ISLAMABAD: President Dr Arif Alvi has directed EFU Life Assurance Ltd to refund Rs 100,000 along with profit to poor lady who had been misled to obtain insurance policy. According to press release issued by President House Press Wing, Zubaida Begum had obtained an amount of Rs 100,000 by participating in local ‘Committee’ and intended to deposit amount in her bank account, but she was fraudulently issued an insurance policy at bank.

Being poor lady, when she expressed her inability to pay an annual premium of Rs 100,000 and asked for refund of her deposit, she was told that she’d only be refunded an amount of Rs 40,000, being prevailing cash value of policy.

Feeling aggrieved, she approached Federal Insurance Ombudsman but her grievance was not addressed. Later, she filed representation with President against decision of FIO.

President personally heard case of aggrieved lady and after going through record, decided matter in her favour. In his decision, he observed that complainant was entitled at least to refund of principal amount as her claim was just and fair. He added that mis-selling of policy to poor lady who never opted to purchase policy in first place and thereafter denial of refund of deposited premium amount by company constituted maladministration.

President noted that FIO had directed insurance company to refund Rs 40,000 to woman, without appreciating fact that an amount of Rs 60,000 was remaining to be paid by company.

Published in The Daily National Courier, January, 12 2024

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.