Haryana

StateCommission

A/332/2015

LIFE INSURANCE CORP.OF INDIA - Complainant(s)

Versus

AMAR SINGH AND ANOTHER - Opp.Party(s)

SATYAWAN AHLAWAT

21 Sep 2016

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

                                               

                                      First Appeal No.332 of 2015

                                      Date of Institution:10.04.2015

                                      Date of Decision: 21.09.2016

 

1.      Life Insurance Company  Limited, Divisional, Jeevan Jyoti Building, Sector-15, Sonepat through its Branch Manager and another through its Manager (Legal), Division office, Chandigarh and another.

                                                …Appellant

 

Versus

 

1.      Amar Singh son of Sh. Ram Mehar resident of Ward No.3  Sainipura Kharkhoda District Sonepat.

2.      IDBI Bank Ltd. Branch office Paschim Vihar, New Delhi-63 through its Branch Manager.

                                                …Respondents

 

CORAM:   Mr. R.K. Bishnoi, Judicial Member

                   Mrs. Urvashi Agnihotri, Member

 

Present:     Mr.Suresh Ahlawat, Advocate for the appellant.

Mr. Surender Saini, Advocate for the respondent No.1.

Mr. Mayur Kanwan, Advocate counsel for respondent No.2.

 

                                       O R D E R

 

R.K. BISHNOI, JUDICIAL MEMBER

 

          It was alleged by the complainant that  he purchased life insurance policy on 18.12.2001 for a sum of Rs.5,00,000/- whose maturity date was 08.12.2026. As he was in need of money he obtained credit limit of Rs.79,000/- from opposite party No.3 (in short ‘OP’).   Without any prior notice to him  O.Ps.  surrendered  the insurance policy for meager value of Rs.2,26,325/- and refunded amount vide cheque dated 05.10.2011. He received that cheque on 17.11.2011 whereas he had cleared the dues of bank on 15.11.2011. He was never willing to surrender the policy, so, OPs be directed to restore  the insured sum as well as compensation as prayed for.

2.      OP Nos. 1 & 2 filed their joint reply and OP No.3 filed separate reply controverting the averments of complaint. It was alleged by OP Nos.1 & 2 that the policy in question was assigned by complainant in favour of OP No.3 to get credit limit and in this way bank became owner of the same. Bank surrendered policy on 05.10.2011 for the consideration of Rs.2,26,325/-. Surrender value was paid as per terms and conditions of the policy. When once policy is assigned in favour of another person consent of first person is not required. Other averments were also denied and requested to dismiss the complaint.

3.      In addition thereto it was alleged by OP No.3 that the complainant executed loan agreement on 20.12.2007. After assignment of aforesaid policy he obtained over draft limits facility for Rs.5,00,000/-. He availed over draft limit facility of Rs.79,000/-. He was asked time and again to clear outstanding amount, but without any result. Finding no other alternative policy was surrendered with the Life Insurance Corporation Ltd. of India (in short ‘LIC’).  After deducting the amount due, remaining amount was sent to complainant.

4.      After hearing both the parties, learned District Consumer Disputes Redressal Forum, Sonepat (in short ‘District Forum’) allowed the complaint and directed as under:-

“Accordingly, it is directed to the respondent No.3 bank to compensate the complainant to the tune of Rs.10,000/- (Rs. Ten thousands) for rendering deficient services, for causing unnecessary mental agony, harassment and under the head of litigation expenses. Further the respondent No.3 bank is directed to pay interest to the complainant on the amount of Rs.2,26,325/- at the rate of 09% per annum from the date i.e. 05.10.2011 when payment order No.749287 was prepared, till its realization. The respondent No.3 bank is directed to refund the amount of Rs.2,26,325/- to the respondents No.1 and 2/LIC of India and LIC of India is directed to accept the above said amount from the IDBI Bank as per rules. Further the respondents No.1 and 2 are also directed to reinstate the policy No.172962320 dated 28.12.2001, matured on 28.12.2026, sum assured Rs.5 lacs of the complainant. In its original position from the date of its surrender and to accept the premium in-respect of the above mentioned policy from the complainant with interest for the defaulted period (i.e. for the period during which the policy remained reluctant due to it’s surrender by respondent No.3.)”

5.      Feeling aggrieved, therefrom OP Nos. 1 & 2 have preferred this appeal.

6.      Arguments heard. File perused.

7.      Learned counsel for the complainant vehemently argued that he never asked LIC to pay surrender value. Prior notice was not given to him. Without his consent insurance policy was got encashed, so, learned District Forum rightly directed appellants to accept the premium and revive the insurance policy.

8.      This argument is of no avail.  As per facts mentioned above. It is clear that insurance policy was assigned to OP No.3. In this way bank was having domain over the insurance policy. Vide letter Annexure R-3/1 insurance policy was surrendered and payment was made by insurance company. There is no fault with appellants. After assignment, bank was having control over policy. It was not necessary for LIC to send notice to complainant. LIC has acted in accordance with advice of assignee. So, it cannot be presumed that there was any deficiency in service on their part. Once payment has been made and policy is closed, insurance company cannot be asked to renew the same. Directions of learned District Forum to OP Nos.1 & 2 are all together wrong. As a sequel of our aforesaid discussion impugned order dated 04.02.2015 is set aside as for as it pertains to appellants only because OP No.3 has not preferred appeal. Resultantly, present appeal is allowed.

 

10.    Statutory amount of Rs.25,000/- deposited at the time of filing the appeal be refunded to the appellants against proper receipt and identification in accordance with rules, after the expiry of period of appeal and revision, if any filed in this case.

 

September 21^st,         Urvashi Agnihotri                   R.K. Bishnoi

2016                           Member                               Judicial Member

                                  Addl. Bench                          Addl. Bench