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Circular can't override contract

The Commission held that LIC can't be allowed to wake up after 11 years and then issue a circular that would violate the sanctity of the contract of insurance issued by it

Jehangir B Gai 

Jehangir B Gai

Deepak Rajmal Kothari had taken LIC's Jeevan Saral Policy (with profits). The policy mentioned the maturity value as Rs 25 lakh, death benefit as Rs 3,94,900, and accident benefit as Rs 15 lakh.

The yearly premium was Rs 1,24,100, and its tenure was for 11 years, from March 28, 2004 to March 28, 2015, over which period Deepak paid a total premium of Rs 13,65,100. Upon maturity, LIC did not pay Rs 25,00,000 as promised, but merely Rs 3,94,000 alo­ng with profit or loyalty addition of Rs 1,67,832. When Deepak protested, LIC justified the short payment by contending that the ...

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First Published: Wed, November 27 2019. 22:17 IST
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