C.C filed on:01.01.2016
Disposed on:08.07.2016
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL FORUM, TUMKUR
DATED THIS THE 8th DAY OF JULY – 2016
C.C. No. 04 OF 2016
:PRESENT:
SMT. PRATHIBHA. R.K. BAL LLM. PRESIDENT,
SRI. D. SHIVAMAHADEVAIAH, B.A. LLB, MEMBER
SMT. GIRIJA, B.A. LADY MEMBER
COMPLAINANT/S:
Yogeesh S/o Ningappa
A/a 37 years, Bommanapalya,
Somenahalli Post, Hosadurga Taluk,
Chitradurga District.
(By Sri/Smt. S.Shankar - Advocate)
-V/s-
OPPOSITE PARTY/IES
1. Chief Manager,
Life Insurance Corporation of India,
Micro Insurance Division, (Jeevan Madhur)
Bangalore Division – 1
Jeevanprakash, J.C.Road,
Bangalore.
2. The Manager,
Divisional Office,
Life Insurance Corporation of India,
Co-ordination Micro Insurance Division,
Siddu Complex, Near Canara Bank,
Chikkanayakanahalli – 572 114.
(By Sri/Smt. G.S. Narayana - Advocate)
:-O R D E R:-
SMT.PRATHIBHA R.K. - PRESIDENT
The complainant has filed this complaint Under Section 12 of the Consumer Protection Act 1986 against the OPS alleging deficiency in service on the part of OPS and prays to direct the Opposite Parties to pay the face value of Rs.30,000/- with regard to policy No.619722821 including bonus together with 12% interest from the date of complaint to till realization and Rs.50,000/- towards deficiency of service and cost and such other reliefs.
The brief facts of the complaint is as under:-
2. The complainant submitted that the LIC has launched Micro insurance scheme for down-trodden and below poverty line. The Jeevan Madhur is one such Micro insurance product for transaction of Micro Insurance Business in Tumkur District and regarding this the OPS have opened branch at Chikkanayakanahalli and the complainant became consumer of the said branch by obtaining policy bearing No.619722821 dated: 15/12/2009 by paying Rs.500/- Per Month to the OPS and in this regard, the OPS have issued passbook and also cash paid receipt.
The complainant submitted that the policy was up-to 15/11/2014, but the complainant has paid the amount up-to 08/04/2013. The complainant further submitted that though he willing to pay the remaining balance amount, but without any information the OPS closed C.N.Halli branch and in this regard, the OPS have published public notice dated 05/07/2013 stating that branch office of LIC at Chikkanayakanahalli was kept under suspension. Hence, the complainant could not pay the remaining balance amount though he was ready to pay the remaining installments with regard to policy. Hence, the complainant without any other option filed this complaint with a request to direct the OP to pay face value of the policy bond along with vested bonus together with interest @ 12%.
3. Upon service of version notice, the OPS appeared through their counsel and filed the version. In the version the OPS submitted that LIC of India, Zonal Office, Hyderabad is the competent authority to appoint Nodal Agency for selling Micro Insurance Products and the NGO Samanvaya Health Education and Rural Development Society Viz, Samanvaya Herds was appointed as per rules as MICRO INSURANCE agent at Chikkanayakanahalli and they were only Nodal Agency and not life insurance Corporation of India’s Branch and therefore the complaint is bad for non-joinder and mis-joinder of parties.
The OPS further submitted that after receiving many complaints from Micro Insurance Policy Holders an FIR was lodged against the NGO and the investigation is in progress, in the mean time NGO closed its office for the reasons best known to them and in view of closure of NGO’s Micro Insurance Centre at Chikkanayakanahalli, the Corporation made a provision to make premium payments at LIC Satellite office at Chikkanayakanahalli and the advertisement was also published in Vijayakarnataka Kannada Daily on 23/07/2013, in this regard many Micro Insurance Policy Holders have taken benefit of this and were remitted premiums at LIC satellite office, Chikkanayakanahalli.
The OPS further submitted that the conditions and previleges of the said policy says that the policy shall acquire paid-up value only when premiums are paid at least two years. The above policy premiums were paid only for 1 year and 11 months and hence the policy has not acquired any paid up value and nothing is payable as per the policy conditions. It is further submitted that in the larger interest of the micro insurance policy holders, who are mainly from the below poverty line, LIC Central Office at Mumbai, has taken the historic decision vide circular CO/MI/Default/Servicing dated:30/07/2013 to add one year’s premium to those policies, where the policy holder submits his application in writing along with the passbook issued by NGO, but unfortunately OP/corporation has not received any such specific request from the complainant to extend this facility and hence the complaint is liable to be dismissed in linine.
The OPS further submitted that the complainant has remitted one year and 11 months premiums and if the request for addition for one year premium was received the total premium received amounts to two years and 11 months and the following amount would have become payable
Maturity sum AssuredXPremium paid months : 25370X35 = Rs.14,799/-
Total Premium payable months 60
a) Paid up value : Rs.14,799.00
b) Bonus : Rs.NIL
Total : Rs.14,799.-00
The maturity sum assured printed on the policy bond is Rs.25,370/- and if the complainant paid the full 60 months premium, then the complainant is entitled for maturity policy amount along with vested bonus, but the complainant paid only 23 premiums and further as per circular 12 premiums will be added, it become Rs.14,799/-, hence OP/Corporation is not liable to pay any late fee, penal interest costs and other charges as claimed by the complainant.
The OPS further submitted that the amount of Rs.14,799/- will be payable only if the complainant submitted, requisition for additional of 1 years premium, original bond, Discharge form, NEFT Mandate Form. It is further submitted that all other averments made in the complaint contrary to law and facts are illegal and untenable allegations made against the corporation are all concocted, fabricated, framed just for purpose of filing of this complaint and they are all hereby specifically denied by the OPS and that among other ground it was requested to dismiss the complaint in the interest of justice and equity.
4. Both parties have filed their affidavit evidence. The complainant has not marked the documents though produced. The OP has marked the document as Ex.R1 to R4. Heard the arguments and then posted the case for orders.
5. Based on the above materials, the following issues will arise for our consideration.
- Whether there was deficiency in service on the part of the OPS as alleged by the complainant?
- What Order?
6. Our answer to the above issues are as under:-
Issue No (1) : In the Affirmative
Issue No (2) : As per final order below
:-REASONS:-
Issue No.1:-
7. On perusal of the pleadings, evidence and documents produced by both the parties, it is an undisputed fact that the complainant obtained policy bearing No.619722821 of the OPS’s branch situated at Chikkanayakanahalli branch.
8. The complainant contended that he has paid 42 premiums and he also ready to pay the remaining balance premiums which is due. But the OPS have closed its office. Hence, the complainant requested for refund of face value of the policy.
9. Per-contra, the OP has contended that the complainant had paid premiums only for 01 year and 11 months and hence the complainant is not entitled for the paid-up value as per the policy terms and conditions. The OPS further contended that if the complainant remitted two years premium, he is entitled for additional one more year premium as per the circular No.CO/MI/Default/Servicing dated:30/07/2013.
10. On perusal of the passbook of the complainant, it is seen that the complainant had paid 42 premiums and the agent of the branch office of the OPS have acknowledged the same. Hence, it is clear that the complainant has paid 42 premiums.
11. The OPS in their version stated that many Micro Insurance Policy Holders given complaints and FIR lodged against the NGO and investigation is in progress. The NGO Office Samanvaya Micro Insurance Division, Life Insurance Corporation Limited, Aralipete Road, Chikkanayakanahalli has been closed. In this regard, the OPS have taken a paper publication in Vijayakarnataka, Kannada daily news papers dated 23/07/2013 stating that the policy holders has to remit the premiums at LIC Satellite Office, Chikkanayakanahalli.
12. The OPS being the statutory body/duty coupled with the responsibility to take care of the benefits of its customers as there is no fault on the side of complainant and the complainant should not suffer for the mistake done by the branch office i.e., Samanvaya Micro Insurance Division, Life Insurance Corporation Limited, Aralipete Road, Chikkanayakanahalli. The OPS cannot expect the poor downtrodden and illiterate complainant to pay the premium. Further, when the branch office at Chikkanayakanahalli was closed, it is the duty of the OPS to intimate the same to the complainant. But the OPS did not do so. Hence, we hold that there is deficiency of service on the part of OPS. Accordingly, we answer the point No.1 in the Affirmative.
Issue No.(2):-
13. In the result, we proceed to pass the following:-
: O R D E R :
1. The complaint is allowed in the part.
2. The OPS are directed to pay maturity sum assured i.e., Rs.25,370/- to the complainant pertaining to the bond bearing No.619722821 together with interest at the rate of 9% P.A. from the date of complaint to till realization.
3. Further, the OPS are directed to pay Rs.2,000/- (Two Thousand only) to the complainant towards litigation cost.
4. The OPS are further directed to comply the above order within 30 days from the date of knowledge/communication of the order.
5. Communicate the orders to the parties.
(Dictated to the stenographer, transcribed and typed by him, then corrected and pronounced in the open Forum on this the 8th Day of JULY 2016).
LADY MEMBER MEMBER PRESIDENT
