In what could be a shock to any investor, SBI Mutual Fund has paid Rs. 248 as maturity amount to an investor. The investor, a senior citizen, was deceived by the insurance agent and hence invested in a ULIP to which he contributed Rs. 50,000 in a span of five years.
The case could not be solved by IRDA and hence had to be taken to court by the victim. The court slashed both IRDA as well as SBI Mutual Fund for all that happened. It has ordered compensation worth the premium paid i.e. Rs. 50,000 plus Rs. 10,000 for the case expenses. The insurance company is also facing the risk of a breach in the ULIP structure. If there is a breach, the company’s insurance could well be wound up.