Punjab

StateCommission

A/11/1271

LIC of India - Complainant(s)

Versus

Shashi Bhalla - Opp.Party(s)

Rajesh K. Sharma

07 Aug 2015

ORDER

                                                               FIRST ADDITIONAL BENCH

 

STATE  CONSUMER  DISPUTES  REDRESSAL COMMISSION, PUNJAB

          SECTOR 37-A, DAKSHIN MARG, CHANDIGARH.

                                     

                   First Appeal No.1271 of 2011

 

 

                                                Date of Institution: 23.08.2011

                                                Date of Decision : 07.08.2015

 

 

Life Insurance Corporation of India , CBO- 6, Ludhiana Branch Office, Ludhiana 6, Miller Ganj, Gill Road, Ludhiana 141003 through authorized officer, Sh. Rajendra Kumar, Manager (Marketing), Life Insurance Corporation of India, Divisional Office, Jeevan Parkash, Sector 17-B, Chandigarh.                         

                                                                                                                                                                                                                                                                                                                  …..Appellant/Opposite party        

                                      Versus

 

Shashi Bhalla w/o Sh. Subhash Chander Bhalla, M/s M.R. Bhalla Hosiery Chhati Gali, Chowk Saidan, Ludhiana.

 

                                                                                                         … Respondent/Complainant.

 

 

First Appeal against order dated 14.07.2011 passed by the District Consumer Disputes Redressal Forum,  Ludhiana

Quorum:-

          Shri J. S. Klar, Presiding Judicial Member.

          Shri. Harcharan Singh Guram, Member

Present:-

          For the appellant                   :         Sh.Sandeep Bhardwaj, Advocate  

          For the respondent                :         Sh. P.M Goyal, Advocate

 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

J.S KLAR, PRESIDING JUDICIAL MEMBER :-

         

          The appellant of this appeal (the opposite party in the complaint) has directed this appeal against the respondent of this appeal (the complainant in the complaint), challenging order dated 14.07.2011 of District Consumer Disputes Redressal Forum Ludhiana, accepting the complaint of the complainant by directing the OP to pay Rs. 37,600/- along with interest @ 9% per annum to complainant, as this amount was deducted from the maturity value of the policy without hearing the complainant and without giving any notice to him.  The instant appeal has been preferred against the same by OP now appellant..

2.      The complainant Shashi Bhalla has filed  the complaint U/s 12 of the Consumer Protection Act, 1986 (in short, "the Act") against the OP on the averments that she obtained policy no. 160363565 dated 28.01.1991 under the plan/term 014/20, AG Code 727163 from the OP with maturity date as 28.01.2011. The complainant received letter no. M/012011/000032 dated 20.10.2010, vide which the maturity amount of the above-referred policy to the tune of Rs.4,92,400/- was informed. The complainant was directed to complete the requirements in respect of release of maturity amount. The complainant submitted all the relevant documents for the purpose of release of amount received by the OP on 22.12.2010. The complainant was surprised on receiving a cheque bearing no.011941 dated 28.01.2011 for Rs. 4,54,800/- drawn on HDFC Bank, vide their letter dated 22.12.2010. The amount of Rs.37,600/- was deducted out of the maturity amount and only amount of Rs.4,54,800/- was given to complainant. The complainant has alleged that OP un-authorizedly and in an unfair manner deducted the amount of Rs.37,600/- from the maturity amount of the complainant. Instead of releasing the amount of Rs.4,92,400/- to the complainant, OP released the amount of Rs.4,54,800/- only. The complainant has, thus, filed the complaint against OP praying for direction to OP to pay Rs.37,600/- along with interest @ 24% per annum from the date of maturity till its realization, besides Rs.50,000/- for mental harassment.

3.      Upon notice, OP appeared and filed written reply by raising preliminary objections that complaint is not maintainable. On merits, OP admitted the fact that insurance policy no.160363565 dated 28.1.2011 under table 14-20 AG Code 727163 was purchased by complainant from OP with maturity date 28.1.2011. OP further pleaded that complainant took the insurance policy from OP for Rs.2 lac under table 14-20 on 28.01.1991 and it was matured on 28.01.2011. As per the rules, intimation regarding maturity amount payable to the every policyholder is sent three months prior of the maturity date.  OP sent letter dated 20.10.2010 to the complainant being policyholder in which the net amount payable has been mentioned, as Rs.4,92,400/-. The OP had not declared the bonus and bonus was calculated on the basis of bonus chart 2009 in the above-said letters. After issuance of letter, the OP declared the bonus chart on 29.10.2010, which was applicable from 01.01.2011. The amount of Rs.4,54,800/- was paid to the complainant, as per bonus chart 2010. Due to above reasons, complainant has received Rs.37,600/- , as per the bonus declared for the year 2010. OP further averred that amount of Rs.4,54,800/- was due to complainant, as per the bonus chart and OP, thus, prayed for dismissal of the present complaint.

4.      The complainant tendered in evidence, the affidavit of complainant Ex.CW-1/A along with copies of documents Ex.C-1 to Ex.C-3. As against it, OP tendered in evidence the affidavit Sh. Paramveer Manager Legal & H.P.F along with copies of documents Ex.R-1 to Ex.R-5. On conclusion of evidence and arguments, the District Forum, Ludhiana, accepted the complaint of the complainant directing the OP to pay Rs.37,600/- from the date of maturity of the policy i.e. 28.1.2011 to the complainant along with interest @ 9% per annum, besides Rs.2,000/-, as costs of litigation. Dissatisfied with the order of the District Forum Ludhiana dated 14.07.2011, the OP now appellant has preferred this appeal against the same.

5.      We have heard learned counsel for the parties and have also examined the record of the case. We have also examined the written points submitted by counsel for the respondent in this appeal. The point in dispute before us is whether OP  is justified in deducting the amount of Rs.37,600/- from the maturity amount of Rs. 4,92,400/- payable to the complainant in this case on the basis of the policy in question or not? The submission of the complainant is that OP wrote the letter to complainant, vide Ex.C-1 showing the net amount payable, as Rs.4,92,400/- to complainant on 20.10.2010. The OP sent the cheque to the complainant dated 28.1.2011, vide Ex.C-2 for the amount of Rs.4,54,800/- only on the maturity date. The affidavit of Paramveer Manager and Legal & H.P.F Life Insurance Corporation of India of OP Ex.RW-1/A has been considered by us on the record. He stated that bonus was not declared, as per bonus chart. The letter was issued to complainant showing the payable amount of Rs.4,92,400/-. The bonus was calculated on the basis of the bonus chart year 2009 and OP declared the bonus on 29.10.2010, applicable from 01.01.2011. As per the bonus chart 2009, the amount payable to the complainant is calculated as Rs.4,54,800/- . Ex.R-1 is policy document on the record. Ex.R-2 is bonus calculation. Ex.R-3 is valuation as on 31.03.2009 on bonus chart.

6.      We have appraised the above-referred evidence on the record. We conclude that OP themselves wrote letter to complainant, vide Ex.C-1 on 20.10.2010 showing that the net amount payable as Rs.4,92,400/- to complainant on maturity of the insurance policy. Subsequently, the OP wrote another letter Ex.C-3 by which reducing the amount to the extent of Rs.4,54,800/-only. The OP has now invented the plea that bonus was not declared by them earlier and hence it took place due to that reason. The documents on the record have been examined by us with the assistance of counsel for the parties. We find weightage in the submission of counsel for the complainant that any change in the policy cannot be applied with retrospective effect. No amount of policy can be reduced, just before maturity date without giving any opportunity of being heard to complainant to his disadvantage. The OP is, thus, bound to release the maturity amount of Rs.4,92,400/- to complainant. The act of the OP in reducing the amount of Rs.37,600/- out of the maturity amount and thereby bringing it down to the level of 4,54,900/- is unjustified and not tenable. We find that District Forum has rightly appreciated the controversy in this case. Consequently, we find no legal infirmity in the order of the District Forum calling for any interference therein in this appeal.

7.      As a result of our above discussion, we affirm the order of the District Forum Ludhiana dated 14.07.2011, under challenge in this case and resultantly the appeal filed by the appellant/complainant is ordered to be dismissed.

8.      The appellant had deposited an amount of Rs.18,800/- vide receipt dated 23.08.2011 with this Commission at the time of filing the appeal and he also deposited Rs.2000/- vide receipt dated 05.09.2011. Both these amounts with interest, if any, accrued thereon, be refunded by the registry to the complainant by way of crossed cheque/demand draft after  45 days from receipt of copy of this order. Remaining amount shall be paid  by the appellant to the complainant after 45 days from receipt of copy of this order.

9.      Arguments in this appeal were heard on 04.08.2015 and the order was reserved. Copies of the order be communicated to the parties as per rules.

10.    The appeal could not be decided within the statutory period due to heavy pendency of court cases.

 

                                                                          (J. S. KLAR)

                                                          PRESIDING JUDICIAL MEMBER

                       

                                                         

                                                          (HARCHARAN SINGH GURAM)

                                                                             MEMBER

 

August 7,    2015.                                                                

(ravi)