• Refund of life insurance premium

In a life insurance policy where propose is father and life assured is child student and a major and after say 7//5)6 years proposer appeals to Ombudsman and Ombudsman awards refund in some policies to whom is insurance company legally liable to make payment to major son or the proposer(father)
In case company refunds to Father can son (Life assured) challenge as per Insurance Act provisions.
Asked 1 month ago in Civil Law

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5 Answers

The rights of ownership of policy lie with the proposer and he is liable to pay premiums.

2) award  passed by ombudsman would specify to whom refund of policy is to be made 

Ajay Sethi
Advocate, Mumbai
81795 Answers
5120 Consultations

5.0 on 5.0

- Proposer is the person who purchase the policy and pays the premium , and the Life insured is the one on whose life is being insured. 

- Hence during the life time of proposer , the life assured cannot claim the amount . 

- However, if the dispute is before the Ombudsman , then it will depend upon the order passed. 

Mohammed Shahzad
Advocate, Delhi
6544 Answers
69 Consultations

5.0 on 5.0

Without seeing the award its difficult to advise. 

Devajyoti Barman
Advocate, Kolkata
22279 Answers
338 Consultations

5.0 on 5.0

The life assured is not the proposer nor paid the premium amount to this life insurance policy.

This is not a maturity claim that the life assured is entitle to get.

This is a refund of premium on the basis of the orders passed by the Insurance ombudsman.

The refund was applied for by the proposer who had paid the premiums so far  and the orders passed by the ombudsman was also on the basis of the complaint made by the proposer. 

Therefore the refund of premium made to the proposer may be the legally valid act,

The life assured may not be eligible to claim the refund of the premiums paid by his father as a proposer. 

T Kalaiselvan
Advocate, Vellore
71857 Answers
1057 Consultations

5.0 on 5.0

Dear sir/ma'am,


In your case, as the refunds are being paid, it is the proposer i.e. the father who is supposed to be paid by the insurance company because he was the one who made the payment in the first place. The company is not liable to pay the major son any refunds. Thank you.


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Anik Miu
Advocate, Bangalore
926 Answers
7 Consultations

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