LIC Jeevan Saral Policy: Supreme Court dismisses plea alleging Rs 1 lakh crore fraud

Supreme Court today dismissed a plea filed by a non-profit organisation engaged in promoting financial literacy. The plea by Mumbai-based MoneyLife Foundation had alleged mass cheating, especially of senior citizens, by Life Insurance Corporation of India (LIC) through its Jeevan Saral policy. The apex court, however, today refused to entertain the PIL which had alleged that Jeevan Saral policyholders were misled and cheated by LIC, reported news agency ANI.

Earlier this month, the PIL by the non-profit organisation had alleged that around 5 crore policyholders had "lost a big chunk on their principal investment". The foundation had said it had received several complaints from policyholders, especially senior citizens. 

Yogesh Sapkale of the foundation was earlier quoted as saying by IANS, "This scam is nearly or probably more than Rs 1 lakh crore. We have a large number of complaints against this policy. This prompted us to file a Public Interest Litigation in the top court in the country. It is a clear case of cheating by the LIC." 

The PIL sought the return of the premium of the policy-holders with 8 per cent interest. Chief Justice Ranjan Gogoi had posted the matter on July 15 for a detailed hearing.

The plea by the foundation had alleged that the LIC Jeevan Saral policy was arbitrarily designed, and therefore, there was no emphasis on the due diligence aspect and gullible customers were misled through proposal forms, which were not correct.

It alleged that LIC had recalled the policy in 2014 after several allegations were made against it. However, the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry are yet to recall the policy and the policy-holders have still not found redressal.