CASE STUDY

K. Rama Devi, she is house wife, her husband K. Subbaraju. He is working in private organisation. They have two children namely, Harika and kusuma. Subba raju took child policies to their children for period of 5 years i.e., from 2003 to 2008. Each premium costs Rs.15000, but the agent of ICICI, Mr.Ramana has took Rs.20000 every premium as Mrs. Rama Devi was an illiterate. 1st and 2nd year Rama Devi paid regular premiums but later due to crises in 2008, her husband had lost his job due to which she couldnt pay the premium.

Ramana is well known to Rama Devis family, and also he is a local business man. He has a good will in that area. So he started selling many policies. He sold over 20 policies in their area and family relatives.

ICICI provides 2 types of policies for Rama Devi, for which it provides additional benefits such as health card, tests, etc., which supports to their family members. The policy also provides insurance to the policy holder up to 10 years.

Rama Devi took 2 policies for their children. On the trust of Ramana, they paid premium every year. Ramana gave only 1st premium bill and receipt. On the next year Ramana lost his job. He still continued to collect premium from the Rama Devi and cheated Rama Devi who is a loyal customer in ICICI. When Rama Devi premium period got completed, and when she went to the bank for collecting the money, she came to know that her premiums are not completed yet and Ramana who was an agent took 5000rs extra on every premium, by cheating Rama Devi. Q1. How will the Rama Devi will receive her premium?