Haryana

Ambala

CC/299/2022

KIRAN BALA. - Complainant(s)

Versus

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

VIKAS SURYA

20 Dec 2023

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, AMBALA.

Complaint case no.	:	299 of 2022
Date of Institution	:	29.07.2022
Date of decision	:	20.12.2023

Kiran Bala W/o Sh. Ashok Kumar R/o ​​H.No.1910/15, 12 Cross Road, Kaccha Bazaar, Ambala- Haryana Mob:-7056252459.

         ……. Complainant

                                                Versus

Life Insurance Corporation of India, Branch office Ambala Cantt. through its Branch Manager.

                                                                                               ….…. Opposite Party.

Before:        Smt. Neena Sandhu, President.

                             Smt. Ruby Sharma, Member,

          Shri Vinod Kumar Sharma, Member.           

 

Present:       Shri Shekhar Thakur, Advocate, counsel for the complainant.

                     Shri Dev Batra, Advocate, counsel for the OP.

Order:        Smt. Neena Sandhu, President.

                   Complainant has filed this complaint under Section 35 of the Consumer Protection Act, 2019 (hereinafter referred to as ‘the Act’) against the Opposite Party (hereinafter referred to as ‘OP’) praying for issuance of following directions to it:-

1. To pay claim amount of Rs.1,00,000/-
2. To pay cost of litigation to the tune of Rs.11000/- .
3. Grant any other relief which this Hon’ble Commission may deems fit.

 

2.             Brief facts of the case are that complainant's late husband named Sh. Ashok Kumar, had taken from the OPs a LIC Policy bearing no.129584861 on 16.07.2019 i.e. LIC's New JEEVAN ANAND (with profits) valid for the period from 13.07.2019 to 15.07.2035, with the annual premium of Rs.8472/- along with LIC's accidental death and disability rider for extra premium of Rs.100/- totaling to Rs.8572/-. Sum assured under the policy in question was Rs.1,00,000/-. The next due date under the aforesaid policy was fixed on 15.07.2020, but due to nationwide lockdown announced by the Central Government Ministry of Home Affairs started from 22.03.2020, the complainant's late husband could not deposit the due amount, as the movement from the house as well as working on daily wages were completely prohibited at that time. Due to such emergent and unwarranted conditions, the complainant's late husband could not deposit the second instalment amount due on 15.07.2020. On 15.04.2021, the complainant's late husband met with the road accident and died on the same day. The complainant after the death of her husband met with the official of the OP and requested them to honour the sum due under the policy in question after taking less premium but they refused to do so.  Hence, the present complaint.
3.           Upon notice, the OP appeared and filed written version raising preliminary objections to the effect that the present complaint is not maintainable; the complaint has been filed totally on incorrect & baseless grounds; the complainant has no locus-standi to file the present complaint; complicated questions are involved in the matter in question, therefore, this Commission has no jurisdiction to entertain and try the present complaint etc. On merits, while admitting the fact that the policy in question had been purchased by the deceased husband of the complainant, it has been stated that first Unpaid Premium under the policy was 7/2020. Hence except first premium, no other premium was paid by deceased/life assured and as such, for not depositing the renewal premium thereafter, the policy stood lapsed since July 2020. The liability of the OP under the policy in question arises only if the policy is in force on the date of death of life assured. Payment of any claim under policy in question is strictly subject to its terms and conditions. The relevant Policy conditions mentioned in the Policy Bond are as under:-

 

“…Conditions and privileges within referred to:

 

2. Payment of Premiums:- Grace Period-A grace period of one month but not less than 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. If the premium is not paid before the expiry of the days of grace the Policy lapses.

 

(b) Death Benefit- On death of the Life Assured before the stipulated Date of Maturity provided the Policy is in full force by paying upto-date premiums…”

As far as plea of Nationwide lockdown is concerned, the premium could have been deposited "Online" or any electronic mode or even through anybody else, as presence of life assured was not required to deposit the premium. Moreover physical movement restriction for COVID was applicable till May-2020. The policy had lapsed for non-payment of premium due in July-2020 and life assured died in April-2021 and there was no lockdown on the date of death/ in the month prior to date of death of life assured, therefore such kind of plea for non-payment of premium is not admissible under law. Rest of the averments of the complainant were denied by the OP and prayed for dismissal of the present complaint with costs.

4.           Complainant tendered her affidavit as Annexure CW1/A alongwith documents as Annexure C-1 to C-6 and closed the evidence of the complainant. On the other hand, learned counsel for the OPs tendered affidavit of Puneet Kumar, Manager (Legal and HPF) of the OP-Life Insurance Corporation of India, Divisional Office, Karnal as Annexure OP-1/A alongwith documents as Annexure OP-1 to OP-7 and closed evidence on behalf of the OP.
5.           We have heard the learned counsel for the parties and have also carefully gone through the case file.
6.           Learned counsel for the complainant submitted that by not making payment of the sum assured under the policy in question, after death of the husband of the complainant, the OPs are deficient in providing service.  He further submitted that pending premium could not be paid because of restrictions imposed by the Govt. due to COVID-19 in the country.
7.           On the other hand, learned counsel for the OPs while reiterating the averments contained in the written version submitted that the first premium was due in July, 2020, but not paid.  He further submitted that except first premium, no other premium was paid by deceased/life assured and as such, for not depositing the renewal premium thereafter, the policy stood lapsed since July 2020. He further submitted that the liability of the OP under the policy in question arises only if the policy is in force on the date of death of life assured.  
8.           It is an admitted fact that the deceased husband of the complainant could not pay the premium due in respect of the policy in question on 15.07.2020 to the OP.  The plea of the complainant is that the premium could not be paid due to nationwide lockdown announced by the Central Government Ministry of Home Affairs started from 22.03.2020 as a result of which, her husband could not deposit the due amount, as the movement from the house as well as working on daily wages were completely prohibited at that time. It may be stated here that we are not convinced with the plea taken by the complainant because lockdown was imposed  in March 2020 and lifted in April 2020 and the next premium was payable on 15.07.2020. Secondly, it has also not been elucidated by the complainant as to why even within the period of grace period of 30 days or even by 14.04.2021 (one day before death of the insured), when there was no restriction in the country, the premium due was not paid to the OP.  Under these circumstances, when the insured had failed to deposit the premium due by the committed date or within the grace period or even thereafter before his death in April 2021, now no benefit can be availed by the complainant under the policy in question because it was clearly agreed to by the insured vide clause 2 of the policy which clearly says that death benefit will be given to the nominee of the insured on death of the Life Assured before the stipulated date of maturity provided the Policy is in full force by paying upto-date premiums. The OP therefore cannot be said to be deficient in providing services for not making payment of the sum assured to the complainant, due to non-payment of premium, as referred to above.
9.           In this view of the matter, this complaint stands dismissed with no order as to cost. Certified copies of the order be sent to the parties concerned as per rules.  File be annexed and consigned to the record room.  

Announced:- 20.12.2023

 

(Vinod Kumar Sharma)	(Ruby Sharma)	(Neena Sandhu)
Member	Member	President