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Venkat Narayan (Developer)     17 October 2013

Life Insuramce Corportation, taking customers for granted

I am at a loss to deal with  a lapse of Insurance policy of mine, due to unprofessional and irresponsible dealings of my  Insurer,  Life Insurance Corporation of India.

The following is the complaint I made against LIC of India, with the IRDA and Insurance Ombudsman.  Both the agencies have not   attending  to my grievance against LIC of India.

What am I to do now?

"To

Insurance Ombudsman
Office of the Insurance Ombudsman,
2nd Floor, CC 27 / 2603, Pulinat Bldg.,
Opp. Cochin Shipyard, M. G. Road,
Ernakulam - 682 015.

Honourable Sir/Madam

Sub: Complaint Against LIC of India for having not resolved my
grievance regarding  lapse of my Insurance policy to my satisfaction

Ref:  complaint Ref  1314054600  dated  09/10/2013 as per LIC of india

I am a policy holder of Life Insurance Corporation of India. I have a
serious grievance  regarding  the lapse of my 'Anmol Jeevan' policy,
and also about the way it has been  redressed by LIC of India, in
response to my complaint.

I made a complaint citing my grievance to LIC India via email to
customerzone_ktm@licindia.com

”  on 07/10/2013. for which  I received
a reply mail from Mr/Ms goergy oommen, LIC of India, Divisional
Office, Kottayam, via Email Id “lic_eps@licindia.com” on 10/10/2013. I
have attached both the mails herewith.

The details of the grievance  are as follows:-

My policy number is 392615494, which  commenced on 28-03-2003, sum
assured being Rupees 5,00,000/-, Policy Term being 15 years, servicing
branch being 78v (Kottayam), agent Number 15722784. I have been making
half yearly  payment of  my premium online since 2009, in the months
of March  and September, via Netbanking through the web portal of LIC
of India, my login ID being '#######'.

 I have registered my E-mail ID and two cell phone numbers in the
portal of LIC of India which is “https://www.licindia.co.in”, and I
have subscribed for SMS alert providing two working cell phone numbers
"##########" and "##########", as well as my MailID
"natarajsn@gmail.com", in the LIC of India portal. The subscriptttion
was done quite  a long time back.

My policy has lapsed due to non payment of premium for the month of March, 2013.
I have mailed the to LIC of India, detailing the reason  of failure of
payment of premium due to not receiving any premium-notice via post,
E-mail or SMS, till date for the payment date of 28/03/2013. Usually,
I receive a postal notice at my permanent address, responding  to
which I was making payments in time via netbanking.
For March 2013 premium payment, I have not received any reminder or
Invoice from LIC of India.

As per the reply, (attached herewith this mail) from Mr. / Ms. georgy
oommen LIC of India, Divisional Office Kottayam,
has mentioned that "Sending premium notice/reminder with loan details
if any to Policyholders is not mandatory for insurance companies as
per IRDA rules.  We send notice to help the customers." And also
admitting  that "Email/SMS alerts is not available for the time
being."
I am to pay the accrued interest and undertake various medical tests
and submit the results, as informed in the mail, and pay the pending
premium amount to revive my policy. Also mentioned that the it is
confirmed premium notice was sent to my residential address for the
month of March/2013.

I wish to contend that it is most irresponsible action  by LIC of
India that facility is offered  to the customers by this mammoth
public sector organisation  in its portal and  relegating this lapse
of providing alerts casually  that the “facility is not provided”,
despite the fact that customers are not prevented from registering for
these services. No disclaimer has been put in their portal informing
us that these facilities are not functional and it seems LIC of India
does not deem us, the customers fit for such information. If LIC India
do not provide their own published facility, who else is expected to
give?

Kindly note that, I am regularly getting E-Mails from LIC-Direct,
marketing their new policies. The  last one from "co_dm@licindia.com",
to my mail id registered in the portal. Mails which are  to  market
their  policies like 'Bima Bachat',"Jeevan Sugam", originating from
official LIC Direct mail Ids
"info@licindia.com". And I received the marketing mails even in the
month of March and September 2013, which coincides with my policy
premium month. I have attached one of those mails also below.

LIC Direct does have access to my  mail ID,  as a registered user of
the portal. So it is ironic  that LIC doesn't use the capability or
infrastructure for alerting customers via Email or SMS. This proves
their capricious attitude towards the existing customers.

LIC of India does have the mechanism to send marketing mails regularly
for their new  policies, but does not make a policy decision  to  send
E-mail alerts to the existing loyal customers like me. This attitude
of relegating current customers is shown   quoting IRDA rules, by
Mr/Ms georgy oomen, as an excuse not to serve us the current
customers, but only be bothered with getting new business.

My  policy would not have lapsed had my agent taken pains to inform me
about the impending  premium date. Kindly note that I one of the
reason for registering in the portal is that I found my agent not be
dependable and  in this regard. It seems this particular policy to be
of little value  to LIC of India owing to its nature of not being an
endowment policy and also to the agent due to its lesser commissions.


Kindly note that I have not received any communication regarding the
lapse of my policy from LIC of India, till date. I came to know about
this only when I did  login  into the portal of LIC of India. Which
means that I was unaware  I am no longer under Insurance cover since
March, which is a rather dangerous situation for me and my dependants.


The LIC of India has passed the buck onto postal department for the
lapse and washed its hands of from redressing my grievance in a proper
way.  Mr. / Ms. georgy oommen
, LIC of India
, Divisional Office Kottayam
, has not mentioned the exact date of sending the postal premium
notice. LIC of India might quote some IRDA guideline for this not
informing about lapse too.

In  the capacity of  civilian citizen I don't have the time or means
to pursue this issue with the postal department. And I wish to
mention that the service of Postal department has been impeccable for
quite a long time here in #########.

I request you to kindly act on my grievance and arrive at a favourable
settlement for me from LIC of India, by allowing me to revive my
policy by paying the arrears amount, without any accrued interest
amount and without going through the expensive medical test
requirements, and also reprimanding LIC of India for their
unaccountability and mediocre service to existing customers.
In case of my demise, prior to the resolution of this dispute, kindly
ensure that my nominee is paid the insured amount.

Also, kindly find a way to ensure that LIC of India serves its
customers well by providing impeccable online services to us, since
there are enough NRI customers of LIC of India who might find it
extremely beneficial to have premium notices via E-mail alerts working
well.Please note that even Indian Railways has embarked on going
paperless via providing for ticket verification using SMS in cell
phones.

I have attached three pdf documents for your perusal.

1.E-mail from me to LIC of India  :- to-lic.pdf (2 Pages)
2.Reply to my Mail from LIC of India :- from-lic.pdf (2 Pages)
3.Advertisement mail from LIC of India :- Adv.pdf (3 Pages)
'

Yours sincerely
Nataraj S Narayan"


 8 Replies

Sudhir Kumar (Retd Govt Officer)     17 October 2013

no time to read so long narrative.

Venkat Narayan (Developer)     17 October 2013

Well, that was a letter sent to Insurance Ombudsman, and rejected on the grounds that grievance does not come under their jurisdiction.

Gist of the complaint as follows.

1. Registered for E-mail and SMS alert in LIC portal long back,

2. Did not receive the premium notice for the month of  March, 2013, and forgot to pay the premium.

3. Did not receive any mail or sms alert, despite receiving numerous mails promoting new schemes by LIC

4. No communication from LIC that policy  lapsed notice till date, came to know after only contacting agent this month, after failing to pay premium through portal. Under assumption of being covered till recently.

5. Mailed LIC about the issue requesting a revival, without expensive medical test and interest payment.

6. LIC replies, quoting IRDA rules that LIC not liable to alert about approaching premium dates, And E-mail or SMS alerts are not working for now, and that I need to pay the interest and go through the fiasco of medical tests (ecg, blood, ...) for revival of policy.

7. No disclaimer about non-working of Alerts in the portal.

8. As mentioned above, I get enough marketing mail each month, thus the mechanism for alert is very much functional.

9. LIC reply does not own or mention about lack of notice about lapse of my policy.

10.  Ombudsman does not take in my complaint, and IRDA website simply redirects my mail to LIC, and I get the standard reply from them,

NRI Legal Consulting (Consultant)     18 October 2013

Dear Sir,

     

1. Registered for E-mail and SMS alert in LIC portal long back,

2. Did not receive the premium notice for the month of  March, 2013, and forgot to pay the premium.

3. Did not receive any mail or sms alert, despite receiving numerous mails promoting new schemes by LIC

4. No communication from LIC that policy  lapsed notice till date, came to know after only contacting agent this month, after failing to pay premium through portal. Under assumption of being covered till recently.

5. Mailed LIC about the issue requesting a revival, without expensive medical test and interest payment.

6. LIC replies, quoting IRDA rules that LIC not liable to alert about approaching premium dates, And E-mail or SMS alerts are not working for now, and that I need to pay the interest and go through the fiasco of medical tests (ecg, blood, ...) for revival of policy.

7. No disclaimer about non-working of Alerts in the portal.

8. As mentioned above, I get enough marketing mail each month, thus the mechanism for alert is very much functional.

9. LIC reply does not own or mention about lack of notice about lapse of my policy.

10.  Ombudsman does not take in my complaint, and IRDA website simply redirects my mail to LIC, and I get the standard reply from them,

For more detail query us query@nrilegalconsulting.com

T. Kalaiselvan, Advocate (Advocate)     18 October 2013

Mr. Venkat Narayan,

Your allegations against LIC is nothing but denoting your failure to take care of your own self.  The LIC Manager George Oomen was right in mentioning "Sending premium notice/reminder with loan details if any to Policy holders is not mandatory for insurance companies as per IRDA rules. A simple question is that whether we ignore the fact of Electricity bills, water bills or telephone bills etc to remain unpaid, are we not becoming anxious over non receipt of the monthly bills and make umpteen visits to the concerned organisations to pay the bills, we do them because we are afraid that if we fail to oblige the payment for the said utilities the same will be disconnected and a lengthy procedure is to be followed for reconnection (?), but in the case of LIC, though they send the periodical notices for premium payments and loan interest payments etc., we either do not give much importance immediately to it or the external factor namely the postal department adds woes to the present problems by employing some dishonest postmen whose failure to deliver the post creates a huge hue and cry resulting into blaming the service provider for failure of its non-obligatory services.  In fact we are not even bothered to know the dates of next premium payment and we depend on some one to remind us about it.  However it is the human trend to hold others responsible or blame others for our laziness/lethargy/irresponsibility over such issues.  If the electricity connection is disconnected for non-payment of the consumption bill, the charges will include the interest portion also over the payment for reconnection and other laid down procedures are to be followed up without which you will not be able to get reconnected.  Thus, every organisation is having their own set of rules and conditions on such default situations.  If the LIC is asking you to adhere to certain conditions for reviving the policy, kindly do it immediately for the sake of the benefit to your family's welfare, do not keep arguing   over the issue which has got no face value especially for a prudent person like you who can understand everything better than a common man and can act wisely over any situation at any given point of time.  Finally, legally you cannot enforce your thoughts over this issue because you have not properly  read and understood the terms and conditions of the LIC policy a tthe time of taking the policy, so do not put blames on others over your failure.

Venkat Narayan (Developer)     18 October 2013

 Mr Kalai Selvan,

T. Kalaiselvan, Advocate (Advocate)     18 October 2013

venkat narayan you donot want to face the truth and want to live in an imaginary world  hence you refuse to understand the practical world. As you said,  doom in your own way and toil on unnecessary things till the end without accepting any solution for any problem in the world but keep brooding over other's isssues without looking at your your own back.

Venkat Narayan (Developer)     18 October 2013

Mr. Kalaiselvan

My disdain was against LIC  of India, and not you,  I take back my comments.

Will think about your suggestions and act on those.

Thanks!

T. Kalaiselvan, Advocate (Advocate)     20 October 2013

Mr. Venkat Narayanan,

I am sorry if my reply had hurt you, but in this forum I can suggest only right things and as a lawyer I cannot misguide people with wrong suggestions which is not of any benefit to any one, its okay if you can understand. Thank you, with regards - Advocate Kalaiselvan, Vellore, Ph: +919443441062


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