The complainant had taken a policy with double accident benefit for a term of 20 years for sum assured Rs.30000/-. On surrendering of the policy the corporation paid him as according to his calculation the same came around Rs.10711/-, which were not acceptable to him as According to his calculation the same came around Rs.23103/-. The complainant had paid monthly premium @Rs.177.80/-per month since the inception of the policy from 1986.the Premium was paid till 1996 i.e. more than ten years and now came the computation for surrender of the policy. The insurer admitted the amount of premium paid by the insured/complainant as correct. The claim of the insurer was that as per the terms of the policy, the policyholder was to continue the policy by paying the premium till the end of the terms of the policy unless the policy was surrendered earlier or on the death of the policyholder, when the whole amount under the policy becomes payable. But in the case of surrender the minimum value allowable under the policy is equivalent to 30% of the total premium paid excluding the premium for the first year and all extra premiums for accident benefits that might have been paid.
The court observed that the total money paid by the complainant comes out to be Rs.22360/- and taking into account the bonus rate @70/- per thousand given by insurer for 11 years on sum assured of Rs.30000/- it comes to Rs.23100/-.

Held: The claimant was awarded surrender value of Rs.23100/-


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