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 maturity
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper