Birla Sun Life Insurance Company has been directed by UT District consumer disputes redressal forum to refund to a complainant the surrendered value along with the cost of litigation, on the ground of false assurance to provide an insurance cover that he required.
The complainant, Yashu Vashishath, a resident of sector 19 and a student at Punjab University subscribed to the policy which assured catering to all the requirements needed for him to get admission in Winconsin, U. S. A.
After paying the first premium of Rs 1 lakh, he left for the US. Yashu alleged that the premium receipt that the company issued to the school authorities abroad was rejected as the policy was not recognized there.
Yashu then took up the issue with insurance company, asking for the refund of the premium, but to no avail. A complaint was filed with the insurance ombudsman and despite the instructions; the company did not send the duplicate copy of the policy bond and or refund the amount.
Meanwhile, the insurance company pleaded that the complaint was barred by limitation as the same was filed after five years of inception of the policy. It was stated that the policyholder signed the declaration after agreeing to the contents. The company also alleged that complainant had failed to pay the remaining installments.
The council for the appellants submitted that the consumer complaint was filed after a lapse of five years of purchase of the policy and as such, it was palpably barred by time. Insurance ombudsman also held that the complainant was only entitled to the surrender value as five years had already lapsed.
Article referred: http://www.policymantra.com/blog/
The complainant, Yashu Vashishath, a resident of sector 19 and a student at Punjab University subscribed to the policy which assured catering to all the requirements needed for him to get admission in Winconsin, U. S. A.
After paying the first premium of Rs 1 lakh, he left for the US. Yashu alleged that the premium receipt that the company issued to the school authorities abroad was rejected as the policy was not recognized there.
Yashu then took up the issue with insurance company, asking for the refund of the premium, but to no avail. A complaint was filed with the insurance ombudsman and despite the instructions; the company did not send the duplicate copy of the policy bond and or refund the amount.
Meanwhile, the insurance company pleaded that the complaint was barred by limitation as the same was filed after five years of inception of the policy. It was stated that the policyholder signed the declaration after agreeing to the contents. The company also alleged that complainant had failed to pay the remaining installments.
The council for the appellants submitted that the consumer complaint was filed after a lapse of five years of purchase of the policy and as such, it was palpably barred by time. Insurance ombudsman also held that the complainant was only entitled to the surrender value as five years had already lapsed.
Article referred: http://www.policymantra.com/blog/
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