In a case of selling an insurance policy with late maturity to an old couple,the UT District Consumer Forum has penalised Kotak Mahindra Old Mutual Life Insurance Limited for deficiency in services and unfair trade practice.
R S Bhasin and Santosh Bhasin,the complainants,were approached by an insurance agent who advised them to invest their money in Kotak Super Advantage Plan. The two alleged that the agent got their signatures on some blank forms without disclosing anything to them. When they received the policy papers,they were surprised as the papers were meant for another policy with a 20-year term having an annual premium of Rs 50,000 each. According to the complainants,they are senior citizens and are not expected to live for the period these policies had been issued for.
The complaints approached the insurance company a number of times for refund of the amount,but to no avail. Without the knowledge of the complainants,three premiums were deducted through electronic clearance service (ECS) despite the fact that the complainants had not given any specific permission for it.
The forum directed the insurance company to refund Rs 3,50,000,with 18 per cent interest and to pay compensation of Rs 50,000 on account of deficiency in service,harassment and mental agony to the couple. The company was also told to pay an additional Rs 11,000 as litigation costs.