Life insurance firm told to pay Rs2.5K relief to Mohali resident

Tribune News Service

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Chandigarh, January 22

The District Consumer Disputes Redressal Forum has directed a life insurance company to pay Rs 2,500 compensation to a Mohali resident for causing mental agony to him.

In a complaint to the forum, Nand Lal, a resident of Karoran village, Mohali district, stated that the agent of Bajaj Allianz Life Insurance Company Ltd allured him that if he deposited Rs 5,000 per year with the company for three years, he would be paid Rs 50,000 after 10 years. So, he deposited Rs 15,000 (Rs 5,000 each) with the company on different occasions with a hope to get Rs 50,000. When he contacted the company on payment of Rs 15,000, he was told that the policy was no more in existence due to one installment of premium paid.

It was submitted that if the policy was dead how another two premiums were taken against the policy. It was further averred that on payment of Rs 15,000, he was informed that the policy lapsed one year ago.

Despite due service, the company failed to put in appearance and was ordered to be proceeded against ex-parte.

During the arguments, the complainant had submitted that the company had returned Rs 5,346 to him.

From the documents placed on record, the complainant was issued Bajaj Allianz Family Assure, Non-Participating Unit Linked Policy for sum assured of Rs 50,000 on annual premium of Rs 5,000. The said policy was for a term of 20 years commencing from March 5, 2009, and the date of maturity was March 5, 2029, and the frequency of payment was annual.

The forum stated that the grouse of the complainant is that on depositing Rs 15,000, he approached the company to pay Rs 50,000, but he was informed that the policy had lapsed one year ago. However, during the pendency of the complaint, a sum of Rs 5,346 had been credited to his account.

The forum observed that from the perusal of Regulation 7 of the Insurance Regulatory and Development Authority (IRDA), the company could have at the most deducted Rs 1,000 from this policy and refunded the remaining amount to the complainant at its own. However, the company refunded Rs 5,346 to the complainant and that, too, after the filing of the instant complaint.

“In such circumstances, the company has committed deficiency in service by refunding Rs 5,346 contrary to the guidelines of the IRDA. Hence, the company is found deficient in rendering proper service to the complainant,” the forum observed and directed the company to pay Rs 14,000 after deducting Rs 1,000 as per Regulation 7 of the IRDA, less the amount of Rs 5,346 already paid and to pay Rs 2,500 as compensation for mental agony and harassment.