Consumer Forum orders LIC to Pay 60K for negligence

LIC has been pulled up by a Delhi consumer forum for “recklessly” misplacing a premium cheque, causing a policy to lapse and then defending their mistake before it.
The District Consumer Disputes Redressal Forum directed Life Insurance Corporation of India to pay compensation of Rs 60,000 to policy holder Manoj Kumar for mental pain caused to him and directed the insurance company to revive the policy of Rs one lakh.

“This case not only exemplifies a complete lack of empathy towards its customers at the hand of the officials of the LIC, it also shows a complete break down of supervision by its officers.

“We are pained to note that for the lapse of the officers of the LIC, a poor consumer had to fight litigation in this forum, which LIC stoutly defended rather than owning up to its mistakes,” the forum presided by Rakesh Kapoor said.

Regarding the refusal by the LIC in admitting its mistake, the forum said, “This was not expected of an organisation which boasts of due credibility and serving the largest number of consumers in the country.”

Kumar had approached the forum saying he was paying all the premiums of the policy purchased in the name of his minor daughter in May 2008 and the policy was to mature in May 2017.

He said when he went to deposit the premium for 2009, he came to know that the policy had lapsed due to non-payment of the last premium after which he approached the LIC and showed them the receipt by which he had paid the premium for 2008.

The officials, however, refused to listen to his complaint, he said, adding, even a legal notice of March 19, 2010 did not elicit any favourable response from the LIC.