Punjab

Bhatinda

CC/13/325

Vijay Kumar - Complainant(s)

Versus

LIC of India - Opp.Party(s)

Sunder Gupta

23 Apr 2014

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BATHINDA

CC.No.325 of 12-08-2013

Decided on 23-04-2014

Vijay Kumar S/o Lachhman Dass R/o Maur Mandi, Tehsil Talwandi Sabo, District Bathinda.

........Complainant

Versus

1.Life Insurance Corporation of India, Division Office, Phase I, Dugri, Ludhiana, through its Senior Divisional Manager.

2.The Senior Branch Manager, Life Insurance Corporation of India, Bibiwala Road, Bathinda-151001.

.......Opposite parties

 

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

 

QUORUM

Smt.Vikramjit Kaur Soni, President.

Smt.Sukhwinder Kaur, Member.

Sh.Jarnail Singh, Member.

Present:-

For the Complainant: Sh.Sunder Gupta, counsel for the complainant.

For Opposite parties: Sh.Sanjay Goyal, counsel for the opposite parties.

ORDER

 

VIKRAMJIT KAUR SONI, PRESIDENT:-

1. The instant complaint has been filed by the complainant under section 12 of the Consumer Protection Act, 1986 as amended upto date (Here-in-after referred to as an 'Act'). Briefly stated the case of the complainant is that being allured by the representative of the opposite parties, he purchased one insurance policy bearing No.300732252 and deposited the premium of Rs.23,000/ with the opposite parties. At the time of selling of the abovesaid insurance policy, the representative of the opposite parties assured the complainant that he has to deposit the premium of Rs.23,000/- p.a. for 3 years and after the completion of 3 years, he will get the amount in between Rs.1,00,000/- to Rs.1,05,000/-. The complainant paid three annual premiums. In the year 2010 the complainant surrendered the abovesaid policy with the opposite parties, their agent obtained his signatures on various papers without disclosing the contents thereof for the payment of the abovesaid policy, but till date no payment has been made to him. The complainant made number of complaints with the higher officials of the opposite parties and different authorities, but despite his repeated requests no payment of the due amount under the policy in question has been made to him by the opposite parties. The complainant also wrote the letter dated 4.6.2013 to the opposite parties, but they have failed to make him the due payment of the insurance maturity amount. Hence the present complaint filed by the complainant to seek the directions of this Forum to the opposite parties to pay the claim amount of the policy in question alongwith accrued bonus and other benefits etc. besides interest, cost and compensation or to give any additional or alternative relief for which he may be found entitled to.

2. The opposite parties after appearing before this Forum have filed their joint written statement and pleaded that the complainant paid the premium upto the month of March, 2009. The complainant has not surrendered the insurance policy in question for the payment, rather he purchased the new insurance policy in lieu of the previous policy. The surrender value of the abovesaid policy was to the tune of Rs.76,401/- and in lieu thereof the complainant invested in the single premium policy bearing No.301880591 for Rs.76,000/-. The insurance agent did not obtain the signatures of the complainant on various papers without disclosing him the contents thereof. The complainant is a literate person and is not expected to sign any document without going through its contents. The complainant purchased the new insurance policy in lieu of the surrender value of the previous policy as such he can surrender the new policy and can take the payment thereof as per its surrender value as of the date.

3. The parties have led their evidence in support of their respective pleadings.

4. Arguments heard. The record alongwith written submissions submitted by the parties perused.

5. The complainant has purchased the insurance policy bearing No.300732252 in the year 2007 and has deposited 3 annual premiums of Rs.23,000/- each with the opposite parties. The complainant wrote the letter dated 4.6.2013 to the opposite parties, but they have failed to make him the due payment of the insurance maturity amount.

6. At the time of purchase of the abovesaid policy the complainant was allured by the representative of the opposite parties that after the completion of 3 years he will get the amount in between Rs.1,00,000/- to Rs.1,05,000/- and accordingly, the complainant paid 3 annual premiums. After the completion of 3 years in the year 2010 the complainant surrendered the abovesaid policy with the opposite parties, their agent obtained his signatures on various papers without disclosing the contents thereof for the payment of the abovesaid policy, but till date no payment has been made to him.

7. On the other hand the opposite parties submitted that the complainant paid the premiums upto the month of March, 2009. The complainant has not surrendered the insurance policy in question for the payment, rather he purchased the new insurance policy in lieu of the previous policy. The surrender value of the abovesaid policy was to the tune of Rs.76,401/- and in lieu thereof the complainant invested in the single premium policy bearing No.301880591 for Rs.76,000/-. The insurance agent did not obtain the signatures of the complainant on various papers without disclosing him their contents. The complainant is a literate person and is not expected to sign any document without going through its contents. The complainant has purchased the new insurance policy in lieu of the surrender value of the previous policy as such he can surrender the new policy and can take the payment thereof as per its surrender value as on the date.

8. As admitted by the opposite parties themselves that no payment has been made to the complainant and the surrender value of the policy in question i.e. Rs.76,401/- has been re-invested by the complainant in single premium policy bearing No.301880591 for Rs.76,000/-, again this version of the opposite parties proves that nothing has been paid to the complainant till date. A perusal of status report of policy bearing No.300732252, Ex.C4 confirms this fact that no payment has been done and the status report of this policy also shows 'No Payment History For This Policy'. A further perusal of Ex.C6 shows that the policy mentioned by the opposite parties in their written statement that in lieu of the previous policy in question the surrender value has been invested in the single premium policy bearing No.301880591, the status report of this policy again shows that the amount of Rs.76,000/- has been invested in the single premium policy under Plan/Trm/Pterm:-191/15/01 and status report of this policy also shows 'No Payment History For This Policy'. The Surrender Value Quotation of policy bearing No.301880591, Ex.C7 shows that SV Payable=Rs.77,010.81/- on dated 30.10.2013. The complainant has written a letter to Chief Manager, LIC of India, Bathinda vide Ex.C10 that he was allured by the opposite parties that after completion of 3 years of policy bearing No.300732252 he will be given the amount in between Rs.1,00,000/- to Rs.1,05,000/-, but the maturity amount has not been paid to him and now the complainant came to know that a new policy has been issued to him by the opposite parties, which has been issued to him without seeking his consent. The document placed on file vide Ex.C5 shows that the complainant has given the consent to invest his surrender amount of previous policy in the single premium policy but same type of consent letter has been placed on other similar files, written in same handwriting by the same person i.e. in C.C No.323 to C.C No.328. The status report of policy bearing No.300732252, Ex.C12, shows the claim/surrender history record, in which type due-M/Y, Pay-Date is given as S.V 6/2010, 25/6/2010; Chq.No.:-0084179; Chq.-Date:-25.6.2010; Amt-Payable:-Rs.76,401/-: Deductions:-0 and Net-Paid:-Rs.76,401/-. On the other hand the opposite parties have placed on file Proposal Form, Ex.OP1/3, which shows that the complainant has opted for a single premium policy and has invested the surrender amount of his previous policy in the new policy bearing No.301880591. During the pendency of this complaint the complainant has served interrogatories upon the opposite parties and they have given the reply to the said interrogatories as under:-

“1) That interrogatory No.1 is correct. However, the surrender amount of ULIP (Full/partial) can be reinvested only for proposals introduced on life of his/her own life or in the life of spouse/children.

2) That interrogatory No.2 is correct. However, the amount was reinvested by the complainant himself in single premium policy.

3) The interrogatory No.3 is replied that the new policy bond are dispatched by registered post on 6.2.2014 to the complainant.”

Thus the opposite parties have given the reply of all 3 questions and said interrogatory No.1 is correct, which shows that they have invested the amount of the complainant in new policy, whereas within 3 years of the surrender or lapse of the policy, no new policy can be issued, but the reply to the interrogatory No.1 given by the opposite parties is to the extent that the surrender amount of ULIP (Full/partial) can be reinvested only for proposals introduced on life of his/her own life or in the life of spouse/children. No rule and regulation regarding this has been produced on file by the opposite parties. Regarding the interrogatory No.2, the opposite parties have shown the cheque issued in the name of the complainant vide Ex.C12 in the status report of policy bearing No.300732252, which shows that the cheque No.0084179 dated 25.6.2010 for the amount of Rs.76,406/- has been issued to the complainant, but this cheque has not been given to the complainant. There is no record on file to show that this cheque has ever been sent to the complainant and thereafter he reinvested the same in the single premium policy with his free will. Regarding 3rd interrogatory, the opposite parties have replied that 'new policy bond are dispatched by registered post on 6.2.2014 to the complainant', whereas this application has been filed by the complainant on 24.12.2013 and the reply to the interrogatories has been filed by the opposite parties on 10.2.2014 and opposite parties have shown that the new policy has been issued to the complainant with single premium on 25.6.2010. Just to fill lacuna the opposite parties have dispatched the policy bond on 6.2.2014 i.e. after the lapse of 4 years and after filing of this complaint, which amounts to unfair trade practice on their part. Moreover the amount of Rs.76,000/- has been invested by the opposite parties in single premium policy from the Surrender Value amount of Rs.76,401/-. There is no record placed on file by the opposite parties to show that where the amount of Rs.401/- has gone, whether it has been ever returned to the complainant or re-invested in any other scheme. If the opposite parties have retained the said amount of Rs.401/- under which capacity the same has been kept ?

9. As already discussed above, we are of the considered opinion that the opposite parties have never sent the surrender value of policy bearing No.300732252 and never sought the consent from the complainant to issue him the new policy bearing No.301880591 and of their own have invested the amount of Rs.76,000/- in the single premium policy bearing No.301880591, whereas the opposite parties were liable to pay the amount of the surrender value to the complainant and then seek his consent whether he wants to purchase the new policy or not, but no such efforts have been done by them. Moreover as per the reply of interrogatory No.1, the opposite parties cannot issue the new policy or the complainant cannot purchase the new policy within 3 years after surrender and lapse of the policy. Thus there is unfair trade practice on the part of the opposite parties. Furthermore there is no explanation regarding the remaining amount of Rs.401/-.

10. Therefore in view of what has been discussed above this complaint is accepted with Rs.5000/- as cost and compensation against the opposite parties. The opposite parties are directed to pay the amount of Rs.77,010.81/- + Rs.401/- alongwith interest @ 9% per annum since 26.5.2010 till realization.

11. The compliance of this order be done within 45 days from the date of receipt of the copy of this order.

12. In case of non-compliance the amount of Rs.77,010.81/- + Rs.401/- plus interest will further carry interest @ 9% per annum till realization.

13. A copy of this order be sent to the parties concerned free of cost and file be consigned to the record room.

Pronounced in open Forum:- (Vikramjit Kaur Soni)

23-04-2014 President

(Sukhwinder Kaur)

Member

 

(Jarnail Singh)

Member