Woman denied late spouse’s life annuity policy money – Times of India

Bengaluru: A woman from Kolar was denied over Rs 3.6 lakh which her late husband had invested in a life annuity scheme despite him having added her as his nominee. The insurance company had cited the ‘no death-benefit’ clause. She took the matter to a Bengaluru consumer court which, however, dismissed the case.
Ramakrishna Reddy, a resident of Vivek Nagar in KGF, Kolar, had on June 13, 2019 taken a life annuity policy of HDFC Life Insurance Company Limited by investing Rs 3,64,908 for one year. The company was giving him a monthly annuity of Rs 2,732.4. But on February 11, 2020, he died at a hospital.
His wife Sunandhamma managed to gather the records and approached HDFC Life Insurance office on MG Road, Bengaluru, on July 30, 2020 and presented her claim before branch manager Sushil Kumar who allegedly assured her that the principal amount would be credited to her bank account as she was listed as his nominee. But Sunandhamma later received information that her claim has been repudiated by the company.
She then sent HDFC Life Insurance a legal notice and in April 2021, lodged a complaint against the company and its branch manager with the District Consumer Disputes Redressal Commission, Bengaluru Urban, accusing them of service deficiency. The court proceedings commenced by April 2021 and Sunandhamma’s lawyer presented her case. HDFC’s attorney argued that the complaint is an abuse of process of law and that as per the policy, in case of death of the policy holder, the nominee is not entitled to any amount. He also pointed out that though the insured husband had died on February 11, 2020, the complainant approached the insurance company only on July 30, 2020.
The consumer forum noted that though the annuity option is ‘life annuity’, there was no death benefit attached to the policy. These terms and conditions are binding on the husband of the complainant and opposite parties, and after the death of Ramakrishna Reddy, they also bind the complainant. She has been shown as nominee but there is a clause in the terms and conditions of policy that in case of death, no benefit is provided, the judges said, while dismissing the plea on February 24.
The case was dismissed stating that there is no deficiency of service on HDFC’s part and the woman won’t receive any money.