Orissa

Cuttak

CC/31/2017

Bharati Pattanaik - Complainant(s)

Versus

Branch Manager,Life Insurance Corporation of India - Opp.Party(s)

B B MIshra

11 Oct 2017

ORDER

IN THE COURT OF THE DIST. CONSUMER DISPUTES REDRESSAL FORUM,CUTTACK.

C.C No.31/2017

 

Bharati Pattnaik,

W/O:Biswajot Mohanty,

At:Nuapoada(Shanti Nagar),

PO:Nayabazar,Dist:Cuttack..                                                               … Complainant.

 

                Vrs.

 

 Branch Manager,

Life Insurance Corporation of India,

Cuttack City Branch Office No.III,

Sikharpur,Cuttack-753003.                                                                    … Opp. Party.

 

Present:               Sri Bichitra Nanda Tripathy, Presiding Member.

Smt. Sarmistha Nath, Member (W).

 

Date of filing:   17.03.2017

Date of Order: 11.10.2017.

 

For the complainant:       Sri B.B.Mishra,Adv. & Associates.

For Opp.Party :                  Sri R.K.Pattnaik,Advocate & Associates.

 

Sri Bichitra Nanda Tripathy, Presiding Member.

                The case is against deficiency in service and unfair trade practice on the part of O.P.

1. Shortly the case is that the complainant after going through the brochure  of L.I.C’s “Jeevan Astha” policy and as advised by the concerned agent of L.I.C decided to invest in the said policy and deposited a sum of Rs.26,542/- on 21.01.2009 towards single premium plan of “Jeevan Astha” policy No.587316610(Annex-1).  The policy matured on 21.01.2014 and a sum of Rs.36,350/- was credited to his S.B account towards maturity value of the said policy.(Annex-2).  On verification, the complainant came to know that a sum of Rs.1775/- was paid less to the complainant since a sum of Rs.36,350/- was paid against the payable amount of Rs.,38,125/-(Annex-3).  The complainant contacted the concerned agent as well as the concerned Branch Manager of L.I.C on 25.05.2015 but it yielded no result.  The complainant again lodged a complaint on 04.06.2015 for the purpose (Aannex-4) but in vain.  The complainant issued a legal notice against the O.P on 15.06.2015(Annex-5) and again served another legal notice on 26.11.2015 against Sr. Divisional Manager,LIC,Nuapatna,Cuttack indicating her grievances(Annex-6).  The Manager (CRM)CDM) on 09.02.2016  replied to her that as per policy conditions, nothing more is payable to the complainant.(Annexure-7).  As per the calculation table as given in the brochure of the “Jeevan Astha Policy” it was  indicated that  an investment for 5 years by an individual in the age group of 40 to 45 years the one time premium payable was from Rs.26,415/- to Rs.26,663/-  which yields a maturity value of Rs.38,125/- after 5 years.  The complainant had paid a sum of Rs.26,542/- as one time premium whereas the complainant  was paid Rs.36,350/- which was less than the calculated value by Rs.1775/-.  Finding no other way, the complainant has taken shelter of this Hon’ble Forum.  She has prayed to direct the O.P to pay the differential amount of Rs/.1775/- along with interest @ 16% from the date of maturity till final payment and also a sum of Rs.40,000/- towards mental agony and harassment and cost of litigation.
2. The O.P vide their written version dt.20.08.2017 had intimated that the complainant had taken a “Jeevan Astha” LIC policy from Sikharpur Branch of the LIC of India on 21.01.2009.  The terms of the policy was for a period of 5 years and a sum of Rs.26,542/- was paid by the complainant as one time premium.  The sum assured against the said policy was Rs.25,000/-.  (The terms and conditions of the policy vide Annexure-A).  After maturity the complainant was paid a total sum of Rs.36,350/- towards maturity value which includes  sum assured amount Rs.25,000/- + guaranteed addition Rs.11,250/- and loyalty Rs.100/-(Annexure-B).  The agent of LIC has not defrauded the complainant since she herself had voluntarily opted for the policy.  There is no authenticated brochure floated by LIC except its printed leaflets with plan feature.  The O.P had given a reply to the complainant on 09.02.2016 explaining the matter in deails.(Annexure-C).
3. We have gone through the case record in details and perused the documents minutely as submitted by the complainant as well as by the O.P.  We have also heard the advocates from both the sides at length and observed that the complainant had invested a sum of Rs.26,542/- on 21.01.2009 under “Jeevan Astha” policy at Sikharpur Branch of LIC of India vide policy No.587316610.  As per the policy bond issued for the purpose the sum assured was Rs.25,000/- & the guaranteed addition was Rs.90/- per thousand per year which comes to (25x90x5) = Rs.11,250/-.  The guaranteed loyalty addition is not spelt out on the policy  Bond and a sum of Rs.100/- only is paid towards loyalty additions.  The Bond was issued to the complainant on 26.02.2009 and the complainant had invested in the said plan on 21.01.2009 basing on the information and printed leaflet as produced before her by the concerned agent of LIC of India.  Thus LIC of India has repaid (Rs.25,000/- + Rs.11,250/- + Rs.100/-) Rs.36,350/- to the complainant.  As per the calculation table as provided by the Agent of LIC  of India to the complainant it is clearly stated that the loyalty addition payable is Rs.1875/- for 5 years plan(Jeevan Astha Table No.195).  This may be noted that the act done by the Agent is binding on the principal.  Since the concerned agent has given the leaflets to the complainant as printed and supplied by LIC of India, the LIC of India is responsible for the commitments as stated in such leaflets.  Moreover, the O.P has not denied the fact that they have issued such calculation table/leaflet indicating loyalty bonus as Rs.1875/- and total amount payable as Rs.38,125/-.
4. Basing on the facts and circumstances it is clear that LIC of India has not paid the exact maturity value as spelt out in their leaflet issued for the purpose.  They have paid a maturity value of Rs.36,350/- whereas the leaflet indicates that the maturity value was Rs.38,125/- for 5 year term policy.  Thus they have paid a less amount of Rs.1775/- towards Loyalty addition which amounts to deficiency in service.

 

         ORDER

O.P. will pay a sum of Rs.1775/- to the complainant towards less amount paid as loyalty addition.  O.P. will also pay a sum of Rs.10,000/- to the complainant towards mental agony and harassment and a further sum of Rs.2500/- towards cost of litigation.  Thus the O.P will pay a sum of Rs.14,275/-(Rupees fourteen thousand two hundred seventy five only) to the complainant in total.  The above payments shall be made within a period of 45 days from the date of receipt of the order, failing which the complainant is at liberty to take shelter of this Hon’ble Forum as per C.P.Act,1986.

Typed to dictation, corrected and pronounced by the Hon’ble Member in the Open Court on this the 11^th day of October,2017 under the seal and signature of this Forum.

 

   (Sri B.N.Tripathy )

                                                                                                   Presiding Member.

                                                                   

                                                                                         (Smt. Sarmistha Nath) 

                                                                                      Member(W).