Haryana

Karnal

96/2011

Pardeep Chawla - Complainant(s)

Versus

Life Insurance Corporation Of India - Opp.Party(s)

Somesh Gass

03 Nov 2015

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM KARNAL.

 

                                                          Complaint No.96 of 2011

                                                               Date of instt. 9.02.2011

                                                               Date of decision: 3.11.2015

 

Pardeep Chawla , 18 South Patel Nagar, New Delhi -110008.

                                                   ……….Complainant.

                             Versus

 

Life Insurance Corploration of India, 489, Model Town, Karnal.

                                                           ……… Opposite party.

 

                    Complaint U/s  12  of the Consumer

                     Protection Act.

 

Before          Sh.K.C.Sharma……. President.

                   Sh.Anil Sharma ………Member.

                   Smt.Shashi Sharma…..Member.   

         

 

 Present:       Sh.Somesh  Garg Advocate for the complainant.

                   Sh.N.K.Zak Advocate for the OP.

ORDER:

 

                        This complaint has been filed by the complainant claiming an amount of Rs.96473/- from the Opposite Party ( in short OP) as interest and mental agony and  torture on account of deficiency in services. The interest has been claimed for delay in payment of amount under the money back policy and settlement of the claim.

 

                   The complaint is on a  Proforma and necessary details regarding deficiency in services  complained of  have not been given and only it has been mentioned

“ Interest of delay payment of amount to be receive under money back policy and settlement of claim.”

 

2.       Notice of the complaint was given to the OP, who put into appearance and filed written statement disputing the claim of the complainant. Objections have been raised that complaint is not maintainable in the present form; that complainant has no loucs standi and cause of action; that the complaint is hopelessly time barred ; that the complainant is estopped from  maintaining the present complaint by his own acts and conduct; that this Forum has no jurisdiction to decide  the mode of payment against insurance ; that complainant does not fall under the definition of Consumer under the Consumer Protection Act; that the complaint is bad for mis joinder and non joinder of the necessary parties; that the complainant has not approached this Forum with clean hands and that the complaint is false, frivolous and  vexatious to the knowledge of the complainant.

                   On merits it has been submitted that policy No.170281807 was issued to the complainant for a sum of Rs.25000/- . The  date for commencement  was 28.8.1989, date of maturity was 28.8.2004,  the Table and Term was 74-15-15 and  the installments of Rs.2092/- were payable. It was a money back policy and life assured was entitled to survival benefits after every five years from the date of commencement.  As per record of the OP all the due survival benefits after every five years from the date of commencement were  paid  alongwith interest on the delayed payments. Moreover, the policy in question was lying in lapsed condition due to nonpayment of due premiums since  August, 2001 but  acquired paid up value and accrued   bonus at the time of   lapsation of the policy were paid to the complainant. The complainant approached the OP in the year 2005, for payment of the due amount against the policy and accordingly an amount of Rs.24950/- was paid vide cheque No.297845 dated 22.9.2005 which was got encashed by the complainant on 12.11.2005. The paid up value of the policy was Rs.6125/- and accrued bonus was Rs.18225/-, therefore, total amount of Rs.24950/- was due against the OP, which was duly paid. There was no delay in making payment on the part of the OP. It was complainant who himself was responsible for delay. It has also been submitted that the complainant has not clarified as to how and on what basis he has claimed an amount of Rs.96472/-.

 

3.                In evidence of the complainant, he filed his affidavit Ex.C1 and documents Ex.C2 to Ex.C34.

 

4.                In evidence of the OP, affidavit of Sh.P.K.Saxena , Manager (Legal) Ex.O1 and documents Ex.O1 to Ex.O10 have been tendered.

 

5.                 We have heard the learned counsel for the parties and have gone through the case file very carefully.

 

6.                 From the pleadings and evidence of the  parties, it is clearly established that complainant had obtained money back policy from OP for Rs.25,000/-. The policy was to commence from 28.8.1989 and maturity date was 28.8.2004. The complainant was to get survival benefits after every five years from the date of commencement.  Due to nonpayment of premiums, the policy lapsed in August, 2008, but  acquired  paid up value  alongwith  accrued bonus was paid to the complainant, vide cheque of Rs.24950/- dated 22.09.2005.  However, the survival benefits which accrued on 28.8.1994 and 28.8.1994, were not paid immediately after accrual.  As per the case of the OP, the cheque of Rs.6234/-  dated 28.8.2000 was issued  in token of survival benefits accrued on 28.8.99, but the same was not delivered to the complainant. A  fresh cheque regarding the said sum was issued on 29.5.2010, which was encashed by the complainant on 2.6.2010. Survival benefits accrued on 28.8.94 were paid  to the complainant vide cheque dated 2.7.2010.  The complainant claimed interest  on the amounts of  survival benefits which accrued on 28.8.1994 and 28.8.1999 but not paid by the OP immediately.  Thus, the dispute between the parties is  only with regard to the interest on the said amounts of survival benefits.

 

7.                The survival benefits under money back policy accrued to the complainant on 28.8.1994 and thereafter on 28.8.1999. There is no material on record which may show that survival benefits which accrued on 28.8.94 were paid immediately to the complainant or any cheque in that regard was issued.  However, as per the case of the OP, the cheque regarding survival benefits which accrued on 28.8.99 was issued on 28.3.2000, but the same was not delivered to the complainant. The survival benefits accrued on 28.8.94 were paid vide cheque  dated 2.7.2010 and survival benefit  accrued on 28.8.1999 were paid vide cheque dated 29.9.2010. Thus, it is emphatically  evident that OP kept the amounts of survival benefits, which accrued to the complainant  without any authority and complainant in this way suffered loss of interest. Therefore, he was entitled to get interest on the amounts  of unpaid  survival benefits from the date of accrual of the same till issuance of cheques for payment. Non payment of interest  to the complainant was deficiency in services on the part of the OP.  As per letter of the complainant dated 17.8.2010, the copy of which is Ex.C34, he was paid interest at  8%  simple, whereas he claimed that interest should have been  compounded yearly. This appears to be justified demand of the complainant.  In the letter Ex.C34, the complainant calculated interest at the rate of 8%  compounded yearly,  Rs.14898.00 on survival benefits which accrued on 28.8.94 and Rs.8143/- on survival benefits which accrued on 28.8.1999.  It has been admitted that he has  been paid an amount of Rs.7916/- and balance amount  payable is Rs.15125/- . Therefore, he is entitled to get the said amount as interest on the amount due regarding the survival benefits.

8.                As a sequel to the foregoing discussion, we accept the present complaint and direct the OP to make the payment of Rs.15125/- to the complainant. The complainant shall also be entitled for a sum of Rs.5000/- for the mental agony and harassment caused to him and for the litigation expenses. The OP shall make the compliance of this order within a period of thirty days from the date of receipt of the copy of this order, failing which OP would be liable to pay interest on the aforesaid amount of Rs.15125/- at the rate of 9% per annum from the date of expiry of thirty days of this order till realization.  .  The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

 

Announced
dated:03.11.2015                                                                            

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

 (Anil Sharma)       (Smt.Shashi Sharma)    

   Member.                             Member.

 

 

Present:        Sh.Somesh  Garg Advocate for the complainant.

                   Sh.N.K.Zak Advocate for the OP.

 

                   Arguments in part heard. For remaining arguments, the case is adjourned to 3.11.2015.

Announced
dated:20.10.2015                                                                            

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

 (Anil Sharma)       (Smt.Shashi Sharma)    

   Member.                             Member.

 

 

 

Present:        Sh.Somesh  Garg Advocate for the complainant.

                   Sh.N.K.Zak Advocate for the OP.

 

                   Remaining arguments heard. Vide our separate order of the even date, the present complaint has been accepted. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

 

Announced
dated:03.11.2015                                                                             

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

 (Anil Sharma)       (Smt.Shashi Sharma)    

   Member.                             Member