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AA RAMAKRISHNAN (SR. ADVOCATE)     12 June 2010

RECOVERY OF EXCESS AMOUNT PAID ON A SETTLEMENT OF A POLICY

Sirs

I have multiple policies with LIC.  Two years back on the settlement of a discounted claim of a money back policy they forgot to deduct the payment of survival benefit given to me on two occasions.  After six month of the settlement I received a letter from LIC to return the excess payment made to me.  I took a stand that on the basis of your offer on my claim I agreed to the sum offered by you seeing that the amount is suitable to my purpose and I employed the money accordingly. Once a settlement is arrived at due deliberations and mutual consent now revoking of the said settlement is not possible and I am not agreeable to the proposal of refunding the money.  Now the Divisional Manager has informed all branches where I service my policies to stall all the payments and claims and the officers pressurizing me to return the excess amount received.  I contented that I have received the agreed amount and nothing more than that and any action to stall the payment is amounting to create charge on my policy or attachment of the same which act is not recognized as a good deal in the eyes of the law.

I request your advice.

Thanks

aar. krishnan



 1 Replies

Devajyoti Barman (Advocate)     12 June 2010

If the LIC has paid you with excess amount of monet then you are definitely liable to pay back the same. Mistake can happen from any side even if there is no foul paly . But that does not mean that LIC can stall payments with regard to your other policies with it.If it wants its money back then LIC will have to initiate appropriate legal proceeding against you.

Now against this type of unlawful or infair trade practice I would like to advise you to claim for damages and clearance of your accounts by filing complaint before the Consumer Forum. Filing of Writ is another option.


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