BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

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Prem Singh Kataria son of Sh.Nandu Ram, H.No.316, Sector 12-A, Panchkula.

…..Complainant

                 V E R S U S

Life Insurance Corporation of India, Branch Office Unit 1, through Senior Branch/Divisional Manager, Jeevan Deep Building, Sector 17-D, Chandigarh.

                      ……Opposite Party

CORAM:   SH.P.D.GOEL                  PRESIDENT

         SH.RAJINDER SINGH GILL       MEMBER

         DR.(MRS) MADANJIT KAUR SAHOTA  MEMBER

Argued by: Dr.Pankaj Nanhera, Counsel for complainant.

          None for OP.        

PER DR.(MRS) MADANJIT KAUR SAHOTA, MEMBER

        Briefly stated, the complainant got the insurance policy through OP corporation vide Policy No.076146018. The date of commencement was 28.2.1985 and date of maturity was 28.2.2011. At the time of maturity, OP sent a letter dated 22.11.2010 to the complainant that a total net amount payable to him was Rs.86157/- (Annexure C-1). However, at the time of giving cheque of full payment, OP committed breach of trust with the complainant by only giving a cheque of Rs.80703/- (Annexure C-2) instead of Rs.86157/- as per OP Corporation’s own statement (Annexure C-1). The complainant wrote a letter to OP and in response to that, the OP sent a very formal reply in which they have admitted that an amount of Rs.5454/- was shown due to an error and the payment of Rs.80703/- was made correctly to the complainant (Annexure C-3). The OP never corrected or rectified their mistake, which shows their malafide intention. A legal notice dated 23.3.2011 was given to the OP through counsel, but to no avail and the amount was not paid till to date. Hence this complaint.

2]       The OP in their reply pleaded that the process for the payment of maturity amount of policy of complainant was started in the month of November 2010, so that the maturity amount could be paid to the complainant before the date of maturity of policy. The OP had declared the “Result of valuation as at 31^st March 2010” on 29.10.2010, but the same were not effective on that date of preparation of intimation of maturity of claim (Annexure C-1). As such, the computer system installed in the office of OP generated the intimation of maturity of claim on the basis of “Result of valuation as at 31^st March 2009” declared on 5.12.2009 (Annexure R-4). During the visit of complainant to the office of OP on 29.12.2010, he had been fully explained the calculation of maturity claim on the basis of and also the correction was made on the intimation letter of maturity of claim/discharge form. The payment letter and post dated cheque of the maturity amount of policy of complainant was prepared on 7.2.2011 and by that time ”Result of Valuation as at 31^st March 2010” were applicable. Denying all other allegations made in the complaint, the OP prayed for dismissal of the complaint. 

3]       Parties led evidence in support of their contentions.

4]       We have heard the learned counsel for the complainant and have also perused the record.

5]       The contention of the complainant, in this complaint, is that the installments paid by him to the OP Corporation was from his hard earned income that must be paid back along with interest as well as damages. It is also contended that the OP Corporation committed breach of trust with the complainant by only giving a cheque of Rs.80,703/- at the time of maturity, instead of giving a cheque of Rs.86,157/-, as per their own statement Annexure C-1.

6]       He further pleaded that the balance amount of Rs.5,454/- may be small in the eyes of OP Corporation, but not for a person, whose such amount is the outcome of his hard earned income.  Furthermore, the OP Corporation has admitted this fact in their reply made formally to him that an amount of Rs.5454/- was shown due to an error, henceforth, the payment of Rs.80,703/- was made correctly to the complainant (Annexure C-3), which is contrary to their previous letter Annexure C-1.

7]       On the other hand, in the written reply, the OP Corporation has explained their position by placing material facts in their favour, specifically mentioned in Paras No.7 & 11 of the reply.  It is stated that as a matter of policy, the processing of a post-dated maturity cheques for the maturity claims, used to start two months prior to the date of maturity and are sent to the policy holders’ in advance all over India. Meaning thereby, the maturity amount i.e. sum assured along with vested bonus, calculated on the basis of bonus rates, applicable at the time of completing the formalities, is paid to the policyholders by way of post-dated cheques prior to the date of maturity. 

8]     The Life Assured i.e. the complainant has survived the date of maturity and further the policy was in full force for the sum assured, so he was entitled for the VESTED BONUS as well as FINAL ADDITIONAL BONUS.

9]       The OP in Para No.7 of their reply categorically stated that the process for payment of maturity amount of the complainant was started in Nov.,2010, so that the maturity amount could be paid to him before the date of maturity of the policy and Intimation of Maturity Claim (Ann.C-1) was generated by their Computer System.  It is also stated that the maturity amount as calculated in intimation letter Annexure C-1 was on the basis of “Result of valuation as at 31^st March 2009” declared on 5^th December, 2009, thereby showing the maturity amount of Rs.86,157/-. 

10]      In Para No.11 of the reply, the OP has submitted that the maturity amount as calculated in payment letter Ann.C-2 and as explained to the complainant by Sh.Vinod Singh, Administrative Officer, on the basis of “Result of Valuation as at 31^st March 2010” (Annexure R-6) comes to Rs.80,703/-.

11]      The OP Corporation made it categorically clear that the maturity claim was settled on 07.02.2011 before the due date of maturity i.e. 28.2.2011 and that there is no provision in the system to correct the bonus rates, once taken by the system at the time of generating the liability.  The correction can be either done in the form of additional payment or deduction, which is apparent/transparent from payment letter Annexure C-2.

12]      The OP Corporation has firmly stated that the correct maturity amount has been paid to the policyholder/complainant and denied any deficiency in service on their part.

13]      Going deeply and carefully into the material facts of the present case, it has been proved that correct maturity amount has been paid to the complainant. Admittedly, there is a difference between the amount mentioned in the post-dated maturity cheque earlier intimated vide Annexure C-1 i.e. Rs.86,157/- and the amount paid later on to the policyholder/complainant at the time of maturity i.e. Rs.80,703/- vide Ann.C-2. It is also an admitted fact that the corrected copy of intimation letter of maturity of claim (Ann.R-5) and the maturity amount as calculated in payment letter Ann.C-2 were sent to the complainant. The payment letter and post-dated cheque of the maturity amount of policy of complainant was prepared on 7.2.2011 and by that time “Result of valuations as at 31^st March 2010” was applicable. The OP Corporation through letter dated 24.2.2011 (Ann.C-3) conveyed to the complainant that inadvertently an amount of Rs.5454/- shown due, was in excess and the payment of Rs.80,703/- was made correctly to him. Therefore, the allegations of the complainant against the OP do not hold any water. On other hand, the OP Corporation has absolutely justified and proved their case statistically, in their favour.

14]      In view of the foregoing, we are of the considered opinion that the present complaint has no merit, weight and substance and deserves to be dismissed. Therefore, the complaint is dismissed.  Parties are left to bear their own costs.

15]      Certified copies of this order be sent to the parties free of charge. The file be consigned.