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Consumer court finds deficiency in insurance service

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  25 Oct 2015 12:00 AM GMT

FROM OUR CORRESPONDENT

ITAGAR, Oct 24: While delivering judgment on a complaint lodged by Chandrani Ete, the State Consumer Disputes Redressal Commission, on Sept 21 passed an order directing the respondents (Birla Sun Life Insurance Company Limited branch mager, Itagar and five others) to pay a sum of Rs. 25,000 to the complaint towards the mental harassment and agony which the complaint had to suffer since 2010.

“The aforesaid amount of balance premium of Rs. 30 lakhs minus the admissible amount as per Regulation 7 shall carry interest @ 9 per cent per annum from the date of this order. We also award a sum of Rs. 25,000 as cost to be paid to the complaint by the Insurance Company,” the judgment said adding that the amount so directed shall be paid within a period of two months.

The two-member Commission observed that the complaint has been able to make out a case that there was deficiency in service on the part of the Insurance Company.

“After discontinuation of the policy, the respondents are bound to return the complaint the admissible amount from the premium of Rs. 30 lakhs as per provision of Clause 7 of the Insurance Regulatory and Development (Treatment of Discontinued Link Insurance) Regulation, 2010”.

In its complaint, Ete claimed that respondents no 5 and 6 had fraudulently convinced her to open one-time fixed deposit life insurance policy of Rs 30 lakh on August 30, 2010 under the Birla Sun Life Insurance Company Limited. But she came to know later that it was yearly premium policy and she was deceived to undertake the said policy as one-time fixed deposit policy.

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