The case history is like this:

 

In 2003-04, Varishtha Pension Bima Yojna was introduced by the Union Finance Minister to offer a  small financial relief  by fixing a comparatively  better rate of return/interest ( 9% p.a.) to  senior citizens against  depositing an Amount of Rs. 266665/- with the LIC against a Policy which by no stretch of imagination  could  be equated with the  ordinary insurance policy covering any risk of the depositor. Regular periodical premiums, like other ordinary  insurance policies were also not required to be paid.

 

I had taken one such policy for the aforementioned amount during that year to earn a better return in the shape of interest.  

 

Being a senior citizen and afflicted with chronic & nbsp;old age ailments, I used to  spend a lot of money on medication  and it is since  last several years.

 

Coming to know  that the rate of  interest now ( in 2007) available in the Banks was better than 9%, I requested the Chairman, LIC for refunding the amount of aforementioned  deposit so that I could invest it in the bank at the higher rate of interest and use the extra interest inome on medication.  

 

The Chairman  conceded my request and sanctioned the refund of deposit  after verifying the bonafides of my request with medical certificate and medical bills and issued a cheque on 23.11.07 not for the full principal amount  but for the amount reduced  by Rs. 5834/-. Enquiry for the less payment brought a reply from 2 low ranking LIC officials that what I am paid is a surrender value of the policy which is equivalent to 98% of the original amount.

 My specific request to the Chairman that this being a case of deposit specially devised for benefitting senior itizens and not a case of  an ordinary routine insurance  policy covering a  risk of the policy holder, terming the request for refund  as surrendering the policy and restricting the payment thereof to    98% is  improper, incorrect and illegal and requested  him for  paying the short paid amount or issue of a speaking order in the matter so that matter could be taken upto higher appropriate authority for final decision ( whatever it may be) .It was on 26th Jan. 2008 that an e.mail in the name of the Chairman, LIC was sent on his personal  e.mail address.   But unfortunately, the Chairman has slept over my representation till date.

 

I wished to paint  this picture before the Finance Ministry, but efforts have borne no fruits in asmuchas that  while the F.M's e.mail address is not publicised    anywhere in the Govt. of India's websites, the e.mail addresses of 2 Ministers of State for Finance though appearing in the website and  on which the letters were sent are either incorrect or obsolete and  the letters have come back undelievered.

 

It is grossly improper that the senior citizens should be compelled to continue to keep their deposits with the LIC on lower rate of interest when higher rate of interest is available in the banks. Ministry of Finance should now immediately order refund of the full deposited amount  to the senior citizens on a mere simple application. If it is not done, it would be tantamounting to  willfully causing hardship to the elderly and deprivation of using one's own funds.

 

R.S.Panjwani.

 

C.C Editor, Times of India, Mumbai, )

2.  Mr. Rajiv Bajaj of Sahara Samay ) for highlighting the issue appropriately in the media.