Page 31 - Life Insurance Today March 2018

LEGAL

Legal Case Studies on
Maturity Claim

Office of the Insurance Ombudsman, policy bond for correction informing that he had sub-
scribed only for 5 units which corresponds to Rs 37,500/-
Chennai at Rs 7,500/-per unit and that in the policy bond sum as-
Complaint no-22.012474. sured has been wrongly typed as Rs 75,000/-. But LA has
insisted that the amount should be settled by taking the
Mr. R. A. Sreenivasulu sum insured as Rs 75,000/-. The Regional Manager of the
vs Insurer has also sent a letter expressing apology for the
mistake in the policy and also stated that as a special case
LIC. to ensure that the sum insured under the policy is treated
Rs 75,000/- he requested the insured to pay only the ex-
The complainant had taken JEEVAN SARITHA Plan both in tra premium and waived interest. But LA did not agree for
his name and his wife’s name jointly under SSS and the this and insisted that the claim should be settled without
policies matured on 01.08.2010. The commencement date collecting additional premium.
of the policy was 01.08.1992.He had received discharge
voucher on 12.06.2010 for 1/3 of the sum insured for Rs In the proposal form the insured has mentioned in the sum
7,500/- as he had subscribed for 5 units @7,500/- total- proposed column-5 units and he has deposited a sum of
ing 37,500/- But in the policy bond received by the insured Rs 339/ on 30.07.1992 and balance rs9/-on 29.09.1992
the SI has been mentioned as Rs 75,000/- Hence LA had towards the first premium under the policy. The first pre-
not accepted the discharge voucher and demanded that mium receipt also showed the sum assured as Rs 75,000/-.
SI should be treated as Rs 75,000/- since policy has been The insurer has also produced circular which confirms that
issued for this amount. LIC has mentioned that typing er- the above policy will be issued each unit to be reckoned
ror has been committed while issuing the policy and the as equivalent to a sum assured of Rs 7,500/-.Based on the
premium has been calculated on the basis of 5 units calculation a premium of Rs 116/- pm collected corre-
@7,500/-‘ total Rs 37,500/-. sponds to sum assured of Rs 37,500/-. The complainant in
his proposal has requested for sum assured 5 units and the
The zonal office of the insurer had also offered to collect the consideration amount paid by him is for 5 units only. The
difference in premium and sanction the balance amount of complainant having paid consideration amount for “5 units
annuity by waiving the interest of premium. The LA was in- cannot expect the other party to pay the benefits for 10
sisting for settlement of claim without collecting any differ- units. Hence the insurance company cannot be penalized
ence of premium for the SA of Rs 75,000/- as per policy bond. for the mistake that has crept in unintentionally and fur-
ther no less a person than RM has apologized for the mis-
The complainant had taken Jeevan Saritha policy from LIC take and was gracious enough to waive the interest
commencing from 01.08.1992.As per the schedule printed amounting to Rs 29,108/- if the LA was willing to accept
in the policy the sum assured under the policy is Rs the sum assured of Rs 75,000/-. Considering all aspects the
75,000/-and the instalment premium is 116/- per month insurer is fully justified in settling the benefits under the
and the policy term is 18 years. The date of maturity is policy by treating the sum assured as Rs 37,500/-.
1.08.2010. The insurer had sent advanced discharge
voucher mentioning the basic amount payable as Rs The complaint is dismissed.
12,500/-Again the insured was reminded to submit the

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