District Consumer Disputes Redressal Forum

Dakshin Dinajpur, W. Bengal

(Old Sub-Jail Municipal Market Complex, 2^nd Floor, Balurghat Dakshin Dinajpur Pin - 733101)

Telefax: (03522)-270013

Present          

Shri Sambhunath Chatterjee              - President

Miss. Swapna Saha                            - Member

Shri Siddhartha Ganguli                      - Member

Consumer Complaint No. 41/2015

Ratan Chaki (age about 55 years)

S/o Late Sailendra Nath Chaki

Vill.: Dhaka Colony, Ward No.21 of Balurghat Municipality

PO & P.S.: Balurghat,

(Mobile No. 9474380769

Dist. Dakshin Dinajpur                      …………………Complainant(s)

V-E-R-S-U-S

1.   The Branch Manager,

      Life Insurance Corporation of India, Balurghat Branch

      LIC Building, Chakbhabani, (Beside PNB Balurghat Branch)

      PO & PS: Balurghat

      Dist.: Dakshin Dinajpur-733101   

2.   Narayan Chandra Basak,

      S/o Late Nakul Chandra Basak,

      Agent Code No.: 01938599 of LICI

      Residing at –

      Vill.: Congress Para

      PO & PS : Balurghat

      Dist.: Dakshin Dinajpur- 733101 ………..……Opposite  Parties

Ld. Advocate(s):

For complainant          ………………  - Shri Santanu Dey

For OP No. 1              ………………  - Shri Dibakar Bhattacharya

For OP No. 2              ………………  - Shri Kaustav Kiron Basak

Date of Filing                                       : 17.11.2015

Date of Disposal                                 : 11.02.2016

                                                                                                Contd…P/2

Judgment & Order  dt. 11.02.2016

            Fact of the case in brief is that the complainant purchased one Jeevan Saral policy from Life Insurance Corporation of India, OP No.1 and the OP-2 was the agent through whom the policy was purchased. Before purchase of the said policy the OP-2 had demonstrated about the benefit, coverage and importance of Jeevan Saral policy to the complainant with a help of one advertisement sheet of LICI, wherefrom it appears that the said policy will give 100% maturity value on surrender after completion of 5 years and double maturity value on surrender after 10 years.

            The complainant paid 6 premiums @ Rs.24,020 per year i.e. Rs.1,44,120/- and the premium was paid upto 12^th November, 2015. With the surrendering of the above policy the complainant claimed the maturity sum assured but the OP-1 gave Rs.95,615/- the complainant made request to the OP-1 to pay the rest amount of maturity sum assured i.e. Rs.78,905, but the OP-1 did not give any response to the claim made by the complainant, as such the complainant hade to file the complaint before Assistant Director, C.A.& F.B.P, Dakshin Dinajpur, R.O. at Balurghat, but since no relief could be given to the complainant for which the complainant had to file this case praying for amount of maturity of sum assured i.e Rs.78,905/- plus interest and compensation as well as litigation cost of Rs.10,000/-.

            The OP No.1 contested the case by filing written version whereby the OP No. 1 admitted that the complainant was the policyholder and it was specifically stated that the complainant has not got 100% of the paid premium and he can not claim the benefit of 10 years continuous of the policy, since he failed to deposit the premium upt to 10 years. Op no.1 has refunded the amount as complainant was entitled to get and there was no laches on the part of the OP-1 and the

                                                                                                Contd…P/3

complainant was not deprived of any legal claim for which he was entitled to get. In view of the said fact that the OP-1 has prayed for dismissal of the case.

            The OP No.2 contested the case by filing written version and specifically stated that according to the policy advertisement sheet it was  specifically stated that if 5 years or more years premium are paid then 100% maturity sum assured (nor the maturity value) would be paid. If it is surrendered and accordingly amount of Rs. 95,615/- had already been paid by the OP No. 1 to the complainant. It is important to note that since the age of entry of the complainant of 49 years for the said policy and terms of the policy is more than 5 years less than 6 years as he surrendered policy value before completion of 6 years though the actual terms of the said policy was 10 years. Since the amount claimed by the complainant was paid by the OP-1 which is the maturity sum assured on being surrendered the said policy after 5 years before completion of 6 years and under no circumstances the complainant will be entitled to get Rs.78,905/- and accordingly the OP-2 has prayed for dismissal of the case.

            Points for decision.

1. Whether the complainant is the policyholder?
2. Whether the complainant will get the actual sum paid by him towards the policy?
3. Whether the complainant will be entitled to get the balance amount of Rs.78,905/-?
4. Whether the OP-1 paid the actual amount as per norms prevailing in case of surrender the policy before the maturity period?
5. Is the complainant will be entitled to get relief as prayed for?

DECISION  WITH  REASONS

            All the points are taken together for the sake of brevity and avoidance of repetition of facts.

                                                                                                Contd…P/4

            Ld. Counsel for the complainant in order to prove the case has filed some documents including the policy, voter ID card, original receipts and advertisement sheet letter claiming the balance amount and also order sheet by which the Ld. Assistant Director, CA & FBP expressed his inability to dispose of the case and the Xerox passbook etc those documents have been marked as exhibits 1 to 9 respectively. The complainant also filed an affidavit-in-chief whereby he stated that he will be entitled to get the amount of Rs.78,905/-.

            Ld. Counsel for the complainant argued at length and he also submitted written argument whereby the complainant categorically stated that OP-1 without any cogent reason repudiated the claim of the complainant. Ld. Counsel emphasized that the complainant paid 6 premiums @ Rs.24,020 per year i.e. paid Rs. 1,44,000/- and the complainant surrendered the said policy in order to get 100% maturity sum assured of the said policy after 5 years. But the OP-1 illegally paid the amount of Rs. 95,615/- instead of Rs.1.74,520/- accordingly the complainant has claimed Rs.78,905/-. Due to such payment of lesser amount the complainant has suffered financial lose as such the complainant has prayed for the relief including compensation as well as interest.

            The Ld. Counsel for the OP-1 argued that as per terms & conditions of the said policy in case of surrendering of the said policy before the maturity period and on the basis of the premium paid by the complainant a calculation was made and said calculation was also mentioned in the written argument, wherein it was stated that the basic monthly premium was Rs.2,000/- as per tabulation of rate of maturity sum assured equal to 4,868/- and maturity sum assured was Rs. 4,868 x20 = Rs.97,360/- and since the policy was surrendered after 5 years 7 months the rate of discount was 0.75 yearly and discounting factor was (-) 3/12 = 1+ 0.075 = 0.98208 ( rate of discount was 0.75% yearly) was

                                                                                                Contd…P/5

the value calculated in the manner i.e. Rs.97,360 – 0.98208 = 95,615/-. In view of the said calculation the OP-1 paid the actual surrendered amount of Rs.95,615/- and not the claim made by the complainant of Rs.78,905/-. In view of the said fact that the Ld. Counsel prayed for dismissal of the case.

            Ld. Counsel for the OPs supported the argument as advanced by the Ld. Counsel for the OP-1 and emphasized that the calculation made by the OP-1 is correct and there was no mis-calculation for which the complainant can be paid further amount of Rs.78,905/-.

            Considering the submission of the respective parties on the perusal of the documents filed by the complainant we find that the complainant was policyholder and he failed to continue the policy for 10 years for which the benefit accrued to him could have been claimed by him. But here in this case it is found that the complainant surrendered the policy after 5 years 9 months and if the complainant would have completed the policy for 10 years then the complainant could have been entitled to receive Rs.1,14,520/-.

            Since the OP-1 is a public sector institution and day to day activities of the insurance company cannot be done in surreptitious manner and table annexed with the written objection clearly shows that on the basis of the said table the complainant paid the premium and it is also an admitted fact that the complainant before completion of 6 years surrendered the policy. From the materials on record it is found that the OP-1 calculated the amount as per norms and the surrender value of the policy was given on the basis of the calculation made by the OP-1 as per the norms prevailing and as such we hold that the complainant was never deprived of any amount claimed by the complainant. On perusal of the record we found that the calculation as made by OP-1 as mentioned in written argument was correct and the OP -2 being the

                                                                                                Contd…P/6

 agent of the said LICI supported the said calculation and on the basis of the said fact that we found that the claim made by the complainant is false and frivolous and the complainant will not be entitled to get any relief as prayed for.

             Hence, it is

                                                O R D E R E D

            that the instant petition of complaint CC No.41/2015 is dismissed on contest without any cost.

            Let a plain copy of this order be furnished to the parties forthwith free of cost.

            Dictated & corrected

            ………….….…….                                                      

            (S. N. Chatterjee)                                                       

                President                                                                

            We concur,

            ………..……                                                   …………..……..

              (S. Saha)                                                            (S. Ganguli) 

               Member                                                                Member

1. Date when free copy was issued                         ……………………
2. Date of application for certified copy       ……………………
3. Date when copy was made ready            ……………………
4. Date of delivery                                        ……………………

FREE COPY [Reg. 18(6)]

1. Mode of dispatch                                ……………………
2. Date of dispatch                                  ……………………

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