Sri. Ashok Kumar J.Dhole<br /> President,<br /> <br /> 1. This complaint is filed, claiming damages of Rs.17,025/- from the LIC on the ground of deficiency in service. The complainant has claimed this amount under following heads:-<br /> a. Compound interest at the rate on 21% of Rs.2,525, i.e. total Rs.2,525/-.<br /> b. Penalty – Rs.10,000/-.<br /> c. Cost of Rs. 1,000/-.<br /> d. Damages of Rs.3,000/-<br /> e. Notice charges – Rs.500 – Total amount of Rs,.17,025/-.<br /> 2. Notice was duly served on the O.P., who appeared, filed version and contested the matter. It is contended by the O.P. that there is no deficiency in service and the problem between the parties arose due to “Computer Master Impurity”. Both parties filed their respective affidavits, and produced documents. Heard the learned counsels for both sides.<br /> 3. Undisputed facts, can be summarized as under:-<br /> Complainant was a policy holder bearing no.48556961 with date of commencement as 2-2-1979. The sum assured was Rs.10,000/-. The premium was payable half yearly at the rate of Rs.280.60. This policy was due to mature on 2-2-2001. There is no dispute that complainant raised loan of Rs.6,280/- by pledging the LIC policy. There is also no dispute that the O.P. has not paid the maturity value on 2-2-01. The amount towards loan with interest was not adjusted on 2-2-01. There is also no dispute that even after the date of maturity, the O.P. issued premium demand notices, and in one such notice informed the complainant that the date of maturity is 2-2-05. There is also no dispute that complainant without knowing the date of maturity went on paying the premium and deposited 9 additional premiums amounting to Rs.2,520/-. Ultimately, the matter was brought to the notice of O.P., who has settled the claim by letter dated 11-2-05. As per this letter, the amount of Rs.15,545/- was paid to the complainant.<br /> 4. It is the case of complainant that O.P. has committed deficiency in service, mainly on two grounds. Firstly, the O.P. went on demanding and receiving the premium, even after 2-2-01 for a period of 4 years, hence O.P. is liable to pay compound interest at the rate of 21% p.a. on such amount of Rs.2,520/-. The second contention of the complainant is that he would have received amount in cash as on 2-2-01, but he is deprived of the benefit of such amount for a period of 4 years due to deficiency in service. Hence, he is entitled to claim damages.<br /> 5. It is the simple contention of the O.P. that this lapse had occurred due to “Computer Master Impurity”. As soon as this fact was noticed the O.P. has paid the entire amount, which was due to the complainant with interest at the rate of 8% p.a. It is also contended that the additional premium recovered from the complainant was also refunded with interest at the same rate, as per the norms prescribed by (IRDA) for unintentional delay caused by the O.P. There is no deficiency in service and prayed for dismissing the complaint.<br /> 6. The learned counsel for the complainant relied on the following decision in support of her contension. <br /> a) Giriraja Sharma Vs. Regional Commissioner Coal Mines Provident Fund reported in I (1991) CPJ page 530.<br /> b) LIC of India Vs. C.V.Krishna Murthy reported in I (1992) CPJ page 25.<br /> 7. Point for our considerations is as under:-<br /> Whether the complainant has proved deficiency in service on the part of O.P., if so, to what relief he is entitled?<br /> 8. Our finding on the above point is as under:- Affirmative.<br /> <br /> REASONS<br /> <br /> 9. In the 2nd decision, in the case of LIC of India Vs.C.V.Krishna Murthy, it is held that delay in payment of the amount due, amounts to deficiency in service. It is further observed that in case such amount would have been paid in time, the complainant would have invested the same in a profitable manner. We have carefully gone through the order of payment dated 11-2-05, which was sent along with cheque for Rs.15,545/-. The O.P. has calculated the total amount payable to the complainant as on 2-2-01, as under:-<br /> a. Basic amount – Rs.10,000/-.<br /> b. Vested bonus – Rs.12,500/-<br /> c. Additional bonus – Rs.1,050/- - total amount of Rs.23,550/-.<br /> 10. In the same letter, the O.P. has calculated the amount, which was payable by the complainant towards the loan account. The amount is as under:-<br /> a) Basic loan amount - Rs.6,280/-<br /> b) Interest there on – Rs.7,427/- - Total amount of Rs.13707/-.<br /> 11. If we deduct the amount, which was payable by the complainant to the O.P. towards loan account, the complainant would have received an amount of Rs.9,843/- as on 2-2-01. If this amount would have been paid to the complainant in time, he could have made better use of the same or could have solved his needs in time. Now, there is no dispute that this basic amount of Rs.9,843/- is used by the O.P. for a period of 4 years.<br /> 12. There is also no dispute that the O.P. made a representation and allowed the complainant to deposit 9 more installments of premium of Rs.280/- each. This amount was paid for a period of 4 years, and the total amount comes to Rs.2,520/-. There is no dispute that O.P. has repaid this amount with interest at the rate of 8% p.a. Such approach of the O.P. blaming the defect in computer, is not acceptable. This admission itself is sufficient to come to conclusion that there is deficiency in service on the part of the O.P. We have calculated interest at the rate of 12% p.a. on the principle amount of Rs.9,851/-, as well as interest at the same rate on the premium amount from the date of payment till the date of repayment. If complainant could have invested his amount in any other form he would have received interest every quarter. Hence we allow 12% interest. The total difference comes to Rs.2,158/-. As O.P. has committed deficiency in service, we add an amount of Rs.400/- towards damages for mental agony, and come to conclusion that O.P. is liable to pay an amount of Rs.2,500/- of global damages on the ground of deficiency in service. Complainant is also entitled to receive cost of Rs.250/-, hence we proceed to pass following order:-<br /> .<br /> ORDER<br /> <br /> 1. Complaint is allowed.<br /> 2. O.P. has directed to pay an amount of Rs.2500/- with cost of Rs.250/- to the complainant, within a period of 2 months from the date of receipt of this order, failing which the basic amount shall carry future interest at the rate of 12% p.a. till the date of payment.<br /> 3. Give a copy of this order to both parties according to Rules.<br />