NCDRC directed SBI Life Insurance to refund entire premium on surrendered policies with interest
The complainant had taken two policies in 2011 and 2012. The agent assured of hefty bonus amount and in case of surrender, the entire deposited amount with bonus & other benefits will be given. However, he was not given terms and conditions of the policies.
However, even after surrender of the policies, the complainant was not given the deposited amount and bonus.
According to the Insurer, the policy cannot be cancelled after expiry of free look cancellation period.
The District Forum dismissed the complaint. However, the State Commission allowed the complaint.
NCDRC found that the terms and conditions of the policy are quite complicated and the insured should have sufficient knowledge to understand their implications like words – paid-up value, non-forfeiture benefits, revival, surrender value are technical in nature which the insured.
It is not clearly mentioned that there will be no refund of paid amount unless three premiums are paid in row. The lack of clarify is importance since the Insured was not informed about the implications for not paying three premiums to avail the benefit of surrender.
Order dated 22.10.2024 of the NCDRC in Revision Petition No.1427 of 2016 of SBI Life Insurance Co. Ltd Vs. Vinod Kumar
