This C.C. coming before us for hearing in the presence of Sri K.L. Narasimha Rao,  Advocate for complainant and of Sri K. Uttam Kumar, Advocate for opposite part; upon perusing the material papers on record; upon hearing and having stood over for consideration, this Forum passed the following:-

O R D E R

(Per Smt.V.Vijaya Rekha, Member)

This complaint is filed under section 12(1) of the Consumer Protection Act, 1986. 

2.       The brief facts as stated in the complaint are that the complainant had obtained Met Life Insurance policy bearing No.20843755 under MET100 Platinum plan for an amount of Rs.5,00,000/- on 19-05-2012 by paying Rs.12,805/- towards installment premium for a term of 76 years.  Since then, the complainant has been paying the premiums regularly.  On 17-06-2014 the complainant had paid Rs.12,805/- towards annual premium installment for the year 2014.  Thereafter, he came to know that he has to be paid Rs.280/- extra towards service charges.  Immediately, he paid Rs.500/- on 04-07-2014 to the opposite party through Punjab National Bank, Khammam Branch.   On 16-07-2014 the complainant had received a letter from the opposite party, stating that the policy was lapsed due to late payment, and it returned Rs.500/- through cheque bearing No.368197, dt. 17-07-2014.  The complainant also stated that the opposite party has no right to cancel the policy basing on late payment of service charges of Rs.280/- as the opposite party was already received Rs.12,805/- on 17-06-2014 towards premium installment.  Therefore, alleges the deficiency of service on the part of opposite party and prayed to direct to revive policy by receiving service charges and to pay Rs.10,000/- towards damages for causing physical and mental agony and costs.

3.       In support of his case the complainant had filed affidavit along with documents, marked as exhibits as A1 to A9 (Exhibits A5 to A9 were filed through a petition vide IA.No.48/2015). On behalf of complainant, written arguments were filed by reiterating the same averments as mentioned above.

4.       On being noticed, the opposite party filed counter by submitting that after receipt of duly filled form along with initial premium of Rs.13,078/-, issued policy bearing No.20843755 on 30-05-2012 for Rs.5,00,000/-.  The complainant had paid the premium amounts till 19-05-2013.  After that, he failed to pay premium amounts as due from 19-05-2014, accordingly, the policy was lapsed.  Thereafter, on 19-06-2014 the complainant had paid Rs.12,805/- through Punjab National Bank for said policy, but the name of complainant in the policy and credit advice were not matching, due to which, the amount was not accounted towards policy premium.  Thereafter, the complainant made another payment of Rs.500/- on 07-07-2014, the same was refunded to the complainant vide cheque No.368197, dt. 18-07-2014.  The opposite party also submitted that after receiving of information through a notice regarding payment of Rs.12,805/-, accounted the same into the policy.  further it is also stated that now the complainant has to pay remaining amount of Rs.1390.50Ps to reinstate the policy, in case of non payment of premium within grace period of 30 days, the policy shall lapse subject to non-forfeiture options as contained in the policy.  The owner may reinstate the policy, while the insured is alive, requesting in writing for rein station of policy within 3 years from the date of lapse of policy by providing satisfactory evidence of insurability and by paying all the premium dues together with compound interest as per rate prescribed by the company.  Further it is also stated that every development was timely communicated to the complainant.  Therefore, the present complaint is not maintainable either in law or on facts as there is no deficiency of service on its part and prayed to dismiss the complaint with costs.   

5.       Along with the counter the opposite party filed exhibits B1 and B6.

6.       In view of the above circumstances, now the point that arose for consideration is,

          Whether the complainant is entitled to the relief

                    as prayed for?

Point:-                  

          According to the aforesaid averments and after having perused the material on record, it is clear that the complainant had paid first premium amount of Rs.13,265/- including service tax / add cess / Edu cess to the opposite party in the month of May 2012, upon collecting the same, the opposite party had issued life insurance policy under MET100 Platinum plan for an assured amount of Rs.5,00,000/-, came into existence on 19-05-2012.  As per policy schedule, evidenced under exhibit B4, the life assured has to pay yearly premium till 15 years from the date of policy.  And as per exhibit B4 the date of payment of premium due was mentioned as 19^th May of every year, accordingly, the complainant had paid second premium installment through cheque dt.27-05-2013 for Rs.13,078/- for the year 2013, on receipt of the same, the opposite party issued renewal premium receipt dt. 28-05-2013 for the due date 19-05-2013, evidenced under exhibit A5.  Thereafter, the complainant had paid Rs.12,805/- through Punjab National Bank on 17-06-2014 for the year 2014, marked as exhibit A3, it clearly shows that the complainant had paid said amount after completion of due date i.e. 19^th May of 2014, though, the said amount was paid one day prior to the due date of grace period.  But according to the opposite party, the said amount was not accounted to the policy as the name of policy holder was not matched as mentioned in the policy.  Thereafter, the complainant paid again Rs.500/- on 04-07-2014 towards policy but the opposite party did not receive the same due to lapse of policy from 18-06-2014 due to non-payment of renewal premium within grace period and issued lapse notice on 17-07-2014, and returned Rs.500/- through a cheque, evidenced under Exhibit A1. Exhibit A1 also speaks that the opposite party recommended the complainant to reinstate the policy by following formalities under policy at nearest Punjab National Bank Met Life Branch.  However, the opposite party issued renewal premium receipt on 17-04-2015 by collecting the premium, applicable from 19-05-2014 to 18-05-2015, marked under exhibit A7.  As per Exhibit A8, dt. 21-04-2015 the opposite party issued premium renewal notice for payment of next payable premium for the year 2015.  Upon which, the complainant had paid Rs.13,078/- on 11-05-2015 i.e. while pending the present case through Punjab National Bank i.e. prior to the due date of yearly premium.  After having considered the aforesaid facts, and basing on the material on record we cannot fasten any liability on the part of opposite party towards payment of compensation until and unless establishment of any willful negligence or deficiency of service on its part.  However, it is a fact that the complainant had paid the premium amount for the year 2015-16 prior to the due date.  Therefore, the point is answered accordingly by holding that the opposite party shall renew the policy, applicable for the year 2015-16 under terms and conditions of policy schedule as it is the bounden duty of the insurer.

7.       In the result, the complaint is allowed in part directing the opposite party to issue renewal premium receipt by renewing the policy for the year 2015-16 in favour of complainant within 2 weeks from the date of receipt of this order, failing which, the opposite party shall be liable to pay Rs.2,000/- towards damages. There is no order as to costs.

           Typed to my dictation, corrected by me and pronounced by us, in this Forum on this the 22^nd day of February, 2016.                                                      

                     FAC President              Member

District Consumer Forum, Khammam

APPENDIX OF EVIDENCE

WITNESSES EXAMINED:-

For Complainant:-                                                     For Opposite party:-   

       -None-                                                                           -None-

DOCUMENTS MARKED:-

For Complainant:-                                                     For Opposite party:-   

FAC President               Member

District Consumer Forum, Khammam.