Archive · 3 Sep 2026
Kerala Consumer Forum Orders Insurance Refund After Missing Terms
A man in Kerala bought an insurance policy for his daughter.
He paid more than Rs 3 lakh for the first year.
He said the company did not give him the handbook explaining the policy rules until three months later.
Soon afterward, he had a stroke and could no longer easily work or pay for the policy.
He asked to leave the plan and get his money back.
The insurer said the policy could not be refunded at that stage.
A consumer commission decided that the company should have provided the rules before accepting his proposal.
It ordered the company to return most of his premium and pay additional compensation and costs.
A Kerala man bought a life insurance policy in 2022 after paying a first annual premium of Rs 3,09,145.
He said the insurer provided the policy handbook three months after receiving his premium.
After suffering a stroke and facing medical expenses, he asked to discontinue the policy and recover his payment.
The Thiruvananthapuram consumer commission found the insurer deficient in service and guilty of unfair trade practice.
The insurer was ordered to refund Rs 2.74 lakh, pay Rs 10,000 compensation and Rs 3,000 in litigation costs.
- Who
- A Kerala man and an unnamed life insurance company were involved in the dispute.
- What
- The Thiruvananthapuram District Consumer Disputes Redressal Commission ordered the insurer to refund money and pay compensation after finding that policy terms were not provided upfront.
- When
- The policy was purchased in 2022; the commission issued its order on August 20.
- Where
- The dispute was decided by the Thiruvananthapuram District Consumer Disputes Redressal Commission in Kerala.
- Why
- The commission found that the insurer had not shown that the policy handbook was provided before the proposal was accepted, preventing the buyer from making a fully informed decision.
Buyer and Consumer Commission
Insurer
Whether the policy could be exited
Buyer and Consumer Commission
The buyer argued that he could not make an informed decision because the policy terms were not supplied before payment, and that his stroke and financial hardship justified discontinuing the policy and recovering the premium.
Insurer
The insurer reportedly said there was no provision to refund the premium if the policy was surrendered at that stage.
Provision of policy terms
Buyer and Consumer Commission
The commission said there was no proof that the handbook was handed over before acceptance of the proposal and treated the omission as deficient service and an unfair trade practice.
Insurer
The insurer appeared through counsel after receiving notice but did not file a written version responding to the allegations.
Amount payable
Buyer and Consumer Commission
The commission ordered a refund of Rs 2.74 lakh, along with Rs 10,000 compensation and Rs 3,000 in proceedings costs.
Insurer
The commission allowed the insurer to retain Rs 35,000 to account for GST, documentation charges and agent commission incurred while issuing the policy.
- First premium paid
- Rs 3,09,145, including GST, paid on February 22, 2022
- Handbook delay
- The policy handbook was provided about three months after payment
- Refund ordered
- Rs 2.74 lakh
- Compensation
- Rs 10,000 for mental agony and financial loss
- Litigation costs
- Rs 3,000
- Amount retained by insurer
- Rs 35,000 for expenses including GST, documentation and agent commission
- Payment deadline
- The ordered amounts were to be paid within 30 days