Present         (1)    Nisha Nath Ojha,   

                              District & Sessions Judge (Retd.)                                                                     President

                    (2)     Sri Sheo Shankar Prasad Singh,

                              Member

                    (3)     Smt. Karishma Mandal

                              Member

Date of Order : - 23.06.2015

                    Sheo Shankar Prasad Singh

1. In the instant case the Complainant has sought for following reliefs against the Opposite parties:-

1. To pay the sum insured i.e. Rs. 5,00,000/- ( Rupees Five Lakh only ) with interest @ 12% per annum from the date of filing of this case till full and final payment.
2. To pay Rs. 3,00,000/- ( Three Lac only ) as Compensation for inconvenience harassment and mental tension.
3. To pay Rs. 5,000/- ( Rupees Five Thousand only ) as litigation cost.

2. Brief facts of the case which led to the filing of complaint are as follows:-

1. The proposal form for life Insurance Policy with New Jeevan Shree ) was properly filled without concealing any material fact and information required by the insurer and the same was submitted along with relevant document in the prescribed manner.
2. The opposite party no. 1 after detail enquiry and examination accepted the said proposal and issued the documents bearing Policy No. 512476083. ( Vide Annexure – 1 )
3. The complainant’s father duly discharged the obligation and liabilities as imposed upon him under such policy.
4. The complainant’s father died on 09.08.2012. ( Vide Annexure – 2 )
5. The complainant being nominee in the said policy informed to the opposite party no. 3 that his father died on 09.08.2012. Then he was asked to submit the Claim / Application. Then in pursuance of such direction, the complainant submitted the claim form along with relevant documents in the prescribed manner. ( Vide Annexure – 3 )
6. The complainant approached the opposite party no. 3 several times and requested him to take necessary steps from his own level for settlement of the Claim but except giving assurance, no steps has been taken by the opposite party no. 3 to redress the grievance of complainant.
7. The complainant also approached the opposite party no. 2 and produced the copy of all relevant documents before him and requested to take appropriate steps and to settle the Claim preferred by him but he totally ignored the request made by the complainant.
8. The complainant because of the delay and inaction on the part of opposite parties are in great predicament. It is duty of Insurance Company to act without inordinate delay, even then the opposite party no. 1 has not bothered to redress the grievance of the complainant by disposing of his Claim till date.

3. The Opposite Parties in their Written Statement as well as Supplementary Written Statement has submitted as follows :-

1. In addition to written statement, opposite parties submits that the complainant is bad for non – joinder of the Oriental Bank of Commerce, a body corporate constituted under the Banking Companies ( A acquisition and transfer of under taking ) Act 1970.
2. The complainant was the nominee at the time of inception of the policy, but the deceased, life assured had assigned the policy in favour of the “ Oriental bank of Commerce ” on 31.08.2006. Thus the title stands in favour of the assignee and not with the complainant/nominee. Hence, regarding payment of the death claim, Oriental bank of Commerce is necessary party. But Bank has not been made the party.
3. It is well settled in law that a nomination stands cancelled when a policy is assigned in favour of a person, Bank or Financial Institution as during the period of assignment it is the assignee who is entitled to receive all the benefits under the policy subject however, to the terms and condition of agreement between the life assured and the assignee. When the financial obligations are met by the life assured and upon information/released by the assignee the assignment is cancelled by the LICI, the life assured has to file fresh nomination.
4. Due to death of life insured, re-assignment had not been registered. Thus complainant is not at all the nominee. It should be noted that any nomination becomes null & void after the execution of assignment. Hence complainant is not entitled to file complaint petition because his nomination has not been done.
5. This complaint is filed by the complainant as nominee. But it appears that nomination has been cancelled and re- nomination has not been done, hence he is not entitled to file complaint before forum.
6. It is also worthwhile to mention here that the suit, in fact concerned with succession/ title of the complainant which is not within the jurisdiction of this forum, rather for the said purpose only civil suit is the only way under the law for the complainant.

Prior to going into the merit of the case we would like to place on record order of Hon’ble Court passed in CWJC No. 24540 of 2013on 05.08.2014 wherein the Hon’ble Court has passed following order.

“ ******** learned counsel for the petitioners submits that the petitioners had to file this writ application only because the respondent Life Insurance Corporation of India ( hereinafter referred to as ‘ the L.I.C.’ ) has not even cared to file its written statement in the District Consumer Forum where the petitioners have moved for the same relief of making payment of the bond in question.

In the considered opinion of its Court if the L.I.C. of India has already been made party before the District Consumer Forum, Patna in Case No. 360/2013, the authorities of the L.I.C. owe a duty to ensure that they come out with their stand with regard to admitting or otherwise the claim of the petitioners.

In that view of matter, while this Court will not for the time being give any direction to the L.I.C. for making payment because of pendency of the matter before the District Consumer Forum, Patna but the respondent authorities of the L.I.C. are hereby directed to ensure that they must do all the needful in pursuing and prosecuting the issue in question pending before the District Consumer Forum, Patna within a period of receipt of this order. If the authorities of the L.I.C. would not file their written statement in the aforesaid period in the District Consumer Forum it will be always open to consumer form to decide the matter exparte on the basis of material available on record and of course in accordance with law.

With the aforementioned observation and direction, this application is disposed of ”.

We have perused the order of Hon’ble Court as also the documents available on the record and have heard the learned counsel of the parties at length.

On going through the case record we have come to a conclusion that the complainant is claiming insurance amount of being nominee of original policy holder who has got himself insured with Life Insurance Corporation of India and in which the complainant was nominee but during the insurance period the complainant got a loan sanctioned in his favour by the Oriental Bank of Commerce and the moment loan was sanctioned against the policy in question the policy was assigned to the Bank.

Thereafter when the loan was repaid the Bank requested through their letter dated 09.03.2013 ( Annexure – 1 of supplementary affidavit of the complainant ) to the Life Insurance Corporation of India to reassign the policy in favour of original policy holder but unfortunately the complainant was no more at that time as he died on 09.08.2012 and as such the policy was not reassigned to the original policy holder and ultimately there was no such nominee of that policy and on this score the Life Insurance Corporation of India repudiated the claim of the complainant who claims himself to be nominee of the policy holder on the basis of original policy bond.

Taking all the facts into consideration we are also of the opinion that since the policy was not reassigned to the original policy holder as such the claim of the complainant cannot be accepted.

Thus this case stands dismissed.

However the complainant is at liberty to approach the proper Court/ Forum for redressal of his grievance in accordance with law.

                                        Member                           Member                          President