Complainant by filing this complainant has submitted that complainant purchased one policy under the name and style of “Jeevan Shree” without profit without accident benefit from the op Branch being Policy No.415640065 commenced on and from 10.01.2012 for the sum assured by Rs.5,00,000/- and for that purpose complainant deposited premium of Rs.46,555/- on 10.01.2012.  But due to some inconvenience he could not able to deposit any further amount and said policy was matured on 10.01.2012 but till date the op did not pay any amount to the complainant.  So the legal notice was issued on 06.02.2012 and op received the said legal notice.  Thereafter op issued an E-mail to the Ld. Advocate of the complainant on 02.04.2012 and informed that prayer of the complainant is rejected as complainant is not entitled to get such payment.  Though as per provision of Section 45 of Insurance Companies Act no policy can be forfeited by the op.  In the above situation for adopting unfair trade practice and for harassing the complainant, complainant has prayed for directing the op to return the said amount including compensation.

          On the contrary the op by filing written version has submitted that this complaint is not maintainable and fact remains that complainant purchased one policy and as per said plan (Table-2) complainant ought to have paid 12^th half yearly premium of Rs.46,555/- but actually complainant paid one premium out of the total 24 premiums and further it is submitted that as per terms and conditions of the policy it is guided and fact remains if complainant wants to get the benefit of the policy, in that case at least one full years premium must have to be paid for getting surrender value.  So as per provision of the contract complainant is not entitled to get any amount and it is admitted that op has not forfeited as alleged.  However, the first premium was utilized for the life insurance cover which is in force till the grace period of the subsequent to due premium.  So, under any circumstances, complainant is entitled to get any amount.

                                                Decision with reasons  

          Heard the Ld. Lawyers of both the parties and fact is that complainant purchased the said policy no doubt and policy premium amount was Rs.46,555/- and period of policy was from 10.01.2002 to 10.01.2012.  But truth is that complainant failed to continue it.  But it is undisputed fact that the said amount was received by the op and the said amount of Rs.46,555/- was in the custody of the op for long period of six years during the period of 10.01.2002 to 10.01.2012 and when op has admitted that they have no authority to release that amount in that case in variably it is the duty of the insurance company to release that amount with simple bank interest @ 6% after deducting certain amount as service charge when as per Insurance Act, no premium can be forfeited.  Then how the op did not show his good gesture by sending such cheque out of total amount of premium with interest by deducting such service charge?  In our view the op Insurance Company did not adopt proper method when it is the moral and the social legislation of the Insurance Act.  In the light of the above observations we are convinced to hold that complainant is entitled to return back the said amount after deduction of certain amount as service charge but we have gathered that the Insurance Company is only relying upon their circular but they are not relying the IRDA guidelines or the provision of the Insurance Act.  But anyhow we cannot say that always Insurance Company is at fault, but companies are guided by the Board of Directors and their decisions must be followed by the company.  So, company answered in this case in the light of the Board of Director’s guidance through that LICI is a social institution to protect the insured but not to grab the premiums of the defaulted insured and for that reason we are directing the op to return back Rs.46,000/- out of deposited premium amount of Rs.46,555/- to the complainant along with a composite interest of Rs.4,000/- i.e. total Rs.50,000/- to the complainant within the one month from the date of this order.

          Thus, the compliant succeeds.

          Hence, it is

ORDERED

          That the complaint be and the same is allowed on contest with cost of Rs.2,000/- against the ops.

          Ops are directed to pay a sum of Rs.46,000/- out of the deposited premium and also compensation of Rs.4,000/- i.e. total Rs.50,000/- and also the litigation cost of Rs.2,000/- as awarded i.e. total Rs. 52,000/- within one month from the date of this order positively failing which for each day’s delay punitive damages @ Rs.250/- shall be assessed and if it is collected same shall be deposited to State Consumer Welfare Fund.

          Op is directed to comply the order of this Forum within the stipulated period failing which further penalty of Rs.5,000/- shall be imposed for implementation of the order and even penal proceeding shall be started against them.