The policy holders of Micro Insurance scheme were under the bona fide impression that the agents had remitted their premiums to LIC.
Due to improper monitoring by LIC officials, the agents misappropriated the premium paid by the policyholders and coolly disappeared. The Policyholders understood that two more such agents (NGO’s), who were also appointed by LIC, did similar fraud in Chikmagalur district.
Further, LIC had appointed these agents without proper investigation regarding the financial credibility of these agents. As a result of non remittance of the premium by the agent (society) to LIC, all policies of the policyholders were cancelled. As the policies were held to be lapsed for no fault of policyholders, the policyholders filed a common complaint before the District Consumer Forum, Chikmagalur, Karnataka State, for the refund of the premium paid by each of policyholder. After an year long enquiry, the District Consumer Forum, Chikmagalur, ordered the LIC to return the premium paid to the policyholders.
The premium collected were never remitted to LIC!!! but the scamsters were facilitated by the divisional manager of LIC for filing 1310 policies in a single day!!!.
The policy holders have the receipts given by the agents with LIC logo in it.
How can LIC dis-own these receipts?
Press Conference
Micro Insurance Agents ‘defraud’ LIC Policy holders.