This Complaint coming up before us for hearing on                   22-02-12 in the presence of Sri A. Varada Raju, advocate for complainant and of Sri K. Sarat Babu, advocate for opposite party, upon perusing the material on record and having stood over till this day for consideration this Forum made the following:-

O R D E R

Per Sri A. Hazarath Rao,  President:-

        The complainant filed this complaint under section 12 of the Consumer Protection Act seeking Rs.40,000/- along with bonus payable under the policy; interest @24% p.a., from the date of maturity of the policy till realisation; Rs.15,000/- towards mental agony and suffering and for costs.

2.   In brief the averments of the complaint are these:

        On 30-03-05 the complainant took LIC’s future plus policy.   The opposite party issued the policy bearing No.675143998 on receipt of single premium of Rs.40,000/-.   The said policy matured on 30-03-11.   While taking the policy agent of the opposite party informed that the opposite party will pay the amount and accrued bonus after the date of maturity.   The complainant therefore is of the view that the opposite party will pay the policy amount with bonus after the date of maturity.   When approached on 02-04-11 the opposite party informed the complainant that he will pay the amount within a week.   When approached after a week the opposite party informed the complainant that the amount was deposited in pension policy scheme in the name of the complainant. The same was not informed to the complainant at any time.   The opposite party gave reply with false allegations to the notice of the complainant.   The complainant suffered a lot mentally and financially on account of the above attitude of the opposite party.   The above conduct of the opposite party comes under the purview of deficiency of service.   The complaint therefore be allowed.

3.        The opposite party resisted the application contending that as per the terms of the future plus policy bid value of the units held in the policy holder’s account as on the date of maturity will be automatically vested in the pension fund, accumulation of bonus will not arise, the policy holder has an option to commute 1/3 rd of the bid value of the amount if exercises the option six months prior to maturity date, there is no need to get consent from the policy holder from converting the maturity payment to pension fund, the opposite party did not commit any deficiency of service and the complaint may be dismissed.  

4.   Exs.A-1 to A-4 on behalf of the complainant were marked.   No documents were marked on behalf of the opposite party.

5.   Now the points that arose for consideration in this complaint are:

1. Whether the opposite party committed deficiency of service?
2. Whether the complainant is entitled to compensation?
3. To what relief?

6.   POINTS 1 & 2:-        Ex.A-1 policy revealed that the complainant paid Rs.40,000/- and the maturity date was 30-03-11.   Exchange of notices between the parties to the complaint (Exs.A-2 to A-4) are not in dispute.  The contention of the complainant is that agent of the opposite party informed him that he will get the amount of Rs.40,000/- plus bonus after maturity.     The complaint as well as the affidavit of the complainant was silent when he received the policy from the opposite party.   At the column “funds selected” in Ex.A-1 “growth” was mentioned.    It is not the case of the complainant that he immediately brought to the notice of the opposite party about the information given by its agent while taking policy and for return of amount. 

7.   Both parties relied on the terms and conditions mentioned in  Ex.A-1.  At the column ‘maturity benefit’ in Ex.A-1 the following was mentioned:

            “An amount equal to the bid value of the units held in the policy holder’s unit account at the vesting date, after allowing for an option to commute a maximum of 1/3 of the bid value of the units held in the policy holder’s account, shall be compulsorily utilized to provide a pension based on the then prevailing immediate annuity rates and other terms and conditions either from LIC or from any other life insurance company”.

8.   The opposite party did not bring to the notice of this Forum where the time limit was prescribed in Ex.A-1.  It is not the case of the opposite party that it informed the complainant in advance to exercise the option within six months prior to the maturity date.   The above clause is ambiguous when the option has to be exercised either on intimation from the opposite party or voluntarily by policy holder.   Majority policy holders may not be literate.  Under those circumstances, we are of the view that a responsibility is cast on the opposite party to inform policy holders including the complainant much in advance that they have to exercise option and the resultant disadvantage if option is not exercised as per the clause extracted supra.   It is not the case of the complainant that he exercised the option.   The complainant is also not diligent in looking to the terms of the policy soon after he received it.  The opposite party not intimating the exercise of the said option to the complainant in our considered opinion amounted to deficiency of service.

9.   Consumer Protection Act being a beneficial legislation preferring a view benefiting complainant in view of above ambiguity will meet ends of justice.   Under those circumstances, directing the opposite party to refund 1/3 of the bid value of the units as on 27-02-12 will meet ends of justice.

In view of his conduct the complainant is not entitled to any damages.  In view of above discussion, we answer these points accordingly.

10.   POINT No.3:-   In view of above findings in the result the complaint is partly allowed as indicated below:

1. The opposite party is directed to refund 1/3 of the bid value of the units as on 27-02-12.
2. The opposite party is directed to pay Rs.1,000/- (Rupees one thousand only) towards costs of the complaint.
3. The above order shall be complied within a period of six weeks from the date of receipt of the copy of the order failing which the amount mentioned in clause No.1 will carry interest @9% p.a., from 27-02-12 till realisation.

        Typed to my dictation by Junior Stenographer, corrected by me and pronounced in the open Forum dated this the 27^th day of February, 2012.

            MEMBER                                                                                 PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant:

For opposite party:   NIL

  PRESIDENT