The law says that revival of a life insurance policy can be done only during the life time of the insurer. In your case, the money was collected as insurance premium, but you need to ascertain if it was paid and if it is on record the payment was made on the date you have specified. If the person who collected the money did not deposit the amount (in case it was in cash), chances are that LIC may have no record of it. The law also says that the person who revives the policy by making the balance payment has to give a certificate that he is alive. If all these facts are in place, you may consider approaching a consumer court about your problem.

We understand that you were given this assurance that once you have made a one-time payment, you were assured that no tax shall be payable thereafter. You should stick to your stand which is based on the assurance you were given. There may be several other persons like you who may be suffering with the same problem. You should keep ready with you some documents or paper clipping related to the news reports you have read and which indicate the promise or scheme by MCD under which you made payment in one go in 1988. It will not be possible for MCD to go back from their annoncement outright after tax payments have been accepted by them.

In case you would like to lodge a grievance, you can do that at http://delhigovt.nic.in/griev_red.asp

You may also like to visit the MCD website: http://delhigovt.nic.in/muniserv.asp