SMT. RAVI SUSHA : PRESIDENT
Complainant has filed this complaint U/S 35 of the Consumer Protection Act 2019 seeking to get an order directing opposite parties to pay Rs.44,000/- being the difference in maturity amount with interest @12% per annum from the maturity date till the date of payment ,Rs.50,0000/- towards compensation together with cost of the proceedings of the complaint.
Complainant’s case is that he had availed a housing loan from 3rd OP in the year 2012 and in associated with the housing loan 3rd OP had instructed the complainant to avail a life insurance policy from OPs 1&2 through 3rd OP. As per the policy conditions the complainant has to pay five premiums for five consecutive years commencing from 2012, the base premium is Rs.10,000/- and the total first premium amount was Rs.10309/-. The maturity date of policy is 18/6/2022 and the maturity benefit is Rs.68750/- and the death benefit is Rs.70,000/-. The complainant had given standing instruction to his bank, 3rd OP for the auto debit of the premium to his account to OPs 1&2 for the payment of renewal premium. After completion of 10th year complainant submitted an application to OPs 1&2 for the maturity benefit in terms of policy, accordingly the complainant got the credit of Rs.24750/- in his account on 24/9/2022. The complainant lodged complaint with 3rd OP on 28/9/22 with a request to transfer the entire maturity amount of Rs.68750/- as prescribed in policy. After lodging complaint , 3rd OP has given a certificate that Rs.50948.50/- was debit from his account as premium . It is noted that 5th premium was not debited from his account by the OPs. 3rd OP had not transferred the 5th instalment premium to OPs 1&2 despite there was sufficient fund in his account maintained with 3rd OP bank. 3rd OP failed to substantiate that there was no enough fund in his account to transfer to OPs 1&2 towards premium. If 3rd OP had not remitted the 5th premium, OPs 1&2 have a duty to send, remainder letter to the insured complainant before the policy get lapsed. So there is deficiency in service and unfair trade practice on the part of OPs 1 to 3. Hence this complaint.
After receiving notices OPs 1&2 filed their written version stating that in order to make hassle free payment of the premium of the instant policy, the complainant opted for e-mandate so that his premium amount may get debited from his bank account . Further stated that the remitting premiums on time is a contractual duty of the complainant and if due to some technical reasons, the premium was not submitted to the OP, then there were both online as well as offline modes available to submit the said premium, however the complainant took no effort to submit the 4th premium and then subsequently the 5th premium and after six years to make irrational claim of full maturity benefits under the policy. As per the terms and conditions of the policy, if the policy holder fails to pay premium on time, then he is given grace [period of 30 days to submit the premium and if the policy holder fails to pay premium even in the grace period, then the policy will get lapsed. It is submitted that even the said policy got lapsed, still the complainant had option to revive the policy. At the time of maturity, since the said policy was lapsed due to nonpayment of two premiums, therefore as per the terms and condition of the policy, the OP remitted Rs.24750/- to the complainant. As per the clause of insurance terms and condition 4.3.2 paid up maturity benefit= maturity benefit x total No. of premiums
paid/ total No. of premiums payable. Hence , no further amount is payable under the policy. So there is deficiency of service on their part. Hence prayed for the dismissal of the complaint.
After receiving notice 3rd OP remained absent. Hence 3rd OP was declared as exparte.
At the evidence stage complainant has filed his proof affidavit and documents. Complainant was examined as PW1and marked Exts.A1 to A6 documents. PW1 was not cross-examined by OPs. Hence the averments in the complaint became unchallenged. On the side of OPs1&2, the insurance certificate is produced and marked as Ext.B1.
Here complainant’s allegation is that 3rd OP had not transferred the 5th instalment premium to OPs 1&2 despite there was sufficient fund in his account maintained with 3rd OP bank. 3rd OP failed to substantiate that there was no enough fund in the complainant’s account maintained with them to transfer to OPs 1&2 towards premium. If 3rd OP had not remitted the 5th premium, OPs 1&2 have a duty to send, remainder letter either to the insured complainant or to 3rd OP bank before the policy get lapsed. So there is deficiency in service on the part of OPs 1 to 3.
Since OPs failed to adduce their evidence to counter the allegations of the complainant against them and to substantiate their contentions, we are constrained to believe the averment of the complainant. Through Exts. A1 to A6 complainant proved his case. Ext.A2 shows that there was balance of Rs.21055/- existing in the complainant’s account on 16/6/2016.
Considering the entire pleadings and evidence we are of the view that there is deficiency in service on the part of OPs 1 to 3. Hence complainant is entitled to get relief from the OPs.
In the result complaint is allowed in part. Opposite parties 1 to 3 are directed to pay Rs.44,000/- (the balance amount Rs.68750-Rs.24750/-) with interest @Rs.5% per annum from 18/6/2022 till the date of realization to the complainant. Opposite parties 1 to 3 are further directed to pay Rs.15,000/- towards compensation and Rs.5,000/- towards cost of the proceedings of this complaint. Opposite parties 1 to 3 are jointly and severally liable to pay the awarded amount within one month from the date of receipt of the certified copy of this order. Failing which Rs.44,000/- + Rs.15,000/- will carry interest @7% per annum from the date of order till realization. Complainant can execute the order by filing execution application as per provision in Consumer Protection Act 2019.
Exts:
A1- Insurance certificate
A2-Bank pass book
A3-Notice issued to OP to complainant
A4- Certificate issued to OP to complainant
A5- Letter issued by OP to complainant
A6- letter issued to 3rd OP to complainant
B1-Insurance certificate
PW1-Babu.P.P- complainant.
Sd/ Sd/ Sd/
PRESIDENT MEMBER MEMBER
Ravi Susha Molykutty Mathew Sajeesh K.P
eva
/Forwarded by Order/
ASSISTANT REGISTRAR
