CHENNAI: A senior citizen who was not paid his claim by Unit Trust of India for around 10 years has found relief after the district consumer dispute redressal forum, Chennai (north) directed the organisation to pay him Rs 86,000.
J A L Ganesan, of Kilpauk said his wife Dr S Valliammal joined UTIs Senior Citizen Unit Plan (SCUP) by paying 33,000 on May 23, 1997. According to the policy terms, a unit holder and his/her spouse would be entitled to medical coverage till 5 lakh and 5% of the insured amount every claim-free year, for a maximum of 10 unclaimed years, along with a bonus of Rs 2.5 lakh.
The policyholder and his/her spouse were eligible for medical benefits. The company, however, failed to issue her a log book-cum-identity card. It was only after repeated requests a duplicate log book was issued in June 1998. The company then made endorsements of the accrued bonus regularly from May 23, 1999 to 2006.
As the couple had no children, Valliammal selected her niece as the nominee. Valliammal expired on May 30, 2005. After informing the company, Ganesan wanted to withdraw the amount. But UTI did not process his claim. He moved the forum stating as he was the spouse of the unit holder, he was entitled to receive the benefits including the extension of the medical insurance, the accrued bonus and the residual unit proceeds with interest. In its counter, UTO said the residual amount was payable only to the nominee. Also the Union government had scrapped the SCUP scheme in 2008. The new rules said, any pending amount was to be invested with New India Insurance Company (NIAC).
A bench of president K Jayabalan, members A Dayalan and T Kalaiyarasi said UTI did not reinvest the balance amount with NIAC despite receiving Ganesan's request. According to the policy terms, the nominee was entitled to the balance amount only in case of the death of both the unit holder and his/her spouse. Ganesan was entitled for insurance cover till his life time and residual unit benefits, said the bench.
It directed the company to pay 33,877 as residual amount to him and a compensation of Rs 50,000 along with Rs 3,000 as case costs. The above amount would be payable to him in six weeks, the bench said.
J A L Ganesan, of Kilpauk said his wife Dr S Valliammal joined UTIs Senior Citizen Unit Plan (SCUP) by paying 33,000 on May 23, 1997. According to the policy terms, a unit holder and his/her spouse would be entitled to medical coverage till 5 lakh and 5% of the insured amount every claim-free year, for a maximum of 10 unclaimed years, along with a bonus of Rs 2.5 lakh.
The policyholder and his/her spouse were eligible for medical benefits. The company, however, failed to issue her a log book-cum-identity card. It was only after repeated requests a duplicate log book was issued in June 1998. The company then made endorsements of the accrued bonus regularly from May 23, 1999 to 2006.
As the couple had no children, Valliammal selected her niece as the nominee. Valliammal expired on May 30, 2005. After informing the company, Ganesan wanted to withdraw the amount. But UTI did not process his claim. He moved the forum stating as he was the spouse of the unit holder, he was entitled to receive the benefits including the extension of the medical insurance, the accrued bonus and the residual unit proceeds with interest. In its counter, UTO said the residual amount was payable only to the nominee. Also the Union government had scrapped the SCUP scheme in 2008. The new rules said, any pending amount was to be invested with New India Insurance Company (NIAC).
A bench of president K Jayabalan, members A Dayalan and T Kalaiyarasi said UTI did not reinvest the balance amount with NIAC despite receiving Ganesan's request. According to the policy terms, the nominee was entitled to the balance amount only in case of the death of both the unit holder and his/her spouse. Ganesan was entitled for insurance cover till his life time and residual unit benefits, said the bench.
It directed the company to pay 33,877 as residual amount to him and a compensation of Rs 50,000 along with Rs 3,000 as case costs. The above amount would be payable to him in six weeks, the bench said.
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