LIC can’t make customer pay for its mistake

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The Hindustan Times Mumbai edition today reported a decision of the Maharashtra State Consumer Disputes Redressal Commission while dismissing an appeal by the Life Insurance Corporation (LIC) has held that LIC cannot ask a consumer to pay for an error of miscalculation on its part. The facts of the case were that the policy holder Mr. Ram Iyer had requested LIC for a change in tenure of his policy from 35 years to 17 years. The term was reduced on payment of Rs.1,15,378. The policy matured in August, 2008 and LIC held back Rs.62,821 on the account that there was a miscalculation on its side in making the offer of reduction of term and Mr. Iyer was expected to pay that amount. The Commission stated that it was unfair on the part of LIC to bring the point of its mistake in calculation of the amount and make the complainant pay at the time of maturity of his policy.

Source: http://www.hindustantimes.com/LIC-s-miscalculation-isn-t-consumer-s-fault/Article1-662937.aspx

 

 
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3 thoughts on “LIC can’t make customer pay for its mistake”

  1. I have also bad experience from LIC. I purchased one plan JEEVAN PLUS with single premium and 10 times risk cover in 2006 and paid Rs 1lac single premium and then after 3 months they called for more testing and charged me 16000/- more for load as i am senior citizen i paid also that amount But i never received any reminder for further premium and when i i sent my for status report of policy they given me only 12 unit balance out of 8500 unit approx. When i shown all papers to my other agent they says that in 2007 your policy is laps and you approach to Grievance cell and they will guide you i sent my son to handle this matter they clearly told that there is no any condition to send you an reminder and as your plan is ULIP and our premium in these one year they spent in market. My son there after told me that they are not giving any response but with the grace of GOD when he found that we paid 116000/- and they send us policy of only Rs:- 16000/- and from that my son made so may RTI and got all papers and lastly my policy revive with only 100000/- risk cover my son wanted to expose them all but i stop him i accepted to save my first single premium of Rs:- 116000/-. It is also seen that thousands of corrodes rupees lying unclaimed in LIC and for which LIC never taken any cared to search person and i seen from my case that once party has paid premium they are not even sending reminder for further premium and after that they are starting system and law drama and public money they are not giving back in this way lastly public loosing their swept earned money where that money is going? However i eve sent mail to Finance Minister long back but i have not received any response till date. Now further i request you to send all these facts to all Under secretory of Ministry so that all this type of DADAGIRI can stop. As all government department is giving such blunt reply i have experience of PPF account they also taken first payment of Rs:- 60000/- in year 2000 and then they never send my any reminder for further payment also agent once taking first payment they never showing his face and last lastly i paid penalty of 10 years and save my money. As per my opinion every department should send their representative to address government or non-government as public is giving their swept earned money to them and they can not keep with them or forfit them.Now you expose them either in paper or to T>V. this is only solution.

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