Now it’s Life Insurance: SC agrees to hear case against LIC for ‘duping’ 5 crore customers

Agencies
July 10, 2019

New Delhi, Jul 10: A non-profit organization engaged in promoting financial literacy has moved the Supreme Court, alleging cheating, especially of senior citizens, by the Life Insurance Corporation (LIC) through its Jeevan Saral policy, in which nearly 5 crore policy holders have "lost a big chunk on their principal investment".

The Mumbai-based Moneylife Foundation said it has received several complaints from policy holders, especially senior citizens, in the past few years.

"This scam is nearly or probably more than Rs1 lakh crore. We have a large number of complaints against this policy. This prompted us to file a Public Interest Litigation in the top court in the country. It is a clear case of cheating by the LIC," said Yogesh Sapkale of the foundation, which is seeking return of the premium of the policy-holders with 8 per cent interest.

After hearing senior counsel Arvind Datar, appearing for the foundation, a bench headed by Chief Justice Ranjan Gogoi posted the matter on July 15 for a detailed hearing.

The petition alleges that the Jeevan Saral policy was arbitrarily designed, and therefore, there was no emphasis on the due diligence aspect and gullible customers were misled through proposal forms, which were not correct.

After several allegations, the LIC recalled the policy in 2014, but the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry are yet to recall it, and the policy-holders have been running from pillar to post for redressal, it said.

According to the foundation, the policy has gobbled-up the hard-earned savings of crores of policy holders, and it also left the LIC agents and their association infuriated. There have been many protests and complaints against the LIC, but it has not yet decided on returning the premium of the policy holders.

Due to the ill-design of the policy, senior citizens received negative returns on their investment, the foundation said, citing an example of a senior citizen who invested nearly Rs 10 lakh in ten years but at the end of the policy's tenure, received merely Rs 3 lakh.

Although, few customers moved consumer courts and got favourable orders, but this whole process of litigation is extremely time-consuming, said the foundation.

Moneylife's petition alleges several complaints and representations have been made to the LIC highlighting the gross irregularity in their system, but it has not budged.

"The IRDAI is empowered under Section 33 of the Insurance Act read with the Insurance Amendment Act, 2015 and the IRDA Act, 1999 to investigate the malpractices. However, it has remained a silent spectator of 'mass cheating by LIC'," Sapkale said, clarifying they have locus standi on the matter, as policy-holders are not organized under a body.

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News Network
April 29,2020

New Delhi, Apr 29: India's tally of COVID-19 cases has reached 31,332, said the Union Ministry of Health and Family Welfare on Wednesday. With 73 more deaths reported, the number of deaths due to coronavirus in the country breached the 1,000 mark and stood at 1,007.

The tally is inclusive of 22,629 active coronavirus cases, 7,695 patients who have been cured/discharged and one patient migrated.

According to the Ministry, Maharashtra has the most number of COVID-19 cases with 9,318 cases of which, 1,388 patients have been cured/discharged while 400 patients have succumbed to the virus.

Gujarat has the second-highest number of positive cases in the country with 3744 cases including 434 patients cured/discharged and 181 deaths.

Delhi's tally stands at 3314 cases of which, 1078 patients have recovered while 54 patients have succumbed to the virus.

Madhya Pradesh has a total of 2387 positive cases including 377 patients recovered/discharged and 120 fatalities.

Meanwhile, Goa (seven cases; all seven recovered), Arunachal Pradesh (one case; now recovered), Manipur (two cases; both recovered), Tripura (two cases; both recovered) have reported no new cases of COVID-19.

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Agencies
May 31,2020

New Delhi, May 31: Indian aviation regulator DGCA on Saturday said the suspension of scheduled international commercial passenger flights will continue till midnight on June 30, hours after the Home Ministry announced fresh guidelines pertaining to the countrywide lockdown to contain the coronavirus pandemic.

"It is once again reiterated that foreign airlines shall be suitably informed about the opening of their operations to or from India in due course," the circular issued by the Directorate General of Civil Aviation (DGCA) said.

Domestic passenger flight services resumed in the country from Monday after a hiatus of two months since the lockdown was announced on March 25, when all scheduled commercial passenger flights were suspended in India. International flights continue to remain suspended even now.

The Home Ministry on Saturday said 'Unlock-1' will be initiated in the country from June 8 under which the nationwide lockdown effectuated on March 25 will be relaxed to a great extent, including opening of shopping malls, restaurants and religious places, even as strict restrictions will remain in place till June 30 in the country's worst pandemic-hit areas.

International air travel shall remain suspended, the MHA order said, adding that a decision on when to resume it would be taken after making an assessment of the situation.

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Agencies
June 6,2020

United Nations, Jun 6: The coronavirus disease has not "exploded" in India, but the risk of that happening remains as the country moves towards unlocking its nationwide lockdown that was imposed in March to contain the Covid-19, according to a top WHO expert.

WHO Health Emergencies Programme Executive Director Michael Ryan on Friday said the doubling time of the coronavirus cases in India is about three weeks at this stage.

“So the direction of travel of the epidemic is not exponential but it is still growing,” he said, adding that the impact of the pandemic is different in different parts of India and varies between urban and rural settings.

“In South Asia, not just in India but in Bangladesh and...in Pakistan, other countries in South Asia, with large dense populations, the disease has not exploded. But there is always the risk of that happening,” Ryan said in Geneva.

He stressed that as the disease generates and creates a foothold in communities, it can accelerate at any time as has been seen in a number of settings.

Ryan noted that measures taken in India such as the nationwide lockdown have had an impact in slowing transmission but the risk of an increase in cases looms as the country opens up.

“The measures taken in India certainly had an impact in dampening transmission and as India, as in other large countries, open up and as people begin to move again, there's always a risk of the disease bouncing back up,” he said.

He added that there are specific issues in India regarding the large amount of migration, the dense populations in the urban environment and the fact that many workers have no choice but to go to work every day.

India went past Italy to become the sixth worst-hit nation by the COVID-19 pandemic.

India saw a record single-day jump of 9,887 coronavirus cases and 294 deaths on Saturday, pushing the nationwide infection tally to 2,36,657 and the death toll to 6,642, according to the health ministry.

The lockdown in India, was first clamped on March 25 and spanned for 21 days, while the second phase of the curbs began on April 15 and stretched for 19 days till May 3. The third phase of the lockdown was in effect for 14 days and ended on May 17. The fourth phase ended on May 31.

The country had registered 512 coronavirus infection cases till March 24.

The nation-wide lockdown in containment zones will continue till June 30 in India but extensive relaxations in a phased manner from June 8 are listed in the Union home ministry's fresh guidelines on tackling the Covid-19 pandemic issued last week.

WHO Chief Scientist Soumya Swaminathan said the over 200,000 current coronavirus cases in India, a country of over 1.3 billion people, "look big but for a country of this size, it's still modest.”

She stressed that it is important for India to keep track of the growth rate, the doubling time of the virus and to make sure that that number doesn't get worse.

She said that India is a “heterogeneous and huge country” with very densely populated cities and much lower density in some rural areas and varying health systems in different states and these offer challenges to the control of Covid-19.

Swaminathan added that as the lockdown and restrictions are lifted, it must be ensured that all precautions are taken by people.

“We've been making this point repeatedly that really if you want behaviour change at a large level, people need to understand the rationale for asking them to do certain things (such as) wearing masks,” she said.

In many urban areas in India, it's impossible to maintain physical distancing, she said adding that it then becomes very important for people to wear appropriate face coverings when they are out, in office settings, in public transport and educational institutions.

“As some states are thinking about opening, every institution, organisation, industry and sector needs to think about what are the measures that need to be put in place before you can allow a functioning and it may never be back to normal.”

She said that in many professions working from home can be encouraged but in several jobs, people have to go to work and in such cases measures must be put in place that allow people to protect themselves and others.

“I think communication and behaviour change is a very large part of this whole exercise,” she added.

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