BEFORE THE DISTRICT CONSUMER’S FORUM: KURNOOL

Present: Sri.Y.Reddappa Reddy, M.A., L.L.M., President,

And

Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Friday the 31^st day of October, 2014

C.C.No.102/2013

Between:

S.Rajeswaramma,

W/o Late S.Vegaiah @ S.Vengaiah @ S.Veagaiah,

H.No.28/851-U3, Visanagar,

Near Gayathri Temple, Nandyal-518 501,

Kurnool District, A.P.                                                     …Complainant

-Vs-

1. The Branch Manager,

          HDFC Standard Life Insurance Company Limited,

          MSR Complex Ground Floor, D.No.25/3,

          Bus Stand Road, Nandyal-518 501.

1. The Authorized Signatory,

          HDFC Standard Life Insurance Company Limited,

          11^th Floor, Lodha Excelus, Apollo Mills Compound,

          NM Joshi Marg, Mahalaxmi,

          Mumbai-400 011.                                                …OPPOSITE PARTIES

This complaint is coming on this day for orders in the presence of Sri.M.Sivaji Rao, Advocate for complainant and opposite parties 1 and 2 called absent and set exparte and upon perusing the material papers on record, the Forum made the following.

  ORDER

  (As per Sri.Y.Reddappa Reddy, President,)

   C.C. No.102/2013

1.       This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying:-

(a)To direct the opposite parties to pay the assured amount along with other benefits with interest at the rate of 24% per annum;

(b)To pay an amount of Rs.25,000/- towards the compensation for causing mental agony and hardships;

(c)To pay the costs of the complaint;

(d)To pass any other such order or orders that are deems to be fit and proper in the circumstances of the case.

2.    The brief facts of the complaint filed by the complainant are: She is the wife of the deceased/insured S.Vengaiah.  He took one HDFC Insurance Assurance Policy for an assured endowment death benefits of Rs.53,344/- along with other benefits from the opposite parties 1 and 2 on 15-11-2010 under policy No.14035758. The term of the policy is 12 years.  Mode of payment as premium is Rs.5,000/- per annum.  Complainant is the nominee.  After obtaining the policy, insured was paying the premium regularly without fail till his death. The last premium was paid by the deceased on 27-11-2012.  During the subsistence of the policy he died on 14-02-2013 by leaving the complainant to succeed, to his estate.   When the complainant submitted claim forms to the opposite parties by claiming the policy amount which is due to her on the death of her husband, they illegally repudiated the claim on the ground that the policy was lapsed on 15-11-2012 itself for nonpayment of premium.  The said fact mentioned in repudiated letter is not correct.  The deceased/insured died while subsistence of the policy issued by the opposite parties.  In spite of repeated requests by the complainant the opposite parties not settled the claim.  On 11-06-2013 the complainant got issued a legal notice to the opposite parties by demanding them to settle the claim to the assured amount with all benefits.  The opposite parties neither replied nor paid any amount.  Hence the complaint.

3.       Notices were issued to the opposite parties.  They were served on them. Both opposite parties 1 and 2 did not choose to appear before this Forum and give reply to the contentions of complainant in the complaint.  Both of them remained absent.

4.       In support of her contention complainant filed sworn affidavit and marked Ex.A1 to Ex.A4. 

5.       Complainant filed written arguments.

6.       Now the points that arise for consideration are:

1. Whether there is deficiency of service on the part of opposite parties?

1. Whether the complainant is entitled for the reliefs as prayed for?

1. To what relief?

7.      POINT No.i:- The relationship between the complainant and the insured is admitted fact.  The policy issued by the opposite parties in favour of the insured i.e., Late S.Vengaiah under policy No.14035758 is also admitted fact.  The term of the policy for 12 years and premium per annum at Rs.5,000/- is also not in-dispute.  According to the complainant the last premium was made by the deceased S.Vengaiah on 27-11-2012.  The receipt of the payment of Rs.5,000/- on 27-11-2012 is acknowledged by the respondent under Ex.A4.  A perusal of Ex.A4 discloses opposite parties acknowledge receipt of an amount of Rs.5,000/- by cash as regular premium towards policy No.14035758.  Ex.A2 discloses opposite parties were unable to process the claim any further as policy lapsed on 15-11-2012 itself much earlier than the death of the deceased on 14-02-2013.  Complainant relied on a decision reported in II (2008) CPJ Page 213. In the said decision the Honourable Punjab State Consumer Disputes Redressal Commission held the conduct of the appellants in accepting the premium from December 2001 till February, 2004 amounts to condoning omission on the part of the insured.  When they did not raise the objection at the proper time, they are estopped to raise the objection at this stage.  They have no right to shift the payment of premium made in February, 2004 to the period up to May, 2003.  In the instant case also opposite parties received a cash of Rs.5,000/- from the insured on 27-11-2012 and acknowledged under Ex.A4 by stating the said amount is towards regular premium of his policy covered under Ex.A1. When they have acknowledged the receipt of amount on 27-11-2012 towards regular premium of Ex.A1, even if some amount fell short for renewal of policy, they ought to have been issued a notice to the insured to pay such amount, to renew the policy.  It is a known fact under LIC Policy also there will be grace period of 30 days to pay the premium amount after expiry of due date for payment of premium.  Opposite parties received the amount of Rs.5,000/- from the insured on 27-11-2012 without any objection and issued receipt under Ex.A4.  They did not bring to the notice of insured at any time during his life time that the policy issued under Ex.A1 was lapsed on 15-11-2012 itself for non-payment of premium amount.  After receipt of letter under Ex.A2, the complainant got issued legal notice under Ex.A3 to opposite parties.  They did not choose to get issue reply to it.  Sending of repudiation letter under Ex.A2 after death of insured, when the claimant submitted claim form is neither fair nor proper on the part of opposite parties.  Thus there is deficiency of service on the part of opposite parties and we answered this point in-favour of complainant and against opposite parties.  Hence the complainant is entitled to receive the amount covered under Ex.A1 along with interest 9% on Rs.53,344/- from the date of issue of the notice i.e., 11-06-2013 till the date of this order. 

8. POINT No.ii:- When the complainant approached the opposite parties for payment of the amount due to her under policy No.14035758 to which she is entitled on the death of her husband, the opposite parties instead of settling the claim, made her to move from pillar to post.  Though she got issued a notice through her counsel to opposite parties by requesting them to settle the claim amicably, they did not respond.  Finally she approached this Forum for appropriate reliefs.  She suffered a lot of mental agony due to the adamant behavior and conduct of the opposite parties; Hence she is entitled to claim a sum of Rs.5,000/- by way of compensation for mental agony and also Rs.2,000/- towards costs of this complaint.

9.      POINT No.iii:- In the result, the complaint is partly allowed. Opposite parties are jointly and severally liable to pay assured amount of Rs.53,344/- along with other benefits due under the policy with interest at 9% from the date of issue of notice i.e., 11-06-2013 till the date of this order and a sum of Rs.5,000/- by way of compensation for mental agony and another sum of Rs.2,000/- towards costs of this opposite parties.  The opposite parties are directed to pay the said amounts within one month from today failing which they are liable to pay interest at 9% per annum on Rs.53,344/- from the date of this order till the date of realization.

          Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 31^th day of October, 2014.

                                                                 Sd/-                                                                                           Sd/-

LADY MEMBER                                                                          PRESIDENT

APPENDIX OF EVIDENCE 

   Witnesses Examined

For the complainant : Nil                      For the opposite parties : Nill

List of exhibits marked for the complainant:-

Ex.A1          Photo copy of HDFC Endowment Assurance Policy No.14035758.                         

Ex.A2          Photo copy of Repudiation Letter Dated 20-05-2013.

Ex.A3          Photo copy of Legal Notice dated 11-06-2013 along with Postal receipts and Acknowledgements.

Ex.A4          Photo copy of Premium Receipt No.ATB11954 dated 27-11-2012.

List of exhibits marked for the opposite parties:- Nil

                                                                  Sd/-                                                                                           Sd/-

LADY MEMBER                                                                          PRESIDENT

    // Certified free copy communicated under Rule 4 (10) of the A.P.S.C.D.R.C. Rules, 1987//

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