BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah , B.Com B.L., President

And

Sri. M.Krishna  Reddy , M.Sc., M.Phil., Male Member

Monday  the  18^th day of October , 2010

C.C.No 132/09

Between:

B. Basava Linga Murthy, S/o. B.Veeraiah,

H.No. 4/154, Gowlipet, Adoni, Kurnool District-518 301.                           …..Complainant

-Vs-   

1. The Branch Manager, Life Insurance Corporation of India Limited,

   H.No.21/414, R.T.C. Bustand Road, Adoni, Kurnool District-518 301,

2. The Divisional Manager, Life Insurance Corporation of India,

   P.B.No.10, College Road, KADAPA-516 004.                         …Opposite PartieS

                           This complaint is coming on this day for orders in the presence of Sri.P.Siva Sudharshan, Advocate, for complainant, and Sri.I.Anantha Rama Sastry, Advocate for opposite parties and upon perusing the material papers on record, the Forum made the following.

ORDER

(As per Sri. M. Krishna Reddy ,Male Member )

C.C. No. 132/09

1. This complaint is filed under section 11 & 12 of C. P. Act, 1986 praying to direct the OPs

1.   to pay the amount Rs.1,00,000/- with interest at 24% p.a

           from the date of death of policy holder i.,e 25-05-2007 to     

           till the date  of realization to the complainant along with  

           benefits.    

1. to grant a sum of Rs.20,000/- towards mental agony
2. to grant a sum of Rs.5,000/- towards cost of the complaint
3. and grant any other relief as the Hon’ble Forum  deems

           fit and  proper in the circumstances of the case.

1. The case of the complainant in brief is as under:- The complainant’s Junior paternal uncle by name B.Ramesh insured his life with OPs. The OPs issued policy bearing No. 654328402. The insured nominated his son B. Amaresh. Subsequently the policy holder changed the name of the nominee and the complainant was appointed as a nominee. The policy holder died on 02-06-2007. After the death of the policy holder the complainant submitted the claim. The OPs did not pay the assured amount to the complainant. The complainant also got issued legal notice to the OPs. OP.No.2 gave a reply dated 09-02-2009 stating that the original nominee B.Amaresh is entitled to receive the policy amount. Hence the complaint.   

3.     OP.No.2 filed written version and the same is adopted by OP.No.1. It is stated in the written version of OP.No.2 that the complaint is not maintainable. It is admitted that B.Ramesh obtained the policy from the OPs. B.Amaresh was the original nominee under the policy. A form of change of nomination was submitted to the office of OP.No.1. It was received by OP.No.1 on 25-05-2007. The competent authority had not accepted the nomination. The assured died on 02-06-2007. The original nomination infavour of B.Amares son of the deceased is existing. On the date of the death of the deceased B.Amaresh is the nominee under the policy. The complainant is not a consumer. There is no deficiency of service on the part of the OPs. No amount is payable to the complainant . The compliant is liable to be dismissed.

4.     On behalf of the complainant Ex.A1 to A6 are marked and the sworn affidavit of the complainant is filed.  On behalf of the opposite parties Ex.B1 to B5 are marked and sworn affidavit of OP.No.2 is filed.

5.     Both sides filed written arguments. 

6.     The points that arise for consideration are     

(i)     whether there is deficiency of service on the part of the OPs ?

(ii)    whether the complainant is entitled to the relief as prayed for ?.

(iii)    To what relief?

7. Points No.1 &2:- Admittedly B.Ramesh insured his life under the policy bearing No. 654328402. Ex.B1 is the copy of the said policy issued by OPs. There is no dispute about the issuance of the original of Ex.A1 policy by the OPs. Ex.B3 is the original policy. As per the original policy B.Amaresh son of the insured was the nominee. It is the case of the complainant that the insured during his life time nominated him as a nominee to receive the benefits under the policy and subsequently the insured died on 02-06-2007. Admittedly the insured during his life time submitted application for change of nomination.  

Ex.B2 is the form of change of nomination submitted by the B.Ramesh who is the insured. In Ex.B3 original policy the name of the original nominee B.Amaresh is rounded off and the name of the complainant is inserted. As seen from the Ex.B3 policy it is very clear that the complainant was appointed as nominee after cancelling the original nomination. There is no dispute about the death of the insured on   02-06-2007. As the OPs did not pay the amount to the complainant; he got issued legal notice Ex.A4 dated 10-12-2008. The OPs gave a reply notice Ex.B5 stating that the original nomination of the deceased was subsisting as on the date of the death of the insured. If really the original nomination is subsisting it not now as to why the OPs made an entry in Ex.B3 that the complainant is the nominee appointed subsequently. As seen from the records available it is very clear that the insured during his life time changed the nomination and appointed, the complainant as the nominee to receive the benefits under the policy. The OPs did not settle the claim inspite of the legal notice got issued by the complainant. There was deficiency of service on the part of the OPs. The complainant who is the nominee appointed by the insured during his life time is entitled to receive the benefits under the policy. A nominee is not entitled to enjoy the benefits under the policy. He got only right to receive the amount under the policy. It is the legal heirs of the deceased who are entitled to enjoy the benefits due under the policy. The complainant after receipt of the benefits under the policy is under obligation to distribute the same among the class one heirs  of the deceased.

 8 Point No.3:  In the result the complaint is partly allowed directing the OPs jointly and severally to pay the benefits under the policy bearing No. 654328402 to the complainant. The complainant on receipt of the benefits under the policy is bound to distribute the same among the class one heirs of the deceased B.Ramesh. In the circumstances both parties to bear their own costs.

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 18^th day of October,  2010.

         Sd/-                                                         Sd/-

MALE MEMBER                                                  PRESIDENT

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant : Nil            For the opposite parties : Nil

List of exhibits marked for the complainant:-

Ex.A1        Photo copy of Policy copy dt.17-01-2007.

Ex.A2.       Photo copy of Change of nomination.

Ex.A3.       Photo copy of Letter of LIC Adoni dt.25-05-2007.

Ex.A4.       Office copy of legal notice dt.10-12-2008.

Ex.A5.       Postal acknowledgements and receipts.

Ex.A6.       Reply notice of OP2. dt.9-2-2009

List of exhibits marked for the opposite parties: 

Ex.B1.       Proposal form No.9533.

Ex.B2.       Form No.3750. change of nomination

Ex.B3.       Original Policy bond No.654328402

Ex.B4.       Letter dt. 25-05-2007 by OP1.

Ex.B5.       Reply letter dt. 09-02-2009

          Sd/-                                                                        Sd/-

MALE MEMBER                                                            PRESIDENT

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties

Copy was made ready on :

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