Complaint is filed on 30-12-2008
Compliant disposed on 23-09-2009
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM::AT:: K A R I M N A G A R
PRESENT: KUM. G.V.N.R. BHANUMATHI, M.A. B.L.,Prl. DIST. & SESSIONS JUDGE & I/c. Ist ADDL. DIST. & SESSIONS JUDGE & PRESIDENT (F.A.C.)
AND
SMT. E. LAXMI, M.A.LL.B., MEMBER
WEDNESday, THE TWENTYTHIRD DAY OF SEPTEMBER,TWO THOUSAND NINE
CONSUMER COMPLAINT NO. 193 OF 2008
Between:
Eruguralla Lingamma, W/o. Lingaiah, age 55 years, Occ: House hold, R/o. H.No.2-88, Julapally, V/o. Kamanpur mandal of Karimnagar district.
… Complainant.
AND
- Life Insurance Corporation of India, Ramagundam branch, NPTC “X” roads, Jyothingar, Ramagundam proper and mandal, district Karimnagar. R/by it’s Manager.
- Life Insurance Corporation of India, South Central Zonal Office, “Jeevan Bhagya”, Saifabad, Hyderabad, R/by it’s P.Zonal Manager.
…Opposite Parties
This complaint is coming up before us for final hearing on 11-09-2009, in the presence of Sri B. Srinivas and Smt. B. Geetharani, Advocates for complainant and Sri P. Ashok, Advocate for opposite parties, and on perusing the material papers on record, and having stood over for consideration till this day, the Forum passed the following:
::ORDER::
1. This complaint is filed under section 12 of C.P. Act, 1986 seeking direction to the opposite parties to pay an amount of Rs.1,00,000/- towards accident benefit coverage with eligible benefits, damages, interest and costs.
2. The brief averments of the complaint are that the complainant is the nominee for the LIC policy taken by her son Erugulla Swamy on 28.10.2002 for Rs.1,00,000/- from the opposite parties. As per the terms of the policy issued by opposite parties they undertook to pay Triple Accident Coverage in case of death of policy holder accidentally. The said policy was issued under Jeevan Mithra Scheme. The policy holder died in a Road Traffic Accident on 28.2.2003 near Kodakandla village as a result of dash given by Lorry. After his death the complainant being the nominee submitted claim before the opposite parties to pay the sum assured with accident benefit coverage but it was rejected. On which the complainant submitted claim before Zonal Manager (opposite party no.2) on 24.12.2003. Subsequently her claim was considered and the opposite parties paid a sum of Rs.3,03,452/- towards the sum assured under the policy through a cheque. Infact the opposite parties are also liable to pay Rs.1,00,000/- towards basic amount of the policy apart from the amount of Rs.3,00,000/- under accident benefit coverage. Inspite of several demands they failed to pay the same. Therefore, the complainant got issued a Legal Notice Dt: 8.8.2008, but even then the amount is not paid. Therefore, the complainant sought direction for payment of Rs.1,00,000/- with interest, damages and costs.
3. The opposite party no.1 & No.2 filed counter stating that after receipt of the claim from the complainant, they caused an enquiry, on which they came to know that the policy holder suppressed material information regarding his health. At the time of policy he was suffering from disability in his both the legs and therefore, they settled the claim for Rs.3,06,600/- comprising of Rs.3,00,000/- towards assured sum and Rs.6,600/- towards interim bonus. As the policy holder did not pay premium an amount of Rs.2,848/- is deducted from the said amount and balance of Rs.3,03,452/- was paid to the complainant through a cheque. It is submitted that the complainant is not entitled for the claimed amount of Rs.1,00,000/-. It is also submitted by the opposite parties that the complaint is barred by limitation as it is filed after 4 years of final settlement. The opposite parties submitted that there is no deficiency of service on their part, hence prayed for dismissal of the complaint.
4. The complainant filed his Proof Affidavit reiterating the contents made in the complaint and filed documents which are marked as Ex.A1 to A8. Ex.A1 is the attested copy of F.I.R. Ex.A2 is the attested copy of Postmortem Examination Report Dt: 1.3.2003. Ex.A3 is the attested copy of Inquest Report Dt: 28.2.2003. Ex.A4 is the Xerox copy of News Paper clippings. Ex.A5 is the original copy of letter from LIC of India, Karimnagar addressed to complainant Dt:23.3.2004. Ex.A6 is the Legal Notice issued by counsel for complainant addressed to opposite parties Dt: 8.8.2008. Ex.A7 is the two postal receipts addressed to opposite parties. Ex.A8 is the two postal acknowledgement cards addressed to counsel for complainant.
5. During pendency of the case for enquiry, the opposite parties deposited a sum of Rs.1,00,000/- before this Forum through a D.D.No.341314 Dt: 23.7.2009 drawn on Andhra Bank towards the basic assured sum payable under the policy along with a Memo and requested this Forum to close the complaint. In view of the payment of Rs.1,00,000/- now the complaint is confined to the grant of interest and costs.
6. The point for consideration is whether the complainant is entitled to claim interest and costs on the claimed amount and if so, to what relief?
7. A perusal of the contents of the complaint, counter and documents it is established that the policy holder died in a road traffic accident. It is also an admitted fact that the policy holder obtained Jeevan Mithra Policy from the opposite party for Rs.1,00,000/- with triple accident benefit coverage. As per the said policy the opposite parties undertook to pay Rs.3,00,000/- towards accident benefit coverage apart from basic sum assured. After receipt of the claim the opposite parties paid Rs.3,03,452/- which is inclusive of Triple Accident benefit and bonus. During pendency of the case the opposite parties deposited Rs.1,00,000/- in this Forum on 7.8.2009 towards the basic sum assured. In view of settlement of the claim by the opposite parties the complainant is not entitled for any damages. However, this Forum is inclined to award interest @ 7% P.A. on Rs.1,00,000/- from the date of complaint till the date of deposit of the amount as the complainant had to file this case. Hence, we hold that the opposite parties are liable to pay interest and Rs.500/- towards costs of the complaint. The complainant is entitled to receive the amount of Rs.1,00,000/- deposited by the opposite parties in this Forum.
8. In the result the complaint is partly allowed directing the opposite parties to pay interest @ 7% P.A. on Rs.1,00,000/- from the date of complaint i.e. 30.12.2008 till 7.8.2009 on which day the opposite parties deposited Rs.1,00,000/- in this Forum along with Rs.500/- towards costs of the complaint within one month from the date of receipt of this order.
Typed to my dictation by Stenographer, after correction the orders pronounced by us in the open court this the 23rd day of September, 2009.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
NO ORAL EVIDENCE HAS BEEN ADDUCED ON EITHER SIDE FOR COMPLAINANT:
Ex.A1 is the attested copy of F.I.R.
Ex.A2 is the attested copy of Postmortem Examination Report Dt: 1.3.2003.
Ex.A3 is the attested copy of Inquest Report Dt: 28.2.2003.
Ex.A4 is the Xerox copy of News Paper clippings.
Ex.A5 is the original copy of letter from LIC of India, Karimnagar addressed to complainant Dt:23.3.2004.
Ex.A6 is the Legal Notice issued by counsel for complainant addressed to opposite parties Dt: 8.8.2008.
Ex.A7 is the two postal receipts addressed to opposite parties.
Ex.A8 is the two postal acknowledgement cards addressed to counsel for complainant.
FOR OPPOSITE PARTIES: -NIL-
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
