Business Standard

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

lic, life insurance corporation
Premium

LIC plans to infuse Rs 100-130 billion into IDBI Bank

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 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
Topics : LIC

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 27 2019 | 10:17 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com