Haryana

Jind

CC/204/2015

Smt. Birma Devi - Complainant(s)

Versus

LIC Of India - Opp.Party(s)

Sh Sanjay Kangra

21 Nov 2016

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL
FORUM, JIND. 
                                                Complaint Case No : 204 of 2015
                                                Date of Institution   : 24.12.2015
                                                Date of Decision      : 21.11.2016

Smt. Birma Devi (aged 48 years) wd/o Sh. Rajender s/o Sh. Mangal Ram Vill. Karamgarh P.O. Bibipur, Tehsil & Distt. Jind.

                                                                              ….Complainant.
                                       Versus
Life Insurance Corporation of India, LIC Building District Shopping Centre, Jind through its Branch Manager.
Sr. Divisional Manager, Life Insurance Corporation of India, Divisional Office, 3,4,5 SCO, Sector-1, Rohtak-124001.
The Branch Manager, L.I.C. of India, 85-86, Urban Estate No.1, Behind Telephone Exchange, Hisar.

                                                                 …..Opposite parties.

                          Complaint under section 12 of the
                          Consumer Protection Act, 1986.

CORAM: SH.A.K. SARDANA PRESIDENT.
      SMT. BIMLA SHEOKAND, MEMBER.
              SH. M.K. KHURANA, MEMBER.    

Present:  Sh. Sanjay Kangra, Adv. counsel for complainant.
               Sh. R.S. Sindhwani Adv. counsel for OPs.
          
ORDER:

             Complainant has filed the present complaint alleging therein that her husband (now deceased) namely Rajender purchased 3 life insurance policies for a sum of Rs.62,500/- each vide policies  bearing Nos. 179613589,179613590 & 179613591 commencing from 15.4.2013 from OP No.3 by paying the requisite premiums wherein the complainant was declared as his nominee. It has been further alleged that  complainant’s husband expired on 4.1.2014 and the complainant lodged a claim for payment of sum insured & submitted all the necessary documents to the OPs but OP No.2  wrongly  repudiated the claim of the complainant  vide letter dated 6.4.2015 on the ground of concealment of facts at the time of taking the policies though prior to issuing the policies, each and every fact was verified & confirmed by the official/agent of the OP Insurance Company and life assured did not conceal any fact and he was not suffering from any disease. The complainant approached the OPs & requested to reconsider the death claim of her husband but OPs did not pay any heed on the request of complainant.  As such, the complainant has submitted that the OPs are  deficient in providing proper services to her and  prayed that the complaint be accepted and OPs be directed to make the payment of Rs.1,87,500/-(sum assured of  Rs.62,500/- in each policy) alongwith other benefits and to pay a sum of Rs.50,000/- as compensation on account of mental pain & agony alongwith interest @18% p.a. and  also to pay a sum of Rs.5,500/- as litigation expenses to the complainant.  
2.    Upon notice,   OPs  appeared through counsel and tendered reply to the complaint raising preliminary objections that the  complainant has no cause of action & locus-standi to file the present complaint and this Forum has no territorial jurisdiction to try & decide the present complaint. On merits, it has been urged that as per investigation report, the deceased life assured was suffering from cancer for the last 4-5 years and taking treatment from PGIMS, Rohtak prior to purchasing the policies in question and thus the life assured made incorrect statements and withheld correct information regarding  his health at the time of effecting assurances. In the proposal form dated 25.5.2013 signed by the deceased life assured, he had answered the following questions  as under:-
During the last five years, did you consult a medical practitioner for any ailment requiring treatment for more than a week?    No
Have you ever been admitted to any hospital or nursing home for general check up, observation, treatment or operation?    No
Have you remained absent from the place of work on ground of health during last five years    No
Are you suffering or have ever suffered from diabetes, Tuberculosis, High BP, Low BP, cancer, epilepsy, hernia, leprosy, or any other disease?    No
Are you suffering from or have ever suffered from ailment  pertaining to liver, stomach, heart, lungs, kidney, Brain or nervous system?    No

OPs have further urged that the policies in question have been taken from LIC of India unit 1 Hisar i.e. OP No.3 which lies under the jurisdiction of Divisional office Rohtak i.e. OP No.2 and thus in view of the judgment titled as Sonic Surgical Vs. National Insurance Co. Ltd. rendered by the Hon’ble Supreme Court reported in 2009 (4) CPJ (SC) page 40, this Hon’ble Forum has no jurisdiction to try & entertain the present complaint. Besides it, the OPs have rightly repudiated the claim of the complainant vide letter dated 6.4.2015 on the ground of concealment of facts  and thus there is no deficiency in service on the part of  OPs. In the end, OPs have   prayed for dismissal of complaint with  special compensatory costs. 
3.    To prove his contention, counsel for  complainant tendered  affidavit of complainant as Annexure C-1, affidavit of Rajeev son of late Rajender as Annexure C-2 & affidavit of one Ram Karan son of Chajju Ram as  Annexure C-3 alongwith  documents as  Annexures C-4 to C-11  and closed the  evidence whereas on the other hand, counsel for OPs  tendered affidavit of Sh. Balihar Singh, Manager  (L & HPF)as Annexure OP-1 alongwith documents as Annexures OP-2 to OP-8 and closed the evidence on behalf of OPs. 
4.    We have heard the Ld. Counsels of both the parties and perused the record placed on file. The Ld. Counsel for the complainant argued that the husband of the complainant has purchased three life insurance policies for a sum of Rs.62,500/- each & the complainant is nominee in the said policies. The insured late Sh. Rajinder expired on 4.1.2014 and the complainant submitted the claim qua the sum insured with the OPs but they have repudiated the claim vide document Annexure Ex. C-11 on the grounds of concealment of facts of pre-existing disease of cancer which is illegal and not justified. The Ld.  Counsel for the complainant further argued that the deceased Sh. Rajinder was hale & healthy at the time of purchasing policies & also the OPs have not produced any documentary proof of treatment of Cancer from any Hospital. Simply to say that the deceased was suffering from Cancer is not justified & carries no weightage in the eye of law. So, deficiency in service on the part of the OPs is established and requested for allowing the complaint. 
5.    On the other hand, the Ld. Counsel for the OPs argued that this  Forum has no territorial jurisdiction to decide the present complaint since the said policies were issued from LIC Branch Office Unit Hissar  which lies under the jurisdiction of  LIC of India Rohtak Division.  The  LIC Hissar unit have no concern with the LIC Jind unit and even, the claim has been lodged by the complainant with the L.I.C. Unit 1 Hissar. So, there is no territorial jurisdiction of  this Forum to entertain the present complaint. The Ld. Counsel for the OPs also relied upon the case law titled as Sonic Surgical Vs. National Insurance Company Ltd. reported in IV(2009)  CPJ (SC) page 40 in this regard. The Ld. Counsel for the OPs further argued that the deceased Sh. Rajinder was suffering from Cancer prior to purchasing the policies and thereby he had concealed the material facts of pre-existing disease at the time of receiving policies & requested for dismissal of the present complaint with heavy costs. In this regard, he has also submitted another case law titled as Jai Kishan Vs. LIC Divisional office Karnal decided on 12.8.2015 by Hon’ble NCDRC New Delhi in Revision Petition No.1883 of 2015 whereby the declining of insurance claim by LIC on the ground of concealment of facts has been upheld. 
6.    After hearing the rival contentions of  the parties and going through the record, the primary  question arises for consideration before the Forum is that  “whether  this Forum has territorial jurisdiction to try the present dispute?” which in our view is negated since the policies in question were purchased by husband of the complainant from LIC of India unit-1 Hisar i.e. OP No.3 which lies under the jurisdiction of Rohtak LIC Division i.e. OP No.2 and further the death claim of DLA (Deceased Life Assured) has also been filed by complainant with OP No.3 at Hissar. So, the District Consumer Disputes Redressal Forum at Hissar or Rohtak has territorial jurisdiction to try the said complaint and OP No.1 i.e. LIC Branch Jind has been impleaded party to the present complaint only to circumvent the territorial jurisdiction of this Forum though complainant has no cause of action against the LIC Branch Jind as observed  by Hon’ble Supreme Court of India in case titled as Sonic Surgical Vs. National Insurance Co. Ltd. (Supra)  and thus we hold that this Forum lacks territorial jurisdiction. Hence, we have no hesitation to dismiss the present complaint on the ground of territorial jurisdiction. As such, the same is hereby dismissed with no order as to costs. Copies of order be sent to the parties concerned free of costs. File be consigned to record room after due compliance. 
Announced:                                                     
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