Complaint is filed on 6-8-2009
Compliant disposed on 7-12-2010
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM::AT:: KARIMNAGAR
PRESENT: HON’BLE SRI K. DEVI PRASAD, B.Sc., LL.B., PRESIDENT
SMT. E. LAXMI, M.A.,LL.M.,PGDCA (CONSUMER AWARENESS), MEMBER
SRI. K. CHANDRA MOHAN RAO, B.COM ., LL.B., MEMBER
TUESDAY, THE SEVENTH DAY OF DECEMBER, TWO THOUSAND TEN
CONSUMER COMPLAINT NO. 126 OF 2009
Between:
Karrekyatham Buchavva @ Kyatham Buchavva, W/o. Late Karrekyatham Linga Reddy @ Kyatham Linga Reddy, Age 31 years, Occ: Household, R/o. Medipally village and mandal of Karimnagar district.
… Complainant
AND
Life Insurance Corporation of India, Metpally Branch Korutla road, Metpally proper and mandal of Karimnagar district, R/by it’s Branch Manager.
…Opposite Party
This complaint is coming up before us for final hearing on 29-11-2010, in the presence of Sri B.Srinivas and Smt. B. Geetharani, Advocates for complainant, and Sri P. Ashok, Advocate for opposite party, and on perusing the material papers on record, and having stood over for consideration this day, the Forum passed the following:
:: ORDER::
1. This complaint is filed under Section 12 of C.P. Act, 1986 seeking direction to the opposite party to pay an amount of Rs.1,50,000/- towards sum assured under accident benefit coverage with interest, compensation and costs.
2. The brief averments of the complaint are that the husband of the complainant K.Linga Reddy obtained Jeevan Anand Policy from the opposite party for a sum of Rs.1,50,000/- on 23.3.2005. As per the terms and conditions of the policy the opposite party undertook to pay an amount of Rs.1,50,000/- in case of natural death of deceased and promised to pay additional amount of Rs.1,50,000/- in case of accidental death of policy holder. On 1.9.2007 the policy holder died in a Road Traffic Accident at ABUDHABI where he was working. After his death the complainant being the nominee under the said policy filed claim for payment of the sum assured under the policy by enclosing required documents. After receiving the claim the opposite party paid Rs.1,69,800/- on 28.1.2008 towards the basic sum assured with eligible bonus but did not pay the amount of Rs.1,50,000/- under accident benefit coverage scheme. The complainant got issued Legal Notice on 11.7.2009 claiming the said amount for which the opposite party sent a reply on 16.7.2009 requesting the complainant to submit some more documents in proof of accidental death of the policy holder. It is submitted that the opposite party failed to pay the amount of Rs.1,50,000/- inspite of making several demands, therefore, the complainant sought direction for payment of the said amount.
3. The opposite party filed counter admitting that the policy holder obtained Jeevan Anand Policy with accident benefit coverage. After receipt of death claim the opposite party paid the basic sum assured to the complainant and asked her to furnish necessary documents to show that the policy holder died in Road Traffic Accident. When the Legal Notice is received from the complainant a reply was sent asking the complainant to send the required document, but she filed this case instead of submitting the documents. On account of non-submission of documents only the opposite party could not settle the claim under accident benefit coverage. There is no deficiency in service on the part of opposite party in settling the claim.
4. The complainant filed Proof Affidavit reiterating the averments made in the complaint and filed documents which are marked as Ex.A1 to A8. Ex.A1 is the photo copy of Insurance Policy Bond Dt: 19.3.2005. Ex.A2 is the photo copy of Death Certificate issued by the General authority for Health Services, Abudhabi Dt: 5.9.2007. Ex.A3 is the photo copy of Embalming Certificate issued by Health Authority Abudhabi Dt: 20.9.2007. Ex.A4 is the photo copy of letter issued by Health Authority Abudhabi Dt: 18.9.2007. Ex.A5 is the photo copy of Certificate issued by the S.I. of Police Station Begumpet, Dt: 21.9.2007. Ex.A6 is the settlement letter issued by opposite party Dt: 28.1.2008. Ex.A7 is the office copy of Legal Notice issued by the counsel for complainant Dt: 11.7.2009. Ex.A8 is the reply letter of the opposite party Dt: 16.7.2009.
5. The opposite party filed Proof Affidavit reiterating the averments made in the counter and filed documents which are marked as Ex.B1 to B3. Ex.B1 is the letter from opposite party addressed to counsel for complainant Dt: 16.7.2009. Ex.B2 & B3 are the letters from opposite party addressed to complainant Dt: 17.7.2009 & 3.8.009.
6. After filing Proof Affidavits the matter is posted for hearing. In the meanwhile on 19.11.2010 the opposite party deposited the D.D. for Rs.1,50,000/-bearing no.773930 Dt: 30.10.2010 in this Forum towards the payable under accidental benefit scheme.
7. The point for consideration is whether the complainant is entitled to claim interest and compensation on the amount and if so, at what rate?
8. Originally this case was filed for an order to direct the opposite party to pay Rs.1,50,000/- towards accidental benefit coverage amount with interest and compensation. It is an admitted fact that the deceased K.Linga Reddy was a policy holder with opposite party and he died in ABUDHABI in a Road Traffic Accident on 1.9.2007. After receiving the claim the opposite party paid basic sum assured with eligible benefits and asked the complainant to furnish necessary documents to prove that he died in Road Traffic Accident. When the complainant got issued legal Notice under Ex.A7 the opposite party sent a reply under Ex.A8 informing the complainant that the payment of amount under death benefit coverage is under consideration.
9. During pendency of this case the opposite party deposited Rs.1,50,000/- towards the amount claimed in this case through a D.D. Dt: 19.11.2010 in this FORUM. A perusal of the documents filed by the complainant it is established that the policy holder died in ABUDHABI and the dead body was sent to his native place after 19 days of his death. After receiving the claim it is the duty of the opposite party to verify the correctness of cause of death of the policy holder. Soon after receipt of the claim the Basic Assured Sum was paid and for non-submission of relevant documents to prove the accidental death the payment under accident benefit coverage is delayed. Now after confirming his death in an accident the amount claimed is paid. In view of the said reasons it cannot be said that there is deficiency of service on the part of opposite party. However, the complainant filed this case on account of non-payment of the amount. Therefore, we hold, that the complainant is entitled to claim Rs.1,000/- towards compensation and Rs.500/- towards costs of the claim. The complainant is not entitled for any interest on Rs.1,50,000/- as there was no delay in settling the claim. The complainant is entitled to withdraw the amount of Rs.1,50,000/- deposited by the opposite party in the FORUM.
10. In the result the complaint is partly allowed directing the opposite party to pay Rs.1,000/- towards compensation and Rs.500/- towards costs of the proceedings within one month from the date of receipt of this order.
Typed to my dictation by Stenographer (DUR), after correction the orders pronounced by us in the open court this the 7th day of December, 2010.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
NO ORAL EVIDENCE HAS BEEN ADDUCED ON EITHER SIDE
FOR COMPLAINANT:
Ex.A1 is the photo copy of Insurance Policy Bond Dt: 19.3.2005.
Ex.A2 is the photo copy of Death Certificate issued by the General authority for Health Services, Abudhabi Dt: 5.9.2007.
Ex.A3 is the photo copy of Embalming Certificate issued by Health Authority Abudhabi Dt: 20.9.2007.
Ex.A4 is the photo copy of letter issued by Health Authority Abudhabi Dt: 18.9.2007.
Ex.A5 is the photo copy of Certificate issued by the S.I. of Police Station Begumpet, Dt: 21.9.2007.
Ex.A6 is the settlement letter issued by opposite party Dt: 28.1.2008.
Ex.A7 is the office copy of Legal Notice issued by the counsel for complainant Dt: 11.7.2009.
Ex.A8 is the reply letter of the opposite party Dt: 16.7.2009.
FOR OPPOSITE PARTY:
Ex.B1 is the letter from opposite party addressed to counsel for complainant Dt: 16.7.2009.
Ex.B2 & B3 are the letters from opposite party addressed to complainant Dt: 17.7.2009 & 3.8.009.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
