Page 52 - Life Insurance Today January-June 2020

Miscellaneous Claim view of the above the complaint has no merit. In view of
the aforesaid facts, the complainant fails to succeed. The
Sh. Rajkumar Purohit decision of the Respondent needs no intervention. The
compliant stands dismissed.
V/S

Birla sun Life Insurance Co. Ltd. Mr Rohit Govindbhai Devjibhai
Complaint No. AHD-L-009-1718-0081 V/S

Life Insurance Corporation of India
The Complainant had purchased Birla Sun Life Gold Plus-
Unit Linked policy from Birla Sun Life Insurance Co. Ltd. on Complaint No. AHD-L-029-1718-0159
11.12.2007 for Sum Assured Rs:10000000/- with
Rs:2000000/- as Annual premium. This policy was surren- The Complainant had purchased two policies of Jeevan
dered in January,2015. The Respondent had issued cheque Anand Plan from the Life Insurance Corporation of India on
for Surrender value for Rs.1350167/- which was equal to 26/04/2011 for the premium paying term of 11 years. The
Policy Fund Value as on the date of surrender. The com- complainant could not pay the premium during the term
plainant requested for refund of balance amount with nomi- because of hospitalization due to heart attack and the
nal Interest. policies were lapsed. While approaching the respondent for
revival, the decision for revival was declined on 17/12/
Subject policy was non-participating Unit Linked savings life 2016.The complainant applied for the surrender value un-
Insurance plan. As per schedule of policy the Maturity ben- der both the policies, but the same was also denied by the
efit was stated as “Policy Fund value payable on the matu- respondent quoting the condition that premium under the
rity date”. policies are paid for less than 3 years (i.e. 2 years and 9
months). Aggrieved by their decision he approached the
The complainant had purchased policy for policy term of 8 Forum for settlement of his claim for refund of premium
years with 3 years premium paying terms. He had opted paid.
option for reducing premium paying terms in August-2010
and Respondent had given intimation to complainant on The complainant shown his willingness for revival of the
registered addressed also. So, complainant was aware policies. He was ready to pay all the premium. The com-
about the terms and conditions of the policy. The Sum As- plainant has urged for the refund of the amount of pre-
sured of the policy was Rs: one crore, so risk premium was mium (3384*11*2) = Rs : 74448 premium if the policies are
higher and service tax on it was also higher. Substantial not revived by the insurer.
amount was deducted from fund value towards mortality
charges and service tax. During the term of the policy pe- Representative of the respondent submitted that the policy
riod, if any unfortunate event would have happened the may be revived during the life time of the life assured, but
Basic sum assured would have been payable to the nomi- before the end of the premium paying term and within the
nee of the policy holder/complainant. Lapsation notice, period of 5 years from the date of the first unpaid premium
reinstatement quotations and fund value statement were on submission of proof of continued insurability to the sat-
sent by respondent on registered address. So, the complain- isfaction of the insurer and the payment of all the arrears
ant was aware about the lapsation and deductions made of premium together with the interest at such rate as may
by the insurer. The complainant came to know about the be prevailing at the time of the payment. The insurer re-
present fund value of his policy, and thereafter he took the served the right to accept or decline the revival of the dis-
action for surrender proceeding to stop losses. The Com- continued policy as per the policy condition number 3. The
plainant had received cheque of surrender value and en- revival of the discontinued policies shall take effect only
cashed the same on 20/02/2015. He made complaint almost after the same is approved by the insurer and is specifically
two years after receiving surrender cheque. communicated to the life assured.

The policy has been surrendered & contract has ended. In As per the policy condition, the policy can be surrendered

Fortune and love favor the brave.

52 January - June 2020 Life Insurance Today