Delhi

East Delhi

CC/296/2016

ASHISH BHARGAVA - Complainant(s)

Versus

LIC of India - Opp.Party(s)

24 Apr 2019

ORDER

           DISTRICT CONSUMER DISPUTE REDRESSAL FORUM EAST Govt of NCT Delhi

           CONVENIENT SHOPPING CENTRE, 1^st FLOOR, SAINI ENCLAVE, DELHI 110092

                                                                                                   Consumer complaint no.       296/2016

                                                                                                   Date of Institution               26/07/2016

                                                                                                   Order reserved on               24/04/2019                               

                                                                                                   Date of order                        26/04/2019                                                                                    

 

In matter of

Mr Ashish Bhargava

&

Mrs Dipti Bhargava

R/o- 12/12, Shakti Nagar, Delhi 110007……………..…………….Complainants

                                                                    

                                                                           Vs

The Manager

Life Insurance Corporation of India

Branch Unit 12 D

29/616 Aditya Birla Mall

CBD Ground Nr Karkarduma Court, Delhi 110032.…………….Opponents

 

Complainant’s Advocate          Mr Achin Goel  

Opponent’s Advocate               Mr Rajiv Katyain  

 

Quorum                                      Sh Sukhdev  Singh     President

                                                     Dr P N Tiwari               Member

                                                     Mrs Harpreet Kaur    Member   

                                                                                               

Order by Dr P N Tiwari, Member   

 

Brief Facts of the case                                                                                                

 

The complainant after being satisfied with various benefits and good return bonus, took insurance policy in joint name of his wife (Mrs Dipti Bhargav) from Sept 2006 after paying first premium amount Rs 27,330/-and OP issued policy vide no. 124155672 (Ex CW1/1). Complainant paid premium up to 2015 and thereafter requested for surrendering his policy due to financial problems. As the said policy had option of surrender and would get full premium amount paid with bonus, so complainant applied for surrender on 15/12/2015, but after completing surrender process, OP paid only Rs 128139/-against Rs 191310/-as paid by complainant in  seven Installments. Complainant sent  legal  notice (Ex CW1/2) for payment of balance payment Rs 63171/-and bonus amount Rs 164640/-. When no reply received, filed this complaint for balance amount including bonus with 24% from the date of surrendering policy and also claimed compensation of Rs 2 Lacs towards deficiency in service and also claimed litigation charges.

 

OP submitted written statement on behalf of Mr Deepak Kumar Joshi, Manager (L&HPF) and stated that as per policy term, 30% of total premium minus first premium value was paid. As this policy was a lapsed policy since 2014, so amount was paid by NEFT to the complainant as this policy was for husband and wife (Table 84-21-21) meaning thereby policy holder had to pay premium yearly for 21 years and tenure was of 21 years, but here complainant had not paid his premium since July 2014 and complainant applied for surrender value of his policy claiming amount of premium paid Rs 163333/- and the calculated Bonus Rs 164640/-. As per the policy terms and conditions, benefits of surrender value of the policy were payable under clause no. 7 as Guaranteed Surrender Value (GSV) which states as—

     

“This policy can be surrendered for cash after the premium have been paid for at least three years, the minimum surrender value allowable under this policy is equal to 30 percent of the total amount of the within mentioned premiums paid excluding the premium for the first year and all extra premiums and /or additional premium  for accident benefits that may have been paid. The cash value of any existing vested Bonus additions will also be allowed.” 

 

As per surrender endorsement summary payment was payable as per SV Factor (SVF) .39070, so after applying SVF, the payable surrender value was Rs 128139/-. It was stated that the amount was paid as per Guaranteed Surrender Value summary (Ex OPW1/1) dated 16/12/2015 and complainant had received amount through NEFT. Despite of receiving payment, complainant was given letter for revival of his policy under revival conditions as per OP letter (Ex OPW1/3), but instead of replying to the said letter or revival of his lapsed policy, filed this claim for claiming entire premium amount deposited with Bonus without terms and conditions, which was contrary to the policy conditions and so amount was paid was justified.

Hence there was no deficiency in services by OP so this complaint may be dismissed with cost.  

 

Complainant submitted his rejoinder and denied all the replies submitted by OP and stated that OP had not paid entire premium amount paid by him along with vested Bonus as promised at the time of taking policy, but applied various conditions and intentionally not paid his hard earned amount. Complainant also submitted evidences through his own affidavit and reaffirmed that all facts of his complaints were correct and true and were on record. He also stressed that except surrender period of three years was told by OP and no other conditions were explained. He relied on policy copy (Ex CW1/1) with legal notice (Ex CW1/2) sent. It was stated that after paying premium amount of Rs 27,330/- policy was issued by OP and he was paying his premium up to Sept 2013. So he was entitled for a sum of Rs 191310/-, but OP intentionally did not pay the full amount. Hence, prayed for payment of entire amount by OP.        

 

OP submitted their evidences on affidavit of Md. Vineeta De, Manager (L&HPF) with OP and justified their stand for payment under terms and condition 7 under Guaranteed Surrender Money as explained and submitted in their written statement (Ex OPW1/1&2). OP also stated that legal notice was timely replied through speed post on 31/03/2016 related to reinstate lapsed policy within six months after fulfilling required formalities, but complainant did not apply for reinstate his lapsed policy.

 

Arguments were heard from both the party’s counsels in detail. After perusal of materials on record, order was reserved. 

After hearing arguments, scrutinizing all the facts and evidences submitted before us, it is necessary to see the relevance of evidences on record. The evidence pertaining to the policy terms and conditions in reference to clause 7 for Guaranteed Surrender Value, under this policy which was for husband and wife (Table 84-21-21) meaning thereby policy holder had to pay premium yearly for 21 years and tenure was of 21 years, but policy lapsed from Sept 2013 and complainant applied for claim of entire premium paid with vested Bonus. OP after scrutiny under policy conditions paid surrender value and was credited in the account of complainant as soon as complainant applied for surrender. That being so, complaint has no merits and same deserves to be dismissed so dismissed without any order to cost.    

The first free order copy be sent to the parties as per the regulation 18 (6) of the Consumer Protection Regulations (in short the CPR) and file be consigned to the Record Room under regulation 20 (1) of the CPR.

 

(Dr) P N Tiwari – Member                                                                         Mrs Harpreet Kaur- Member                                            

                                                                         

                                                 Mr Sukhdev Singh - President