A female consumer has received significant relief in a case where ₹53,635 was deducted upon the maturity of her insurance policy, despite her having paid regular premiums for 11 years. After hearing the matter, the Mohali District Consumer Forum ruled that the deduction made by the company was unjustified.
Vijay Lakshmi, a resident of Mohali, had purchased the ‘Shield Advantage Term Life Insurance with Return of Premium’ policy from Aviva Life Insurance Company on March 31, 2012. The policy was for a term of 11 years and matured on March 31, 2023.
The complainant deposited a total of ₹2,36,004 in premiums over the entire term. Upon maturity, instead of the full ₹2,36,004, the company credited only ₹1,82,369 to the woman’s account.
The company deducted the remaining ₹53,635 as “premium loading charges.” The woman raised an objection regarding this deduction by sending emails and notices to the company in April 2023. When the matter remained unresolved, she filed a complaint with the Consumer Forum. Company’s Stance: Woman Suffered from Diabetes.
During the hearing, the insurance company argued that the woman had disclosed in the proposal form at the time of purchase that she suffered from diabetes. The company claimed that this additional premium was charged with her consent and that the information was provided in the policy documents.
Upon examining the documents, the Forum found that the woman had disclosed her medical condition to the company before purchasing the policy. Subsequently, the company had determined the annual premium for the policy.
Observations by the Forum
The Forum also noted that premiums had been paid to the company for 11 years. Therefore, there was no valid ground to deduct a substantial amount separately after the policy term had concluded. The forum did not uphold the company’s decision to deduct ₹53,635.
The woman had also lodged an objection with the company immediately after the deduction. The forum’s final order: Partially allowing the complaint, the District Consumer Forum has directed the company to refund the sum of ₹53,635.
Interest at the rate of 6 percent per annum must also be paid on this amount from March 31, 2023, until the date of payment. Additionally, the company is required to pay ₹10,000 as compensation to the woman for the mental agony and harassment she endured.
