LIC has been reprimanded for delay in settlement of death and maturity claims. Of course, the delays are very few considering the number of claims settled by the state-owned insurer
The Insurance Regulatory and Development Authority (IRDA) conducted an inspection of records of Life Insurance Corporation of India (LIC) based on a complaint of partial claims settlement of a death claim. It found that LIC had taken more than six months to repudiate the group insurance death claims in respect of 24 cases and complete the investigations in respect of 263 individual claim claims during the year 2009-10. It was also noticed that 1,424 maturity claims were settled beyond six months during the same period.
LIC processes approximately 7,00,000 death claims and more than 175,00,000 maturity claims in a year. In the order, IRDA has taken a cognizance of the large volumes being handled and comparatively better track record of LIC in claim settlement, but adds that there is still scope for the insurer to improve the claim settlement performance and adhere to the provisions of the above referred regulations.
Only 32 early claim investigations were pending beyond six months in 2009-10. A senior LIC official told Moneylife, “In some early claims, the client may not cooperate in investigation, there can be delays from doctors/hospitals or police; some issues keep the case pending. In these rare situations of delay, LIC does pay interest for the delay. LIC has policyholders in deep rural area where getting documentation is not easy. There are cases where the widow has gone to her parents’ home and in-laws are not interested in widow getting the money and we don’t have contact information of her parents’ home.
The rules of the game are different totally different when compared to metros. There are also cases of fraudulent claims where the policyholder may not have even died and hence there is need for proper investigation.”
LIC has initiated measures in rural areas to educate the claimants for timely submission of documents while lodging the claim and claim investigation is one of the priorities of its personnel. LIC exercises abundant precaution to ensure that the claim amount goes only to genuine and legitimate claimants.
When asked about the payment delay for minuscule number of maturity claims, a senior LIC official said, “Considering over 175,00,000 maturity claims in a year, delay for a thousand claims are too low. In some cases, the policyholder has not paid all the premiums and we have not heard from him for 15-20 years. Lack of correct contact information can also lead to delay in payment.”
IRDA needs to probe blatant rejection of health insurance claims on technical reasons for delay in hospitalisation intimation and claims filing. It will be more meaningful and hapless mediclaim customers will stand benefit.
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Mr Balwa, who was arrested on 8th February, was granted bail on the same terms and conditions as those imposed by the Supreme Court for enlarging five other corporate executives and co-accused in the case on bail on 23rd November
New Delhi: Swan Telecom promoter Shahid Usman Balwa, facing trial for his alleged role in the second generation (2G) scam, was today granted bail by a Delhi court after the CBI chose not to oppose his plea, reports PTI.
“The bail application is allowed,” said special CBI judge OP Saini, granting bail to him.
Mr Balwa, who was arrested on 8th February, was granted bail on the same terms and conditions as those imposed by the Supreme Court for enlarging five other corporate executives and co-accused in the case on bail on 23rd November.
The conditions imposed by the apex court include furnishing two sureties of Rs5 lakh each to the satisfaction of the special judge holding the trial.
The co-accused, who were given bail, were also asked to surrender their passports to the trial court and not to leave the country without its permission and to attend the court everyday.
Mr Balwa is facing trial in the 2G case for allegedly procuring spectrum licence for his ineligible firm under a criminal conspiracy with former telecom minister A Raja and other government officials and by paying a bribe of Rs200 crore to DMK-run Kalaignar TV, showing the transaction as an inter-corporate loan.
Earlier in the day, the CBI had told the special judge that it would not oppose Mr Balwa’s bail plea keeping in view the Supreme Court and high court orders on bail to other co-accused in the case.
“As an officer of this court, considering the umbrella charges with individual charges framed against the accused, we are not opposing the bail plea at this juncture in view of the Supreme Court and high court orders,” special public prosecutor UU Lalit had submitted.
Mr Lalit said the charges framed against Mr Balwa are similar to those against co-accused and Swan Telecom Director Vinod Goenka, who has been granted bail by the Supreme Court.
Mr Balwa, along with other accused was charged for offences under section 120-B (criminal conspiracy) read with 409 (criminal breach of trust), 420 (cheating) 468 and 471 (forgery) of the Indian Penal Code and Section 7 or in alternative Section 11 read with Section 12 and 13(2) read with 13 (1b) of the Prevention of Corruption Act.
The special judge had framed additional charges under Section 193 (giving false evidence) and 120B IPC against him for creating false documents to show alleged routing of Rs200 crore to DMK-run Kalaignar TV as loan transaction.
Mr Balwa and Mr Chandolia had moved their bail pleas on the ground of parity after the Supreme Court on 23rd November granted bail to five corporate executives—Unitech MD Sanjay Chandra, Swan Telecom’s director Vinod Goenka and Reliance Anil Dhirubhai Ambani group’s executives Hari Nair, Gautam Doshi and Surrendra Pipara.
Taking cue from the Supreme Court order, the Delhi High Court had yesterday granted bail to DMK MP Kanimozhi, Kalaignar TV MD Sharad Kumar, Bollywood filmmaker Karim Morani and Kusegaon Fruits and Vegetables Pvt Ltd directors Rajiv Aggarwal and Asif Balwa.