Per Shri Dhanraj Khamatkar – Hon’ble Presiding Judicial Member:

(1)                This appeal takes an exception to an order passed by the Consumer Disputes Redressal Forum, District Thane, dated 14/07/2003 in Consumer Complaint No.33/2003.

(2)                The facts leading to this appeal can be summarized as under:

The Complainant had taken a life insurance policy bearing Annuity Policy No.920041325 on 01/08/1988 for the amount of Rs.24,000/-.  The policy was for 15 years.  The Policy matured on 01/08/2002.  On maturity he was entitled for the maturity amount and bonus accrued.  However, the Opponent only paid him a maturity amount.  The Complainant had informed the Appellant/Original Opponent by letter dated 18/07/2002, however, he had received the evasive reply from the Appellant/Opponent.  He had sent a reminder.  However, there was no response.  Hence, the Complainant filed consumer complaint claiming following reliefs:

(a) The opponent be directed to disclose the amount of bonus, accrued to the policy of the complainant.

(b) The opponent be directed to pay to this complainant the amount of bonus accrued to the policy of complainant at the time of its maturity i.e. 1-8-2002.

(c)  This complainant be granted compensation of Rs.1,000/-.

(d) Such other and further relief that may be just necessary and proper to grant be granted to this Complainant.

(3)                The District Forum after hearing both the parties has allowed the complaint and directed the Appellant/original Opponent to disclose the amount of bonus accrued to the policy and pay the bonus accrued to the Complainant within a period of 30 days, failing which the amount will carry interest @18% per annum along with compensation of Rs.1,000/- and Rs.1,000/- as costs.  Being aggrieved by the order the present appeal is filed by the original Opponent.

(4)                Heard both sides.  Admittedly, the Respondent/original Complainant had taken an Annuity Policy No.920041325 on 01.08.1988 for the period of 15 years.  The policy matured on 01.08.2002 and the Appellant/Original Opponent paid the maturity amount.  However, the Appellant/original Opponent had not paid the bonus and hence, the Respondent/original Complainant filed the consumer complaint.

(5)                The Ld.Counsel Mr.Rajiv Chavan, has drawn our attention to the condition of bonus.  In the original policy it is specifically written that:

“Bonus under this policy will accrue in two stages: firstly at the end of deferment period as addition to the ‘GIVE” and proportionately increasing the annuity; and secondly, as addition to the “GIVE” payable on death.   The bonuses will be at the rates declared by the Corporation at the valuation immediately preceding the relevant event and will be subject to such conditions or restrictions as specified on such declaration.”

As the policy matured in the year 2002 the preceding this relevant event is the bonus declared on 31^st August, 2001.  In the said declaration it is specifically stated that ‘no final (additional) bonus has been declared in respect of annuity policies’.  The Ld.Counsel therefore contended that as in the preceding year no bonus has been declared in respect of annuity policies, the Respondent/original Complainant is not entitled for the bonus on the policy.

(6)                The District Forum has failed to consider this important condition of the policy and arrived at the conclusions which are against the conditions of the policy.  The Ld.Counsel for the Respondent had tried to point out that his policy matured on 01.08.2002 and the circular relied by the Ld.Counsel for the Appellant is after the date of maturity.  We are not convinced with the argument of the Ld.Counsel for the Respondent.  Life Insurance policy is a contract and conditions of the policy are binding on both the parties.  As per the conditions of the policy the Appellant Insurance Company had not declared the bonus on the annuity policy in the preceding year and hence, there is no deficiency in service of the Appellant in not paying the bonus on the policy.

(7)                In view of the aforesaid facts, the decision of the District Forum cannot sustain in the eyes of law and hence, we are constrained to set aside the order passed by the District Forum.  We hold accordingly and pass the following order:

O  R  D  E  R

         (i)              The appeal is allowed.

       (ii)              The order passed by the Consumer Disputes Redressal Forum, District Thane  is set aside.

     (iii)              In the result Consumer Complaint No.33/2003 stands dismissed.

     (iv)              No order as to costs.

Pronounced

Dated  18^th August, 2011.