DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, BARNALA, PUNJAB.

 

Complaint Case No : CC/6/2021

Date of Institution : 14.01.2021

Date of Decision : 25.03.2022

Saroj Rani widow of Ashok Kumar resident of Sagar Patti, VPO Pakho Kalan, Tehsil Tapa, District Barnala. 

…Complainant

Versus

M/s Life Insurance Corporation of India, Near PWD Office, Bus Stand Road, Rampuraphul, District Bathinda through its Branch Manager.

…Opposite Party

Complaint under Section 35 of the Consumer Protection Act 2019

Present: Sh. RK Singla Adv counsel for complainant.

Sh. JR Garg Adv counsel for opposite party.  

Quorum.-

1. Sh. Ashish Kumar Grover : President

2. Smt. Urmila Kumari : Member

3. Sh. Navdeep Kumar Garg : Member

(ORDER BY ASHISH KUMAR GROVER PRESIDENT):

    The complainant Saroj Rani filed the present complaint under the Consumer Protection Act 2019 against Life Insurance Corporation of India, Rampuraphul. (in short the opposite party). 

2. The facts leading to the present complaint as stated by the complainant are that the complainant's husband Ashok Kumar purchased LIC Jeevan Labh Policy bearing No. 303004961 dated 28.5.2018 from the opposite party and nominated the complainant. The policy has half yearly premium for sum assured of Rs. 5 lacs. Due to lockdown the family of the complainant faced financial crisis and husband of the complainant could not deposit the installment which was due on 28.5.2020. The opposite party told the husband of the complainant due to Covid-19 everyone is facing financial crisis and LIC has launched a scheme which assure that policy will continue and will not lapse and as per husband of complainant can pay the premium with late fee i.e. Revival i.e. Rs. 31,459/- any time up to 10.1.2021 and policy will not lapse and also handed over a letter to the husband of the complainant.

3. It is further alleged that on 3.9.2020 the husband of the complainant died due to heart attack and complainant informed the opposite party regarding this and asked for the settlement of claim but opposite party asked for death certificate of the insured. On 22.9.2020 the complainant submitted all the relevant documents with the opposite party. The complainant visited so many time for settlement of claim but  opposite party avoided the complainant and lastly refused to settle the claim. The complainant asked either to settle the claim or issue the repudiation letter but to no effect. The act of opposite party is deficiency in service and unfair trade practice on their part. Hence, the present complaint is filed seeking the following reliefs.-

1) The opposite party may be directed to pay Rs. 5,00,000/- alongwith interest at the rate of 18% per annum from the date of death i.e. 3.9.2020 till realization. 

2) To pay Rs. 1,00,000/- on account of compensation for mental agony and harassment and Rs. 11,000/- as litigation expenses. 

3) Any other fit relief may also be given. 

4. Upon notice of this complaint, opposite party filed written reply taking preliminary objections that the complainant has no locus standi to file the present complaint. The complainant has not come to this Commission with clean hands and concealed material facts. The present complaint is premature as complainant has not lodged any claim with the opposite party. 

5. On merits, it is denied that the policyholder met the opposite party and narrated the circumstances due to which he could not pay the installment due on 28.5.2020. It is submitted that as per terms and conditions of the policy printed on policy document, policyholder has to pay premium on specified dates within grace period otherwise policy lapse. Moreover letter generated on computer by Agent from his software is just a matter of record regarding revival quotation according to which premium due on 28.5.2020 can be paid with late fee. The LIC has not granted any extension of grace period after the period of 30 days from the due date of premiums payable. The husband of the complainant not paid the premium due towards the said policy so the policy got lapsed due to non payment of premium. Rest of the paras of the complaint are denied by the opposite party. However, it is submitted that no death claim was lodged by the complainant with the opposite party. The life assured died on 3.9.2020 so as per policy FUP is 5/2020 so policy was lapsed on date of death as premiums paid less than three years so nothing is payable under the policy as per terms and conditions of the policy. The opposite party came to know about the death of the DLA for the first time after receipt of the copy of the complaint. As per Forfeiture Regulations if less than three full years premium have been paid and any subsequent premium be not duly paid all the benefit shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable and this premiums paid thereto are also not refundable. A grace period one month but not less than 30 days shall be allowed for payment of yearly or half yearly quarterly premiums and 15 days for monthly premiums. If premium is not paid before the expiry of the days of grace policy lapses. The complainant never visited the opposite party regarding settlement of claim nor submitted any documents with the opposite party.  Lastly, the opposite party prayed for the dismissal of the present complaint with costs. 

6. In support of her complaint, the complainant tendered into evidence her own affidavit Ex.C-1, copy of policy Ex.C-2, copy of receipt Ex.C-3, copy of letter Ex.C-4, copy of death certificate Ex.C-5, copy of letter dated 22.9.2020 Ex.C-6 and closed the evidence. 

7. To rebut the case of the complainant the opposite party tendered in evidence affidavit of Rajesh Bhatia Ex.OP-1, copy of review slip Ex.OP-2, copy of policy bond Ex.OP-3, copy of computerized proposal form Ex.OP-4 and closed the evidence. 

8. We have heard the learned counsel for the parties and have gone through the record on the file. Written arguments also filed by the opposite party. 

9. The complainant has filed the present complaint on account of death claim of her husband namely Ashok Kumar. Ashok Kumar had purchased the insurance policy No. 303004961 in the year 2018 and the premium of the said policy was settled as Rs. 14,838/- half yearly. The husband of the complainant had not deposited the installment of premium due on 28.5.2020 and the husband of the complainant had died on 3.9.2020. The complainant has filed the present complaint for the life insurance claim amount of Rs. 5,00,000/-. 

10. The insurance company filed the written version and mentioned that the husband of the complainant has not deposited the installment of premium due on 28.5.2020. The opposite party further submitted that as per terms and conditions of the policy printed on the policy document policyholder has to pay premium on the specified dates within grace period otherwise police lapsed. The policy of the husband of the complainant was lapsed because he had not deposited the installment of premium due on 28.5.2020. The LIC has not granted the extension of grace period after the period of 30 days from the due date of the premium payable. Due to that the policy in question was lapsed. The opposite party also mentioned in their written version that no death claim was lodged by the complainant with the opposite party. The life assured died on 3.9.2020 so as per policy FUP is 05/2020 so policy was lapsed on date of death as premiums paid less than three years so nothing is payable under the policy as per terms and conditions of the policy. The opposite party alleged that the opposite party came to know about the death of DLA for the first time on receipt of the copy of the complaint. The learned counsel for the opposite party argued that as per terms and conditions of the policy the claim amount is not payable to the complainant as the policy has already lapsed. The learned counsel produced the policy Ex.OP-3 in which the clause 6 of the policy clearly stated that the policyholder has to pay the premium on the due dates specified in the schedule of the policy documents. It is further mentioned in the condition that grace period of one month but not less than 30 days shall be allowed. 

11. The learned counsel for the complainant produced the document Ex.C-4 and argued that the policy can revive up to 10.1.2021 by paying Rs. 31,459/- (945). The learned counsel for the opposite party argued that the policy has already been lapsed. The document produced by the complainant Ex.C-4 is not issued by the opposite party. 

12. In view of the above discussion and as per terms and conditions of the policy, it is established that policy has already been lapsed on the date of death of the husband of the complainant, so complainant is not entitled to get any claim amount as alleged in the complaint. The complaint of the complainant is dismissed. However, no order as to costs or compensation. Copy of the order be supplied to the parties free of costs. File be consigned to the records after its due compliance.

ANNOUNCED IN THE OPEN COMMISSION:

        25th Day of March 2022

 

 

            (Ashish Kumar Grover)

            President

              

(Urmila Kumari)

Member

 

(Navdeep Kumar Garg)

Member