Haryana

Panchkula

CC/160/2015

ASHOK KUMAR VIRDI. - Complainant(s)

Versus

LIFE INSURANCE CORPORATION OF INDIA. - Opp.Party(s)

COMPLAINANT IN PERSON.

06 Jan 2016

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PANCHKULA.         

                                     

Consumer Complaint No	:	160 of 2015
Date of Institution	:	21.08.2015
Date of Decision	:	.06.01.2016

                                                                                          

Ashok Kumar Virdi s/o Sh.Kishan Chand, R/o House No.164, Sector-21, Panchkula.

                                                                                      ….Complainant

Versus

 

1. Life Insurance Corp. of India, Hisar Unit 1, 85-86 Urban Estate No.1 behind Telephone Exchange Hisar Haryana, through its Branch Manager.

2.       Life Insurance Corp. of India, Bay No.71-72, Sector-2, Panchkula through its Branch Manager.

                                                                      ….Opposite Parties

 

COMPLAINT UNDER SEC. 12 OF THE CONSUMER PROTECTION ACT, 1986.

 

Before:                 Mr. Dharam Pal, President.

              Mrs.Anita Kapoor, Member.

              Mr.S.P.Attri, Member.

 

For the Parties:     Complainant in person. 

Mr.Satyawan Ahlawat, Advocate, for the Ops.

 

ORDER

 

(Dharam Pal, President)

 

1.                          The complainant-Ashok Kumar has filed this complaint against the Ops with the averments that he obtained an insurance policy bearing policy No.174243987 from Ops under LIC’s Jeevan Nidhi Policy (with guaranteed addition for 5 years and with profit thereunder). An option form for payment of pension with entirely illegible sender’s address was sent to the complainant by the OP No.1 vide letter dated 02.06.2014. The complainant sent the requisite documents including option form duly filled with the assistance of one LIC’S officer to the Ops through speed post on 19.06.2014 but instead of making the payments of claims, the OP No.1 had issued a reminder dated 12.09.2014 to the complainant and asked the complainant to supply the documents again. The complainant again supplied photo copies of option form, electronic fund transfer application form dated 18.06.2014, cancelled blank cheque leaf bearing No.267135 alongwith postal receipt dated 19.06.2014 to the OP No.1 but the complainant did not receive any payment, therefore, he visited the branch office i.e. OP No.2. The branch manager again taken/got signed requisite documents for onward transmission from the complainant with the assurance that payment will be credited to him within 2 days. The OP No.1 did not make the payment even after serving of legal notice forcing him to knock at the door of this Forum. The act and conduct of the Ops clearly amounts to deficiency in service.  In evidence the complainant has tendered affidavit and documents Annexure CA, Annexure C1 to Annexure C7.

2.                          On notice, the Ops appeared and contested the complaint by filing joint reply. It has been submitted that this Forum has got no jurisdiction as the policy was obtained from Branch Office Hisar-1. The complainant instead of completing the mandatory requirements has filed the present frivolous complaint. The complainant has submitted the copy of option letter which was not sufficient as original policy bond and NEFT data were also required for settling the claim. He was asked many a times to complete the mandatory requirements not only by making telephones but also by the agents besides issuing a letter dated 25.03.2014 but no constructive result had come. There is no deficiency in service on the part of Ops because after receiving of legal notice the complainant was contacted on telephone with a request to provide necessary documents but he himself had denied for the same. Prayer for dismissal of the complaint has been made. In evidence the Ops have tendered affidavit and documents Annexure RA, Annexure R1 and Annexure R2.

3.                          Heard. The complainant reiterated the averments made in the complaint and prayed for its acceptance whereas the counsel for Ops reiterated the averments made in the written statement and prayed for its dismissal.

4.                          The complainant has come with the plea that he had obtained a policy from the Ops under LIC’s Jeevan Nidhi Policy (with guaranteed addition for 5 years and with profit thereunder) and also sent option form for payment of payment to the OP No.1 vide letter dated 02.06.2014 besides sending requisite documents as per the demand of the Ops but the Ops did not make the payment of the policy.  In support of his plea the complainant has tendered his affidavit Annexure CA besides documents copy of policy (Annexure C1), letter dated 02.06.2014 (Annexure C2), postal receipt (Annexure C3), Copy of letter written by complainant to insurance company (Annexure C4), another postal receipt (Annexure C5), copy of legal notice (Annexure C6) and another postal receipt (Annexure C7). The plea taken by the Ops that this Forum has got no jurisdiction to entertain the present complaint has no force because it is very well established on the case file that the complainant had deposited installments on 14.02.2011, 23.12.2012  and 24.01.2013 with OP No.2, therefore, the Ops are ceased to raise this plea.  It is also established that the complainant had obtained an insurance policy from the Ops bearing No.174243987 on 28.01.2005 and the date of maturity was 28.01.2015.  It is worthwhile to mention here that the Insurance policies are legal contracts and are subject to the general law of contracts and the terms and conditions of the contract are binding on both the parties but in the present case it appears that the Ops are eager to linger on the matter instead of honouring the genuine claim of the complainant. The insurance company is not suppose to get only premium but it also liable to act fairly without taking the benefits of the weaknesses of the insured. The Ops have come with the plea that the complainant has not submitted the requisite documents despite asking many a times and even a letter dated 25.03.2015 was also written to him besides making telephonic calls.  Perusal of the case file reveals that the complainant got served a legal notice dated 18.03.2015 upon the Ops  but instead of responding the legal notice the Ops have issued letter dated 25.03.2015 to the complainant demanding the documents which were already submitted by the complainant with the Ops.  The insurance companies in India with a view to escape and avoiding its legal and factual liabilities to make the payment of sum assured are acting in dramatical, opposite of the principle of fair play and decency and in that series, it is not even carrying that its wrongly actions are causing wrongful losses to their consumers.  In the present case instead of acting fairly the insurance company is trying to avoid from his liability by making one pretext or the other, which cannot be allowed to do so as being a service provider, it is the duty of the insurance company to redress the grievance of the complainant. Section 2 (1) (o) of CP Act says that "service" means service of any description which is made avail­able to potential users and includes, but not limited to, the provision of  facilities in connection with banking, financing insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.  

5.                          For the reasons recorded above, the complaint is allowed. The Ops are jointly and severally directed to refund the annuity amount of policy No.174243987 alongwith interest @ 9 % per annum from the date of maturity till realization of the amount. The Ops are also directed to pay Rs.5,000/- to the complainant as costs of litigation. The abovesaid order shall be complied with within 30 days of its receipt by the opposite parties. The certified copies of this order be sent to the parties free of costs. The file be consigned to the record room after due compliance.

 

Announced

06.01.2016        S.P.ATTRI    ANITA KAPOOR               DHARAM PAL

                           MEMBER    MEMBER                  PRESIDENT

 

 

Note: Each and every page of this order has been duly signed by me.

    

                                 

                                                         DHARAM PAL

                                                             PRESIDENT