Between:

Sri A.Praveen Kumar, S/o Adinarayana, 25 years,

Balaji Nagar,  Vizianagaram District.                                                                                                                                                                                                                                                                                                           ……Complainant

And

1. Shriram Life Insurance Co.Ltd.,

Rep., by its Manager, Branch Office, Aditya Complex,

Opposite Masid, 3 Lamps Junction, Poolbagh Road, Vizianagaram.

1. Shriram Life Insurance Co.Ltd.,

Rep., by its Chief Operating Officer, Divisional Office,

D/No 1-83-27/1, Plot No.IG-53, MVP Double Road,

Sector – 5, Visakhapatnam.

1. Shriram Life Insurance Co.Ltd.,

Rep.,by its Manager, Registered Office,

3-6-478, III Floor, Anand Estates, Liberty Road,

Himayat Nagar, Hyderabad – 500 029.

                                                                                       ……Opposite parties

          This complaint is coming on for final hearing before us in the presence of Sri B.Satyanarayana, Advocate for the complainant and O.P. 1 called absent, against O.P.2 is dismissed, Sri P.V.Ganesh, Advocate for O.P.3 and having stood over for consideration, the Forum made the following:-

O   R   D   E   R

          This is a complaint filed under Section 12 of Consumer Protection Act seeking the relief to direct the O.Ps. to pay a sum of Rs.2,68,280/- together with interest at 24% p.a., and to pay Rs.1,50,000/- towards damages and to award cost on the following averments:

          The complainant was insisted on by the men of O.Ps. to take Life Insurance Policy to cover the risk of his life and to get some more benefits upon which he has taken policy for a sum of Rs.5 Lakhs.  As per terms and conditions of the policy the complainant had to pay premium amount of  Rs.50,000/- p.a.  The complainant paid the 1^st premium amount upon which the O.Ps have issued a policy bearing No.170308000020.  The complainant paid the 2^nd premium of Rs.50,000/- on 14/11/2009 and 3^rd premium of Rs.50,000/- on 12-10-2010 to the O.Ps. and obtained cash receipts from them.  Though the complainant was complying the terms and conditions of the policy the O.Ps. have issued a warning letter dt.1-3-2012 alleging that he was due two instalments and asked him to pay the said instalments failing which the policy would be cancelled.  The complainant got issued a reply dt.26-6-2012 refuting the allegations made in the warning letter and has stated that he did not commit any default in paying the instalments.  The O.Ps. have issued a letter dt.5-7-2012 contending that the instalment paid through a cheque was bounced in the year 2009 though the complainant infact paid the said instalment by way of cash.   Since the O.Ps. have committed wrong and as there is deficiency of service on their part the complainants suffered a lot.  Hence the complaint.

          Though notice was served on O.P.1, he did not come to the Forum to contest the matter since the complainant filed a memo not pressing the complaint against O.P.2 the said memo was recorded and the complaint was dismissed against O.P.2.  O.P.3 filed counter traversing the material allegations made in the complaint and has averred that the Forum has no jurisdiction to entertain the complaint, as the complainant is not a consumer, and that there is no deficiency of service on their part.

          It is averred that the complainant has taken LIC policy from the O.P. and had paid three premiums but the Manager who was incharge of the company has misappropriated one premium amount and though the Manager having admitted his guilt has repaid a sum of Rs.50,000/- to the complainant, he did not collect any receipt from him.  It is averred that there is no deficiency of service on the part of O.Ps. and as the complaint merits no consideration the same is liable to be dismissed. 

          In furtherance of complainants case the affidavit evidence of complainant is filed and he got marked Ex.A.1 to Ex.A.9.  On behalf of 3^rd O.P. he filed the evidence affidavit of R.W.1 and no documents were marked on their behalf.

          Now the point for consideration is whether the complainant is entitled to get the reliefs as prayed for ?

          Points:-  Basing on the evidence available on record the learned counsel for complainant has contended that the complainant having obtained a policy for assured sum of Rs.5 Lakhs has paid the 1^st instalment and as per terms and conditions of the policy he paid two more annual instalments at the rate   of 50,000/- per annum and though he was regular in payment of premium amount, the O.Ps. issued a warning letter on 1-3-2012 stating that the complainant did not pay the 2^nd and 3^rd premiums and though the complainant gave reply stating that he was regular in paying the premium amount, the O.Ps. again issued another notice denying the payment of premium amount upon which the complainant has lost interest to continue the policy and got issued a notice to the O.Ps. calling upon them to pay the amount paid by him and as there is deficiency of service on the part of O.Ps. is entitled to get the reliefs prayed for. 

As against the above said contention the learned advocate for 3^rd O.P. has contended that the complainant paid the 2^nd premium amount by way of cheque and when the same was presented for collective it was bounced and as the Manager of the Insurance company misappropriated funds and an enquiry was initiated he admitted his guilt and paid the 2^nd premium of Rs.50,000/- to the complainant and as the said Manager did not obtain any receipt from the complainant evidencing the said payment, the latter filed this complaint with false allegations and as the complaint merits no consideration the same is liable to be dismissed.

As seen from Ex.A.1 policy covering letter, the O.Ps. have accepted the proposal and have issued policy document and 1^st premium receipt in favour of complainant.  In the counter filed by the 3^rd O.P. it is clearly averred that the complainant has taken LIC Policy from them and paid 3 premiums and that the Manager of O.P. has misappropriated one of the renewal premium amount paid by the complainant upon which an enquiry was conducted and in the said enquiry the Manager admitted his guilt and paid the premium amount to the complainant but failed to collect a receipt from him. 

In view of the above said stand taken by the O.P. the burden is heavily rests on them to prove that the 2^nd premium amount of Rs.50,000/- was misappropriated by their Manager.  In the counter filed by O.P.3 he did not disclose the name of the Manager who misappropriated the premium amount and as to on what date the said Manager having admitted the guilt paid back the said amount to the complainant.  O.P.3 has taken a plea that 2^nd premium amount was paid through a cheque by the complainant.  But as seen from Ex.A.3 receipt, the complainant paid cash of Rs.50,000/- to the O.P. towards the said premium.  The O.P. did not dispute about the genuiness of the Ex.A.3 receipt.  As per complainant Ex.A.3 receipt is emanated from the office of O.Ps. and the amount covered under the said receipt was received by the men of O.Ps.  As seen from Ex.A.4 receipt the complainant paid the 3^rd premium amount on 12-10-2010.  The O.P. did not dispute the correctness of Ex.A.4 receipt since the above said three receipts were emanated from the office of the O.Ps. and as the O.Ps. did not dispute the correctness of the contents of the said receipts, due weight can be given to the said receipts to believe that the complainant has paid the premium amount to the O.P’s regularly.  But to the surprise the O.Ps. have issued Ex.A.5 warning letter to the complainant stating that the last premium was paid on 27-8-2009 and the premium amount of Rs.50,000/- was due as on 27.8.2010 and the total amount to be paid was Rs.1 Lakh and that the policy issued was lapsed.

After receiving Ex.A.5 notice the complainant got issued Ex.A.6 reply stating that he did not commit any default in paying the premium amount to the O.Ps and the OPs having received reply from the complainant have issued Ex.A.7 letter stating that the complainant has paid two premiums upto 2010 and the premium which was paid through a cheque in the year 2009 was bounced.  The contents of the above said letter are also not true and correct as the complainant has paid the three premium amounts in cash as evident from Ex.A.2 to Ex.A.4.  Since the O.Ps. are not fair in their dealings with complainant in collection of premium amounts from him, the complainant must have suffered mental agony, discomfort and stress.  Since the 3^rd O.P. was not fair in dealing with the complainant and as he issued notices having no just cause the complainant has rightly filed the complaint claiming Rs.1,50,000/- which was paid towards the policy and as suffered mental agony and discomfort, he is entitled to get damages also.

In the result, the complaint is partly allowed directing the O.Ps. to pay a sum of Rs.1,50,000/- with interest @ 9% p.a. from the date of filing this complaint and to pay a sum of Rs.10,000/- (Rupees ten thousand only) towards damages and also to pay Rs.3,000/- (Rupees three thousand only) towards costs which includes the advocate fee of Rs.1,000/- (Rupees one thousand only).  The O.Ps. are directed to comply the order within one month from today.

Dictated to the Typist, transcribed by her, corrected by me and pronounced by us in the open Forum, this the 1^st  day of August, 2014.

Member                                                           President.

CC. 14 of 2013

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

     For P.W.1                                                                  For R.W.1                                                                               

DOCUMENTS MARKED.

For complainant:-

1. Ex.A.1 Policy covering letter dt.27-8-2008 (Original)
2. Ex.A.2 First premium receipt dt.30-7-2008 (Original)
3. Ex.A.3 Second Premium receipt dt.14-11-2009 (Original)
4. Ex.A.4 Third premium receipt dt.12-10-2010 (Original)
5. Ex.A.5 Auto Surrender Warning letter dt.1-3-2012 (Original)
6. Ex.A.6 Reply notice by the complainant (Office copy)
7. Ex.A.7 Reply to the complainant dt.5-7-2012 (Original)
8. Ex.A.8 Registered lawyer’s notice dt.11-8-2012 (Office copy)
9. Ex.A.9 Acknowledgement

For O.P:-   NIL                                                                                                                                                                                President