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Consumer forum orders insurer to pay Rs. 36K for cheating customer

Kotak Mahindra Insurance ordered to pay Rs. 36,800 for cheating a senior citizen

August 27, 2012 5:30 IST | India Infoline News Service
The New Delhi District Consumer Disputes Redressal Forum has ordered Kotak Mahindra Old Mutual Life Insurance to pay Rs. 36,800 for cheating customer Satish Chandra Tyagi and not returning him the premium amount paid for a policy—which he had returned within the 15-day free-look period, according to media reports.

Mr Tyagi, a senior citizen, in his complaint had submitted that he and his wife were approached and offered by Kotak Mahindra a suitable policy for them. Mr Tyagi’s wife had purchased the policy in her name on November 20, 2005 after paying Rs. 11,808 as first premium.

But, the policy was not issued in his wife's name but issued in his name and it was also not a life insurance policy as was agreed upon at the time of payment of premium. Mr Tyagi was later issued a new policy, which he returned within 15 days and then had demanded refund of premium of Rs. 11,808 but the insurance company had not returned the amount.

"We find its (Kotak Mahindra) position totally untenable in the face of prima facie case of the complainant and evidence on record. Firstly, the policy was void ab-initio being issued in wrong name. Secondly, it was returned within free-look period.

"The money should have been refunded, but opposite party (Kotak Mahindra) indulged in unfair trade practice, cheating and deficiency of service (by not returning the money). We direct it to refund Rs 11,800 and pay Rs 25,000 as damages for harassment and litigation cost," said the bench, presided by CK Chaturvedi.

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