DIST. CONSUMER DISPUTES REDRESAL FORUM
NORTH 24 Pgs., BARASAT.
C. C. CASE NO. 01/2014
Date of Filing: Date of Admission Date of Disposal:
03.01.2014 07.01.2014 16.10.2014
PETITIONER = Vs. = O.Ps.
Sabyasachi De P. Sr./ Branch Manager
S/o. Sri Sumanta Kr. Dey Barrackpore, LICI Bank
106 (157/B/1) Talbagan Road(W) Jeevan Jyoti,
P.O.-Nona Chandanpukur Sahid Mangal Pandey Sarani
Barrackpore, 24 Parganas (N), P.O.- Barrackpore, Pin-700120
J U D G E M E N T
Facts of the case, in short, is that the complainant is a policy holder/ customer of L.I.C., vide policy No 427165890.
Due to urgent need of money the said policy was surrendered before the OP and it is found that he paid totally a sum of Rs 48, 992/- as premium amount but the L.I.C. authority had agreed to pay the surrendered value of Rs 32,486/- only to the complainant without any justification and clarification.
Thereafter the complainant send the notice through Ld. Advocate in connection of the said disputes and asked immediate reply about such disputes and after that the complainant sent a letter to the Branch Manager, LICI but till today the OP did not like to pay and heed of attention in connection of the said notice not only that but also became silence till today as a consequence, it is presume there is a huge deficiency of service to the customer of the L.I.C. hence this case.
OP has contested the case by filing written version.
OP stated that the surrender value is a benefit to a policy holder when he terminates his insurance contract with the company. The amount payable in entire of insurance contract before the policy matures is called the surrender
Dictated and corrected Contd. …. 2/-
C. C. Case No.-01/2014
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value of the policy. By virtue of the sub-section 1 of section 113 of Insurance Act, 1938 a policy of life insurance under which premiums have been paid for at least 3 full years, policy will be eligible for the guaranteed surrender value along with cash value of bonus if any. The guaranteed surrender value payable under the policy is specified in the condition of the privileges printed on the back of the policy. The minimum guaranteed surrender value under the policy is equal to 30% of the total premiums paid excluding premium for the first year all extra premium, or additional premium for accident premium, provided premiums have been paid for at least 3 full years. In addition, cash value of any existing vested bonus/ guaranteed addition will also be allowed however, OP Company allows a more liberal surrender value which is called as special surrender value. Special surrender value will be more than guaranteed surrender value at longer durations. Special surrender value is calculated as percentage of paid up value + bonus/guaranteed edition between guaranteed surrender value and special surrender value whichever is more favorable or more to be paid to the policy holder. In short guaranteed surrender value is related with premium amount paid and special surrender value is related to the paid up value.
The surrender value of the policy No. 427165890 is calculated as under:-
Qly Premium: 3062.00
Date of commencement: 22/04/09
FUP: 07/2013
Date of surrender: 29/07/2013
Age at entry=44 years.
Duration of the policy: 22.04.09 to 29.07.13= 4 years 3 months.
CALCULATION OF MONTHLY PREMIUM
Qly Premium =Rs 3062.00
Less Qly premium for accident benefit=Rs 62.50 (Yly A.B. Premium=Rs 250)
Hence monthly premium =Rs 1000.00
CALCULATION OF MATURITY SUM ASSURED (M.S.A.)
M.S.A. for Rs 100/-monthly premium at age 44 for 4 years term=Rs 3363.00
Hence MSA for Rs 1000/-monthly premium at age 44 for 4 years term
= Rs 33630.00
M.S.A. for Rs 100/-monthly premium at age 44 for 5 years term=Rs 4349.00
Hence M.S.A. for Rs 1000/-monthly premium at age 44 for 5 years term
=Rs 43490.00
Dictated and corrected Contd. …. 3/-
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Hence by mathematical interpolation M.S.A. Rs 1000/- monthly premium at age 44 for 4 years 3 months= (Rs 4349.00-Rs 33630.00)*3/12=Rs 33630
=Rs 2465+ Rs 33630/-=Rs 36095/-
Surrender value=Rs 36095*90%=Rs 32486.00
Point for Decision:-
Whether the complainant is entitled to get any relief as prayed for?
Decision with Reasons
Admittedly the complainant was policy holder of LICI. OP and the said policy was surrender after completion of 4 and ½ years and at the time of surrender the complainant paid total premium amount of Rs 48,992/- but the OP authority only pay Rs 32,486/- to the complainant without showing any valid reason, for deduction of the rest amount and OP did not reply to the notice of the Ld. Advocate. Complainant filed the affidavit in chief along with the annexure for perusal of the Forum. According of the complainant the classification of the assessment and less payment of amount not perfect at all. Following manner in the W/V:-
The surrender value of the policy No. 427165890 is calculated as under:-
Qly Premium: 3062.00
Date of commencement: 22/04/09
FUP: 07/2013
Date of surrender: 29/07/2013
Age at entry=44 years.
Duration of the policy: 22.04.09 to 29.07.13= 4 years 3 months.
CALCULATION OF MONTHLY PREMIUM
Qly Premium =Rs 3062.00
Less Qly premium for accident benefit=Rs 62.50 (Yly A.B. Premium=Rs 250)
Hence monthly premium =Rs 1000.00
CALCULATION OF MATURITY SUM ASSURED (M.S.A.)
M.S.A. for Rs 100/-monthly premium at age 44 for 4 years term=Rs 3363.00
Hence MSA for Rs 1000/-monthly premium at age 44 for 4 years term
= Rs 33630.00
M.S.A. for Rs 100/-monthly premium at age 44 for 5 years term=Rs 4349.00
Hence M.S.A. for Rs 1000/-monthly premium at age 44 for 5 years term
=Rs 43490.00
Dictated and corrected Contd. …. 4/-
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Hence by mathematical interpolation M.S.A. Rs 1000/- monthly premium at age 44 for 4 years 3 months= (Rs 4349.00-Rs 33630.00)*3/12=Rs 33630
=Rs 2465+ Rs 33630/-=Rs 36095/-
Surrender value=Rs 36095*90%=Rs 32486.00
In support of such assessment OP filed document annexure-A, annexure-B, annexure-C, annexure D. we have carefully perused all the annexure and we are of the view that there is nothing to interfere in the assessment of the OP. There was no deficiency of service on behalf of the OP. Hence the complainant is entitled to get any relief as prayed for.
Hence
It is ordered,
that the complaint and same be dismissed on contest.
Parties to bear to their own cost.
Let copies of the order be supplied to the parties free of cost when applied for.
Member President
Dictated & Corrected by me.
