This C.C. is coming on before us for hearing; in the presence of Sri. A.V. Ramanuja Charyulu, Advocate for opposite parties; and the complainant appeared in person; upon perusing the material papers on record; upon hearing and having stood over for consideration, this Forum passed the following order;

O  R  D  E  R

(Per Sri R. Kiran Kumar, FAC President)

          This Complaint is filed u/s.12-A of Consumer Protection Act, 1986. 

2.       The averments made in the complaint are that the complainant has taken an ULIP policy from the opposite party vide policy No.687060292 for a sum assured of Rs.50,000/- dt. 31-03-2005 and paid the total premium amount of Rs.50,000/- in a single mode on the day itself.  The complainant submitted that after scrutinizing the documents furnished by the complainant and having satisfied the same the opposite party had accepted, received premium amount and issued policy bond in favour of the complainant.  The complainant submitted that according to the terms of the policy, the matured amount will be paid after completion of 7 years and the opposite parties have to pay the matured amount according to the market conditions on or  after the date of maturity of policy.  And as per the policy bond issued by the opposite party, the maturity date is March 2012.  The complainant further submitted that it is the bounden duty of the opposite party to inform the complainant to come and receive the matured amount by surrendering the policy bond.  The complainant further submitted that after matured period, the complainant approached the opposite party and informed that the policy has been matured in the month of March 2012 and requested to issue a cheque for the maturity value but the opposite party did not heed the request of the complainant, even making number of rounds to the office of the opposite party till March 2014.  The complainant also submitted that after lapse of considerable period of 2 years the opposite party had issued a cheque for Rs.34,628/-  to the complainant vide cheque No.9999999, dt. 12-03-2014, according to the status report of the above policy the matured amount payable to the complainant is Rs.1,03,884/-.  The complainant further submitted that after receipt of the above payment the complainant made representation to the opposite party requesting them to pay the balance amount of Rs.69,256/-, and also made several written representation to the opposite party.  The complainant further submitted that the opposite parties avoided to pay the amount which was put to not only inconvenience but also mental agony and loss of interest on the deducted amount of Rs.69,256/- over a period of 3 years, for that the complainant filed this complaint.      

3.       To prove her case, the complainant filed the following documents and the same have been marked as Exs.A-1 to A-5.

Ex.A.1:–Original Status Report of Policy No.687060292,       dt. 05-06-2015.

Ex.A.2:–Photocopy of Aadhar Card.

Ex.A.3:–Photocopy of written representations made by the complainant dt. 27-10-2014 and 13-12-2014.

Ex.A.4:–Photocopy of Medical Certificate issued in favour of the husband of the complainant by Sri Pooja Hospital, Khammam.

Ex.A-5:–Photocopy of written representations made by the complainant to the opposite party, dt. 02-03-2015, and 24-09-2015.

4.       On receipt of Notice opposite party No.1 to 3 appeared through their counsel and filed written version.  In their written version the opposite parties admitted the policy obtained by the complainant.  The opposite parties submitted that it has been clearly mentioned in the first page of the policy bond of the said policy, under the column “Benefits payable on maturity” as “An amount, equal to BID value of units held in policy holders unit account at the vesting date, after allowing for an option to commute a maximum of 1/3^rd of BID value of units held in policy holders unit 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”.  The opposite parties further submitted that maturity benefits under the policy i.e. future plus policy, will be paid only in accordance with the policy conditions of the benefits embodied in the policy bond.  And also submitted that on maturity date the opposite party has to pay maturity amount to the complainant on 31-03-2012 is false and baseless, as per the stipulated benefits of the said policy, on the date of maturity, the life assured has an option to commute 1/3^rd BID value of units held in her unit account as on the date of maturity and balance units will be utilized to provide pension.  The opposite parties further submitted that till March 2014, the branch office, khammam has not received any option to commute 1/3^rd BID value of units held in policy holders account as on the date of maturity, on receipt of option to commute the BID value of units, on 12-03-2014, branch office, Khammam of the opposite parties corporation had settled an amount of Rs.34,628/- being the commuted value (1/3^rd ) of BID value of units i.e. Rs.1,03,884/- as on date of maturity i.e. 31-03-2012.   The opposite parties further submitted that as per the policy conditions / benefits embodied on the front page of the policy bond “An amount, equal to the BID value of units held policy holders unit account at the vesting date, after allowing for an option to commute a maximum of 1/3^rd of BID value of units held in policy holders unit account, shall be compulsorily utilized to provide a pension based on the then prevailing immediate annuity dates and other terms and conditions either from LIC or from any other life insurance company”.  The opposite parties further submitted that as per the policy benefits of the future plus policy, balance amount of value of units, i.e. Rs.69,256/- after settling commuted value was utilized to provide pension and pension at Rs.558/- per month from 03/2012 to 10/2012 paid on 01-11-2014 and from 12/2014 to 10/2015 paid on 01-11-2015 and thereafter, pension at Rs.558/- is being paid regularly every month on 1^st of the immediate month of due month by the JDJA Cell at Zonal Office, Hyderabad  of the opposite parties corporation.   The opposite parties further submitted that as the complainant not yet submitted the life certificate, which is mandatory  for releasing monthly pension amounts, the pension payments could not be made from 11/2015 onwards and pension is being paid as above and hence the question of payment of balance of value units of Rs.69,256/- does not arise.  The opposite parties also submitted that future plus is a pension policy and the policy benefits stipulate compulsory utilization of BID value of units held in policy holders unit account to provide a pension based on the then prevailing immediate annuity rates, therefore, the question of alleged finalizing of claim and payment of alleged deducted amount of Rs.69,256/- does not arise, in view of the aforesaid facts and submissions, prayed to dismiss the complaint.

5.       Heard Oral Arguments.

6.       Upon perusing the material papers on record, now the points that arose for consideration are,  

i)  Whether the complainant is entitled for the claim?

ii) To what relief?

Point:-

i)       In this case, the complainant had obtained LIC future Plus Policy under single premium mode, vide policy No.687060292 commencing from 31-03-2005 for a sum assured amount of Rs.50,000/- from the opposite parties.  According to the complainant the date of maturity was 31-03-2012 and as per the stipulated benefits of the said policy, on the date of maturity, the life assured has an option to commute 1/3^rd of BID value of units held in her unit account as on the date of maturity and balance units be replaced to provide pension.  As per the written version submitted by the opposite parties intimation regarding maturity of policy is sent to concerned policy holders well in advance of 3 months before the date of maturity, by ordinary post.  According to the opposite parties till March 2014, the Branch Office, Khammam has not received any option from the complainant to commute 1/3^rd BID value of units held in policy holders account as on the date of maturity and on receipt of option to commute the BID value of units on 12-03-2014, branch office, khammam of opposite party corporation has settled an amount of Rs.34,628/- being the commuted value (1/3^rd) of BID value of units i.e. Rs.1,03,884/- as on the date of maturity, i.e. 31-03-2012 and balance amount of value of units i.e. Rs.69,256/-. After settling commuted value was utilized to provide pension @ Rs.558/- per month from 03/2012 to 10/2012 paid on 01-11-2014 and from 12/2014 to 10/2015 paid on 01-11-2015 and thereafter, pension @ Rs.558/- is being paid regularly. According to the opposite parties, the complainant had not yet submitted life certificate, which is mandatory for releasing monthly pension amounts, the pension amounts could not be made from 11/2015, as per the policy conditions, pension is being paid as above and they are not liable to pay the balance of value of units of Rs.69,256/-.  As such the complainant approached the Forum for redressal.  

          From the documents and material available on record we observed that the complainant is an old aged woman about 70 years and the policy issued by the opposite parties was matured on 31-03-2012.  As per exhibits A-2 to A-4 the complainant made written representations to the opposite party No.1 through her agent for payment of maturity amount.  As per the written version submitted by the opposite party, till March 2014 the branch office, khammam has not received any option from the policy holder.  The opposite party paid Rs.34,628/- on 12-03-2014 against the maturity value amount of Rs.1,03,884/-.  From the above we observed that the opposite parties failed to produce any evidence to support their contention, i.e. option Form submitted by the complainant and payment particulars of pension paid from 03/2012 to 10/2012 and 12/2014 to 10/2015 and thereafter pension @ Rs.558/- is being paid regularly.  As per Exhibit A-5 letter dt.24-09-2015 the complainant had not received any pension from the opposite parties and the opposite parties failed to produce any evidence to disprove the contention raised by the complainant.  From the above we observed that the complainant is entitled for the maturity amount as on       31-03-2012, as such this point is answered in favour of the complainant.      

ii)      In the result, the complaint is allowed in part directing the opposite parties to pay the balance maturity amount with interest @9% per annum to the complainant, from the date of maturity i.e. 31-03-2012 till the date of realization. 

         Typed to dictation, corrected and pronounced by us in the open forum, on this the 8^th day of September, 2016.

    Member                  FAC President             

District Consumer Forum,

Khammam.

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

For Complainant                                                       For Opposite party   

       -None-                                                                           -None-

DOCUMENTS MARKED

For Complainant                                                       For Opposite party

                Member              FAC President             

District Consumer Forum,

Khammam.