Haryana

Kurukshetra

CC/165/2019

Rajinder Kumar - Complainant(s)

Versus

Chief Post Master - Opp.Party(s)

Sachin Bansal

10 Jan 2020

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KURUKSHETRA.

 

                                        Consumer Complaint No.165 of 2019.

                                        Date of instt.:01.5.2019. 

                                        Date of Decision:10.1.2020.

 

1. Rajinder Kumar Bansal s/o Shri Ram Chand;
2. Nirmala Bansal wife of Shri Rajinder Kumar Bansal;

Both residents of H.No.1503, Sector-5, Urban Estate, Kurukshetra, Tehsil Thanesar, District Kurukshetra.

                                                                …….Complainants.                                                        Versus

 

1. Chief Post Master General, Haryana Circle Ambala (PLI Section).
2. Post Master, Head Post Office, Kurukshetra (PLI Section).
3. Superintendent Post Offices, Kurukshetra Division, Kurukshetra.

 

        ….…Opposite parties.

 

Complaint under Section 12 of Consumer Protection Act.

 

Before       Smt. Neelam Kashyap, President.    

                   Ms. Neelam, Member.       

                   Shri Issam Singh Sagwal, Member.                                                   

Present:     Shri Sachin Bansal, Advocate for the complainant.           

Ms. Suman Garg, official for the opposite parties.

           

ORDER

                                                                         

                    This is a complaint under Section 12 of the Consumer Protection Act, 1986 moved by complainants Rajinder Kumar Bansal & anr. against Chief Post Master and another, the opposite parties.

2.             The brief facts of the complaint are that the OP No.2 has widely advertised and gave proposal to purchase Postal Life Insurance Policy (PLI) vide No.HY-YS-87526-CS on 15.12.2003. At the time of proposal of said policy, it was stated that the customer will be payable premium Rs.1223/- per month of assured maturity amount Rs.2,00,000/- alongwith other benefits till the stipulated date of last payment i.e. November 2019 or prior to death of insured or his/her spouse whichever is earlier. On being attracted from the said advertisement, proposal and assurances, the complainants accepted the proposal on 15.12.2003 and purchased said PLI on 31.12.2003 assured amount of Rs.2,00,000/-. At the time of purchase of said policy the OP No.2 further assured that joint life endowment assurance will be provided and will release the maturity amount of Rs.2,00,000/- alongwith bonus without any harassment and without any delay in cash on survival of life assured to the stipulated date of maturity i.e. 30.12.2019 or at the death of any of the lives assured, if earlier to the assured or his/her spouse or nominee (s). As per terms and conditions of the policy, the complainant No.1 deposited a sum of Rs.1,81,004/- as premium from December 2003 to March 2016. That in the month of April 2016, the OP No.2 has denied from taking the premium of said policy on the ground that there is some technical error in their system. The complainant No.1 visited many times in their office, but all in vain. On 30.4.2016, the complainant No.1 wrote a letter to OPs No.1 to 3 regarding said issue and on 05.5.2016 received copy of letter from OP No.1 in which OP No.1 gave direction to OP No.2 for taking action on said issue and again on 24.5.2016, the complainant No.1 received another letter from OP No.2 in which OP No.2 stated that said policy was violating POLI rules 2011 and directed the complainant No.1 to convert the said policy into another policy Plan EA/60. It is further stated that if you still ready to accept the amended proposal, then the new premium rate would be Rs.1150/- from the commencement of the policy or reduce the present term of policy to synchronize with the attainment of 60 years and in that case, you have to pay premium @Rs.1303/- from March 2003. Difference of arrear of premium has to be deposited in lump sum. That the complainant No.1 wrote a letter dated 04.7.2016 to OPs No.1 & 2 regarding disagreeness of said proposal as the insurance policy is near to maturity in December 2019. The said policy is joint policy and there is no clause mentioned regarding the conversion into another policy or plan. The complainant No.1 also gave a notice to OPs through counsel on 29.3.2019 and on 03.4.2019, OP No.3 gave a false reply. So, this way there is a clear cut deficiency in services on the part of the OPs. Hence, this complaint.

3.             Upon notice, the opposite parties appeared and filed written statement stating therein that the department of posts decided to migrate its existing PLI data into new software being developed by Ms Infosys under IT project “India Posts 2012”. Pre-requisitions of the vendor was that all the existing date of PLI policies should be cleansed in order to ensure that legacy data of PLI policies may be migrated to new system without any problem. Under the same process while cleansing the data of PLI Policy No.HY-YS-87526-CS dated 30.12.2003 held by Shri Rajinder Kumar Bansal found that this policy is violating the Post Office Insurance Rules. The rule says that the age at the entry of the spouses should not be less than 21 years and more than 45 years and at maturity the older spouse should not be more than 60 years but in the instant case, the following irregularities has been found:-

1. Older age at maturity exceeds 60 years.
2. Department of posts has taken a decision that all such policies which are irregularly issued can be regularized with an option to the insurant to convert the policy to Endowment Plan (EA/60) or reduce the term of policy to synchronize with the attainment of 60 years of age by suitable adjustment of premium. Accordingly, the insurant of the said policy was given full opportunities to regularize his policy with the option discussed above, but he failed to do so.

                The instant policy was violating the Rules and the insurant was informed by Circle Office, Ambala vide their office letter No.HY-YS-87526-CS dated 01.9.2014 followed by letter number even dated 18.3.2015 and this office letter No.L-1/PLI/87526 dated 24.5.2016 and several telephone calls and by deputing Public Relation Officer, Kurukshetra personally to contact with the insurance for letting giving him the opportunity to change the plan or reduce the term of the policy to synchronize with the attainment of 60 years. There were seven cases in the Division found with the same problem, six of them have opted the Endowment Plan except the said insurant, so there is no deficiency on the part of the OPs and prayed for dismissal the present complaint with costs.

4.             The complainants tendered affidavits Ex.CW1/A, Ex.CW-2/A alongwith documents Ex.C-1 to Ex.C-11. The OPs No.1 tendered affidavit Ex.RW1/A alongwith document Ex.R-1.

5.             We have heard the learned counsel of the parties and carefully gone through the case file.

6.             The learned counsel for the complainants has reiterated all the averments mentioned in the complaint. He argued that the complainants purchased PLI on 31.12.2003 from the OPs with assured amount of Rs.2,00,000/-. It is assured that joint life endowment assurance will be provided and will release the maturity amount of Rs.2,00,000/- alongwith bonus in cash on survival of life assured to the stipulated date of maturity i.e. 30.12.2019 or at the death of any of the lives assured, if earlier to the assured or his/her spouse or nominee (s). As per terms and conditions of the policy, the complainant No.1 deposited a sum of Rs.1,81,004/- as premium from December 2003 to March 2016, but in the month of April 2016, the OP No.2 denied from taking the premium of said policy stating that said policy was violating POLI rules 2011 and directed the complainant No.1 to convert the said policy into another policy Plan EA/60. It is further stated that if you still ready to accept the amended proposal, then the new premium rate would be Rs.1150/- from the commencement of the policy or reduce the present term of policy to synchronize with the attainment of 60 years and in that case, you have to pay premium @Rs.1303/- from March 2003. The complainant No.1 wrote a letter dated 04.7.2016 to OPs No.1 & 2 regarding disagreeness of said proposal as the insurance policy is near to maturity in December 2019.

7.             Contrary to it, the official of OPs has also reiterated all the averments mentioned in their written statements. She argued that the department of posts decided to migrate its existing PLI data into new software being developed by Ms Infosys under IT project “India Posts 2012”. She further argued that under the same process while cleansing the data of PLI Policy No.HY-YS-87526-CS dated 30.12.2003 held by Shri Rajinder Kumar Bansal found that this policy is violating the Post Office Insurance Rules. The department of posts has taken a decision that all such policies which are irregularly issued can be regularized with an option to the insurant to convert the policy to Endowment Plan (EA/60) or reduce the term of policy to synchronize with the attainment of 60 years of age by suitable adjustment of premium. Accordingly, the insurant of the said policy was given full opportunities to regularize his policy with the option discussed above, but he failed to do so.

8.             There is no dispute that the complainant No.1 purchased Postal Life Insurance Policy bearing No.HY-YS-87526-CS from the OP No.2 on 30.12.2003 with assured amount of Rs.2,00,000/- having monthly premium of Rs.1223/- maturating on 30.12.2019, as is evident from the Policy documents Ex.C-1 to Ex.C-4. There is also no dispute that the complainant paid monthly premium of said policy amounting Rs.1223/- to the complainants till March 2016. The grievance of the complainants are that in the month of April 2016, the OP No.2 has denied from taking the premium of said policy and directed the complainant No.1 to convert the said policy into another policy Plan EA/60. However, it is pertinent to mention here that an insurance policy is a contract between the two parties and as such both the parties are bound by the terms and conditions of the policy”. In the present case, the complainants agreed to purchase the PLI from the OPs and after mutual agreement between the OPs and the complainants, the OPs issued the policy Ex.C-1 in question alongwith terms & conditions and so, both the parties (complainants & OPs) are bound by the terms and conditions of the policy. As per policy’s terms & conditions, the complainants was paying the monthly premium of Rs.1223/- from year 2003 to 2016 regularly, which was duly received by the OPs and now how they (OPs) can go beyond that policy’s terms & conditions by denying to receive the subsequent premium amount. Moreover, the OPs also cannot change the plan or reduce the term of the policy in question, which was agreed earlier. By doing so, the OPs are deficient in providing the services to the complainant.

9.             Taking all these facts & circumstances into consideration, we allow the present complaint and direct the OPs to take the due/remaining premium amount of policy in question without any penalty from the complainants and also to give all the benefits as per Policy’s terms & conditions Ex.C-1. The OPs are also directed to pay Rs.20,000/- as compensation and Rs.5,000/- litigation charges to the complainants. The OPs are further directed to comply with the aforesaid directions jointly and severally within the period of 30 days from the date of preparation of certified copy of this order, failing which, the awarded amount shall carry interest @ 9% per annum from the date of order till actual payment and the complainant will be at liberty to initiate proceedings under Section 25/27 of the Act against the OPs. Certified copy of this order be supplied to the parties concerned, forthwith, free of cost as permissible under Rules. File be indexed and consigned to the record-room, after due compliance.

 

Announced in open Forum:

Dt.:10.1.2020.                                            (Neelam Kashyap)

                                                                President.

 

 

(Issam Singh Sagwal),         (Neelam)       

Member                             Member.