Skip to main content

Dept circular cannot modify policy conditions: Consumer forum

A departmental circular cannot modify contract conditions of an insurance policy, a consumer forum here has said while directing LIC to pay over Rs 6.96 lakh for deducting surrender value from a pension plan holder's investment prior to refunding her money.

The New Delhi District Consumer Disputes Redressal Forum held the state-run insurance company deficient in service for deducting an amount of Rs 6.46 lakh when the 71-year-old woman had surrendered her pension policies, saying the policy conditions clearly said no surrender value will be deducted.

"We have gone through the policy document in which it is categorically mentioned - 'The policy shall not acquire any surrender value' - whereas opposite party refunded the amount to complainant after deducting surrender value which is a clear case of deficiency on its part.

"No departmental circular can modify the contract conditions of policy," the bench presided by C K Chaturvedi said, adding that "deduction of surrender value which is not there (in policy condition) is unfair trade practice and against public policy and thus void."

The bench directed LIC to refund amount of Rs 6,46,055 to Delhi resident Meera Mahbubani, along with Rs 50,000 as cost of litigation.

The order came on the complaint of Mahbubani, who had said that she had invested Rs 52.5 lakh in 17 LIC pension plan policies, but since she was not satisfied with the returns she had decided to surrender the policies to re-invest the amount in other schemes of the company.

Even though the policy conditions said no surrender value will be deducted and LIC had assured her that no amount will be cut if she re-invests 50 per cent of the money, yet Rs 6.46 lakh was deducted despite her re-investing Rs 32 lakh in various LIC schemes, she had alleged.

LIC in its defence had contended that the amount was deducted as per a 2007 departmental circular which authorised such a deduction.

Article referred: http://www.business-standard.com/article/pti-stories/dept-circular-cannot-modify-policy-conditions-consumer-forum-113061700308_1.html

Comments

Most viewed this month

Partition proceedings are vitiated even if single co-sharer is not made party or is not served in accordance with law

Cause Title :  Bhagwant Singh vs  Financial Commissioner (Appeals) Punjab, Chandigarh,  CWP-2132-2018 (O&M), High Court Of Punjab & Haryana At Chandigarh Date of Judgment/Order : 31.08.2022 Corum : Hon’ble Mr. Justice Sudhir Mittal Background A large parcel of land was owned by the Nagar Panchayat. Thereafter, some of the co-sharers sold their shares to third parties including the petitioners herein. On 22.11.1995, respondents No.3 to 5 filed an application for partition of the land. The petitioners were not impleaded as parties.  On completion of proceedings, sanad was issued on 28.08.1996. Vide two separate sale deeds dated 28.05.2008 respondents No.3 and 5 sold some portion in favour of respondent No.6 and 7. These respondents sought implementation of the sanad resulting in issuance of warrants of possession dated 05.06.2008. Allegedly, it was then that the petitioners realized that joint land had been partitioned and that proceedings h...

Power of Attorney holder can also file cheque bounce cases: Supreme Court

The Supreme Court has held that a criminal complaint in a cheque bounce case can be filed and pursued by a person who holds a power of attorney (PoA) on behalf of the complainant. A three-judge bench headed by Chief Justice P Sathasivam gave the "authoritative" pronouncement on the issue, referred to it by a division bench in view of conflicting judgements of some high courts and the apex court. "We are of the view that the power of attorney holder may be allowed to file, appear and depose for the purpose of issue of process for the offence punishable under Section 138 of the Negotiable Instruments Act (which deals with cheque bounce cases)," the bench, also comprising justices Ranjana Prakash Desai and Ranjan Gogoi, said. The bench, in its judgement, said, "...we clarify the position and answer the questions in the following manner: "Filing of complaint petition under Section 138 of Negotiable Instruments Act through PoA holder is perfectly legal...

Christian who reconverts as Hindu SC will get quota benefits

Amid the controversy over “ghar wapsi”, the Supreme Court on Thursday ruled that a person who “reconverts” from Christianity to Hinduism shall be entitled to reservation benefits if his forefathers belonged to a Scheduled Caste and the community accepts him after “reconversion”. Citing articles by B R Ambedkar and James Massey, and reports by Mandal Commission and Chinappa Commission, the court said: “There has been detailed study to indicate the Scheduled Caste persons belonging to Hindu religion, who had embraced Christianity with some kind of hope or aspiration, have remained socially, educationally and economically backward.” The bench of Justices Dipak Misra and V Gopala Gowda held that a person shall not be deprived of reservation benefits if he decides to “reconvert” to Hinduism and adopts the caste that his forefathers originally belonged to just because he was born to Christian parents or has a Christian spouse. Expanding the scope of a previous Constitution benc...