On March 14, 2023, Udupi Human Rights Protection Foundation president Ravindranath Shanbhag expressed his concerns about the lack of progress in resolving the issue of LIC’s Jeevan Madhur policyholders in Chikkamagaluru district. Over 50,000 policyholders have been waiting for justice for years, despite paying premiums to agents appointed by LIC’s Udupi Division. The policy, which was launched in 2005, offered a low-cost life insurance scheme, with beneficiaries paying a premium of ₹600 per year to receive a cover of ₹15,000.
However, when a beneficiary died in 2013, LIC refused to pay the insurance claim, citing that the policy was not in effect. The issue was brought to light, and the Chikkamagaluru District Consumer Forum ordered the Udupi Division to refund the premium amount with a penalty. Despite this, the agency did not pursue criminal cases against its agents. The cases of over 50,000 other beneficiaries are still pending before the State Forum, with the foundation taking up the cause of the defrauded policyholders since 2016.
Shanbhag lamented that the absence of a head for the Karnataka State Consumer Protection Forum since May 2024 and the vacancy of posts at many district forums are hindering justice for these policyholders. He questions the relevance of observing Consumer Rights Day on May 15, given the ongoing struggles of these policyholders, and urges the government to take immediate action to resolve this issue.