The Consumer Disputes Redressal Forum at Indore – 2 ordered an insurance company to pay Rs 10,000 as compensation to a consumer after the company failed to meet its policy terms. Plaintiff Sheetal, a 39- year-old homemaker, daughter of Vimul Parikh, had bought a 20-year life insurance policy in 2006. She had to pay Rs 14,190 premium per annum. According to policy, 20% of sum assured is paid once in every five years as survival benefit.
Further, the sum assured can be reinvested as per the policy. After completing the first term of five years, plaintiff signed a cheque for Rs 40,000 (20% of sum assured) and reinvested the amount as per the policy. She then completed another term in 2016 and sent a cheque to reinvest amount for benefits. However, the company failed to reinvest the amount. When the plaintiff raised a complaint and demanded reasoning for non-reinvestment, the company denied having received a cheque. However, the plaintiff had issued a cheque as per investigation.
After failing to get proper response from company, plaintiff raised a complaint with Insurance Lokpal in Bhopal. Acting on the complaint, Lokpal intervened and asked company to reinvest the amount. As per the decision, the amount was reinvested as per policy terms. Raising the issue with Consumer Forum, the plaintiff demanded compensation for mental harassment and failure of company to comply with policy terms.
Consumer Forum president Om Prakash Sharma and member Atul Jain ruled the case in plaintiff ’s favour and directed the company to pay Rs 10,000 as demanded. If the company fails to provide the amount within two months, interest would be charged on it at rate of 8 percent per annum.