The district consumer disputes redressal forum has directed ICICI Prudencial Life to pay Rs 7.15 lakh to Delhi resident Ashok Kureel for ignoring the principal of natural justice. As it was the duty of the company to inform Ashok Kureel that his cheque for the second year’s premium has been dishonored. But company failed to do so and it did not give him opportunity to renew his lifelong pension scheme.
Forum directed ICICI Prudencial life to return the first premium of the policy of Rs 7 lakh along with Rs 10,000 as compensation for causing harassment to the policyholder and Rs 5,000 as litigation cost.
Ashok Kureel in his plea has alleged that company not only failed to inform him about the dishonor of the cheque but also converted his lifelong pension scheme into a paid up plan on the ground that he defaulted in the payment of second year’s premium.
He also said that after receiving the second year cheque in November 2008, the company issued him the renewal receipt and consolidated premium certificate in January 2009 for the period 2008-09.
In its defense company said, that it duly informed Ashok Kureel to renew his policy despite which he failed to do so and his premium was not paid by the due date. Hence, life cover and rider benefit, if any, available to Kureel was ceased as per the terms and conditions of the scheme.
However, forum observed that cheque was received by the company in November 2008 and till February 2009 it remained silent and did not inform the complainant. Hence, its conduct was not in accordance with natural justice.