The State Consumer Disputes Redressal Commission (SCDRC) in Thiruvananthapuram has ordered the Life Insurance Corporation (LIC) of India to provide the promised benefit to a Jeevan Saral policyholder. The policyholder, a woman, had taken out a Jeevan Saral policy for a term of 10 years, which was due for maturity in May 2017. She paid a premium of Rs 1,22,480 based on the assurance that Rs 2.50 lakh would be payable on maturity. However, in 2017, LIC sent her a letter stating that the amount payable would be only Rs 1,06,230, which was lower than the premium amount paid. LIC contended that Rs 2.50 lakh was only for death benefit and offered a bonus to take the total maturity amount to Rs 1,43,942.
LIC argued that it was an unintentional error that the column for maturity value was left blank in the policy document. The SCDRC, however, rejected LIC’s argument, upholding the order of the Pathanamthitta District Consumer Redressal Commission, which had directed LIC to pay the promised amount with compensation to the consumer. The SCDRC observed that a bona fide error cannot be used as a ground to nullify the contract. The commission directed LIC to provide the promised benefit to the policyholder, taking into account the premium amount paid. The policyholder was represented by advocates Sreevaraham N G Mahesh and Sheeba Sivadasan. The judgment came as a relief to the policyholder, who had been fighting for her right to the promised benefit.