DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,  BARNALA, CAMP COURT AT AMRITSAR, PUNJAB.

 

Complaint Case No : RBT/CC/2018/340

Date of Institution : 11.05.2018/29.11.2021

Date of Decision : 09.09.2022

Sh. Arjun Kumar Nahar son of Late Sh. Sohan Lal, Resident of House No. 59, Opposite Bhabha High School, Tung Bala, Majitha Road, Amritsar. 

  …Complainant

Versus

1. Life Insurance Corporation, Head Office at 1st Floor, Yogakeshema Control Office, Jeewan Bhima Marg, Post Box No. 19953, Nariman Point, Mumbai, Maharashtra-400021 through its authorized signatory/ Manager/Branch Manager. 

2. Life Insurance Corporation, Unit No. 1, Nr. Suraj Chand Tara Cinema, Near Bus Stand, Amritsar through its authorized signatory/Branch Manager. 

3. Ashwani Kumar Agent of LIC, Code No. 10098143, DO Code No. 5007047, Life Insurance Corporation, Unit No. 1, Nr. Suraj Chand Tara Cinema, Near Bus Stand, Amritsar.

…Opposite Parties

Complaint U/S 12 and 13 of The Consumer Protection Act 1986

Present: Sh. Ajay Shanker Adv counsel for the complainant.

Sh. SK Vyas Adv counsel for opposite parties No. 1 and 2.

Opposite party No. 3 exparte.

Quorum.-

1. Sh. Ashish Kumar Grover : President

2. Sh. Navdeep Kumar Garg : Member

(ORDER BY ASHISH KUMAR GROVER PRESIDENT):

    The present complaint has been received by transfer from District Consumer Commission, Amritsar in compliance of the order dated 26.11.2021 of the Hon'ble State Consumer Disputes Redressal Commission, Punjab, Chandigarh. The complainant filed the present complaint under Section 12 and 13 of the Consumer Protection Act against Life Insurance Corporation, Mumabi and others. (in short the opposite parties). 

2. The facts leading to the present complaint as stated by the complainant are that the brother of the complainant namely Vijay Nahar had purchased two policies bearing No. 473979399 commenced on 28.8.2015 for a sum assured of Rs. 1,25,000/- on a quarterly rest of premium of Rs. 1,189/- and another policy No. 473948584 which was commenced on 28.3.2015 for sum assured of Rs. 2,00,000/- on a quarterly rest of premium of Rs. 2,477/- through opposite party No. 3. Vijay Nahar appointed nominee to the complainant in the policy No. 473979399 and appointed nominee Sh. Deepak Nahar his son in the policy bearing No. 473948584 because legally wedded wife of Sh. Vijay Nahar had already expired. Vijay Nahar has expired on 25.2.2017. Vijay Nahar during his life time has been paying quarterly installments/ premium in both the policies and Vijay Nahar has paid his last installment in the month of November 2016. Due date for the payment of premium was 28.2.2017 but unfortunately Vijay Nahar expired on 25.2.2017 at Guru Ram Dass Hospital due to which the due installments could not be paid to the LIC. Both the nominees were dependent upon the income of Vijay Nahar so after the death of Vijay Nahar both the nominees could not paid the rest installments to the LIC. As per nomination of the policies both the nominees are entitled to get the amount of sum assured as involved in the insurance policies which were being purchased and paid by Vijay Nahar. After the death of Vijay Nahar the complainant time and again requested the opposite parties to issue policy amount but to no effect. Thereafter, the complainant also served legal notice to the opposite parties on 9.4.2018 but no reply or any answer was given by the opposite parties which amounts to deficiency in service and unfair trade practice.  Hence, the present complaint is filed seeking the following reliefs.-

1) The opposite parties may be directed to pay the amount of Rs. 3,25,000/- as involved in both the insurance policies as mentioned above alongwith interest at the rate of 18% per annum.      

2) To pay Rs. 1,00,000/- on account of compensation for harassment and mental tension.

3) To pay Rs. 25,000/- as cost of legal expenses.

4) Any other relief to which the complainant is found entitled. 

3. Upon notice of this complaint, the opposite parties No. 1 and 2 filed written version taking preliminary objections on the grounds that the present complaint is not maintainable. Further, the complaint is bad for non joinder of necessary parties as Deepak Nahar son of the deceased has not been impleaded as party to the present complaint. Further, the complainant who alleged himself to be brother of the deceased policyholder has no right to claim any amount as he is not class one heir of the deceased and unless he produces succession certificate issued by the competent court of law his claim cannot be considered. Further, policies issued in the name of the deceased have already lapsed due to non payment of premium by the policyholder so opposite party is not liable to pay any amount to the complainant or any other person. Further, the complainant has failed to submit any document regarding the death of the policyholder accompanied by claim form and documents required for considering the claim if any because of non receipt of said documents and claim form only the opposite party can investigate regarding entitlement or non entitlement of the claim amount and to consider payment of the claim amount if any to any person.

4. On merits, it is submitted that the complainant has not submitted any claim form alongwith documents required for claim amount to the opposite party. The insured paid last premium in respect of policy No. 473948584 on 19.12.2016 whereas in respect of policy No. 473979399 no premium was deposited by the policyholder after 28.11.2016 which was to be paid on quarterly basis in spite of issuance of demand notice to the insured and as such the policies were lapsed due to non payment of premium by the insured during his life time so nothing is payable under the said lapsed policies at this stage. Further, no claim form duly filled alongwith documents required for considering the claim have been submitted with the opposite party except filing of present complaint so the present complaint is premature and cannot be entertained at this stage. Lastly the opposite parties prayed for the dismissal of the present complaint with costs. 

5. The opposite party No. 3 preferred to remain exparte.

6. In support of his complaint, the complainant tendered in evidence his affidavit Ex.C-1 alongwith documents Ex.C-2 to Ex.C-11 and closed the evidence. 

7. To rebut the case of the complainant the opposite parties No. 1 and 2 tendered in evidence affidavit of Rajinder Kumar Ex.OP-1, copy of photograph Ex.OP-2, copy of proposal form Ex.OP-3, copy of the reply on questionary Ex.OP-4, copy of aadhaar card Ex.OP-5, copy of statement of proposer Ex.OP-6, copy of statement of account Ex.OP-7, copy of the policy Ex.OP-8, copy of the endorsement Ex.OP-9 and closed the evidence. 

8. We have heard the learned counsel for the parties and have gone through the record on the file carefully.

9. It is admitted fact between the parties that late brother of the complainant namely Vijay Nahar purchased two policies bearing Nos. 473979399 Ex.OP-8 and 473948584 from the opposite parties. It is also admitted by the opposite parties No. 1 and 2 that Late Vijay Nahar paid the last premium of policy No. 473979399 on 28.11.2016 and of policy No. 473948584 on 19.12.2016 and premium was paid by him on quarterly basis and next premium will be due in the month of February 2017 so both the policies are active and not lapsed. 

10. Further, to prove the death of Vijay Nahar the complainant filed his copy of death certificate as Ex.C-5, which duly proved on the file that Vijay Nahar died on 25.2.2017. Further, the complainant also filed copies of receipts Ex.C-2 to Ex.C-4 vide which Late Vijay Nahar paid the installments of the policy No. 473979399 and Ex.C-7 to Ex.C-9 vide which paid the installments of policy No. 473948584. It is also proved on the file that vide copy of proposal form of policy No. 473979399 Ex.OP-3 and copy of policy Ex.OP-8 that complainant Arjun Nahar brother of Vijay Nahar is the nominee in this policy, but it is pertinent to mention here that the nominee is only the trustee of the amount. In this way, the complainant proved on the file that Vijay Nahar purchased two policies from the opposite parties No. 1 and 2 and he died on 25.2.2017 vide death certificate Ex.C-5. As the due premiums were also paid by Late Vijay Nahar so the policies are not lapsed. As it is proved on the file that Vijay Nahar died on 25.2.2017 and policies are not lapsed, therefore, in our view the opposite parties No. 1 and 2 are liable to pay the sum insured amount of Rs. 3,25,000/- of both the policies. The opposite parties repudiated the claim on unreasonable grounds.

11. The opposite parties have also taken objection that the complainant who is brother of the deceased policyholder has no right to claim any amount as he is not class one heir of the deceased and unless he produces succession certificate issued by the competent court of law his claim cannot be considered. They further also taken objection that Deepak Nahar son of the deceased has not been impleaded as party to the present complaint who is nominee in the policy No. 473948584. In our view also the complainant is not the Class one legal heir of Late Vijay Nahar and in present complaint Legal Heirs are not impleaded as party who are the Class one legal heir of Late Vijay Kumar so in the present matter Succession Certificate is must to receive amount of Rs. 3,25,000/- from the opposite parties.

12. In view of the above discussion, present complaint is partly allowed against the opposite parties No. 1 and 2 and opposite parties No. 1 and 2 are directed to pay the amount of Rs. 3,25,000/- alongwith interest at the rate of 6% per annum from the date of filing of present complaint till actual realization only on receipt of Succession Certificate of Late Vijay Nahar by competent Court of law. The complainant and Deepak Nahar son of the deceased Vijay Nahar are advised to approach the competent court of law to get Succession Certificate, if they desires so. Both the opposite parties No. 1 and 2  jointly and severally liable to comply with this order. Compliance of this order be made within the period of 45 days from the date of the receipt of the copy of this order. Copy of the order will be supplied to the parties by the District Consumer Disputes Redressal Commission, Amritsar as per rules. File be sent back to the District Consumer Disputes Redressal Commission, Amritsar. 

ANNOUNCED IN THE OPEN COMMISSION:

        9th Day of September 2022

 

 

            (Ashish Kumar Grover)

            President

              

(Navdeep Kumar Garg)

Member