Insurance firm to pay Rs 1 lakh for not providing services | chandigarh | Hindustan Times
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Insurance firm to pay Rs 1 lakh for not providing services

chandigarh Updated: Apr 16, 2014 10:35 IST
HT Correspondent
HT Correspondent
Hindustan Times

For failing to cancel the policies despite request, and not refunding the money, the district consumer disputes redressal forum, SAS Nagar, has directed an insurance company to pay 1 lakh compensation for deficient services to a Zirakpur resident.

Disposing of the complaint filed by ML Sharma, a resident of Dhakauli, Zirakpur, the consumer forum, on April 9, also directed Sriram Life Insurance Company Limited, to refund 4 lakh with 9 % interest from the date of deposit till realisation along with a direction to cancel the disputed insurance policies.

Sharma had purchased two policies from Sriram Life Insurance Company Limited in the name of his grandson in September 2012 after paying

2 lakh. He was assured that a representative would visit his grandson to get his signatures on the form. Sharma alleged that the cheques were enchased by the insurance company but no one turned up to get the signatures, after which he decided to cancel the policies.

However, Sharma was told that he could only cancel the policies within free look period of 15 days from the date of receipt of policy documents, which were already delivered to him.

As none appeared on behalf of Sriram Life Insurance Company Limited, they were proceeded exparte. “The insurance company is liable for deficiency in service as the insurance policies were never delivered to the complainant. The insurance company has also not cancelled the policies despite request and refund of the money,” held the consumer forum presided over by Madhu P Singh.