DATE OF DISPOSAL: 13.08.2018.
Sri Karuna Kar Nayak, President.
The complainant Smt. Sandhyarani Mishra, has filed this consumer complaint Under Section 12 of the Consumer Protection Act, 1986, alleging deficiency in service against the Opposite Parties ( in short the O.Ps) and for redressal of her grievance before this Forum.
2. Briefly stated the case of the complainant is that the husband of the complainant namely late Bhubaneswar Dash, while working as a U.P. School teacher under khallikote block in the district of Ganjam. During in his life time he had opened a policy JEEVAN SARAL with profits on 28.3.2009 vide policy No. 583718300 for sum assured amount of Rs.1,25,000/-with the O.P.No.2. Accordingly the husband of the complainant deposited necessary monthly premium of Rs.1012/- on 31.03.2009 under salary saving. Though the policy was opened and issued from Balugaon Branch office LIC of India in the district of Khurda, subsequently request made by the husband of the complainant, the said policy transferred to the Chhatrapur Branch of LIC because the said policy was under salary saving scheme for deduction of premium from salary by B.D.O. office, Khallikote. Accordingly the husband of the complainant complied all the requirements as desired by the O.P.No.2 & 3. While the matter stood thus, the husband of the complainant late Bhubaneswar Dash, while he was going on his motor cycle towards Balugaon on the way he met with an accident as a result of which the husband of the complainant Late Bhubaneswar Dash succumbed to his death on 06.08.2009. After the accident the complainant intimated the O.Ps regarding death of her husband and applied to disburse the policy amount including accident benefits in favour of the complainant. After receipt of necessary document from the complainant, the O.Ps repudiated the claim as policy is in lapse condition. The O.P.No.1 who is the employer in whose control the husband of the complainant was worked and the policy is a salary saving scheme, it is duty of the employer to deduct the necessary monthly premium from the salary of late Bhubaneswar Dash. Hence the O.Ps can not discharge their liability in a mechanical manner by way of rejecting the application of the complainant. Hence the O.Ps are jointly and severally liable to pay the sum assured amount as the above said policy is a salary saving scheme. Alleging deficiency in service on the part of the O.Ps the complainant prayed to direct the O.Ps to pay the sum assured amount of Rs.1,25,000/- with profit and grant such other further reliefs as the Hon’ble Forum deems fit in the best interest of the justice.
3. Despite notice issued by this Forum, the O.P.No.1 failed to appear on the date fixed as such O.P.No.1 set exparte on dated 13.06.2016.
4. Upon notice the O.P.No.2 & 3 filed their version through their advocate. It is stated that the averments made in the complaint are all not true and correct and the complainant is put to strict proof of the same. Bhubaneswar Dash had been issued with policy No.587138300 from Balugaon Branch on 28.03.2009. The policy was issued under plan Jevan Saral with accident benefit (Table-165) for a term of 15 years. The premium under the policy was payable under monthly SSS mode. The monthly premium was Rs.510/-, which has to be deducted from salary w.e.f. 05/2009 to 02/2024. The O.Ps submits that no such premium was deposited since May 2009. The deceased had received the salary without deduction of the premium towards the above alleged policy till his death. Due to non-payment of premium within the grace period i.e. 15 days from due date of unpaid premium in case of monthly SSS mode, the alleged policy resulted in to a “lapsed policy” and as per the terms and condition of the policy “No death claim is payable under a fully lapsed policy”. Hence the allegation made in the complaint against these O.Ps is baseless and for that the complaint is not maintainable and the same is liable to be dismissed. The deceased was well aware of the fact on non-deduction of premium from his salaries, because he was receiving his salary where the deduction of premium of the alleged policy was not made. He was also aware that the premium was not paid towards the above alleged policy since 29th May 2009 till the date of the accident 06.08.2009. The complainant intimated the O.Ps about the death of her husband Bhubaneswar Dash on 24.03.2010 wherein she has claimed the death benefits for 03 numbers of policies viz. 580263494, 570057243 and 583718300. The O.Ps settled death claim against policy No. 580263494 and 570057243 as they were in force condition and repudiated claim under policy No. 583718300 (alleged policy) as it was in lapsed condition. The repudiation actions of the O.Ps are duly communicated to the complainant alongwith the cause of repudiation on 20.10.2010. In the said letter the O.Ps has categorically informed the complainant that the claim under the policy is not payable because premium under the alleged policy had not been remitted by the employer of the deceased since inception of the policy except 02 initial dues i.e. 03/09 and 04/09 and the complainant was requested to confirm about recovery of premium, if any, for the default months i.e. 05/2009 till death, for further consideration of claim. Instead of complying to the requirements, the complainant had filed this dispute, which is premature and not according to the principles of law. The dispute is barred by limitation. The complainant has filed the dispute on 16.01.2013 i.e. after 02 years 02 month and 26 days from the date of the repudiation letter dated 20.10.2010. Hence the O.P.No.2 and 3 prayed to dismiss the case.
5. On the date of hearing of the consumer complaint learned counsel for the complainant and O.P.No.2 &3 were present. We heard argument from both sides at length. We perused the complaint petition, written version, written arguments and documents placed on the case record. It reveals that The Senior Branch Manager, LIC of India, Chhatrapur Branch, vide his letter No. CLAIMS/CTPR/H.G.A. dated 20.10.2010 addressed to complainant that he has received premium from 28.03.2009 to 28.05.2009 i.e. only for 2 months under policy No. 583718300. Despite several persuasions the O.Ps did not heed to consider the grievance of the complainant. This action of the O.Ps have attributed to deficiency in service. This Forum by relying upon a citation passed by the Hon’ble Supreme Court of India in Chairman of LIC versus S.K.Bhaskar A.I.R. 2005 page 3086 in which the Hon’ble Apex Court has hold that “even if the Employer has failed to make payment of the premium, the principal i.e. the L.I.C. is liable to pay the assured amount to the complainant of the said salary savings scheme policy”.
6. After perusal of the record it reveals that though the complaint enrolled on 11.3.2011 vide ENR No. 26/2011 but the same was admitted on 16.01.2013. Hence taking the date of filing of this case i.e. on 11.03.2011 into consideration for the ends of justice we hold that this case is not barred by limitation.
7. On foregoing discussion it is clear evident that the O.Ps are negligent in rendering proper service to the complainant. Hence in our considered view there is deficiency in service on the part of O.P.No.2 & 3 and in view of the aforesaid citation of the Apex Court we hold that there is no liability on the part of O.P.No.1 as being the employer he was working as an agent of O.P.No.2 & 3.
In the result, the complainant’s case is allowed against O.P.No.2 & 3 and dismissed against O.P.No.1. Both the O.P.No.2 & 3 are directed to settle the claim of the policy No. 583718300 of late Bhubaneswar Dash and also to pay Rs.2000/- towards cost of litigation to the complainant. The aforesaid order shall be complied by the O.P. No.2 & 3 within 45 days of receipt of this order, failing which all the dues shall carry 12% interest per annum. The case of the complainant is disposed accordingly.
The order is pronounced on this day of 13th August 2018 under the signature and seal of this Forum. The office is directed to supply copy of order to the parties free of cost and a copy of same be sent to the server of www.confonet.nic.in for posting in internet and thereafter the file be consigned to record room.
