IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA

Thursday the 28^thday of February, 2019.

Filed on 19-08-2017

Present

1. Sri.E.M. Muhammed Ibrahim,B.A,LLM (President)

2. Smt. Sheela Jacob, B.com,LLB (Member)

In

CC/No.223/2017

between

Complainant:-                                                                            Opposite party:-

Sri.R.Gopakumar                                                                  Life Insurance Corporation of India,

Erethara (Meenakshy)                                                          Vellakkinar Branch,

Kakkazham P.O.,                                                                   Alappuzha.

Alappuzha.                                                                              Rep.by its Manager

(By Adv.Kalavoor Vijayakumar)                                           (By Adv.S. Devalal)

O R D E R

SRI.E.M. MUHAMMED IBRAHIM(PRESIDENT-IN-CHARGE)

This case is based on a consumer complaint filed under section 12 of the Consumer Protection Act, 1986.

2. The averments in the complaint in short, are as follows:-

The complainant had taken a policy from the opposite party through its agent C.S.Babu, Chirayil House, Kalavoor P.O., Alappuzha under the scheme of Jeevan Sree Plan 112. The policy number is 391183544 was issued on 15-02-2001 for a term of 15 years with premium paying term of 10 years. According to this policy terms the last premium payable was due on quarterly 11-2010 and the policy is to be matured on 02-2016. The complainant paid the entire quarterly installments before the premium period of 10 years. After the maturity period of 15 years when the complainant informed by the opposite party that since the last quarterly premium was not paid by the complainant the policy was lapsed due to the non-payment of the last premium quarterly 10/2010. As per the policy conditions a lapsed policy can be revived within a period of 5 years from the date of 1^st unpaid premium. The date of the 1^st unpaid premium was not informed by the opposite party to the complainant or his LIC agent through any means of communication. Even though the last quarterly premium was not paid by the complainant by mistake there was a duty bound on the part of the opposite party to intimate the matter to the complainant or his agent as a consumer of the opposite party, the Life Insurance Corporation of India. Since it is very respectable and responsible institution owned and governed by the Government of India the negligence on the part of the opposite party amount to a serious deficiency of service to a consumer.

3. The opposite party resisted the complaint with tooth and nail by failing a detailed written version raising the following contentions:-

However the opposite party would admit that the complainant took the disputed Jeevan Sree Policy without benefit (Accident Benefit only) the policy Number, plan and term, sum assured, date of commencement the payment of premium, rate of premium, maturity date etc. are also admitted by the opposite party. However the opposite party would contented that the complainant did not pay the entire premium installments of the premium was to be paid on 15-11-2012 but it was not paid hence policy lapse due to the non-payment of last premium and period of 5 years for the reviver of policy lapsed when the complainant approached the opposite party with the request for revival of policy by paying last premium and there by violation condition No.3 in the policy and hence opposite party was constrained to reject the request for revival. The policy it is specifically stated that the mode of payment is quarterly and it has to be paid on the 15^th day of each quarter and the months in which the premium has to be paid was also stated in the policy as February-May-August and November of every year. Hence the date of payment of every quarterly installment of premium is pre-fixed and written in the policy itself which is in the hands of the policy holder and there is no legal obligation from the part of the opposite party to further inform the complainant/policy holder in advance to pay the same or if not paid the factum of non-payment because both the facts are known to the policy holder.

4. In view of the above pleadings the points that arise for consideration are:-

1) Whether the opposite party insurance company is bound to intimate the complainant the due date of last premium and the non intimation amounts to deficiency in service on the part of the opposite parties.

2) Whether the opposite parties liable to intimate the options available to the insure when the policy becomes lapse due to the non-payment of the last premium.

3) Whether the complainant is entitled to get compensation, interest and cost as claimed in the complainant.

4) Reliefs and costs.

5. Evidence on the side of the complainant consists of the oral evidence of PW1 and PW2 and Ext.A1 to A3 series. O.P. has not adduced any oral evidence however got marked Ext.B1 and B2 documents. Both sides filed note of arguments. Heard both sides.

6. Point No.1 to 3

For avoiding repetition of discussion of materials these 3 points are considered together. Admittedly complainant is the holder insurance policy taken from the opposite party. The policy is under the scheme of Jeevan Sree plan 112 and having No.391183544 it was issued on 15-2-2011 for a term of 15 years with premium paying term for 10 years. Premium has to be paid quarterly and last premium payable was 11-2010. The policy is to be matured on 2-2016. According to the complainant is paid the entire quarterly installments before the premium period of 10 years. However after maturity period of 15 years when the complainant approached the opposite party for collecting the maturity claim it was informed by the opposite party that since the last quarterly premium was not paid by him the policy was lapsed. However as per the policy conditions a lapsed policy can be revived within a period of 5 years from the date of first unpaid premium. However the date of unpaid premium was not informed by the opposite party or his LIC agent to the complainant. Even though last quarterly premium was not paid by the complainant by mistake the opposite party duty bound to intimate to the complainant or his agent as a consumer of the opposite party and the negligence on the part of the opposite party amounts to serious deficiency of service, the complainant has been examined as PW1 has deposed in above allegations and proved the Ext.A3 series documents.

The main grievances of the complainant is that the LIC has to be received the last premium and revive the policy. However PW1 would admit that he has not stated in the complainant the reason for not availing the last premium and that there is no condition to the policy that LIC would intimate the date of payment of premium in each occasion. As it is stated in the policy itself the date of payment of quarterly premium PW1 would further admit that on 12.02.2016 the period of policy is ended and he has defaulted in payment of last premium on 15.11.2010. He has not paid any attempt to revive the policy till 12.02.2016. it is brought out in evidence that as per policy condition No.3 there is no provision to revive the policy it was lapsed PW1 would categorically admit during cross examination that he has availed loan against the policy and on 15-2-2016 he approached the opposite party insurance company and settled the matter by receiving 5,24,228/- by issuing an Ext.B1 receipt stating full satisfaction of all claims. It is also brought out in evidence that on getting Ext.A2 letter the insurance company has send a reply stating that the claim raised in Ext.A2 letter will not stand at all. He would also admit that as per the policy conditions the last defaulted premium cannot be paid within 5 years and he can validate the policy but the complainant has not paid the defaulted premium within 5 years and he has under the impression that the entire premium was paid. In view of the admission of PW1 it is clear that there is no deficiency in service on the part of the opposite party insurance company and therefore the complainant is not entitled to get any relief as prayed for. The points answered accordingly. In view of our finding with regard to issue No.1 to 3 the complaint is only to be dismissed.

In the result complaint stands dismissed. No costs.

Dictated to the Confidential Assistant, transcribed by her corrected by me and pronounced in open Forum on this the 28^th day of February, 2019.

Sd/-Sri.E.M.MuhammedIbrahim(President)

Sd/-Smt. Sheela Jacob (Member)

Appendix:-

Evidence of the complainant:-

PW1 - Gopakumar (Witness)

PW2 - Babu C.S (Witness)

Ext.A1 - Letter sent by Gopakumar

Ext.A2 - Reply letter dtd 08-12-2016

Evidence of the opposite parties:-

Ext.B1 - Receipt dtd 15-02-2018 by LIC Ernakulam Division

Ext.B2 - Original Policy Certificate dtd 22-03-2001

                                                                                  // True Copy //

To

Complainant/Oppo. party/S.F.

                                                                                                                                     By Order

                                                                                                                                Senior Superintendent

Typed by:- Sa/-

Compared by:-