The Chandighar district consumer disputed redressal forum passed an order against MetLife India holding it guilty of unfair trade practice and deficiency in services. The company was held guilty for mis – selling eight insurance policies to an underage boy. The minimum age prescribed for a person to avail insurance policy is 20 years, however the company sold the above 8 insurance policies to a boy aged 19 years only.
The forum directed the insurance company refund the premium amount of Rs. 17.10 lakh along with the interest @ 7.50% and also pay Rs. 50,000 as compensation. The forum also directed the company to pay Rs. 10,000 as a cost of litigation.
The fact of the case is that Mr. Jaskaran Singh, a resident of Ferozpur – Punjab, had purchased 8 insurance policies from MetLife in July 2010. On receipt of policy he found that his name and date of birth was wrongly mentioned on the policy and approached the company for corrections.
After sending several reminders he received a reply from the company that the details mentioned in the policy was based on the details mentioned in proposal form and copy of driving license provided to them. He contended that the license copy did not belong to him and re – approached the company for corrective action. When company refused to make alterations in the policy stating that the entry age is 20 years, Mr. Singh applied for a refund of the premium paid. The company paid no heed to his plea.
Aggrieved by the non action from the company Mr. Singh approached the consumer forum. Company claimed that the policy was issued as per IRDA guidelines. However, the forum observed that company has not complied with the KYC norms as well as anti – money laundering norms as the same did not had any income proof of Mr. Singh.
The forum also added that insurance company should have not issued the policies believing the age of the insured on the basis of learning license. It should have taken proper documents with regard to age and income proof.
On hearing both the parties the forum passed an order in favor of claimant.
