Usha Kumari wins against LIC in Supreme Court

The widow of a person who applied for one Life Insurance Corporation policy but got another by mistake won in the Supreme Court when it found the insurer guilty of lack of due diligence in its dealings. In this case, Usha Kumari vs LIC, husband Kamal Singh deposited Rs 26 lakh in a proposal for New Jeevan Akshay 1 policy. But what he got was New Jeevan Dhara policy. He got monthly pension for some time according to the former policy but died without verifying the policy he received. His widow moved the Rajasthan consumer commission which asked LIC to return the policy amount with interest after deducting some payments. However, the national commission reversed it. On further appeal, the Supreme Court set aside the national commission decision and allowed the widow to get balance of the premium deposited by the insured and lump sum compensation. - www.business-standard.com