ORDER

SH. RAKESH KAPOOR, PRESIDENT

   The complainant along with  his wife had obtained a policy of life
insurance in the sum of Rs. 7,50,000/- from the OP. The premium of the
policy was payable through ECS.            It is alleged by the
complainant that the premium was regularly deposited  from the bank
account of the complainant  maintained with respondent no. 2.  It is
also alleged that he had been maintaining sufficient balance  in his
account so that the premium is paid in time.  It is further alleged by
the complainant that for some unknown reasons OP1 failed to obtain
the premium through ECS for the month of June 2012.   It is alleged
that OP1 failed to approach OP2 for payment through ECS and that since
there was sufficient balance in the account of the complainant there
was no occasion for the non-receipt of the premium through ECS.  The
wife of the complainant had expired on 30.6.2012 whereafter the
complainant had lodged a claim. OP1, however, had rejected the claim
on the ground that the policy had lapsed on 26.6.2012.   The
complainant has alleged  that the policy had lapsed due to the fault
on the part of the OP  in not collecting the amount of the premium
from his banker   as was agreed to between the parties.    He has,
therefore, approached this forum for redressal of his grievances.

    The Op has contested the complaint and has filed a written
statement.  It has denied any deficiency in service.   Preliminary
objections no. 1 to 3 are relevant and are  reproduced as under:

1.    That the complaint under reply does not disclose any deficiency
in service, on the part of the respondents and the same is liable to
be dismissed in the absence of any cause of action in favor of the
complainant. "it is submitted here that the respondent / O.P have
repudiated the claim of the complainant in the policy no.125691576,
for relevant reason mentioned in the repudiation letter dated
18.02.2013 on the ground that the premium due on May 2012 was not paid
and the insured died after one month and twenty-two days of FUP .i.e
policy lapsed condition at the time of death . That the claimed has
been repudiated by the O.P only after applying its mind and as such
there is no deficiency in the service as alleged by the complainant.

2.    That the policy stand lapsed because the premium was not paid
for the month of May 2012 through ECS.

3. That the deceased has the availed the services of Punjab National
Bank for payment of the premium through ECS and the deceased filed up
ECS Form and it is clearly mentioned in that form " If any transaction
is delayed or not effected at all for the reason of incomplete or
incorrect information or non-availability of funds or closure of
account etc. I would not hold LIC or the user institution responsible.

    The Op has contested the complaint  on merits. But has admitted
that it had issued a policy of life insurance in respect of the
complainant and his wife for a sum of Rs. 7,50,000/-. It has, however,
reiterated its stand that the policy had lapsed before the death  of
the wife of the complainant on account of nonpayment of the premium
for the month of May 2012.  It has not denied that the premium was not
deducted through ECS but has not denied that it had defaulted and had
failed to seek ECS from the bank of the complainant.   It has prayed
that the complaint be dismissed.

    We have heard arguments advanced at the bar and have perused the record.

         Some of the facts are not in dispute.  It is the admitted
case of the parties that the complainant and his wife had obtained
life insurance policy for a sum of Rs. 7,50,000/-. It is also not
disputed that the wife of the complainant had expired on 30.6.2012.
It is further  not denied that there was an arrangement  between the
complainant and the OP whereby the premium of the policy was being
collected  through ECS from the account of the complainant  maintained
with Punjab National Bank, Chandni Chowk, Delhi.   The bone of
contention is that the policy had lapsed on account of non-payment of
the premium.  The complainant has alleged that there was a default on
the part of OP as it had failed to collect the premium  from PNB,
Chandni Chowk, Delhi as was the arrangement.   It is not denied that
the complainant had maintained sufficient balance in his account and,
therefore, the premium due could have been collected easily.   On his
part, the complainant has produced a certificate from PNB, Chandni
Chowk, Delhi which inter-alia reads as under:



“It is certified that ECS for Rs. 3062 (Three Thousand Sixty Two
Rupees) favoring LIC not presented / debited in the month of May ,
2012 and June 2012 in the account of M/s Mohan Textiles bearing
account no. 0113002100200596.”



     We had specifically asked the learned counsel for the OP to
clarify to us if it had asked the bank for paying  of the premium
through  ECS. The learned counsel has failed to place on record any
document to show that the OP did ask the bank for the amount of the
premium but was denied the same. We are, therefore, of the considered
opinion that it was the OP who was at fault in not collecting the
amount of the premium from the bank through ECS as was agreed to
between the parties.      The learned counsel for the OP has, however,
taken refuge behind the following clause of the agreement between the
parties.



“IF any transaction is delayed or nor affected at all for the reasons
of incomplete and incorrect information or non-availability of funds
or closure of accounts etc I would not hold LIC or  the user
institution responsibility. “



      Clearly, the aforesaid clause does not help the cause of the OP
as the transaction was not delayed or was not affected for the reasons
stated in the aforesaid clause. Indeed, the OP had failed to collect
the payment of the premium through ECS and had, therefore, illegally
allowed the policy to lapse.   We, therefore, hold the OP guilty of
deficiency in service and direct it as under:

1.    Pay to the complainant a sum of Rs. 7,50,000/- along with
interest @ 10 % p.a. from the date of institution of this complaint
i.e.  9.1.2014 till payment.

2.    Pay to the complainant a sum of Rs. 25,000/- as compensation for pain

3.  Pay to the complainant a sum of Rs  5,000/ as cost of litigation.

 The OP shall pay this amount within a period of 30 days from the date
of this order failing which they shall be liable to pay interest on
the entire awarded amount @ 10% per annum.  IF the OP fails to comply
with this order, the complainant may approach this Forum for execution
of the order under Section 25/27 of the Consumer Protection Act.



     Copy of the order be made available to the parties as per rule.

  Files be consigned to record room.

Announced in open sitting of the Forum on.....................