MR. PRABODHA KUMAR DASH, PRESIDENT:-             

         This C.C.Case No. 63/2018 taken up today for order. Heard Ld. Counsels on behalf of both the parties. Perused the materials/documents available on record on affidavit & exhibited.

Brief Fact:-

                     The Complainant was the victim of the fraudulent advise of Op No.1 as an agent having nexus with D.O & Branch Manager practiced unfair trade practice by such erroneous loss making policy purchased by Complainant on dt. 08.05.2010 and maturity on dt. 08.05.2020, a single premium Rs. 50,000/- paid vide Policy No. 597863359 where multiple benefits prescribed. The policy Wealth Plus plan No.801 shows guaranteed wealth condition with insurance such as payable on death, payable on maturity, accident benefit, but to utter surprise when the policy matured on 08.05.2018, the Op No.2 deposited Rs.46,324/- transferred to Complainant’s account. The Complainant approached several times to Op No.2 & 3 physically and letter of communication. That the policy have multiple benefits but after 8 years the LIC paid less than the sum assured.

                     The Complainant further alleged that, they cheated him and caused irreparable financial loss unless this Commission exercise its jurisdiction for end of justice the same can’t be compensated. We have gone through the averments of Complainant so also the prayer made for, the policy bond, the wealth plus advertisement where we found multiple benefits with highest return but the LIC failed to provide such benefit.

                 Being aggrieved the Complainant alleges deficiency in service on part of the Op  as well as unfair trade practice which causes financial loss to common people. We therefore came to conclusion that wealth plus plan is nothing but victimise the innocent complainant caused heavy financial loss must be compensated equally.

                LIC Wealth Plus was grossly miss-sold to naive investors, LIC Wealth Plus NAV is Rs. 14.44 means just a return of 6.27% since launch, it was launched on 9^th Feb-2010 at that time, Sensex was 16000s today it in approx 30,000, that means return of 11%. Now investors are feeling cheated, if someone were tell you that, your money will grow @17% P.A and your Rs. 1 Lakh investment will become Rs. 3.5 Lakhs in next 8 years, would not you get greedy? And what if it is told to you that such returns are guaranteed by one of the biggest financial institution LIC of India, it would be icing on the cake & “Never miss opportunity”. But everything that sounds so good, if looked deeply may reveal something else, someone rightly said “the big print give it & the fine print take it away”. Such in the case with LIC’s insurance plan-Wealth Plus. Every year during the last quarter of financial year, insurance agents find new way to misguide people and make them invest in policies based on false assumptions & promises. Let us take example of 2007, when LIC launched “Money Plus” wherein pamphlet were distributed in all the nook & corner of the Country showing high returns i.e, invest 1 lakh for next three years and get Rs. 3.38 Cores after 20 years at a return of 25% P.A. Based on such exuberant return shown on a pamphlet & false promises made by agents thousands & lakhs of investors all across India invested their money. Not only people invested the saving but there were many instances where smaller households sold their Jeweleris and other personal belongings as they were told that LIC is guaranteeing such high returns. LIC unethical practice of circulating such pamphlets to misguide the public & get business is betraying the trust of people on Govt. Institution. Such unethical practice rampant all over India where agents, D.O., Divisional Manager collecting more policies for their own promotions.

                    Insurance is meant to cover risk of untimely death first & investments tax saving are secondary but we the Indians, have been taught insurance as an investment first, tax savings second and then somewhere in the last we talk of insurance as well. Now again such practice are targeting LIC’s new product Wealth Plus.

Wealth Plus:- This product of  LIC which was launched on Feb9,2010(Table 801) states that, LIC will guarantee the highest NAV to the investor in the first 7 years and product will mature after 8 years.If no where guaranties the return, in its official web-site i.e, LIC states that, the minimum guaranties will be of Rs. 10 NAV as Rs. 10 will be the starting point. Actually that means that, they are not even guaranteeing that you will get your entire money back as there will be certain changes in the policy itself. They have no where written that, they will guarantee any amount of return to the investor. Nor they have mentioned that your money will be invested 100% into equity.

False promise by LIC –

                        The LIC through its Agents practice false promises invest 1 lakh today will become Rs.3.45,693/- or give Rs. 25,000/- for 3 years get Rs. 2.14,690/- after 8 years. Agents presurising people that, they should swith all earlier product (on which agent’s have already made huge Commission) into this product as this is something which is as good as KOHINOOR DIAMOND.  Nowhere LIC stated how much money will go in equities & how much money will go in debit, but this policy in silent on the allocation percentage & hence you may land up gutting return that of endowment or money back (nearly 6% to 7%).

                      IRDA guidelines says, agents & insurance companies are mandated to show return wither 6% or 10%. But the pamphlet distributed has no regards for regulatory guidelines.

                                                           O R D E R

                      It is directed that, the LIC (Op No. 2 & 3) shall pay Rs. 50,000/- as deposited one time premium with @9% P.A from 08.05.2010 to 08.05.2018 and in addition to that Rs. 20,000/- for mental agony & Rs. 10,000/- for litigation cost to the Complainant within a period of one month, failing which the Ops shall pay @12% P.A. till its realization.

                      If any payment made by the Ops previously shall be deducted from the total calculated amount payable to the Complainant’s complainant case is allowed and no order as to cost.  Issue extract of the order to the parties for compliance.           

                     Pronounced in the open Court, this the 22th day of June,2022.             

                              I, agree.

                                 Sd/-                                      Sd/-

                           MEMBER                             PRESIDENT