LIC Asked To Pay Balance of Full Surrender Value as Conveyed to Policyholder

bonafide mistake from the insurance company due to a corrupted computer record and such a mistake should not entitle the policyholder to the benefit of the policy which she never purchased.  

 

"However, it is to be noted that even after the issuance of that status report dated 8 February 2019, at no stage the insurance company has conveyed to the complainant about such a mistake," NCDRC observed.

 

Quoting from the state commission order, the bench of Dr Singh says, "...This is also a deficiency in service on the part of LIC for keeping the customer in the dark about the change of her entitlement of the amount. In these circumstances, we are of the view that this is a clear-cut case of negligence and deficiency in service on the part of LIC, which failed to perform its duty to inform the customer about the above-mentioned change and about the change of surrender value amount due to above said corrupted master policy."

 

While dismissing the revision petition, NCDRC directed LIC to pay the remaining amount of surrender value i.e. Rs99,136 with interest to Ms Kiran.