and conditions, she could have opted for cancellation as per regulation 6(2) of the IRDA immediately after receiving the policy papers.

Later, the company returned the premium amount of Rs1,00,000 to the consumer during the course of the hearing. — TNS