This case is coming for final hearing on 23-02-2015 in the presence of Sri S.S.Chalam, Advocate for Complainant and Sri A.Venkateswara Rao, Advocate for Opposite Parties and having stood over till this date, the Forum delivered the following.                                                                                                                                                                                                                                                                                                                                                                                           

: O R D E R :

(As per the Honourable Member Sri V.V.L.Narasimha Rao on behalf of the Bench)

1. The present complaint is filed by the Complainant under Section 12 of C.P.Act on 10.01.2013 against the Opposite Parties 1 & 2. The Complainant requested the Forum to direct the Opposite Parties (1) to refund Rs.30,000/- which was paid to the Opposite Parties vide Policy along with 24% interest from 31.03.2010 along with surrender value till realization (2) to pay Rs.50,000/- compensation for physical and mental agony and to pay costs for litigation.

2. The brief averments are as follows: The complainant has obtained Shri Plus plan policy from the 1^st Opposite Party and as per the said plan the premium every year is Rs.10,000/- and the sum assured is Rs.1,00,000/- which will be given by the Opposite Parties at the time of maturity of the period. After receiving the premium of Rs.10,000/- the Opposite Parties allotted Policy No. LN 110 800032887. The complainant continuously paid 3 premiums/instalments to the Opposite Parties towards Policy renewal on 29.03.2008 vide Receipt No.1891178; 28.03.2009 vide Receipt No.1892216; 29.03.2010 vide Receipt No.0515761. While so as the Policy has to be renewed for the year 2011, the complainant did not paid the premiums to the Opposite Party. That too as the complainant’s health is not well and financial assistance is in need, the complainant has surrendered the policy on 19.10.2012 and requested the Opposite Party to arrange the amounts which were entitled by the complainant as per the terms of the policy. The Opposite Party after receiving the original bonds did not release the surrender value and thereby when the complainant approached Ombudsman, the Ombudsman also advised the Opposite Party to release the same, but the Opposite Party did not hear the request of the complainant. Finally, Complainant got issued Legal Notice on 03.12.2012 and even after receiving the notice also the Opposite Parties did not respond. Hence, as there is no other go the complainant approached the Forum seeking reliefs. 

3. Notices were served to the Opposite Parties 1 & 2. But 1^st Opposite Party has not filed the counter. 2^nd Opposite Party filed counter. The counter of the 2^nd Opposite Party was adopted by the 1^st Opposite Party vide adoption memo dt. 30.04.2014.

4. The Opposite Parties in their version stated that the complainant has taken the Life Insurance Policy Shri Plus vide Policy No.LN110800032887 from the Opposite Party which was commenced from 28.03.2008 for a period of 15 years with an assured amount of Rs.1,00,000/-. After paying the 3 premiums the complainant has not paid the subsequent premiums and thereby the policy is lapsed. Even the complainant has not chosen for revival of the policy which was mentioned under the terms and conditions of the policy. So the complainant is entitled only for surrender value under the clause (11) of the terms and conditions of the policy. When the complainant has submitted his request letter on 19.10.2012 and the Opposite Parties are ready to settle the claim basing upon the surrender value under Clause (11) R/w Cl.4 of the terms and conditions and the complainant refused to take the same. Hence as there is no cause of action for filing the present complaint and hence there is no deficiency on part of Opposite Parties and the present complaint is liable to be dismissed with costs.

5. On perusing the pleadings of both sides, the Forum has framed the following issues for consideration: a) Whether there is any deficiency of service on the part of Opposite Parties; b) To what relief.

6. The complainant has filed her Evidence Affidavit and on her behalf Ex.A1 to A13 were marked. On behalf of Opposite Party Sri E.Sridhar in the capacity of Asst. General Manager filed Evidence Affidavit and on behalf of Opposite Parties. Ex.B1 was marked. The complainant and the Opposite Parties has submitted their written arguments and also adduced their oral arguments.

7. Point Nos.1 & 2: The present complaint is filed by the complainant against Opposite Parties 1 & 2 requesting for refund of amount of Rs.30,000/- which was paid to the Opposite Parties towards premium of the policy No. LN 110 800032887. The Opposite Parties version is that as the complainant has not paid the instalments/premiums for the policy continuously after 3 instalments the policy is lapsed as per  the terms of the policy condition under Clause 4. So the Complainant is entitled for the surrender value only after deducting some charges as per the terms. Even at the time of the arguments also counsel for the Opposite Party stated that observing the clause 11 & clause 7 of the terms and conditions of the policy, the complainant is entitled for the 85% of the units after deducting the stipulated charges defined under Clause-7 of the policy conditions.

8. Exhibit A1 is the bunch of 6 papers related to the policy and terms and conditions are marked as Ex.A1. The 3 receipts for paying Rs.30,000/- to the Opposite Parties towards premium/instalments dt. 29.03.2008, 28.03.2009, 31.03.2009 were marked as Ex.A4. Ex.A6 is the Receipt for Rs.10,000/- vide No.0515761 paid on 29.03.2010 towards premium for the year 2010 and the next instalment date is 2803.2011. Ex.A7 is the letter dt. 19.10.2012 submitted by the complainant to the 2^nd Opposite Party to settle the account as she could not continue the policy and she is requesting to pay the surrender value amount as per terms. Ex.A8 is the findings of the Ombudsman of Insurance in which it was directed to the Opposite Parties to send the bid value statement/surrender value quotation, with suitable reply to the complainant and the same was served to the complainant. Ex.A11 is the legal Notice served to the Opposite Parties 1 & 2 to pay the amount of Rs.30,000/- which was paid by the complainant towards the Policy premiums along with compensation and costs for litigation. Ex.A12 is the Acknowledgement for Ex.A11 Notice. Ex.A13 is the letter dt. 5.12.2012 served to the complainant’s husband and complainant suggestion to collect the surrender proceeds from the local office i.e. 1^st Opposite Party.

9. Though the complainant has stated in the complaint that she is entitled for the Rs.30,000/- along with interest from the Opposite Parties basing upon the surrender value conditions from the Opposite Parties observing the Ex.A4, 3 Receipts dt. 29.03.2008 for Rs.10,000/- (+) 28.03.2009 for Rs.10,000/- (+) 31.03.2009 for Rs.10,000/- (+) Ex.A6 Receipt dt. 29.03.2010 for Rs.10,000/-, it seems the complainant has paid Rs.40,000/- to the Opposite Parties towards 4 premiums and then she kept quiet without paying further instalments. Hence, observing the Ex.B1 document i.e. Cl-4 of Ex.B1 terms and conditions it seems if the policy holder does not revise the policy through the revival period of 2 years and will be terminated by paying the surrender value only. The Clause No.11 of the surrender value defines that the policy can be surrendered at the end of 3 years from the date of commencement and if the policy is surrendered after more than 2 years but less than 3 years, the complainant is entitled only for the 85% of the value of the units. As per clause 7(e) of the terms and conditions 1% of the amount will be charged towards charges for settlement. Observing the version of the Opposite Party at the time of the arguments and the Clause along with Ex.A4 (3 Receipts), Ex.A6 Receipt for Rs.10,000/-, Ex.A7 request for settlement under surrender value and the clauses-11; 4 & Cl.7(e) of the Policy terms and conditions mentioned under Ex.B1, we are of conclusive opinion that the complainant is entitled only for the surrender value of 85% of the value of the units out of 40,000/- which was paid by the complainant to the Opposite Parties vide Ex.A4 & A6. As seen from Clause 7(e) after deducting 1% out of 85% of the surrender value the balance will be paid to the complainant.

10. Observing the Ex.A4 & A6, Complainant has paid Rs.40,000/- to the Opposite Parties towards premium for 4 years. As per Clause-11, the complainant is entitled for 85% of the premium amount i.e. Rs.34,000/- only. After deducting 1% charges stipulated charges under Cl.7(e) i.e. Rs.340/- from Rs.34,000/- the complainant is entitled for an amount of Rs.33,660/- from the Opposite Parties. Here in this matter, the complainant herself is admitting that she is entitled for the settlement under surrender value. Ex.B2 it seems there is no fault on the part of the Opposite Parties and they are ready to settle the same basing upon the surrender value. Even it was admitted by the Opposite Party at the time of the arguments.

11. Hence observing the entire pleadings for both sides basing upon the document we are of conclusive opinion that the complainant is entitled for an amount of Rs.33,660/- from the Opposite Parties 1 & 2 along with interest @ 12% p.a. from Ex.A7 dt. 19.10.2012 till realization. As there is no fault on part of the Opposite Parties and the complainant herself is admitting about the surrender value the complainant is not entitled for any compensation or costs. Accordingly point Nos. 1 & 2 are answered.

12. In the result the complaint is allowed in part. The Opposite Parties 1 & 2 are jointly and severally liable to pay Rs.33,600/- (Rupees Thirty three thousand six hundred) along with interest @ 12% p.a. from 19.10.2012 till realization. No order as to compensation and costs. Time for compliance is 30 days from the date of receipt of this order.

    Dictated to the Stenographer, transcribed by him, corrected by me and pronounced by us in the open Forum on this the 13^th day of March, 2015.

                                

          Sd/-                                                               Sd/-

    President (FAC)                                                        Member                                                                                                        District Consumer Forum – I,

                                                                                  Visakhapatnam

APPENDIX OF EVIDENCE

Exhibits Marked for the Complainant:

Exhibits Marked for the Opposite Parties:

      Sd/-                                                              Sd/-

President (FAC)                                                        Member                               

                                                                    District Consumer Forum – I,

                                                                              Visakhapatnam