HYDERABAD: Punjab National Bank-MetLife has been taken to task for not providing “peace of mind, guaranteed” service to its customers as promised through its insurance policy.The public-private partnership company was made to bend to its promises and was ordered to pay back insurance premium amount of about Rs 1.1 lakh to a city resident. Wooed by a financial adviser of the insurance company M Nagarjuna, a private employee, enrolled to MetLife’s monthly income plan, a flagship scheme that guarantees monthly income after paying a yearly premium for 15 years.
After successfully paying the first premium of Rs 51,239 in 2014, the 31-year-old could not pay the second premium, the following year. Eventually, he requested the company to cancel his policy and refund the premium amount but the company reiterated his claim. However, Nagarjuna paid the second premium in December 2016 on a condition that his entire paid-up premium would be repaid by the company. But the company failed to do so. He also alleged that sufficient time to understand the terms and condition of the policy was not provided.
In opposition, the insurance firm said that a 15-day time was given to the insurer to understand the terms and conditions. It also maintained that according to the clause 3.5, a policy could be surrendered only when three continuous premium amounts were paid and observed that the policy was at a belated stage.
Meanwhile, Hyderabad district Consumer Forum, which was overseeing the complaint, in a series of statements observed that the firm was at fault.
It began by taking a note of the promises quoted in the letters sent to Nagarjuna. For instance, the president of the forum noted, “The insurance firm was committed to providing ‘best-in-class’ customer service but it didn’t. It also observed that the firm was flexible to accept premium amount but when the insurer seeks a refund, they are very particular to cover,” a statement read. Flexing the muscles of the forum along the lines of the codes laid down by the Advertising Standards Council of India, 1994 or the Drugs and Magic Remedies Act, 1954 that turn companies from making exaggerated claims, the forum favoured the complainant. “The policy document states very boldly to be a policy of ‘peace of mind, guaranteed’, they should be able to sustain their motto and provide services to their customers in a fair and equitable manner,” the order copy read.