Sri Kamal De, President

The case of the complainant in short is that:

He purchases one life insurance policy namely LIC’s JEEVAN SARAL (with Profit), Table 165, being policy no. 498582693 from the OP and the said policy commenced on 11.02.2009 and the date of maturity on 11.02.2024. The complainant paid the premium of the said policy regularly. He took a loan of Rs23196/- from the OP on 16.01.2016 against the said policy. Surprisingly when the complainant went to pay the premium in Feb 2016 at the office of the Op, he came to know that the said LIC policy has already been surrendered on 16.01.2016. but the complainant never surrendered his policy. On 07.03.2016 the complainant prayed to the OP for restoration of the said policy. OP vide a reply letter dtd. 09.03.2016 stated that due to mistake the policy was surrendered on 16.01.2016 and asked the complainant to refund the loan value of Rs.23196/-. The cause of action arose on 09.03.2016. OP by filing W/V has stated that the policy holder applied for loan on 13.01.2016 and the Branch Office through oversight paid surrender value instead of policy loan on 16.01.2016 for Rs.23196/- which was directly credited to the A/c of policy holder through NEFT. The mistake was noted subsequently when the policy holder came to pay the premium due for 02/2016. On 09.03.2016 the Haldia B.O. acknowledged and regretted the mistake. B.O. also took necessary measures and restored the policy. It is stated that the amount of loan payable under the policy as on 16.01.2016 was Rs.20850/- whereas the complainant availed the amount of Rs.23196/- as policy loan resulting no financial loss. The OP has prayed for dropping the proceeding.

Point for determination

Whether the complainant is entitled to get relief, as prayed for?

Decision with reason

We have glossed over the documents filed from the sided of both parties. It appears that the amount of loan payable under the policy is 90% of the deposited amount. The amount of loan accordingly payable under the policy as on 16.01.2016 was Rs.20850/-. The complainant received an amount of Rs.23196/-. It appears that through oversight the Branch Office paid the surrender value instead of policy loan amounting RS.23196/-. OP, LICI, as we find paid surrender value instead of policy loan. OP, LICI has also valued the complainant’s application dtd. 07.03.2016 by rectifying the status of the policy of the complainant – in force and converted the surrender value paid under the policy to outstanding policy loan of Rs.23196/-. It also appears that broken period interest on policy loan of Rs.702/- falls due on 11.08.2016 and half yearly interest @ Rs.1160/- will fall due on 11.02 and 11.08 each year respectively. It appears that complainant has not suffered any loss. We think that OP, LICI, did not deprive the claimant, on the contrary, the OP, LICI, has provided extra benefit to the complainant for their mistake. We, however, think that complainant has borne litigation cost in this case. We think that the complainant is entitled to litigation cost as such. We do not think that complainant has sustained any mental agony.

Hence,

ORDERED

That the instant case being no. CC/34/2016 be and the same is allowed in part against the OP. OP, LICI, is directed to pay an amount of Rs.10000/- to the complainant as litigation cost, within 30 days from the date of this order, i.d. the complainant will be at liberty to put the order into execution in accordance to law and in that case Op will be liable to pay an amount of Rs.100/- per diem till full and final payment.