The Vadodara District Consumer Dispute Redressal Commission on Tuesday directed an insurance company to compensate a life-term policy holder with Rs 3.32 lakh over a case related to foreclosure of the policy without intimation.
According to the petitioner, Sachin Nene, he purchased a life term policy from Bajaj Allianz Life Insurance, with an assured sum of Rs 12.5 lakh in 2007. In June 2014, the insurance company foreclosed and discontinued his policy without any intimation, he said.
The Commission observed in its order, “The insurer had been deducting mortality charges, service tax charge and policy administration charges from the value of the fund of the said policy until May 2014. The next deduction was due on July 28, 2014. On June 23, 2014, when the complainant looked into the policy account, he was startled to discover that the policy had been foreclosed and discontinued without any sort of intimation to the complainant…”
Noting that the opponent did not inform the complainant about the sudden foreclosure of the policy nor issued any written communication regarding the foreclosure, the Commission said, “There has been a breach of duty on part of the insurer as the said terms are mandatory.”
Nene approached the Insurance Regulatory and Development Authority (IRDA) and also filed an FIR. A petition is also pending before the Gujarat High Court. The three-member Commission in Vadodara has ordered the company to pay Nene Rs 3.32 lakh within 60 days of the order as well as a sum of Rs 20,000 towards expenses of the case and an additional Rs 50,000 for causing mental agony to the complainant.
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