Pune: The Life Insurance Corporation of India (LIC) has been ordered to pay compensation to a customer after failing to deliver the full payout amount promised under a pension insurance plan.
The Additional Consumer Dispute Redressal Forum in Pune has ruled in favor of the complainant, Prasad Kumbhojkar, who had taken out LIC’s "Pension Plan Jeevan Suraksha." LIC has been directed to pay ₹25,000 in damages and ₹10,000 in complaint costs.
The case began when Kumbhojkar, a resident of Erandwane, Pune, realized that LIC had not paid the full amount mentioned in their letter when his policy matured.
According to the letter, Kumbhojkar was supposed to receive ₹4,64,504. However, LIC only paid him ₹3,95,221. Upon noticing the shortfall, Kumbhojkar contacted LIC several times to resolve the issue and demanded the remaining amount.
In its defense, LIC acknowledged the discrepancy but explained that the higher amount mentioned in their letter was due to a technical error in their computer system. They argued that the complainant was not entitled to the additional amount and asked the Forum to dismiss the complaint.
Despite LIC's explanation, the Forum found the insurer's services to be defective, stating that the complainant was entitled to compensation for the inconvenience and damages caused by the error.
The Forum emphasized that while Kumbhojkar may not be eligible for the full sum originally mentioned, he was entitled to compensation for the financial and emotional distress he endured due to LIC's mistake.
This ruling underscores the importance of accurate communication and responsibility in insurance services, as well as the consequences of technical errors in handling sensitive financial matters.
