DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

U.T. CHANDIGARH

Chander Vikas, aged 27 years, s/o Sh. C.L. Chaudhary, r/o House No.616, Sector 36B, Chandigarh.

                                                                   ---Complainant.

Versus

Life Insurance Corporation of India, Unit-I Branch (163), Jeevan Deep Building, Sector 17-B, Chandigarh through Branch Manager.

---Opposite Party

BEFORE:  SHRI LAKSHMAN SHARMA                 PRESIDENT

                   SMT. MADHU MUTNEJA                       MEMBER

                   SHRI JASWINDER SINGH SIDHU       MEMBER

Argued by: Ch. C.L. Chaudhary, Adv. for the complainant

                        Sh. B.J. Singh, Adv. for the OP.

PER LAKSHMAN SHARMA, PRESIDENT

1.                           Sh. Chander Vikas has filed this complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as the Act only) praying for the following relief against the opposite party:

i)                   to pay the complete amount of Survival Benefit of Rs.20,000/-

ii)                To pay Rs.50,000/- as compensation for mental harassment and torture

iii)              To pay Rs.11,000/- as costs of the present complaint.

2.                           In brief, the case of the complainant is that on 23.3.2007 he got his life insured with the opposite party for an assured sum of Rs.1,00,000/- . He paid the first premium of Rs.1,634/- on that day.  Later on policy No.163398079 was issued in his favour.

                   According to the complainant, as per the terms and conditions of the policy, he was entitled to receive 20% of the sum assured on completion of five years of the policy.  It has further been averred by the complainant that he paid all the five premiums in time.  The last premium for the quarter ending December 2011 was paid by him on 6.1.2012 vide receipt (C-1).   Thus, according to the complainant, no premium was outstanding against him till then.  However, instead of sending him the sum of Rs.20,000/- (being 20% of Rs.1,00,000/-), the opposite party sent him a post dated cheque of Rs.18,333/- only and illegally deducted a sum of Rs.1,667/-, which amounts to deficiency in service. 

                   In these circumstances the present complaint has been filed.

3.                           In the written statement filed by the opposite party, the issuance of the policy in question has not been disputed.  However it has been averred that as per the practice of the opposite party, premium under a policy is received by the “Servicing Branch”.  The Servicing Branch is required to intimate “MASH” 90 days in advance of the due date of S.B. payment and the payment position of due premiums, in order to enable “MASH” to issue post dated cheques in advance.  It has further been averred that in the present case as the S.B. payment was due on 23.3.2012, the premium position was required to be given in December 2011.  However, the premium due in December 2011 was paid in January 2012 only and as such the discrepancy arose.   It has been pleaded that as soon as the mistake came to the notice of the opposite party, it was rectified and the cheque of Rs.1,662/- was sent to the complainant on 29.3.2012.  It has further been pleaded that the full amount of Rs.20,000/- has been released in favour of the complainant and he has already received the same. 

                   In these circumstances, it has been pleaded that there is no deficiency in service on the part of the opposite party and prayer for dismissal of the complaint  has been made.

4.                           We have heard the learned counsel for the parties and have gone through the documents on record.

5.                           It is the admitted case of the parties that the life of the complainant was insured with the opposite party for the sum assured of Rs.1,00,000/-.  It is also the admitted case of the parties that after completion of five years, the complainant became entitled for a sum equivalent to 20% of the assured amount.  Thus, the complainant became entitled to a sum of Rs.20,000/- on completion of five years of the policy i.e. on 23.3.2012.  In the present case, a cheque of Rs.18,333/- was issued to him prior to this date and the cheque was post dated payable on 23.3.2012.  

6.                           The case of the opposite party is that the error occurred due to deposit of the last premium in the month of January and that the remaining amount has also been sent to the complainant, which has been received by him.  This fact has not been denied by the complainant by filing any counter affidavit.  Thus, it is evident that the error, which arose because of payment of the premium in the month of January, instead of December, has been rectified by the opposite party immediately and the remaining amount has already been sent to the complainant. In these circumstances, to our mind, there is no deficiency in service on the part of the opposite party.

7.                           Furthermore, in the case titled Life Insurance Corporation of India V. Dr. Sampooran Singh (R.P No.123 of 1991) decided on 8.1.1992, relied upon by the ld. Counsel for the Opposite party, the Hon'ble National Commission held that the service under the insurance policy can arise only after the occurrence of the contingency i.e.  the maturity of the policy  or the death of the insured.  The present complaint was filed by the complainant on 22.2.2012.  However, on that date, none of the aforesaid contingency had arisen.  The right to get the 20% of the assured amount  became due to the complainant on completion of five years  i.e. on 23.3.2012, which is much after the filing of the present complaint.

8.                           In view of the above discussion, we are of the opinion that there is no merit in this complaint and the same is dismissed, leaving the parties to bear their own costs.

9.                           Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced.

7.8.2012

Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

Sd/-

 (MADHU MUTNEJA)

MEMBER

Sd/-

(JASWINDER SINGH SIDHU)

MEMBER