Life insurance policies

Sachin Kumar (Querist) 23 September 2020 This query is : Resolved
My father was passed away in February 2017.
Few days before, I found he was holding life insurance policies.
Life insurance company is saying two policies in name of my father lapsed in August 2016 because of non payment of premium.
One policy in name of my mother lapsed in September 2017 because of non payment of premium.
Since premium for consecutively 3 years is not paid, hence no surrender value can be given.
I told company that my father health was not good because of which he had not paid premium.
My father had paid total 70,000 premium in all 3 policies.
Is there any legal way to recover amount from life insurance company ?

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Quick Summary

This discussion explores options for recovering funds from lapsed life insurance policies after the policyholder's death. The policies lapsed due to non-payment of premiums for three consecutive years, meaning no surrender value is payable according to the insurer. Advice suggests reviewing policy terms, consulting a lawyer, and potentially filing a complaint with the consumer forum or Insurance Ombudsman, especially if the insurer hasn't provided written repudiation of the claim.

Rajendra K Goyal (Expert) 23 September 2020
Recently there was a news paper ad regarding such policies.

Please discuss with the department whether referred policies are covered or not.

If not, discuss with some lawyer. Full conditions need to be referred.

Dr J C Vashista (Expert) 24 September 2020
Issue a legal notice through a local prudent lawyer or LIC agent for payment of amount lying in the policy account.

Sachin Kumar (Querist) 24 September 2020
@rajendra K Goyal Sir,

Advertisement in newspaper is given by LIC regarding revival of lapsed policies.
Our life insurance policies are of private company.

Sachin Kumar (Querist) 24 September 2020
@JC Vashista Sir,
Private life insurance company is saying that since my father had not paid premium for consecutively 3 years, hence no surrender value can be paid.
The policy had become null and void.

Rajendra K Goyal (Expert) 24 September 2020
Read the policy term, discuss with local lawyer and if grounds exist go to consumer forum / court.

Advocate Bhartesh goyal (Expert) 24 September 2020
Issue legal notice to LIC and demand the payment of amount lying in their account with interest.In case they repudiate your genuine demand on ground of laps of policies then file complaint before District Consumer Form.

Sachin Kumar (Querist) 24 September 2020
@Bhartesh Goyal Sir,

The policy is of Private life insurance company.
The Private Life insurance company is saying that since the premium is not paid for consecutively 3 years hence no surrender value can be given.
The policy become null and void.
It is one of the terms and conditions of the policy.
Even if I file case before consumer forum, Judge will say that since my father had signed on terms and conditions of policy and he had not fulfilled the terms and conditions of paying the premium for consecutively 3 years, this case cannot be entertained.

Rajendra K Goyal (Expert) 24 September 2020
Have they repudiated claim in writing, with the mentioned objections?

If not, lodge claim now, if they refuse, discuss with local lawyer and lodge complaint with the Consumer forum.

You have not mentioned when the last premium was paid?

Whether any demand notice for payment of premium was sent by them?

Whether any notice before treating the policy lapsed was sent by them?

Moving to consumer forum is not expensive as fee is nominal as compared to regular court.

P. Venu (Expert) 24 September 2020
Ii is unsafe and unreliable to rest with oral discussions. It is not always the case that there could be no benefit from a lapsed policy.
Who is the nominee in these policies? Let the nominee lodge the claim duly supported with the death certificate and follow it up.

Further course of action could be decided basing upon their response.

krishna mohan (Expert) 25 September 2020
3 years no premium payment they can revive if the policy holder is alive. But, legally no liability other than seeking refund for premiums paid. however no loss in trying through a lawyer legally if there are decided cases in your favour..

Rajendra K Goyal (Expert) 25 September 2020
Agree with the advice, there is not much loss in trying.

Sachin Kumar (Querist) 27 September 2020
life insurance company registered office is at Punjab and Corporate office is at Gurugram.
I reside in Faridabad.
can I file case at Delhi consumer forum ?
can case be filed online ?
can I represent this case myself (I am doing LLB) without need of advocate ?
The life insurance policy was issued 10 years before.
What is limitation period for filing any case before consumer forum ?

Rajendra K Goyal (Expert) 28 September 2020
It would be better to take help of a lawyer.

Who is the nominee ? He should file consumer complaint.

Complaint can not be filed at Delhi, if the policy was not purchased from its Delhi Office.

P. Venu (Expert) 28 September 2020
To my knowledge, you have the option of approaching the Insurance Ombudsman. Except in forums where contrary provisions have been made, it is an elementary right to appear in person.

Rajendra K Goyal (Expert) 29 September 2020
Insurance ombudsman is an option, in Faridabad / Gurgaon permanent lok Adalat is also working, case may be filed there also. Yet consumer forum is better platform for such disputes.

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