New Delhi:The Supreme Court on Monday refused to entertain a plea, alleging cheating by Life Insurance Corporation of India (LIC) through its Jeevan Saral policy. The public interest litigation (PIL) filed by Moneylife Foundation had urged recall of the Jeevan Saral policy.
A division bench comprising Chief Justice Ranjan Gogoi and Justice Deepak Gupta said the matter cannot be dealt with a PIL under Article 32 of the Constitution at the instance of a non-government organisation (NGO). The NGO was not able to prove its locus standi in the court.
The PIL said policy holders got less than half of what they paid as premium for ten or more years. According to the petition, the policy gave negative returns to senior citizens. It also alleged policy was arbitrarily designed.
LIC has termed the “gross irregularity" as a “discrepancy" and has been trying to cover up the wrongdoing by writing letters to zonal offices/ managers to correct the discrepancies, the plea alleged.
The petitioner has sought immediate recall of the policy, and direction to LIC and Insurance Regulatory and Development Authority (IRDA) to “amend Jeevan Saral Plan 165 policy maturity to repay all the premium paid along with bank savings rate at 8% per annum to all the existing Policy holders of the Jeevan Saral Policy."
Senior advocate Arvind Datar appeared for the petitioners and solicitor general Tushar Mehta appeared for the central government.