This case is coming for final hearing on 12.01.2015 in the presence of Sri Adari Apparao, Advocate for the Complainant and Sri T.V.S.K.Kanakaraju, Advocate for 1^st Opposite Party and 2^nd Opposite Party called absent and set exparte and having stood over till this date, the Forum delivered the following:

: O R D E R :

(As per Smt. K.V.R.Maheswari, Honourable President(FAC) on

behalf of the Bench)

1.     The case of the Complainant is that, the Complainant’s father Sri Koteswara Rao during his life time took a Life Pay Money back Policy bearing Policy No834515751 for an amount of Rs.5,00,000/- from the Opposite Parties and paid Rs.44,958/- towards premium and the date of commencement of the policy is 19.02.2011, the Complainant is the nominee of the said policy. While so on 01.03.2011 the Insured fell sick and immediately he was admitted in sri Venkata Harshitha Nursing Home, Chodavaram wherein he was diagnosed to suffer from cardio paralysis. While undergoing treatment, the insured died on 02.03.2011. After one month from the date of death of the insured, the Postman came to the house of the insured and enquired about the insured by stating that one insurance policy bond pertaining to the Opposite Parties is to be delivered to the insured and then the complainant being a Legal-heir of the Insured asked the Postman to deliver the policy bond to him but he refused and said that to collect the Policy from the Opposite Parties itself. After knowing about the Policy, the Complainant searched his house and found Proposal Form belongs to the Opposite Parties and approached 2^nd Opposite Party and requested them to issue copy of Policy Bond. Then the Opposite Parties stated that there is no necessity of the Policy bond, as the Insured has already died and issued Claim Form to the Complainant and directed the complainant to submit the claim form along with proposal form, requisition letter, original medical certificate and original death certificate. Then on 11.05.2011 the Complainant submitted all the required documents to the Opposite Party, but Opposite Party did not issue any acknowledgement. After that there is no response from the Opposite Parties, but after 3 months one person came to the Complainant’s village and enquired about the death of the insured and took statements from the Complainant as well as the villagers. Thereafter there is no response from the Opposite Party even after several enquiries made by the Complainant. Finally in the month of August 2013, the complainant went to the Office of the Opposite Party and enquired about his father’s death claim, then the 2^nd Opposite Party asked the complainant to submit an affidavit for non-submission of policy bond. Then on 19.09.2013 the Complainant submitted the affidavit as sought by the Opposite Parties. On 5.2.2014 the Complainant received repudiation letter dt. 31.01.2014 from the Opposite Parties stating that “the Proposal Form was received by them at their Branch Office on 15.02.2011 and the Policy was issued on 19.02.2011. However, during claim evaluation it has been confirmed that Mr.Koteswararao Boddu had already expired on 26.01.2011, which is prior to signing the proposal form”. Thus the Opposite Parties came to conclusion that the insured died on 26.01.2011 whereas the Insured died on 02.03.2011, even as per death certificate, thus they intentionally avoiding to settle the genuine claim of the Complainant and causes severe mental agony, hardship and financial loss to the Complainant. Hence, this complaint to direct the opposite parties

a)     to pay Claim amount of Rs.5,00,000/- with 24% interest p.a. from 11.05.2011 till date of payment; 

b)     to pay Rs.50,000/- towards compensation besides costs.

2.     On the other hand the Opposite Parties after receiving notices, they filed Settlement Memo on 27.11.2014.

3.     The Opposite Party filed Settlement Memo on 27.11.2014 stating that they are ready to settle the case by paying an amount of Rs.5,00,000/- against Policy No.834515751 as full and final settlement and also stated that upon receipt of the settlement amount the Complainant fully, irrevocably and forever releases and discharges the Opposite Parties from all claims and also requested two weeks time to provide settlement cheque to the Complainant. In that settlement memo the Counsel of the Complainant endorsed “No Objection”. The Counsel of the Opposite Party represented orally that if the order is passed by the Forum then they will issue cheque for an amount of Rs.5,00,000/- towards full and final settlement to the Complainant; which is also agreed by the Complainant’s counsel. Hence as the complainant agreed for that amount the Forum is directed both the Opposite Parties to pay  the Claim amount of Rs.5,00,000/- (Rupees Five lakhs) to the Complainant within two weeks from the date of receipt of the Order, failing which to pay the same with 9% interest from the date of Order.

4.     In the result, the complaint is allowed directing both the opposite parties to pay the Claim amount of Rs.5,00,000/- (Rupees Five lakhs) to the Complainant within two weeks from the date of receipt of the Order, failing which to pay the same with 9% interest from the date of Order till realisation. No Order as to compensation and costs.

Dictated to the Shorthand Writer, transcribed by him, corrected and pronounced by us in the open Forum on this the 3^rd day of March, 2015.

    Sd/-                                                                 Sd/-

Member                                                     President (FAC)

                                                        District Consumer Forum-I 

                                                                        Visakhapatnam

APPENDIX OF EVIDENCE

Exhibits Marked for the Complainant:

Exhibits Marked for the Opposite Parties:

                                        NIL  

     Sd/-                                                               Sd/-

Member                                                     President (FAC)

                                                        District Consumer Forum-I

                                                                Visakhapatnam

//GLR//