BEFORE THE DISTRICT FORUM: KURNOOL
Present: Sri K.V.H.Prasad, B.A., LL.B., President
Smt C.Preethi, M.A., LL.B., Member
Sri R.Ramachandra Reddy B.Com., LL.B., Member
Thursday the 27th day of October, 2005
CD No. 88/2005
P. Deva Sahayam, S/o. Late P. Purushotham,
R/o. H.No. 51/964-2, Seetharama Nagar, Kurnool
. . . Complainant
-Vs-
1. The Deputy Divisional Manager,
Office of the Chief Post Master General, Andhra Pradesh Circle, Hyderabad.
2. The Asst. Divisional Manager,
Office of the Chief Post Master General, Andhra Pradesh Circle, Hyderabad. . . . Opposite parties
The complaint coming on 21.10.2005 for arguments in the presence of Sri C. Jogarao, Advocate, Kurnool for complainant and Sri M.D.V.Jogaiah Sarma Advocate, Kurnool for opposite party No.1 and No.2, and stood over for consideration, till this day the Forum made the following.
O R D E R
(As per Sri K.V.H.Prasad, Hon’ble President)
1. This CD case of the complainant is filed under section 12 of Consumer Protection Act, seeking direction on the opposite party to pay him Rs. 57,640/- i.e principal amount of Post Life Insurance policy No. AP- 154904- CS, bonus at the rate of Rs. 77 per 1,000/- per year for 2000-2001 to 2003-2004 amounting to Rs. 61,000/-, and Rs. 50,000/- for the mental agony and 24% interest and costs alleging himself as joined Postal Life Insurance (Santhosh, Endowment Assurance) Scheme on 25.11.2000, with his wife Saralamma as his nominee, for an assured sum of Rs. 2,00,000/- to be matured on 14.4.2014 and paid monthly premium at the rate of Rs. 1,310/- up to July 2004 to the tune of Rs. 57,640/- and as a paid up policy of three years old would be eligible for bonus and on account of financial crisis his surrendering the policy on 7.7.2004 and sanction of amount of Rs.35,651/-only by the opposite party vide its letter dated 3.8.2004 and the said sanction being short of the actual amount paid during the said period ( i.e Rs. 57,640/- ) and the bonus payable at the rate 7.7% per annum on assured sum of Rs. 2,00,000/- for four years
( I.e 61,600), set up demand for the said balance receiving the sanctioned amount of Rs. 35,651/- and the opposite party No.2 repudiated the same vide letter dated 3.12.2004 stating the eligibility for bonus on paid up policy of over 5 years and such a repudiation with out making know now the figure of Rs. 35,651/- was arrived at, and the act of the opposite party in acting upon subsequent order/ rules and not on the rules applicable on the date of joining policy and paying short of amount is deficiency of service on the part of the opposite party and there by the liability of the opposite parties to make good of his claim.
2. The written version of opposite party 1 and 2 besides denying the justness and maintainability of the complainant case and the entitleness of the complainant for the claim, alleges the said policy obtained by the complainant is subject to the provisions of the Post Office Insurance fund rules and the calculation of entitled amount of the complainant as worked out in accordance with the letter of Director of Postal Life Insurance, Department of Posts, New Delhi bearing no. 29-14/98/C1, dated 18.11.2003 and as per the instructions contained therein policy surrender before the completion of 5 years period would not be eligible for payment of accrued bonus and so the entitled amounts of Rs. 35,651/- was arrived at working out on surrendered factor value of 0.632 and the intimation of loss of benefits of accrued bonus etc and advising its continuance to avail full benefits of the policy vide its letter dated 3.12.2004 and payment of said entitled amount without any delay to the complainant and thereby deny any deficiency of service and its liability to the claim of the complainant and there by seeking dismissal of complaint with costs.
3. In substantiation of the contentions while the complainant’s side has relied upon documentary record in Ex A.1 to A.11 besides to its sworn affidavit, reply of opposite party to his interrogatories, the opposite party side has taken reliance on the documentary record in Ex B.1 to B.7 and his sworn affidavit in reiteration of its defence.
4. Hence, the point for consideration is whether the complainant is entitled to the claim made from the opposite parties:-
5. As the opposite parties admit the complainant as policy holder and his paying periodical premiums for 44 months and surrender of said policy for paid up value and sanction of Rs. 35,651/- in settlement of the payment to the complainant under said policy after affording an opportunity to continue policy for his own benefit, the documentary record Ex A.1 to A.6 which reflects the above factors does not require any more appreciation than what they speak out.
7. The Ex A.7 to A.10 represent the legal notice caused and its acknowledgement by the opposite parties and hence they also do need any appreciation than what they speak.
8. The Ex B.3 – the Postal Live Insurance Policy – Standing in the name of the complainant for an assured sum of Rs. 2,00,000/- commencing from 27.12.2000 for a monthly premium of Rs. 1,310/- with its date of maturity to 14.4.2014 and the terms of contract governing said policy incorporated on the over loss the said policy. As per the terms of the contract No.14 governing the contingency of surrender/ paid up value the surrender for an immediate payment in cash shall be provided the said policy is in force and has completed 3 years from the date of commencement/acceptance and said surrender/paid up quotations are liable to change from time to time. Hence even though originally the said benefit could be availed by the policy holder on surrender/paid up after completion of 3 year policy in force, the said facility from the further wording it was put to, that the surrender/paid up quotation are liable to change from time to time and the said being put to change vide Ex B.1 para 3 (ii) the said contingency of said surrender/paid up is governed by the said change rules and not by the original rule of completion of 3 years and as the former time limit shall be in vogue as long as it was not put to any subsequent change only.
9. The dis-advantage plea of changed circumstances in account of changed rules, may not be available to the complainant as firstly he remains to have abided to the stipulation of the terms of contract No.14 and secondly the complainant have received the said amounts inspite of being informed of the disadvantage of said pre matured paid up by the opposite party vide its letter in Ex A.6.
10. The complainant should not forget the nature of contribution he made in the said policy as premium covering the risk of life which had an additional facility of receiving the bonus on paid up/ sufferer after certain fixed time on the policy in force. When the said periodical contribution he made under said policy as periodical premium and not as a savings deposit he cannot dream of accrued of the deposit amounts to his entitleness as savings contributions at the time of contingency of surrender/ paid up in case of policy enforce as he would be entitled only to that amounts which could be permissible under the proceeds for their assessing. Hence there appear neither any bonafidies nor any reasonable ness in the claim of Rs.57,640/- i.e amount paid in 44 installments at the rate of Rs. 1,310/- per month as premium, from December 2002 to July 2004.
11. The Ex B.5 is the Postal Life Insurance surrender factor chart. It provides applicable surrender factor in relation to the actual age under the term of said policy. As per the entries of the Ex B.3 the Postal Life Insurance policy the complainant the applicable terms to the Ex B.3 policy of the complainant is E A.58 and as per the age of the complainant at the time of said application for paid up value being 48 years 2 months 28 days, the Ex B.6 works out the multiplication the surrender factor to .632 as per the details mentioned therein and the work sheet of entitled amount of Rs. 35,651/- in Ex B.7 shows as to how it was arrived at. In the absence of any material dis credibility if as non-applicable of the supra stated material there appears any material to suspect the bonafidies of its working out or correctness.
12. Hence, in the circumstances stated about there appears any validity in the claim of the complainant and there by any deficiency of service on the part of the opposite parties and of their any liability for the amounts claimed by the complainant and so consequently there being no merit and force in the case of the complainant, it is dismissed with costs.
Dictated to the Stenographer, transcribed by her, corrected and pronounced by us, in the Open Forum, on this the 27th day of October, 2005.
PRESIDENT
MEMBER MEMBER
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant: Nil For the opposite parties: Nil
List of Exhibits Marked for the complainant:
Ex A.1 Letter, dt 7.7.2004 of submission of PLI surrender value of the
Complainant.
Ex A.2 Xerox copy of sanction order dt 3.8.2004 addressed to CPM/Senior
PM/Kurnool.
Ex A.3 Xerox copy of letter dated 10.8.2004, of complainant to opposite party
No.2.
Ex A.4 Xerox copy of letter dated 10.8.2004 from Post Master, Kurnool
Addressed to Asst. Divisional Manager, A.P. Circle, Hyderabad.
Ex A.5. Xerox copy of letter dt 13.10.2004 of complainant to opposite party
No.1.
Ex A.6 Office copy of letter dated 3.12.2004 from Asst. Divisional Manager
(PLI), Hyderabad to complainant.
Ex A.7 Legal notice dated 9.12.2004 of complainant’s counsel to opposite
parties.
Ex A.8 Postal acknowledgment (Ex A.7).
Ex A.9 Postal acknowledgment (Ex A.7).
Ex A.10 Postal acknowledgment (Ex A.7)
Ex A.11 Original PLI Broacher.
List of Exhibits Marked for the opposite parties:
Ex B.1 Attested (true) copy of Directorate of Postal Life Insurance, dt 18.11.03.
Ex B.2 Surrender Value declaration (Annexure –IV).
Ex B.3 Original Postal Life Insurance Policy.
Ex B.4 Original Premium Receipt Book.
Ex B.5 Attested copy of postal life Insurance Surrender Factor Chart.
Ex B.6 Original Surrender Factor sheet (policy, EA/58).
Ex B.7 Attested copy of Surrender Calculation sheet.
PRESIDENT
MEMBER MEMBER
Copy to:-
1, Sri C. Joga Rao, Advocate, Kurnool.
2. Sri M.D.V. Jogaiah Sarma, Advocate, Kurnool.
Copy was made ready on:
Copy was dispatched on:
Copy was delivered to parties on:
