BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, YAMUNA NAGAR
Complaint No. 1173 of 2011.
Date of institution: 22.11.2011.
Date of decision: 8/05/2015.
Balwant Singh son of Shri Hans Raj resident of village Ishamailpur, P.O. Sadhaura, Tehsil Jagadhri, District Yamuna Nagar.
…Complainant.
Versus
- Life Insurance Corporation of India, having its Branch Office S.C.O. 184-185 Sector-17, HUDA, Jagadhri, District Yamuna Nagar through its Branch Manager.
- Life Insurance Corporation of India, having its Divisional Office, Karnal, through its Managing Director.
…Opposite parties.
Complaint under section 12 of
the Consumer Protection Act.
CORAM: SH. A.K.SARDANA PRESIDENT,
SH. S.C.SHARMA, MEMBER.
Present: Sh. Gaurav Gupta, Advocate, counsel for complainant.
Sh. Rajiv Gupta, Advocate, counsel for OPs.
ORDER
Brief facts causing to the institution of the present complaint are that the complainant got a policy of Rs. 2,00,000/- from the OPs and regularly paid the premium to the agent of the OPs for a long time but the said agent inspite of receiving the premium amount did not issue policy in favour of complainant. The complainant during the subsistence of policy applied for loan from LIC and for this purpose he contacted the Op No.1 and gave his policy Number with the assertion that the policy in question is of Rs. 2,00,000/- and after getting the policy number from the complainant, the OP No.1 searched the record from the computer and told the complainant that the policy in question is of Rs. 1,06,000/- only and not for Rs. 2,00,000/- and advised the complainant to get his loan passed from nearest branch situated at Naraingarh and prior to that the complainant was not in the knowledge of the same and loan was taken by him from Naraingarh Branch and the same has already been deposited with the OPs. The complainant contacted the OPs to know the real fact but they totally refused to listen to his request. Thus, the complainant became victim at the hands of OPs and has suffered a great mental agony as well as physical harassment for which he is liable to get compensation from the OPs. In the end, the complainant has prayed for directing the OPs to pay the premium amount of aforesaid policy alongwith interest @24% per annum till its realization and also to pay compensation of Rs. 1,00,000/- on account of physical harassment and mental agony suffered by him due to deficient and negligent services rendered by them.
2. Upon notice, OPs appeared through their counsel and filed written statement jointly urging therein that the complainant has taken one insurance policy bearing No. 174770375 for a sum of Rs. 1,05,000/- from the OPs commencing from 28.11.2005 for a period of 20 years under the term and table 75-20 with quarterly mode of payment of premium. The life assured had deposited premium only up to 28.11.2008 and as per status report the policy is lying lapsed w.e.f. 28.2.2009 i.e. the date on which the next premium was to be paid. The complainant was sanctioned a loan of Rs. 8500/- on 8.1.2009 under the policy in question and there is no provision of refund of premium already paid by the assured under the policy in question and term & table of the policy cannot be changed. The complainant is thus not entitled to any relief under the policy in question. The complainant was sanctioned a loan of Rs. 8500/- and after recovery of loan of Rs. 8500/- plus interest of Rs. 2561/- (Total Rs. 11061/-), only an amount of Rs. 1476/- is payable and prayed for dismissal of complaint in the interest of justice, being devoid of any merit.
3. To prove his case, counsel for complainant has tendered affidavits of complainant as Annexures CX & CY and documents as Annexures C-1 to C-8 and closed evidence on behalf of complainant. Learned counsel for the complainant also tendered original cheque No. 741926 dated 24.9.2012 for Rs. 258/- as annexure C-9 alongwith brief notes of arguments on 7.5.2015. On the other hand, counsel for the OPs has tendered affidavit of Sh. P.K.Saxena, Mangar Legal Life Insurance Corporation of India Karnal as Annexure RX and documents as Annexures R-1 to R-6 and closed evidence on behalf of OPs.
4. We have heard the learned counsel for both the parties and have gone through the pleadings as well as documents placed on file. Learned counsel for the complainant has argued that the complainant had taken a life insurance policy from the OPs and paid installments regularly for three years. Thereafter, the complainant applied for a loan and a sum of Rs. 8500/- was sanctioned to him. Due to financial crises, the complainant could not deposit the premium amount and approached the OPs to release balance amount to him but they flatly refused to give even a single penny on the plea that nothing is due against them. Finding no other alternative, the complainant has filed the present complaint and after issuance of notice, the OPs tendered a cheque No. 740968 dated 9.8.2012 amounting to Rs. 1476/- only in this Forum on 14.8.2012 as surrender value payable to the life assured. Thereafter, the opposite parties further issued a cheque bearing No. 741926 dated 24.9.2012 ( Annexure C-9) amounting to Rs. 258/- in favour of the complainant wherefrom it is concluded that the opposite parties had wrongly stated on oath before this Forum that except Rs. 1476/- nothing is due towards them but issuance of second cheque of Rs. 258/- by OPs clearly establishes deficiency in service as well as an unfair trade practice on the part of OPs.
5. On the other hand, Learned counsel for OPs have argued that the complainant had purchased insurance policy bearing No. 174770375 for a sum of Rs. 1,05,000/- commencing from 28.11.2005 for a period of 20 years and deposited premium up to 28.11.2008 and policy lapsed on 28.2.2009 due to non payment of premium installment. Learned counsel for the OPs further urged that the surrender value of Policy payable to the complainant as on date is Rs. 16273/- and the amount of outstanding loan is Rs. 8500/- and interest accrued thereon is Rs. 6272/- as on 17.4.2015 and after deducting the loan amount plus interest, (Rs. 8500/- + Rs. 6272= Rs. 14772/-), from the surrender value of the policy in question, an amount of Rs.1501/- becomes payable to the complainant.
In view of the above discussion, we are of the confirmed view that OPs are deficient in providing proper services to the complainant as from perusal of Annexure C-8, it transpires that the surrender value of policy in question was shown as Rs. 13501/- as on 22.10.2012 and after deducting the loan amount alongwith interest i.e. Rs. 11871/-, an amount of Rs. 1630/- was shown payable to the complainant whereas Sh. Balbir Kumar, the then A.O. LIC Divisional Office, Karnal had tendered a cheque No. 740968 dated 9.8.2012 amounting to Rs. 1476/- in favour of complainant and made a statement on 14.8.2012that after recovering loan of Rs. 8500/- alongwith accrued interest of Rs. 2561/- totaling Rs. 11061/-, a sum of Rs. 1476/- only is payable as surrender value to the life assured. Inspite of said contradictions, OPs subsequently sent another cheque dated 24.9.2012 (Annexure C-9) of the balance amount of Rs. 258/- to the complainant after tendering of the aforesaid statement by their representative on 14.8.2012 to the effect that only a sum of Rs. 1476/- was payable to him as full and final payment in this case which itself proves that the surrender value payable to complainant was not calculated properly by the OPs and they have taken different stands from time to time qua exact amount payable to the complainant. The complainant was, thus, forced to file complaint for Redressal of his grievances before this Forum which itself amounts to deficiency in service on the part of the OPs. So, in these circumstances, the complainant cannot be deprived of his legal claim and as such, we have no hesitation to hold that the OPs are admittedly deficient in providing proper services to the complainant and are also guilty of committing unfair trade practice. Hence, we allow the present complaint and direct the OPs to comply with the following directions within 30 days from the communication of this order:-
- To pay a sum of Rs. 1734/- in total pertaining to cheque No. 740968 dated 9.8.2012 amounting to Rs. 1476/- & Cheque No. 741926 dated 24.9.2012 amounting to Rs. 258/- already issued by OPs as surrender value payable to the complainant alongwith interest at the rate of 9% per annum from 9.8.2012 to till its realization.
- To pay Rs. 6,000/- as compensation on account of harassment & mental agony etc. caused to the complainant for a long period of about 3 years (i.e. from the date of filing of complaint till the date of decision) by the negligent act of the OPs as well as cost of proceedings.
The aforesaid directions must be complied with by the OPs-Insurance Company within the stipulated period otherwise all the aforesaid awarded amounts shall fetch further simple interest @ 12% per annum for the period of default. The complaint is decided accordingly in the above terms. Copies of this order be sent to the parties concerned free of costs as per rules. File be consigned to the record room after due compliance.
Announced: 8/05/2015.
(A.K.SARDANA)
PRESIDENT
(S.C.SHARMA)
MEMBER.
