For S Siddharthan from Tuticorin district, a life insurance policy payable over 25 years ended up sharpening his math skills. After his policy lapsed in April 2009 without any notice to him, it was renewed but with an erroneous premium amount.
The State Consumer Disputes Redressal Commission (SCDRC) has ordered that he be refunded 2,52, 771, which he had paid in excess, 10,000 as compensation for mental agony and 3,000 for the cost of the complaint .
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On February 20, 1999, Siddharthan took an insurance policy for 5 lakh. It was to mature on February 27, 2024. He paid an annual premium of 30,049 but he did not pay it in 2006 and 2007. However, he paid a total amount of 66,220, which included a premium amount of 60,098 for both years and penal charges of 6,122 in February 2008.
While he paid 30,049 the following month for 2008, Siddharthan was stumped to hear in April 2009 that his policy had lapsed and its renewal had been cancelled.
After he sent his medical records and other details again to renew the policy, he paid 1,65,919 as premium dues, 35,549 as extra premium and 23,723 as penal charges. Subsequently, the company replied saying his premium amount was 35,037. Though he sent legal notices to representatives of Life Insurance Corporation of India (LIC) in Palayamkottai and Tuticorin to refund the 53,150 which he estimated he paid in excess, there was no response. Analysing the records of the case, the bench of A K Annamalai, presiding judicial member and S Sambandam , member, noted that Siddharthan was entitled to 25,771 which was directed to be refunded to him along with compensation and costs of the complaint.
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