To
Branch Manager,
LIC of India,92 D
Sonawane Family Trust Building, Date 23.08.2010
Above State Bank of India,
Kalyan(W)

Dear Sir,

Re:- Policy No. 920936133-allow me to continue the Policy keeping
the reduced amount of sum assured from Rs. 2,00,000 to
Rs.40,000/- as requested in my several letters, without
payment of arrears on Rs. 2,00,000 policy and penalty thereon.

Ref:- A My several letters ending with the one dated 07.10.05 & 17.01.09

B Your letters dated 19.01.09, 27.01.09 and 10.02.09


1 Your kind attention is invited to my request made vide my letter dated 12.01.02 wherein, I had requested that along with reduction of term ( i.e. from 20 years to 05 years) the sum assured may also be reduced from Rs. 2,00,000/- to Rs. 40,000/-.

2 You would recall that in-spite of my repeated requests, you have not agreed for the request, and finally you have vide letter dated 13.05.04 i.e. after a lapse of more than two years, advised me that my request requires consent from LIC Housing Finance Limited.

3 You had advised vide your letters dated 24.10.05 & 30.11.05 stating that above Policy has since been reassigned in favour of Shri Chetan R. Prasad & nomination made in favour of Mrs. Asha, wife of the undersigned.

4 Thereafter, your office vide letter dated 03.01.06 in response to my representation dated 31.12.05 had intimated that no changes (alternations) can be made for reduction of sum assured as the Policy is not in force. You may personally contact to P.S. department for details information. You had further advised me “ Also quote your telephone number in your next letter. We have assumed that you are still in Central Railway”

5 Subsequently your office vide letters dated 19.01.09,27.01.09 & 10.02.09 in response to my representation dated 17.01.09 suggested as under:-

(i) “It is your interest to continue the Policy for sum assured of Rs. Two lakhs and term 20, as it covers higher risk provides more Insurance. (ii) As a very special case we shall consider the revival of your Policy even though lapsed for more than 5 years and also offer you 20% concession in late fee on submission DGH (form enclosed. Full medical report from our approved Medical practitioners (iii)You can revive the Policy under loan cum revival scheme for which you will not have to pay any thing now .We hope you will consider the above and get your Policy revived”

Policy Premium outstanding June 2003 to June 2008 i.e 06 years .

10586 x 6 = 63516
Late fees 18656
Total 82172
Rebate 3731
Grad Total Rs. 78441
(Loan granted Rs. 78500 @ Rs. 09% p.a.)

6 At the time of granting loan I was also told by your administrative officer that in future policy holder if not in a position to pay the premium can take the facility of loan to pay the premium.

7 Next premium when became due in June 2009 , I approached to your official to enquire about the amount of premium to be paid, I was surprised to know that I have to pay the premium on sum assured of Rs. 2,00,000/- only and not on Rs. 40,000/- as requested by the undersigned on 12.01.02 to reduce the sum assured from Rs. 2,00,000/- to Rs. 40,000/-along with term from 20 years to 05 years.

8
You would appreciate that if I was in a position to continue payments of premium at the higher rate, I would have definitely continued without requesting you to reduce the sum assured from Rs. 2,00,000/- to Rs. 40,000/-In this connection your attention is also requested to my representations dated 06.03.2004 & 02.06.2004 wherein I had mentioned that despite my efforts, discarding my other essential and inescapable financial commitments, I may at the most be able to pool of the assured sum to an extent of Rs. 40,000/- only and not more. Therefore, the only alternate left to me is either continue with the policy with Rs. 40,000/- assured sum, or allow the entire system to collapse as I am incapable of maintaining any higher amount than Rs. 40,000/- sum assured.

In view of the above circumstances :-

(a) You are requested to advise the amount of premium to pay on sum assured of Rs. 40,000/- as requested by me .

(b) In case the above request which is just and equitable in the circumstances of the case is not acceptable to you, you are requested to pay me the sum of Rs. 53,000/-only as due, as worked out in your surrender value quotation dated 12.06.2004 OR allow the entire system to collapse as I am incapable of maintaining any higher amount than Rs. 40,000/- sum assured without any loan as assured by your administrative officer at the time of granting loan as mentioned above in Feb 09 .

(c) Had the request for reduction in Sum assured been considered in time the Policy would not have lapsed and above situation could have been avoided. There was a lapse of more than two years from your side to advise me, vide your letter dated 13.05.04 ( in reply to my request made vide my letter dated 12.01.02 ).

You are, therefore, requested to please consider the above facts, and do justice by accepting either of the options mentioned above, as I am not at all at fault.

Thanking you,

Yours faithfully,
( Chetan R. Prasad)