BEFORE THE DISTRICT CONSUMER’S FORUM: KURNOOL

Present: Sri.Y.Reddappa Reddy, M.A., L.L.M., President,

And

Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Thursday the 23^rd day of April, 2015

C.C.No.96/2014

Between:

K.Srilakshmi,

W/o B.Lakshmi Narayana Setty,

H.No.19/9, 2^nd Floor,

Beside China Ammavari Sala,

Flower Bazaar, Kurnool-518 001.                                               …Complainant

                                                                   -Vs-

1. The Managing Director,

    Reliance Life Insurance Company Limited,

    H-Block, 1^st Floor,

    Dirubhai Ambani Knowledge City,

    Navi Mumbai-400 710, Maharastra.

2. The Branch Manager,

    Reliance Life Insurance Company Limited,

    Ground Floor, H.No.40/319,

    RMK Plaza, Opp.Zilla Parishad,

    Kurnool-518 001.                                                         …OPPOSITE PARTIES

This complaint is coming on this day for orders in the presence of Sri.P.Siva Sudarsha, Advocate for complainant and Sri.M.Murali Mohan, Advocate for opposite parties 1 and 2 and upon perusing the material papers on record, the Forum made the following.    

                                                      ORDER

(As per Smt. S.Nazeerunnisa, Lady Member,)

 C.C. No.96/2014

1.       This complaint is filed under section 11 and 12 of Consumer Protection Act, 1986 praying:-

1. To revive the policy bearing No.10038261 of the complainant.

2. To direct the opposite parties to pay a sum of Rs.25,000/- towards mental agony.

3. To direct the opposite parties to a pay a sum of Rs.10,000/- towards cost of the complaint.

And

4. To grant any other relief as Honourable Forum deems fit and proper in the circumstances of the case.

2.    The complainant in brief run as follows:-  The complainant insured her life with opposite  party No.1 through opposite party No.2 under the policy bearing No.10038261.  The complainant availed loan of Rs.22,000/- on 18.04.2011 on the said policy and regularly paid the loan interest to opposite parties. The complainant paid the loan interest outstanding amount of Rs.7,130/- on 11.04.2014 to opposite party under the receipt No.WC0022185789 as per the letter dated 23.02.2014. Though the interest paid by the complainant, the opposite parties sent a letter dated 29.04.2014 to the complainant stating that the above said policy had been foreclosed as the complainant not paid interest arrears.  The complainant approached opposite party No.2, and shown the receipt and requested for revival of policy.  But the opposite parties did not respond for the same.  Due to the negligent attitude of opposite parties the complainant suffered lot of mental agony and opposite parties are liable to pay compensation to the complainant.  Hence this complaint.

3.       Opposite party No.2, adopted the same written version filed by opposite party No.1.  Opposite party No.1 filed written version stating that the complaint is false, frivolous, and vexatious and is gross misuse of process of law and is not maintainable either in law or on facts of the case.  It is admitted that the opposite parties issued policy in favour of the complainant and he availed a loan against aforesaid policy on 18.04.2011.  The complainant’s outstanding loan amount along with the interest thereon has exceeded the surrender value of the said policy.  So the opposite parties issued a letter on 23.03.2014 and intimated the complainant to make payment within 15 days.  Despites the information, the complainant paid interest amount on 11.04.2014 after 15 days from the date of intimation letter.  Therefore the opposite parties had foreclosed the said policy due to non payment of interest arrears as per the terms and conditions of policy.  There is neither deficiency of service on the part of opposite parties nor mental agony been caused to the complainant.  The complaint is liable to be dismissed.

4.       On behalf of the complainant filed Ex.A1 to Ex.A4 are marked and sworn affidavit of complainant is filed.  On behalf of the opposite parties filed Ex.B1 and Ex.B2 are marked and sworn affidavit of opposite party No.1 is filed.

5.       Written arguments not filed.

6.       Now the points that arise for consideration are:

1. Whether there is deficiency of service on the part of opposite parties? 

2. Whether the complainant is entitled for the reliefs as prayed for?

3. To what relief?

7.      POINTS i and ii:-  Admittedly the opposite parties issued policy bearing No.10038261 for an assured  sum of Rs.1,00,000/- in favour of the complainant.  The photo copy of policy along with proposal form is marked as Ex.A4.  Admittedly the complainant availed a loan of Rs.22,000/- on 18.04.2011 against aforesaid said policy.  It is the case of the complainant that as per the intimation letter dated 23.03.2014, which is marked as Ex.A2, the complainant paid the load interest outstanding amount of Rs.7,130/- on 11.04.2014 to opposite parties under the receipt No.WC0022185789, it is marked as Ex.A1.  Though the complainant paid the interest amount the opposite parties negligently foreclosed the said policy and intimated the same to the complainant through letter dated 29.04.2014, which is marked as Ex.A3. After receipt of Ex.A3 the complainant approached opposite party No.2, and requested for revival of policy.  But they did not take any steps for revival of policy.  Due to the negligent attitude of opposite parties, the complainant forced to come to Forum and suffered lot of mental agony.  It the case of opposite parties that the complainant loan amount along with the interest there has exceeded the outstanding surrender value of the said policy.  Thus the opposite parties intimated the same to the complainant under Ex.A2 and foreclosed the policy as per terms and conditions and intimated to the complainant under Ex.A3.    The opposite parties filed policy copy along with terms and conditions, which is marked as Ex.B1.  The opposite parties filed written version and sworn affidavit on behalf of them.  During the pendency of a case before the District Forum, Kurnool, the opposite parties revive the policy bearing No.10038261 on 01.04.2015 in favour of the complainant.  The opposite party filed reinstatement of policy copy which is marked as Ex.B2.

There is no dispute with regard to issuance of policy in favour of complainant and availed of loan and payment of interest.  The opposite parties filed reinstatement of policy copy bearing No.10038261 during the pending of a case before the District Forum.  Due to the negligent attitude of opposite parties, the complainant is compelled to be come to the Forum and had incurred expenditure and suffered mental agony.   Hence the complainant is entitled for compensation towards mental agony.

8.      POINT No.iii: The complainant prayed for revival of policy and compensation of Rs.25,000/- for mental agony.  There is no need to direct for revival of policy as the opposite parties already revive the above said policy during the pendency of a case.  Basing on the material available on record, facts and circumstances of the case, we hold that opposite parties caused mental agony to the complainant.  Hence we direct the opposite parties to pay compensation of Rs.2,500/- (two thousand five hundred only) towards mental agony and Rs.1,000/- as  costs of the case.

9.       In the result, the complaint is partly allowed directing the opposite parties jointly and severally liable to pay compensation of Rs.2,500/- (two thousand five hundred only) towards mental agony and Rs.1,000/- as costs of the case. Time for compliance is one month from the date of receipt of this order.

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 23^th day of April, 2015.

          Sd/-                                                                                         Sd/-

LADY MEMBER                                                                          PRESIDENT

APPENDIX OF EVIDENCE 

   Witnesses Examined

For the complainant: Nil                                    For the opposite parties: Nil

List of exhibits marked for the complainant:-

Ex.A1           Photo copy of Renewal premium receipt dated 11.04.2014.

Ex.A2          Photo copy of the letter of the opposite parties to the complainant                       dated 23.03.2014.

Ex.A3          Photo copy of the letter opposite parties to the complainant                                 dated 29.04.2014.

Ex.A4          Photo of the complainant along with proposal of policy receipt and                     agreement dated 23.08.2014.

List of exhibits marked for the opposite parties:-

Ex.B1                   Photo copy of the policy along with terms and conditions.

Ex.B2                   Photo copy of Letter of Reinstatement of policy No.10038261, dated

                   01.04.2015.                  

          Sd/-                                                                                         Sd/-

LADY MEMBER                                                                          PRESIDENT

// Certified free copy communicated under Rule 4 (10) of the A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties    :

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