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

And

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

Friday the 5^th day of August, 2011

C.C.No.17/11

Between:

Segu Venkata Subbarayudu, S/o Pedda Venkata Subbaiah,

R/o Jillella Village, Gospadu Mandal, Kurnool District.                                             …Complainant

                   -Vs-

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

   Post Box No.5, Nandyal - 518 502.

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

   Post Box No.10, Jeevan Prakash, College Road, Kadapa - 518 004.

3. The Zonal Manager, Life Insurance Corporation of India,

   Secretariat Road, Zonal Office, Hyderabad - 500 063.                                     …OPPOSITE PARTies

        This complaint is coming on this day for orders in the presence of Sri Ch.Joga Rao, Advocate for complainant and Sri A.S.Ummer Javid Ali, Advocate for opposite parties 1, 2 and 3 for upon perusing the material papers on record, the Forum made the following.

                                              ORDER

(As per Sri. T.Sundara Ramaiah, President)

                                        C.C. No. 17/2011

1.     This complaint is filed under section 12 of C. P. Act, 1986 praying to direct the opposite parties:-       

1. To pay a sum of Rs.3,00,000/- under policy bearing No.653106884 with accrued bonus  and interest at 24% per annum from the date of death of late G.Varalakshumma @ Segu Veralakshmi (Insured) i.e., 21-10-2003.

1. To costs of the complaint;

1. To such other relief or reliefs as the Honourable Forum deems fit and proper in the circumstances of the case and in the interests of justice.

2.    The case of the complainant in brief is as under:- The complainant’s wife late Smt.G.Varalakshumma obtained L.I.C. Policy bearing No.653106884 from the opposite parties.  The policy commenced from 28-03-2003.  The sum assured under the policy is Rs.3,00,000/-.  Yearly premium payable under the policy is Rs.15,530/-.  The said Smt.G.Varalakshumma died on 21-10-2003 due to severe vomitings and motions.   The complainant who is the nominee under the policy intimated about the death of his wife to opposite party No.1.  The complainant personally went to the opposite party No.1’s office in August, 2004 and requested for claim forms.  The complainant after receiving the claim form from opposite party No.1 submitted the same to opposite party No.1 in the month of September, 2004. The complainant personally approached opposite party No.1 number of times, but his claim was not settled.  On 27-03-2010 the opposite party No.2 sent a letter to the complainant stating that the complainant’s claim is time barred and it cannot be entertained.  There was deficiency of service on the part of opposite parties in settling the claim.  Hence the complaint.

3.     Opposite party No.2 filed written version and the same is adopted by opposite parties 1 and 3.  The complaint is not maintainable. It is admitted that the complainant’s wife Smt.G.Varalakshumma insured her L.I.C. with opposite party No.1 corporation under the policy bearing No.653106884.  It is also admitted that the complainant’s wife died on 21-10-2003.   The death intimation was given only on 23-11-2008.  The claim of the complainant is time barred.  Therefore the corporation repudiated the claim and intimated the same to the complainant on 27-03-2010.  The investigation got conducted by corporation revealed that the wife of the complainant died under the suspicious circumstances.  There is no deficiency of service on the part of corporation.  The complaint is liable to be dismissed. 

4.     On behalf of the complainant Ex.A1 to A7 are marked and sworn affidavit of the complainant is filed.  On behalf of the opposite parties Ex.B1 to B3 are marked and sworn affidavit of the opposite party No.2 is filed. 

5.     Both sides filed written arguments.

6.     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 to the reliefs as prayed for?

1. To what relief?

7.      POINTS 1 and 2:- Admittedly Smt.G.Varalakshumma wife of the complainant obtained insured policy Ex.B1 from the Life Insurance Corporation and the same is marked as Ex.B1.  The period of the policy is from 28-03-2003 to 28-03-2023 yearly premium payable under the policy is Rs.15,530/-.  The complainant who is the husband of the Smt.G.Varalakshumma, is the nominee under the policy.  It is also admitted that the complainant wife Smt.G.Varalakshumma died on 21-10-2003.

8.     The complainant filed the present complaint claiming assured amount.  The opposite parties repudiated the claim of the complainant through a letter dated 27-03-2010 stating that the claim is barred by time.  It is further contention of the corporation that the deceased died under the suspicious circumstances. It is stated by the complainant in sworn affidavit that immediately after the death of his wife he intimated the death of his wife to opposite party No.1 and submitted the claim form to opposite party No.1 in the month of September, 2004.  There is no documentary evidence on record to show that the complainant submitted his claim to opposite party No.1 in September, 2004.  According to opposite parties the death intimation was received on 23-11-2008 and the claim was repudiated on 27-03-2010.  Ex.B1 is the policy.  The said policy contains terms and conditions.  In terms and conditions of the policy there is no mention that in case of death of the assured the death intimation should be given to the corporation within the period of three years.  The contention of the opposite parties that the claim of the complainant is barred by time cannot be accepted.  According to opposite parties the death intimation was given by the complainant on 23-11-2008.  The opposite parties repudiated the claim of the complainant on 27-03-2010.  The complainant filed present complaint on 21-10-2010.  The complainant is well in time.  The opposite parties did not place any documentary evidence to show that the insured died under the suspicious circumstances.   According to the complainant his wife died due to severe vomiting and motions.  In Ex.A3 certificate issued by the Gospadu Police Station it is mentioned that the cause of the death of the deceased is severe vomitings and motions.  The opposite parties without any justification repudiated the claim of the complainant.  Admittedly the assured amount is Rs.3,00,000/- under the policy.  The complainant is a nominee under the policy.  It is not the case of the opposite parties that the deceased suppressed the material facts and obtained the policy.  As the insured died on 21-10-2003 when the policy was in force, the complainant who is the nominee under the policy is entitled to the assured amount of Rs.3,00,000/-.  There is deficiency of service on the part of opposite parties.

9.     In result, the complaint is partly allowed directing the opposite parties jointly and severally to pay assured amount of Rs.3,00,000/- to the complainant with subsequent interest at 9% per annum  from the date of the repudiation of the claim i.e., 27-03-2010 till the date of payment along with cost of the Rs.500/-. 

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 5^th day of August, 2011.

        Sd/-                                    Sd/-                                 Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

                                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 policy No.653106884 issued by

opposite party No.1 dated 28-03-2003.

Ex.A2.       Photo copy of death certificate issued Panchayath

                Secretary, Jillella Village, Gospadu Mandal Kurnool District  

dated 20-01-2004.

Ex.A3                Photo copy of Police Clearance Certificate issued by

Sub-Inspector of Police Gospadu Mandal, Kurnool District

dated 03-01-2007.

Ex.A4                Photo copy of Notarized Affidavits of the parents of the

                deceased dated 22-05-2006.

Ex.A5        Photo copy of letter dated 18-12-2006 complainant to       opposite party No.1.

Ex.A6                Office copy of letter by complainant to opposite party No.3.

Ex.A7                Letter dated 27-03-2010 from opposite party No.2 to

complainant.

List of exhibits marked for the opposite parties:-

Ex.B1                Policy No.653106884 issued by opposite party No.1

dated 28-03-2003. 

Ex.B2                Letter dated 22-11-2008 by complainant to

opposite party No.1.

Ex.B3                Office copy of Letter dated 27-03-2010 by

opposite party No.2 to complainant.

        Sd/-                                    Sd/-                                 Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

// 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             :

Copy was dispatched on               :