This C.C. is coming before us for final hearing, in the presence of Sri. K. Satyanarayana, Advocate for Complainant, and in the presence of Sri. K.Prabhakar Rao, Advocate for opposite parties; upon perusing the material papers on record; upon hearing the arguments and having stood over for consideration, this Forum passed the following:-
O R D E R
(Per Sri R. Kiran Kumar, Member)
This complaint is filed under section 12(1) of the Consumer Protection Act, 1986. The brief facts of the complaint are that the complainant is the mother of late Gaddamidi Ramulamma and is resident of Tirumalapuram Village of Nelakondapalli Mandal, Khammam District, the daughter of the complainant had taken Postal Life Insurance, RPLI Policy bearing No. EA213398 with effect from 28-01-2004 from the post office of opposite party No.4, by put the complainant as nominee to the said policy, the daughter of the complainant paying monthly premiums @124/- per month regularly, unfortunately daughter of the complainant died on 09-12-2006 due to ill health. After the death of her daughter, complainant filed a claim application to opposite party No.4, which is local branch post office, seeking all policy benefits under RPLI Policy No.EA213398, the complainant approached the opposite party No.4 and made correspondence with opposite party no.1 to 3 for getting death benefits of her daughter. After lapse of 2 years period, as there is no compliance from any of the opposite parties, on 11-12-2008, complainant received a letter from opposite party No.1, wherein opposite parties denied to pay the death benefits with an objection that the policy premiums paid on 01-04-2005 fro the period from 09/2004 to 03/2005 and for the period from 12/205 to 05/2006 premiums paid on 30-06-2006 after lapse of the policy. Also submitted that the opposite parties received the policy premium without any objection during the life time of the policyholder, after receiving the policy premium, opposite parties cannot escape from their liability under the pretext that the policy was lapsed, the complainant being nominee of G.Ramulamma, she is entitled for the death benefits, as such the complainant approached the Forum for redressal.
2. On behalf of the complainant the following documents were filed and marked as exhibits A1-A9.
Ex.A1:- Office copy of Legal Notice got issued against all the
Opposite parties.
Ex.A2:- Postal Receipts No.890 to 893 (4Nos.)
Ex.A3:- Postal Acknowledgements (3Nos.).
Ex.A4:- Premium payment Receipts (14Nos.).
Ex.A5:- Photostat copy of Postal Certificate vide Policy No.
EA213398, got issued by the Superintendent of Post Offices,
Khammam Division.
Ex.A6:- Acknowledgement issued by Opposite party No.4, while
receiving Original Policy Certificate dated 08-12-2006.
Ex.A7:- Letter issued by the opposite party No.1 vide L. No.
RPLI/VJ/Death Claim/EA-213398, dated 11-12-2008.
Ex.A8:- Lr.No.RPLI/VJ/Death Claim/EA-213398/refund/08, issued
by the opposite party No.1, dated 11-12-2008.
Ex A9:- Good Health Certificate and Declaration submitted by the
insurant dated 31-03-2005.
3. On receipt of the notices, the opposite parties appeared through their counsel and filed their counter. In the counter, the opposite parties admitted taking of the policy by the daughter of the complainant. In the counter, opposite parties submitted that the proponent paid premium from September 2004 to March 2005 on 01-04-2005 and as per the rules the proponent fails to pay the premium amount for more than 6 months continuously the policy automatically become lapsed, if the proponent intends to continue the policy she has to submit the good Health certificate and Good Health declaration on the date of revival application, the same was informed to the policyholder at the time of issuing policy. And also submitted that the policy holder again paid premium on 30-06-2006 for the period of December 2005 to May 2006 after completion of 7 months period, and did not apply for revival of policy and further paid premium up to December 2006. The nominee of the proponent Smt. R. Ramulamma, complainant herein applied for policy death benefits, the same was examined by the first opposite party and found that the policy stands lapsed as premium was not paid regularly from the month of September 2004 and Policy became lapsed as per rule 39 & 41 of POIF and claim will not sanctioned in respect of lapsed policy as the proponent did not submit the medical health certificates for revival of policy even in two occasions and it amounts to breach of the contract. And also contended that the amount of Rs.3,472/- was refunded to the complainant on 11-12-2008 after the lapsation of policy, there is no negligence and deficiency of service on their part and acted as per rules and regulations of the POIF and also submitted that the Forum has no jurisdiction to entertain the complaint and prayed to dismiss the same.
4. On behalf of the opposite parties, no documents filed.
5. On behalf of both parties written arguments filed.
6. Upon perusing the material papers on record, basing on their arguments, now the points that arose for consideration are,
- Whether the complainant is entitled for the claim?
- To what relief?
POINT No.1:- In this case, the daughter of the complainant, by name G.Ramulamma, had obtained Postal RPLI Policy, bearing No. EA213398 for an amount of Rs.25,000/- with effect from 28-01-2004 from opposite parties by put the complainant as nominee. G.Ramulamma, died on 09-12-2006 due to ill health. After death of her daughter, the complainant submitted claim application to opposite party No.4 seeking all policy benefits under the policy. After lapse of two years, complainant received a letter from opposite parties on 11-12-2008 stating that the policy was lapsed due to non-submission of Good Health Certificate and Good Health Declaration by the insurer during her life time and the opposite parties paid the premium amount with effect from 09/2004 to 12/2006. After receiving the letter from opposite parties, the complainant approached the Forum for death benefits.
It is evident from record that the opposite party No.4 collected the premium amounts from the daughter of the complainant all the months up to 12/2006. After the death of the policyholder the complainant submitted claim application to the opposite parties. After lapse of two years the opposite parties in their letter dated 11-12-2008, the last premium paid by the policyholder is as 30-06-2006. But it is evident from record that the policyholder paid the premium till 12/2006. And also the policyholder submitted Good Health Certificate and declaration form to the opposite parties, which is marked as Ex.A9. From the above, it is evident that as on the date of death of policyholder the policy was in force. The opposite parties taken objection in their letter dated 11-12-2008 “the policy stands lapsed”, is nothing but deficiency of service on their part. To prove their contention the opposite parties failed to produce any material. As such this point is answered accordingly in favour of the complainant.
POINT No.2:- In the result, the complaint is allowed directing the opposite parties to pay all the benefits of the insurance policy bearing No. EA213398 with interest @9% per annum from the date of death of the policyholder i.e. 09-04-2006 till payment and also granted Rs.2000/- towards costs of the litigation.
Typed my dictation, corrected and pronounced by us in the open forum on this day of August, 2010.
PRESIDENT MEMBER MEMBER
DISTRICT CONSUMERS FORUM, KHAMMAM
APPENDIX OF EVIDENCE
Witnesses examined for complainant: -None-
Witnesses examined for opposite parties: -None-
Exhibits marked for complainant:
Ex.A1:- Office copy of Legal Notice got issued against all the
Opposite parties.
Ex.A2:- Postal Receipts No.890 to 893 (4Nos.)
Ex.A3:- Postal Acknowledgements (3Nos.).
Ex.A4:- Premium payment Receipts (14Nos.).
Ex.A5:- Photostat copy of Postal Certificate vide Policy No.
EA213398 got issued by the Supdt. of Post Offices,
Khammam Division.
Ex.A6:- Acknowledgement issued by Opposite party No.4, while
receiving Original Policy Certificate, dated 08-12-2006.
Ex.A7:- Letter issued by the opposite party No.1 vide L. No.
RPLI/VJ/Death Claim/EA-213398, dated 11-12-2008.
Ex.A8:- Lr.No.RPLI/VJ/Death Claim/EA-213398/refund/08, issued
by the opposite party No.1, dated 11-12-2008.
Ex A9:- Good Health Certificate and Declaration submitted by the
insurant dated 31-03-2005.
Exhibits marked for opposite parties:
-Nil-
PRESIDENT MEMBER MEMBER
DISTRICT CONSUMERS FORUM, KHAMMAM
