Vellore consumer court orders LIC to pay Rs 63 lakh to kin of policy holder
When his financial position improved, he informed LIC that he was willing to renew the policy to which no response was received from LIC, he alleged.
VELLORE: The Vellore consumer disputes redressal commission ordered Life Insurance Corporation (LIC) to pay a beneficiary Rs 63 lakh in addition to cost in a verdict passed on Friday.
S Narayanamoorthy of Gandhinagar Vellore had taken a policy for Rs 1.01 crore for which he paid premium regularly. However due to various reasons he was unable to pay the premium after some time and hence stopped paying.
When his financial position improved, he informed LIC that he was willing to renew the policy to which no response was received from LIC, he alleged. Meanwhile Narayanamoorthy died because of Covid and his wife Anitha claimed the insured amount as a beneficiary.
However, LIC citing Narayanamoorthy stopping payment of premium handed over Anitha only Rs. 7.80 lakh. Anitha moved the consumer court which on investigation found deficiency of service and hence presiding officer Meenakshi Sundaram in his verdict ordered LIC to pay Rs 63.19 lakh to the beneficiary. The insurance major was also ordered to pay Anitha Rs 1 lakh for the mental trauma she faced and another Rs 25,000 toward court costs.
