BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah, B.Com B.L., President

And

Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member

And

         Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Tuesday the 13^th day of December, 2011

C.C.No.87/2011

Between:

Smt.T.Jayalakshmi, S.G.Teacher,

H.No.1028 A-1,Sri Seetharama Nagar, Kurnool - 518 003.                

          …Complainant

                                                -Vs- 

L.I.C. of India,Represented by its Divisional Manager,Divisional Office,

Post B.No.10, College Road, Kadapa - 516 001.

2. The Branch Manager,L.I.C. Branch Office,

   H.No.40/36-3, Br. No.656, River view Colony,        Kurnool - 518 004.      

    …OPPOSITE PARTIES                                    

This complaint is coming on this day for orders in the presence of Sri G.Naga Bhushanam, Advocate for complainant and Sri I.Anantha Rama Sastry, Advocate for opposite parties 1 and 2 and upon perusing the material papers on record, the Forum made the following.

                                    ORDER

                  (As per Sri. T.Sundara Ramaiah, President)

   C.C. No.87/2011

1.     This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying:-

1. To direct the opposite parties to pay Rs.20,000/- to the complainant with interest from the date of maturity i.e., 28-03-2011 as per money back scheme;
2. To pay a sum of Rs.2,00,000/- towards the compensation for causing mental agony and hardship;

1. To pay the costs of the notice Rs.500/-;

1. To grant any other order or orders that are deem to be fit and proper in the circumstances of the case.                   

2.    The case of the complainant in brief is as under:- The complainant took insurance policy bearing No.651431657 under Money Back Scheme.  The policy commenced from 28-03-2001.  The premium payable per year is Rs.6,564/-.  The complainant is paying the premiums every year regularly.  Sri A.Muni Ratnam husband of the complainant is mentioned as a nominee.  The complainant received first installment of Rs.20,000/- from the opposite party on 22-0-2006.  The complainant has to receive the second installment of Rs.20,000/- by 28-03-2011.  On enquiry the complainant came to know that the cheque was prepared for the said amount of Rs.20,000/- in the name of the Sri A.Muni Ratnam who is mentioned as a nominee.  The opposite party negligently prepared the cheque in the name of nominee even though the complainant is alive.   The complainant is living separately from her husband since four years and filed a petition seeking divorce.  The complainant did not give any authorization letter for assignment of the policy in favour of Sri A.Muni Ratnam.  Even after the receipt of the legal notice the opposite parties failed to pay the amount of Rs.20,000/- to the complainant.  There is deficiency of service on the part of the opposite parties.   Hence the complaint.

3.     Opposite party No.1filed written version and the same is adopted by opposite party No.2.  It is stated in the written version of opposite party No.1 that the complainant took insurance policy under Money Back Scheme.  The sum assured under the policy is Rs.1,00,000/-.  The yearly premium payable under the policy is Rs.6,564/-.  The assignment of policy was affected on 20-04-2005.  Mistakenly cheque was issued in favour of the nominee instead of the complainant.  The said cheque was not encashed and it is lying in claims settlement.  The opposite party is ready to pay amount of Rs.20,000/- along with nominal costs of Rs.500/-.   The complaint is liable to be dismissed. 

 4.    On behalf of the complainant Ex.A1 to A7are marked and sworn affidavit of the complainant is filed.  On behalf of the opposite parties sworn affidavit of opposite party No.1 is filed.   No exhibit is marked.

5.     Both sides filed written arguments.

6.     Now the points that arise for consideration are:

1. Whether there is deficiency of service on the part of Opposite Parties?

1. Whether the complainant is entitled to the reliefs as prayed for?

1. To what relief?

7.      POINTS i and ii:- Admittedly the complainant took insurance policy Ex.A1 bearing No.651431657 from the opposite parties under Money Back Scheme.  The period of the policy is from 28-03-2001 to 28-03-2020.  The sum assured under the policy is Rs.1,00,000/- and the premium payable under the policy is Rs.6,564/- per year.  Admittedly the complainant has been paying the yearly premiums regularly and she was paid first installment of Rs.20,000/- on 22-02-2006.

8.     It is the case of the complainant that she had to receive the second installment of Rs.20,000/- by  28-03-2011, and that the     opposite parties failed to pay the same inspite of repeated demands.  Admittedly Sri A.Muni Ratnam husband of the complainant is the nominee under the policy.  It is the case of the opposite parties that the complainant assigned the policy in favour of her husband and keeping in view the said assignment the cheque for Rs.20,000/-being  second installment was prepared in the name of her husband Sri A.Muni Ratnam.  It is the case of the opposite parties that on the request of the complainant again the policy was re–assigned in favour of the complainant on 07-10-2006.  As on 28-03-2011 the policy stands in the name of the complainant.   It is the complainant who is entitled to receive the second installment amount of Rs.20,000/- from the opposite parties.  It is admitted by the opposite parties that due to mistake only the cheque was prepared in the name of Sri A.Muni Ratnam instead of the complainant and that the opposite parties            are ready to pay the amount to the complainant.  Even after the re-assignment of the policy in favour of the complainant the opposite parties negligently prepared the cheque for Rs.20,000/- in the name of Sri A.Muni Ratnam who is the husband of the complainant.  Inspite of the legal notice dated 29-03-2011 got issued by the complainant the opposite parties not paid the amount under second installment to the complainant.  There is deficiency of service on the part of the opposite parties. 

9.     In the result, the complaint is partly allowed directing the opposite parties jointly and severally to pay an amount of Rs.20,000/- being the second installment to the complainant within two weeks from the date of the order along with cost of Rs.1,000/-.

        Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 13^th day of December, 2011.

         Sd/-                                            Sd/-                                    Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

                                 APPENDIX OF EVIDENCE

                                    Witnesses Examined

For the complainant:-Nil                  For the opposite parties:-Nill

List of exhibits marked for the complainant:-

Ex.A1                Policy bearing No.651431657 dated 28-03-2001.

 Ex.A2.      L.I.C. Renewal Premium Receipt for Rs.6,564/-

dated 24-06-2010.

Ex.A3                Form of Nomination of L.I.C. of India

dated 04-10-2006.

Ex.A4                Status Report of Policy No.651431657

dated 24-03-2010.

Ex.A5                Office copy of Legal notice dated 29-03-2011.

Ex.A6                Postal Acknbowledgement.

Ex.A7                Status Report of Policy No.651431657

dated 22-01-2007.

List of exhibits marked for the opposite parties:- NILL

         Sd/-                                            Sd/-                                    Sd/-

MALE MEMBER                 PRESIDENT                   LADY MEMBER

    // Certified free copy communicated under Rule 4 (10) of the A.P.S.C.D.R.C. Rules, 1987//

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