Insurer Cannot Impose Pension Plan If Not Opt For It At Maturity: NCDRC Holds Aditya Birla Sun Life Insurance Liable For Deficiency Of Service

The National Consumer Disputes Redressal Commission, under Dr. Inder Jit Singh's presidency, ruled that an insurer cannot enforce a pension plan on an insured if not opted for at the insurance policy's maturity. \r

The complainant sought to withdraw the full maturity amount of Rs.2,54,000 from her life retirement plan but faced refusal by the insurer, citing policy terms requiring the amount to be utilized as per specified options. The Commission upheld the lower fora's decision, emphasizing that once the complainant submitted necessary documents for full maturity payment, her choice was legally binding. \r

It found the insurer's insistence on imposing a pension plan where not chosen to be a deficiency in service, warranting refund and compensation as ordered previously.