Page 32 - LIFE INSURANCE TODAY Novemver 2017

monthly annuity. He argued that his circumstances limited source, it would be really doing justice to him
were not appreciated by the company officials and he if he is paid the entire maturity value of the policy at
was told that he would get the amounts as per terms one go. Accordingly, having considered peculiar
and conditions of the policy. His mother is under circumstances of the complainant, I direct the
treatment. insurance company to make payment of entire vested
value of the policy immediately without going through
During the course of hearing, he narrated his pathetic the technicalities of the policy terms and conditions.
condition and has stated that he is all alone. His wife
had already expired and no children. He badly needed 5. The Award shall be implemented within 30 days of
maturity value of the policy immediately to repay the receipt of the same. The compliance of the Award
loan raised by him for meeting the expenditure of the shall be intimated to my office for information and
treatment of his mother. He was literally weeping record.
during the course of hearing when he was told that
he would be entitled to only 1/3rd of the vested value 6. Copies of the Award to both the parties.
of the policy and rest would be paid in monthly
annuity as per terms of the policy. Delhi Ombudsman Centre

3. The insurance company requested the complainant to Case No.LI/206/DL-I/09
exercise the option as to whether he would like to get In the matter of Smt. Manju Nandi
monthly annuity on full amount of maturity value of
the policy or he would like to get 1/3rd of the Vs
commuted value in lump sum and the balance would Life Insurance Corporation of India
in the form of monthly annuity. The complainant
continued to insist for making full payment to him at
1. This is a complaint filed by Smt.Manju Nandi (herein
one go. During the course of hearing, the
after referred to as the complainant) against the LIC
representative of the company stated that the
of India (herein after referred to as respondent
complainant is entitled to the payment as per policy
insurance company) in respect of reduced maturity
terms and conditions.
value of the policy.
4. I have very carefully considered the submissions of the
complainant as made in writing and also as made 2. The complainant submitted that she had taken a policy
verbally during the course of hearing. I have also No.112574589 from LIC of India on 10.08.1998 for a
considered the written submissions as placed before period of 10 years. The policy continued till the date
me on behalf of the insurance company and also of maturity on 10.08.2008. The last payment of
verbal arguments put forth by the representative of premium was made on 10.02.2008 and the date of
the insurance company. After due consideration of the vesting was 10.08.2008. No information was received
matter, I hold that though terms and conditions of the by her from LIC for pension or the full payment of
policy taken by the complainant allows the payment maturity claim. However, on 19.08.2008, ZMC
of vesting value as per procedure given therein, that personally handed over a letter of maturity of policy
is, at the most 1/3rd of the commuted value in lump dated 19.08.2008 for Rs.1,91,388/-. She was
sum and 2/3rd in the form of monthly annuity but persuaded later on to purchase Jeevan Anand policy
having due regards to the peculiar circumstances of and a blank form was given to her under the
the complainant such as that he himself is 67 years impression that some amount will be paid to her and
of age, he had to meet the expenses which were balance amount will be adjusted against the new
incurred during the treatment of his 88 years old policy. However, she requested the Branch Manager
mother and he is having no family member and has to release the entire fund as she needed the fund for

"Be he ever so wise and strong, wealth confounds a man. In my view, anyone living in comfort fails to reason."

32 November 2017 Life Insurance Today

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