Jawahar Sood Vs. Life Insurance Corp. of India etc

Present: Sh. Atul Malhotra, Adv Counsel for complainant.

This complaint filed by complainant, wherein alleged that the OP is providing insurance services to the general public for consideration particularly at Jalandhar through their branch office. The complainant was working with M/s Modistone Limited, a tyre company earlier known as Bombay Tyres Ltd while in service, complainant had purchased the said policy in the year 1985 and after few years of regular payment of premium, complainant availed of a loan of Rs.3700/- against said policy. The said policy remained regular till March, 1997 when the last payment of premium was paid by the complainant. Thereafter suddenly on 03.10.1997, the said company M/s Modistone Limited declared lockout all over India. That complainant and all other employees were out of job and all of the records of complainant including the policy, receipts of premiums, correspondence etc were locked inside the office of said company in the drawers of the tables in the office of said company. Complainant had fought a legal battle against the said company. In the mean time all of the records of complainant were remained locked in the drawers of office of said company due to which complainant could not deposit premiums against said policy from 1998 onwards.

That in the year 2003, complainant got information and some records of the above said policy of complainant. Complainant immediately approached OPS and was informed that the said policy of complainant has been foreclosed in the year 2001 due to non deposit of premium and non deposit of loan amount and interest. Complainant approached the officers of OPs and tried to convince them and requested OPs to renew the said policy but OPs and their officers pressurized complainant to fill in discharge form and take whatever amount was due from OPs to complainant without any interest. The complainant insisted to get the said policy renewed and requested OPs to provide details of outstanding amount to complainant so that complainant could deposit premiums and further renew and continue the said policy but OPs and their officers started dilly-dallying the issue. That thereafter there was a long communication between complainant and OPs regarding the amount to be paid by OPs to complainant and renewal of the said policy. The true photostat copies of letters, communications between complainant and OPs as supplied by OP are attached herewith. The OPs had illegally and arbitrarily foreclosed the said policy when the surrender value of the said policy in the year 2001 was Rs.26,391/- and the amount of Rs.14,193/- was due from OP to complainant and the amount of loan and interest was Rs.12,198/- and the remaining credit of amount was Rs.14,193/- in the account of the complainant. The OPs were deficient, negligent and callous in foreclosing the said policy and not deducting the amount of premiums from the credit of Rs.14,193/- available in the account of complainant. Further OPs failed to inform or send any notice of foreclosure to complainant before foreclosing the said policy of complainant. Complainant did not receive any notice from OPs regarding foreclosure of said policy for revival of said policy or for payment of premium of said policy from 03.10.1997 till date due to the lockout of the said company/employer of the complainant. That further complainant had also sought certain information from OPs under RTI Act but OP failed to provide necessary information. Due to above said facts, there is deficiency in services, negligence, unfair trade practices and restrictive trade practices on the part of the OPs due to which complainant has suffered mental tension, harassment, inconveniences, damages, financial losses etc and accordingly the instant complaint filed with the prayer that OPs be directed to pay compensation of Rs.90,000/- to the complainant for the above mentioned deficiency in services, negligence, unfair trade practice etc and further OPs be directed to make payment of Rs.14,193/- along with interest @ 18% p.a from 14.12.2001 till date of payment and further OPs be directed to pay litigation expenses of Rs.5000/-.

This complaint presented before us for admission purpose.

We have heard the learned counsel for the complainant and also gone through the case file very minutely.

In this complaint, the complainant has very strongly insisted that there is a deficiency, negligence, unfair trade practices and restrictive trade practices on the part of the OP, due to which the complainant has suffered mental tension. But we failed to understand how and under what circumstances, there is any deficiency in service or unfair trade practice on the part of the OP because the complainant himself described in para No.2 of the complaint that the last payment of premium was paid by the complainant in the month of March, 1997 and thereafter the complainant never paid the premium and ultimately a policy of the complainant was foreclosed in the year 2001, due to non deposit of premium and non deposit of loan amount as elaborated in the para No.3 of the complaint. So, it means if there is any negligence then it is on the part of the complainant not on the OP, therefore, this complaint is not maintainable.

Further more as per version of the complainant, he got insurance policy in the year 1985, and till March, 1997, he paid the premium and thereafter he never paid the premium. So, first of all, the cause of action accrued to the complainant for getting return of the deposited amount alongwith interest in the month of March, 1997 and then as per averment of the complaint, cause of action accrued to the complainant in the year 2003, when he was informed by the OP that his policy has been foreclosed in the year 2001, means the first time cause of action accrued to the complainant in the year 1997 then in the year 2003 but in order to create a fresh cause of action, the complainant has brought on the file certain letters relating to year 2004 and 2016, there is again gap of 12 years because after 2004, there is no letter up to 2015. So, it means the complaint of the complainant from all angles is time barred because the information in regard to foreclose, has came to the notice of the complainant in the year 2003 and accordingly the complainant has right to file a consumer complaint within two years from the date of accrual of the cause of action, and till 2005, the complainant can file the complaint but he has filed the complaint on 08.08.2017, means after about 14 years. So, accordingly, we are of the considered opinion that the complaint of the complainant is hopelessly time barred and accordingly in the light of above detailed discussion the complaint of the complainant is without merit and the same is dismissed. Copies of the order be supplied to the complainant free of cost, as per Rules. File be indexed and consigned to the record room.

Dated Parminder Sharma Karnail Singh

09.08.2017 Member President