BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM :: KADAPA Y.S.R DISTRICT
PRESENT SMT. K. SIREESHA, B.L., PRESIDENT FAC
SRI M.V.R. SHARMA, MEMBER.
Saturday, 03rd May 2014
CONSUMER COMPLAINT No. 92/ 2013
Muradoti Dora Babu, S/o Ananda Rao, Hindu,
aged 24 years, Private E mployee, Residing at
Amagampalli Village and post, Kasinayana Mandal,
Kadapa District 516193. Complainant.
Vs.
1) The Branch Manager, Reliance Life Insurance Co. Ltd.,
(Reg. No. 121), 2nd floor, Dwaraka Towners,
7 roads Junction, Kadapa City.
2) The Head, Clams Department, Reliance Life Insurance Co. Ld.,
(Regd. No. 121), Registered office : H Block, 1st floor,
Dhirubhai Ambani Knowledge city, Navi Mumbai,
Maharastra 400 710. Respondents.
This complaint coming on this day for final hearing on 01-5-2014 in the presence of Sri K. Vijaya Krishna, Advocate for complainant and R1 called absent and set exparte on 24-2-2014 and R2 called absent and set exparte on 02-4-2014 and upon perusing the material papers on record, the Forum made the following:-
O R D E R
(Per Smt. K. Sireesha, President FAC),
1. Complaint filed under section 12 of the C.P. Act 1986.
2. The brief facts of the complaint are as follows:- The 2nd respondent is doing business in Life Insurance having its registered office at Mumbai. The R1 is one of the branch office of 2nd respondent.
3. It is stated that one M. Padmavathamma, W/o Devaraju, is grandmother of the complainant. During her life time, the said M. Padmavathamma, had obtained whole life plan (UIN: 121N004V01) insurance policy vide application No. D2242781 for an assured sum of Rs. 5,00,000/- from the first respondent by paying a cash of Rs. 43,630/- vide receipt No. WC0019857407, dt. 13-6-2013. The term of the policy is 33 years and premium payment term is 11. The R1 has issued an initial premium deposit receipt on 13-6-2013 in favour of the policy holder. The complainant is figured as nominee of the said policy. The policy holder was also medically examined, before accepting the contract of insurance.
4. Even though, the policy holder had obtained the policy by paying the premium amount in cash on 13-6-2013, the respondents have failed to issue bond with regard to the aforesaid policy despite repeated demands made by the policy holder. On repeated persuasions made by the policy holder, at last, the first respondent has given an undertaking letter dt. 4-7-2013 wherein the R1 has acknowledged the payment of premium amount by the policy holder and also expressing disquiet over non issuing the policy bond in time besides undertaking the liability for and on behalf of the Reliance Life Insurance Co. Ltd., if any problem arises with regard to the said policy.
5. As there was no response from the respondents company for settlement of the claim in favour of the complainant, the complainant had to issue a legal notice dt. 2-8-2013 calling upon the respondents herein to treat the legal notice as an “intimation of death” of the deceased policy holder under the policy referred to above and settle the policy claim in favour of the complainant as expeditious as possible preferably within a period of 15 days from the date of receipt of the legal notice. The said legal notice was served to the respondent as per the postal acknowledgement. Despite receipt of the legal notice, neither the respondents have settled the claim in favour of the complainant nor did they issue any reply notice. Due to irresponsible acts of the respondents, the complainant is suffering from mental agony. There is a clear deficiency of service on the part of the respondents in not settling the claim of the complainant. Hence, the complainant is constrained to file this complaint.
6. Cause of action for the complaint arose on 13-6-2013 when the deceased M. Padmavathamma had obtained while life plan insurance policy from the respondents by paying a premium of Rs. 43,630/- in cash when the respondents have not issued the policy bond to the deceased despite her repeated demands, on 4-7-2013 when the R2 issued an undertaking letter in favour of the deceased policy holder, on 26-7-2013 when the deceased died during the subsistence of the policy, when the complainant being nominee of the policy entitled to claim the policy amount and intimated the same to the R1 orally, on 2-8-2013 when the complainant caused the legal notice but the respondents have turned to a blind eye despite receipt of the legal notice and inKadapa town where the office of R1 is situated within the territorial jurisdiction of this Hon’ble Court. An I.P.O worth of Rs. 400/- is deposited herewith.
7. It is therefore, graciously prayed that the Hon’ble forum may be pleased to (a) direct the respondents to pay a sum of Rs. 5,00,000/- covered under the subject matter policy with interest @ 18% p.a. from the date of claim i.e. 2-8-2013 till realization, (b) Direct the respondents to pay a sum of Rs. 1,00,000/- towards compensation for causing deficiency of service by not settling the claim, (c) Direct the respondents to pay an amount of Rs. 1,00,000/- for causing mental agony to the complainant, (d) Direct the respondents to pay an amount of Rs. 10,000/- towards costs of this complaint and (e) Grant such other relief or reliefs as the Hon’ble forum thinks deem, fit and appropriate in the circumstances of the case and in the interest of justice.
8. Notices served to both respondents. R1 called absent and set exparte on 24-2-2014 and R2 called absent and set exparte on 2-4-2014.
9. On the basis of the above pleadings the following points are settled for determination.
i. Whether the complainant is entitled to the relief as prayed by him or not?
ii. Whether there is negligence or deficiency of service on the part of the Respondents or not?
iii. To what relief?
10. On behalf of the complainant PW1 examined and Ex. A1 to A7 were marked.
11. Point Nos. 1 & 2. As observed from the exhibits and complaint filed by the complainant it is true under Ex. A1 that the deceased M.Padmavathamma had paid an amount of Rs. 43,630/- towards premium of policy vide application No. D2242781 for Rs. 5,00,000/-. But the R1 issued Ex. A1. Under Ex. A2 also very clear that the deceased M. Padmavathamma had obtained the life insurance policy from the respondents. It is proved that the deceased M. Padmavathamma died on 26-7-2013 under Ex. A3. The respondent did not issued the policy bond till the death of the deceased M. Padmavathamma. On 02-8-2013 the complainant had issued legal notice to R1 and R2 i.e. Ex. A4 through registered post under Ex. A5 & A6, for settlement of the claim of the deceased M. Padmavathamma. But there is no response from the respondents 1 & 2. As per Ex. A7 family member’s certificate of the deceased M. Padmavathammaclearly shows the complainant is also one of the legal heir of the deceased M. Padmavathamma. The policy bond was kept with the respondents till now. It is proved deficiency of service and negligence on the part of the respondents 1 & 2. When they had received the policy amount of Rs. 43,630/- from the deceased M. Padmavathamma. It is the bounded duty of the respondents 1 & 2 to issue the policy bond. But here the respondents 1 & 2 failed to perform their duties. So it proved negligence or deficiency of service on the part of the respondents.
11. Point No. 3 In the result, the complaint is allowed directing the respondents 1 & 2 jointly and severally liable to pay to the complainant Rs. 5,00,000/- (Rupees five lakhs only) the policy mentioned amount, Rs. 10,000/- towards (Rupees ten thousand only) deficiency of service, Rs. 10,000/- (Rupees ten thousand only) towards mental agony, Rs. 5,000/- towards (Rupees five thousand only) costs of complaint, within 45 days of date of receipt of orders. Complaint against R2 is dismissed without costs.
Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, this the 03rd May 2014
MEMBER PRESIDENT FAC
APPENDIX OF EVIDENCE
Witnesses examined.
For Complainant
PW1 Muradoti Dora Babu, dt. 01-5-2014.
For Respondents : NIL
Exhibits marked for Complainant : -
Ex. A1 Initial premium deposit receipt dt. 13-6-2013 issued by R1.
Ex. A2 Letter dt. 4-7-2013 issued by R1.
Ex. A3 Death certificate of the deceased M. Padmavathamma.
Ex. A4 P/c of legal notice dt. 2-8-2013.
Ex. A5 Two postal receipts.
Ex. A6 Postal acknowledgement card.
Ex. A7 Family member certificate of the deceased M. Padmavathamma.
Exhibits marked for Respondents: - NIL
MEMBER PRESIDENT FAC
Copy to :-
1) Sri K. Vijaya Krishna, Advocate for complainant.
2) The Branch Manager, Reliance Life Insurance Co. Ltd.,
(Reg. No. 121), 2nd floor, Dwaraka Towners,
7 roads Junction, Kadapa City.
3) The Head, Clams Department, Reliance Life Insurance Co. Ld., (Regd. No. 121), Registered office : H Block, 1st floor, Dhirubhai AmbaniKnowledge city, Navi Mumbai,
Maharastra 400 710.
B.V.P.
