IN THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MURSHIDABAD AT BERHAMPORE.
CASE No.CC 75/2015
Date of Filing: 16.06.2015. Date of Final Order: 19.07.2018.
Complainant: Tarik Islam, S/O Sariful Islam, Vill. Ramna Etbarnagar,
P.O. Basantapur, P.S. Domkol, Dist. Murshidabad, Pin 742306.
-Vs-
Opposite Party: Branch Manager, Life Insurance Corporation of India,
Chak Islampur Branch, P.O. Islampur, Dist. Murshidabad,
Pin 742304
Agent/Advocate for the Complainant : Sri Satinath Chandra.
Agent/Advocate for the Opposite Party : Sri Saugate Biswas.
Present: Sri Asish Kumar Senapati…………………. President.
Smt. Chandrima Chakraborty ……………………..Member.
FINAL ORDER
Sri Asish Kumar Senapati President.
This is a complaint U/S 12 of the C. P. Act, 1986.
One Tarik Islam (herein after referred to as the complainant) filed the present case against the Branch Manager, Life Insurance Corporation of India, Chak Islampur Branch (herein after referred to as the OP) alleging deficiency in service.
The complaint case may be summarized as follows:-
The complainant paid a sum of Rs.29, 000/- on 23.09.2009 and a sum of Rs.19,040/- on 29.09.2009 as Proposal Deposit for the purpose of issuing LICI’s Jeevan Saral with profits policy. The OP issued a Policy Bond in favour of the complainant vide Policy No. 428238956 and yearly premium was Rs.48,040/- against a Maturity Sum Assured value of Rs.11,06,200 for a term of 20 years. The complainant, after payment of 5th yearly premium , decided to surrender his policy due to want of money and the OP assured him that he would get a sum of Rs.2,76,550/- as surrender value as per conditions enumerated in Para 7(a) of the policy. Thereafter, the complainant was asked to receive only a sum of Rs.1,97,327/- in lieu of Rs.2,76,550/- as per Para 7(a) of the Policy Bond though the complainant was entitled to get maturity sum (assured/total term x No. of years of which premium paid i.e Rs.1106200/20 x5) = Rs.2,76,550/- . But the OP turned down the request of the complainant and issued
a letter dt. 09.12.14 stating that the complainant was entitled to get only Rs.1, 90,463/- . There is deficiency in service on the part of the OP.
The complainant has prayed for a direction upon the OP to pay the balance amount of Rs.79, 223/- and a sum of Rs.15, 000/- for mental pain and agony and also to pay a sum of Rs.15, 000/- for cost of litigation.
The OP put appearance and filed Written Version on 31.3.16 inter alia stating that the complaint is not maintainable in its present form.
It is the specific case of the OP that surrender is a privilege given to the Policy Holders and as per condition of the policy 100% maturity sum assured applicable to the term is payable of premium is paid for at least 5 years and as per Sl. No. 12 of Conditions and Privileges, loyalty addition under Jeevan Saral Policy is payable only if the policy is in force for 10 years. Herein, in the instant case premium is paid for 5 years and duration of the policy was 5 years 1 month and 29 days for which the OP rightly paid a sum of Rs.1, 93,327/- to the complainant. It has been asserted that the complainant was also informed about the matter along with chart showing maturity sum assured by a letter dated 09.12.14. There is no deficiency in service on the part of the OP. The OP has prayed for dismissal of the complaint with cost.
Upon the above pleadings, the following points are framed for proper adjudication of the case.
Points for Decision.
- Is the complainant a consumer as per provisions of the C.P. Act, 1986?
- Has this Forum jurisdiction to entertain the case?
- Has the OP deficiency in service, as alleged by the complainant?
- Is the complainant entitled to get any relief/reliefs as prayed for?
Decision with Reasons.
Point No.1.
The Ld. Advocate for the complainant submits that the complainant was a consumer of the OP as he had a LICI Policy namely Jeevan Saral being No. 428238956 and he paid premiums.
In reply Ld. Advocate for the OP submits that the complainant is not a consumer.
Having gone through the Written Complaint, Written version and the materials on record, we find that the complainant is a consumer of the OP in terms of the provisions of the C. P. Act, 1986.
Point No.2.
Ld. Advocate for the complainant submits that this Forum has both territorial and pecuniary jurisdictions to entertain the complaint.
We have gone through the Written Complaint, W/V and the evidence of the complainant and the documents filed by both sides.
On a careful consideration, we find that there is a consumer dispute between the complainant and the OP and this Forum has both territorial and pecuniary jurisdiction to try the case.
Point Nos. 3&4.
The Ld. Advocate for the complainant submits that the yearly premium of the policy was Rs.48, 040/- and the maturity sum assured value was Rs.11, 06,200/- for a term of 20 years. It is contended that the complainant is entitled to get Rs.2, 76,550/- as he paid premium for 5 years i.e. one-fourth of the total matured sum assured value for 20 years but the complainant received Rs.1, 97,327/- only in lieu of Rs.2, 76,550/-.It is submitted that the complainant is entitled to get balance amount of Rs.79,223/- and the complainant should also be compensated for deficiency in service on the part of the OP.
In reply the Ld. Advocate for the OP submits that the policy was surrendered on 21.5.15 by the complainant and an amount of Rs.1,97,476/- was paid through NEFT after deduction of Rs.149/- . It is argued that as per provisions, the Special Surrender Value will be 100% of the maturity sum assured, if 5 or more years premiums have been paid and the maturity sum assured will be the maturity sum assured corresponding to the term for which premiums have been paid under the policy but not the maturity sum assured of original term of the policy. It is contended that the sum assured (SA) is further discounted or accumulated depending on the date of surrender, if the surrender date is prior to FUP it is discounted for period FUP –Dt. of Surrender and the rate will be as per interest declared by Corporation at the beginning of the year.
He argues that in the present case the Maturity Sum Assured for 5 years term as per rate chart is (4733 X4000) / 100 =Rs.189320/- and for 7 months accumulation period maturity value will be calculated as per Chart provided for the purpose and it comes to 1.04309 and multiplying the sum with the factor , we get total surrender value =189320 x 1.04309 =Rs. 1,97,478/-. He further argues that a Calculation Sheet has been filed for kind consideration of the Ld. Forum.
It is argued that the OP has no deficiency in service.
We have gone through the Written Complaint, Written Version, Evidence filed by the complainant and the documents filed by the parties.
Admittedly, the complainant had one LICI Jeevan Saral Policy being No. 428238956 and he paid premiums for 5 years and after 5 years he decided to surrender the policy. It is the claim of the complainant that the he is entitled to get 100% of the proportionate sum assured on maturity divided by four.
It is contended by the OP that the complainant is entitled to get a sum assured in terms of policy and it is not total sum assured on maturity after 20 years divided by four as claimed by the complainant.
We have gone through the policy details of LICI Jeevan Saral filed by the OP , the complainant, evidence of the Complainant, documents filed by both sides and written argument. The complainant relies on Cl. 7(a) of the Policy which states 100% of matured sum assured, if premium are paid for 5 years or more. The maturity sum assured for that para will be the maturity sum assured corresponding to the term for which premiums have been paid under the policy but not the maturity sum assured of original term of the policy.
It is the argument of the OP that the maturity sum assured for that para will be the maturity sum assured corresponding to the term for which premiums have been paid under the policy but not the maturity sum assured of original term of the policy.
The OP has filed Calculation Chart of surrender value of the policy of the complainant (Annexure A), Policy of Surrender (Annexure B) , the Chart showing maturity (Annexure C) and Special Surrender Value under Jeevan Saral Plan, a letter dt. 21.09. 2007 referring Special Surrender Value( Annex.-D) under Jeevan Saral Plan (T-165).
On a careful consideration over the facts and circumstances of the case and the terms of the policy, we find that the OP has rightly calculated the maturity value of the surrender policy amounting Rs.1, 97,476/- as shown in (Annexure A). We find valid substance in calculating the value of surrender policy. The Argument advanced by the Ld. Advocate for the Complainant regarding simple calculation of Sum assured in case of surrender of a policy after five years on the total sum assured after maturity has no basis. We find that the complainant has failed to establish any deficiency in service on the part of the OP. Hence, the complainant is not entitled to get any relief against the O.P., as prayed for.
Reasons for Delay:-
This case was filed on 16.06.2015 and was admitted on 01.07.15. The Forum tried its level best to dispose of the case as expeditiously as possible in terms of Section 13(3A) of the Act. The cause of delay is also explained in day to day orders.
Fees paid are correct.
Hence,
Ordered
that the Consumer Complaint No.75/2015 be and the same is dismissed on contest against the OP without cost.
Let plain copy of this order be supplied free of cost, to each of the parties / Ld. Advocate/Agent on record, by hand /by post under proper acknowledgment as per rules, for information and necessary action.
The Final Order will also be available in the following Website:
confonet.nic.in
