Life Insurance Corporation had wrongfully withheld the money of a man for five years thus, Supreme Court had ordered it to pay an additional compensation of rupees two lakhs with regards to the National Consumer Commission order.
The facts of the case are as follows- In the year 2009 under LIC’s Jeevan Astha Policy Madhav Hari Joshi had submitted the proposal to Life Insurance Corporation and had paid a hefty amount of Rs. 1, 75,000, and also an additional amount of Rupees 10, 000 for the sake of risk premium.
Madhav had recoursed to District Consumer Forum as LIC did not refund the money and no policy was granted to him. The District forum entertained the complaint and had ordered Life Insurance Corporation to return Madhav his dueamount and was also under the obligation to pay a compensatory amount of Rs. 4, 25,000 to him. The order was vehemently supported by the State Forum but on contrary the National Consumer Commission had supported the order of refunding the due amount but, it had opposed the orders to pay the compensatory amount. Thus, Joshi approached the Supreme Court.
Justice DY Chandrachud and Justice Hemant Guptamentioned that there was deficiency in the system and had duly observed after doing modification in the National Commission order that-
"The plan in question was not exclusively an insurance based product. By being linked to the equity market, it had an investment element. LIC held on to the moneys of the appellant wrongfully for five years. Its omission to refund has deprived the appellant of the use of his moneys. Hence, a mere direction for the payment of interest on the principal sum will not provide sufficient redress."
However, the bench had disposed the plea and had made changes in the order catering to the fact that justice would be served if a compensatory amount of rupees two lakhs is paid.
"In our view, the ends of justice would be met, if the direction, which has been issued by the National Commission, is modified and an additional amount of Rs.2,00,000 is directed to be paid towards all the claims, demands and outstandings, including litigation expenses."
Courtesy/By: Debasmita Goswami
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11 Jan 2019
