IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOTTAYAM
Dated this the 30th day of April, 2022
Present: Sri. Manulal V.S. President
Smt. Bindhu R, Member
Sri. K.M. Anto, Member
C C No. 129/2020 (filed on 16-09-2020)
Petitioner : Suthan C.C.
Chekkonthaparamb House,
Villoonni P.O.
Arppookkara,
Kottayam - 686008
Vs.
Opposite Party : LIC of India,
Branch No. 1,P.B. No.92,
CSI Commercial Center,
Baker Junction,
Kottayam - 686001
(Adv. G. Jayasankar)
O R D E R
Smt. Bindhu R, Member
The complaint is filed under Section 35 of Consumer Protection Act, 2019.
The complainant took a policy for a period of 12 yearsfrom the opposite party and paid premium for 11 years continuously. The policy amount was Rs.1,00,000/-. The last 5 payments fell due to the covid pandemic. The opposite party paid only Rs.46,700/- at the time of expiry of policy period. The complainant was eligible for Rs.88,000/- . Hence the complaint is filed for the compensation against this deficiency in service from the part of the opposite party and for the balance payment.
The opposite party was summoned and they filed version. The contention of the opposite party is that the policy bearing no.394012592 was issued on the life of the complaint on 12.07.2008 for the sum assured Rs.1,00,000/- under plan 179(Bima Gold) for a term of 12 years. The mode of payment of premium is quarterly for a period of 12years.The complainant remitted premium up to 1/19 only it was paid up and was eligible only for the benefits mentioned under clause 4 page 2 of policy bond. Hence complainant is eligible for Rs.46,738/-only as maturity benefit.
The opposite party settled benefits under the above policy as
- First survival benefit due on 18-07-2012 - Rs. 15,000/-
(Cheque No.450809 dtd.18-07-2012
encashed by the complainant o 26-07-2012
-
- Second Survival benefits due 18-07-2016 Rs.15,000/-
(For the second survival benefit net amount paid was Rs.13,046/- as survival benefit settled after deducting the premium due on 17-04-2016 with interest.Balance amount has made by NEFT and amount credited to the savings Bank Account maintained by the complainant on18-07-2016)
The maturity amount due towards the complainant was settled on 18-07-2020 for Rs.46,738/- as full and final settlement after deducting Rs.81/- towards previous interest for late payment of premium.
The details of maturity claims settled to the complainant as follows,
- Complaint Life assured remitted 43 quarterly instalments.
Total premium remitted 07/2008 to 04/2019 (43xRs.1,909/- = Rs.82,087/)
Less :1) Extra premium for Double Accident benefited and age extra 43x122.5 - 5,267.50 ie.5,268/-
- Two survival benefit amount settled to complainant Rs.30,000/-
(Rs.15,000/- each) Net maturity amount paid to the complainant is Rs.46,738/-)
The complainant suppressed the receipt of 2 survival benefit of Rs.15,000/- each which was settled on 18-07-2012 and 17-08-2016respectively.Hence the complaint is liable to be dismissed. There is no deficiency of service on the part of opposite party as the eligible amount entitled to the complainant as per the conditions of policy was disbursed to him and no amount is due to the complainant from the opposite party.The maturity benefit will be refund of total premium paid after deducting the survival benefit already settled.Since paid-up policies are not eligible for loyalty addition as per clause IV of the policy bond.Loyalty additions are paid only to the policies of which full premium has been paid for the entire policy term.In this case, the complainant has not paid the entire policy premium and was not eligible for loyalty addition.The maturity amount has been paid as per the policy conditions.Complaint is filed on frivolous grounds and hence liable to be dismissed.
Both the complainant and opposite party has filed proof affidavit in lieu of chief examination.Ext.A1 was marked from the side of complainant and Ext.B1 to B5 were marked from the side of the opposite party.
On a detailed examination of evidence and pleadings, we frame the following points for consideration.
- Whether there is deficiency of service on the part of opposite party?
- If so, what are the reliefs?
Point No.1 and 2
According to the complainant he has paid the premium for 11 years continuously from 2008, 5 payments fell due. After the maturity period, the opposite party paid only Rs.46,700/- where as the complainant was eligible to get Rs.88,000/-.
The opposite party’s contention is that as the complainant did not pay the premium for the whole policy period, it was considered as paid up policy. As per the condition of the policy, the opposite party disbursed survival benefit on 18-07-2012 and 18-7-2016 of Rs.15,000/- each. On 18-07-2016, the net amount paid was Rs.13046 after deducting the previous premium due with interest. On 18-07-2022 the maturity amount towards the complainant was settled as Rs.46738/- as full and final settlement after deducting Rs.81/- towards previous interest for late payment of premium. The maturity amount was settled as;
The total premium paid by the complainant in 43 quarterly instalments from 07/2018 to 04/2019 is 43xRs.1909= Rs.82087/-.
After deducting the extra premium for double accident benefit and age extra is 5268/- and the survival benefit paid Rs.30,000/-. Thus the net maturity amount paid to the complainant is Rs.46738/-.
The complainant has not stated anywhere in this complaint or in his affidavit about the receipt of survival benefit amounting to Rs.30,000/-. Ext.B4 and B4 (a) produced by the opposite party proves the payment of survival benefit and the maturity amount as stated by the opposite party.
Ext.B2 Clause IV states that Non-forfeiture Regulations : “If after at least two full year’s premiums have been paid and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). This period of 2 years from FUP shall be called Auto Cover Period. During the Auto Cover Period, the Life Assured can pay one or more instalments of premiums with interest without submission of any evidence of health. On payment of part or full arrears of premium with interest, the Auto Cover Period of 2 years from the due date of new FUP shall again be available during the term of the policy”.
Notwithstanding what is stated above, it after at least three full year’s premium have been paid in respect of this policy, any subsequent premium be not duly paid, this policy shall not be wholly void after the expiry of two years Auto Cover Period from the due date of First Unpaid Premium, but shall subsist as a paid up policy for an amount equal to the total premium paid (excluding any extra optional premium) less the survival benefits paid earlier, if any. This amount shall be called as Paid Up Value”.
Thus we find that the opposite party has paid the maturity amount as per the terms of calculation of the policy conditions. So we find no merit in the complaint and hence the compliant is dismissed.
Pronounced in the Open Commission on this the 30th day of April, 2022
Smt. Bindhu R, Member Sd/-
Sri. Manulal V.S. President Sd/-
Appendix
Exhibits marked from the side of complainant
A1 – Copy of renewal premium receipt
Exhibits marked from the side of opposite party
B1 –Copy of proposal form (policy No.394012592)
B2 – copy of policy bond
B3 –LIC’s circular Ref. No. Actl/PD/2084/4 dtd.18-08-2006
B4 series –Copy of statement (2 nos.)
B5 – Copy of loyalty addition condition circular
By Order
Assistant Registrar
