This case has arisen out of an application U/s 35 of the Consumer Protection Act, 2019.
The case of the complainant(s) is that complainant No:1, a service man & Complainant No:2 a business woman, took loan of Rs.14,00,000/- from O.P.No:2 to repair an renovation of their flat at Kolkata & they assigned LIC policies in favor of O.P.No:1. Then some LIC policies become matured & on complainant’s prayer maturity value become adjusted with principal amount of their Housing Loan A/c No:210300010774. Another LIC policy No:452075283 has been matured on 28/02/2021 & complainant(s) by application requested O.P.No:2 to adjust its maturity amount Rs.1,95,300/- with the principal amount of their housing loan account, but O.P.No:2 did not bother to adjust it, as a result complainant(s) suffered financial loss.
That the complainants served a letter through their Advocate Proshenjit Roy Choudhury on 14.02.2022 received by O.P.No:2 on 22.02.2022, but O.P.No:2 neither adjusted the maturity amount of said LIC policy with complainant’s housing loan account nor sent any reply of said Advocate’s letter.
That complainants made an application before the Public Information Officer, Office of the Area Manager, LIC Housing Fin. Ltd on 18.04.2022 under RTI Act seeking some queries, received on 21.04.2022 but it neglected to give any reply of that quearies. Said activities of O.Ps is nothing but negligence and deficiency in service on the part of the O.Ps. The complainants thus pray for an order directing the O.Ps to make adjustment of maturity value of said policy with the housing loan account, compensation of Rs.30,000/- for financial loss, harassment, mental pain & agony and litigation cost of Rs.10,000/-.
O.Ps contested the case by filing W.O stating that the complainants have 02 loan accounts with the O.Ps viz 11410029575 & 210300010774 of which 1st account has been closed on 28.03.2017 & 2nd loan account was sanctioned on 31.03.2017. Policy No:452075283 is not available in the loan A/c No:210300010774 & also there is no record of receiving said policy in the office of the O.Ps. On receipt of complaint from the complainants O.Ps searched the records personally with LICI and found maturity payment has not been made for said Policy No:452075283 only because the original policy document is unavailable, without producing which the O.Ps were unable to claim the maturity amount from LICI. Complainants never deposited original policy document with the O.Ps as a result O.Ps are unable to claim the maturity amount from LICI & adjusted with the loan account of the complainants. In the complaint and correspondences complainant(s) mentioned other/incorrect account details so O.Ps could neither reply to the complaint & Advocate’s notice nor reply to RTI. O.Ps pray for dismissal of the case.
Point for consideration is:-
- Whether there was any negligence & deficiency in service on the part of the O.Ps which gives rise cause of action to file the complaint and the complainant(s) is entitled to get the claim?
D e c i s i o n w i t h r e a s o n s
It is admitted that the complainant(s), being husband and wife, took 1st loan on 10.07.2010 being loan A/c No:11410029575 which has been closed on 28.03.2017, being fully paid.
It is also admitted that the complainants took 2nd loan of Rs.14,00,000/- for repair and renovation of their flat at Kolkata being LIC Housing Loan A/c No:210300010774 on 31.03.2017.
It is not disputed that the complainant(s) assigned some LIC policies in favor of O.P.No:1 as collateral security of said loan, out of which some LIC policies have become matured and on the prayer of complainant(s) maturity value thereof become adjusted with principal amount of the complainant(s) Housing Loan A/c No:210300010774.
It is also not disputed that another LIC policy No:452075283 has been matured on 28.02.2021 & the complainant(s) submit application dated 26.04.2021 before O.P.No:2 requesting to adjust the maturity amount of that policy amounting to Rs.1,95,300/- with the principal amount of their housing loan account being No:210300010774.
The case of the complainant(s) is that O.P.No:2 did not bother to adjust the maturity amount Rs.1,95,300/- with the principal amount of their housing loan A/c No:201300010774 as a result they suffered financial loss.
O.Ps version is that Policy No:452075283 is not available in the loan A/c No:210300010774 & also there is no record of receiving said policy in the office of the O.Ps & that on receipt of complaint from the complainants O.Ps searched the records personally with LICI and found maturity payment has not been made for said Policy No:452075283 only because the original policy document is unavailable, without producing which the O.Ps were unable to claim the maturity amount from LICI & that complainants never deposited original policy document with the O.Ps as a result O.Ps are unable to claim the maturity amount from LICI & adjusted with the loan account of the complainants.
In later part of Para:17(e) of their W.V O.Ps version is that it is rightfully assigned against LIC HFL but due to the absence of original policy documents O.Ps are unable to claim the maturity amount from LICI & adjusted with the loan amount of complainant(s) as per complainant’s request. Here it means Policy No:452075283.
In answer to questionnaire Para:6 complainants described the number of policies assigned to LIC HFL viz 450774823, 454064668, 452075283, 452064990, 450787982.
The complainants replied Question No:17 that they cannot submit relevant document to prove that policy No:452075283 has been assigned to loan A/c No:210300010774, but it must be shown that the Policy No:452075283 has been assigned in the name of LIC HFL which will be evident from the letter dated 19.03.2021 issued by LICI addressing to the LIC HFL.
Have a look at duplicate letter Ref: 458/claims/Maturity Benefit dated 19.03.2021 written by LICI addressed to LIC HFL, Re:Policy No:452075283 on the life of Sarkar (complainants) which runs as-
We have pleasure to inform you that Maturity Benefit amount of Rs.1,95,300/- is payable under above policy on 28.02.2021. For settlement of claim under above policy, you are requested to submit the following requirements immediately or at least 15 days before the due date of claim.
- Original Policy document for cancellation. If policy document is misplaced or lost, you may contact us for guidance……………..
Said letter dated 19.03.2021 proves beyond reasonable doubt that Policy No:452075283 has been assigned by the complainant(s) in favor of LIC HFL as security of loan A/c No:210300010774 but the policy might be misplaced or lost from the record lying with O.Ps in respect of said loan account. On receipt of complaint dated 26.04.2021 when O.Ps did not find that policy with the record, it/they should have requested LICI for proper guidance and/or to obtain duplicate policy document for cancellation/settlement of claim, which they did not do, amounts to negligence and deficiency in service on the part of the O.Ps.
The complainant(s) is/are also equally negligent for not maintaining / keeping relevant document which LIC HFL issued to them at the time of assignment of policy, for which we find that the complainant(s) are not entitled to any amount for compensation or litigation cost. Had they been able to produce receipt of assignment to LIC HFL there might not be any necessity to issue Advocate’s letter or RTI application.
Admittedly, maturity payment has not been made for said policy No:452075283 only because non-production of policy document. Thus we opined that the complainant(s) are entitled to get relief in terms of Para:12 (i) of petition of complaint.
In the result the case succeeds.
Hence, it is
O R D E R E D
that the C.C-51/2022 be and the same is allowed on contest against the O.Ps but without any cost.
O.P.No:1&2 are directed to approach LICI to get duplicate policy document, if original Policy document misplaced or lost, & submit claim of Maturity Benefit and to make adjustment of maturity value amounting to Rs.1,95,300/- of LIC Policy No:452075283 with the principal amount of complainant(s) LIC Housing Loan A/c No:210300010774, preferably within 02 month from this day, in default, the complainant(s) will be at liberty to take recourse of law.
Let a copy of this order be given to the parties free of cost.
