In Brief
A consumer applied for an equity-linked insurance policy with LIC in January 2009, paying Rs. 1,75,000 including the extra premium. Although the proposal was accepted and all required formalities appeared complete, LIC delayed processing and neither issued the policy nor refunded the money for five years. The District Forum awarded Rs. 4,25,000 compensation, but the National Commission deleted this, retaining only the principal refund with 12% interest. The Supreme Court upheld that LIC's failure to complete the process constituted deficiency of service and modified the order to add Rs. 2,00,000 compensation, recognizing the appellant's lost investment opportunity in the booming equity market."
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