State Life Insurance directed to pay interest for delayed payment

KARACHI: State Life Insurance Corporation of Pakistan (SLICP) has been directed to pay interest to a policy holder for delayed payment.

President Dr. Arif Alvi while accepting a representation of an aggrieved citizen, has directed the SLICP to compensate the insurance policy holder by paying the interest due in accordance with the prevailing rate as SLICP had delayed payment of maturity claim to the complainant without giving any reason.

The President in his decision observed that the complainant had obtained the insurance policy from SLICP on October 31, 1990 for the sum assured of Rs 30,000 for a period of 20 years and that the date of maturity of policy was October 31, 2020, however, SLICP made payment of the maturity claim to the complainant after a lapse of almost two years.

He said that SLICP failed to justify the belated payment to the complainant and admittedly, the premiums deposited by the complainant were kept by the insurance company and it had earned profits on it.

The President held that by virtue of unexplained delayed payment to the complainant, SLICP was required to compensate the complainant by paying interest due in accordance with the prevailing rate.

The President, therefore, accepted the representation of the complainant and directed SLICP to report compliance to the Wafaqi Mohtasib within 30 days.

As per details, Mukhtar Ahmad (the complainant) had purchased an insurance policy from SLICP and after its maturity on October 31, 2020, he had approached SLICP for the maturity claim but it was not paid.

Feeling aggrieved, he approached the Wafaqi Mohtasib, which close the case as the complainant was satisfied with the report of SLICP and wanted to withdraw his complaint.

The complainant later filed a representation with the President, which was accepted.