Tamil Nadu

South Chennai

CC/189/2015

Mr.R.Madurai - Complainant(s)

Versus

The Chief manager, L.I.C of India CB06 - Opp.Party(s)

S.G.Vijaya Kumar

28 Dec 2022

ORDER

                                            Date of Complaint Filed : 30.04.2015

                                            Date of Reservation      : 15.12.2022

                                            Date of Order               : 28.12.2022

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT:     TMT. B. JIJAA, M.L.,                                                  : PRESIDENT

                        THIRU. T.R. SIVAKUMHAR, B.A., B.L.,                  :  MEMBER  I 

                        THIRU. S. NANDAGOPALAN., B.Sc., MBA.,           : MEMBER II

 

CONSUMER COMPLAINT No. 189/2015

WEDNESDAY, THE 28^th DAY OF DECEMBER 2022

Mr.R. Madurai,

S/o. Rajagopal,

No.14/19, Ponnambala Vathiyar Street,

Mylapore,

Chennai – 600 004.                                                                                                          ... Complainant                

..Vs..

1.The Chief Manager,

   L.I.C of India – CB06,

   New No.15, Old No.38,

   2^nd floor – South India Corporation Building,

   Anna Salai, Chennai – 600 002.

 

2.The Branch Manager,

   LIC of India-CB06,

   2^nd Floor – South India Corporation Building,

  Anna Salai, Chennai – 600 002. 

 

3.M/s. Jayesh Investments,

   Tambaram,

   Chennai – 600 045.                                                                                                      ...  Opposite Parties

******

Counsel for the Complainant                   : M/s. S.G. Vijayakumar

Counsel for the 1^st & 2^nd Opposite Parties : M/s. Michael Marie Antony

Counsel for the 3^rd Opposite Party           : M/s. A. Madhan Kumar

 

On perusal of records and after having heard the oral arguments of the Counsel for the Complainant and upon treating the written arguments as oral arguments on endorsement made by the Opposite Parties 1 and 2, we delivered the following:

ORDER

Pronounced by the President Tmt. B. Jijaa, M.L.,

1.      The Complainant has filed this complaint as against the Opposite Party under section 12 of the Consumer Protection Act, 1986 and prays to direct the Opposite Parties to pay the Policy Matured Amount of Rs.40,080/- to the Complainant with interest @18% from 28.04.2014 till repayment and to grant compensation of Rs.1,00,000/- for mental agony and loss along with cost of Rs.1,00,000/-

2.     The averments of Complaint in brief are as follows:-

            The Complainant has joined as a Life Insurance Policy Holder vide Policy No.712593178 in the Opposite Parties Life Insurance Corporation and he has been paying the Premium amount by way of deducting from his salary. The premium was matured on 28.04.2014 and the Matured Premium amount of Rs 40,080/- is payable by the Opposite Parties to the Complainant. The Opposite Parties have sent a letter, asking the Complainant to furnish details of his Bank A/c Number and name of the Bank, but at that time, due to his health condition, personal inconvenience, domestic circumstances, he was not in a position to comply with the requirement of the Opposite Parties. In the circumstances, the Opposite Parties have sent a Letter on 28.08.2014 to the Complainant, and thereby stating that the Complainant's Maturity premium amount of Rs.40,080/- has been credited in the Bank of Baroda (without mentioning the Branch) under Account No.26320200000152. But the Complainant has neither having any saving account or any money transaction in the above said Bank of Baroda, nor had mentioned the above said Bank Account in the Opposite Parties official records in any circumstances. The Complainant has operating his saving Account under IFS Code No IB000M047 with Indian Bank. On seeing the Opposite Parties' Letter dated 28.08.2014, the Complainant herein was shocked and disappointed and he had immediately addressed a Letter of Complaint through his Advocate to the Opposite Parties on 09.10.2014 requesting to take up his complaint and to consider his representation. Even after receipt of the Complainant's Letter dated-09.10.2014 the Opposite Parties have not responded properly and therefore the Complainant has issued a Letter of Complaint through his Advocate, dated 13.10.2014 to the Opposite Parties and narrating the entire facts and his grievance and specifically pointed out the fact that during the year 2002, due to the exigency and need of money, the Complainant has borrowed some amount from M/s. Jayesh Investments Tambaram, Chennai- 45 by assigning his policy to the said Company, and subsequently he has paid the principal and interest fully in the year 2005 and requesting the said Jayesh Investments to cancel the Assignment. The said Jayesh Investment also assured him that they would cancel assignment, but they failed to do so, and repeatedly hariss him. In the circumstances, in the year 2006, the Complainant approached the said Jayesh Investment Company, and asked them to cancel the assignment, for that, they replied that the said assignment was cancelled. After receipt of the Complainant's legal notice dated 13.10.2014, the Opposite Parties and ombudsman of the Opposite. Parties Insurance Company have sent a Reply Letter dated 18.11.2014 to the Complainant's Advocate stating that the above said maturity amount was paid to M/s Jayesh Investments who is the assignee under the policy, and thereby the Ombudsman also advised the Complainant to approach appropriate forum to redress his grievance. Without the consent and knowledge of the Complainant, and without prior notice to him, the Opposite Parties have unlawfully credited the payment of Policy maturity amount in the Bane Account of Ms. Jayesh Investment. Tambaram, Chennai-45. The Complaint states he is working as Government Servant. If he committed in payment of amount due to the said M/s Jayesh Investment, appropriate court proceedings could have taken by the said company by issuing notice to recover the amount by way of attachment of his salary without waiting until 13 years. But actually there has been no court proceedings initiated by the said company as stated above against the Complainant, because there is no due and payable by the Complainant to the said M/s Jayesh Investment. Therefore the Complainant is entitled to claim to receive his Policy maturity amount. The Opposite Parties have apparently committed negligence and deficiency in service in fulfilling the customers service satisfactorily, and even after several requests and repeated demands of the Complainant, the Opposite Parties have not come forward to pay the policy maturity amount to him. Hence the complaint.

3. Written Version filed by the 1^st and 2^nd Opposite Parties in brief is as follows:-

It is admitted that the Complainant herein had taken a Life Insurance Policy vide No.712593178 under the Salary Savings Scheme from the Opposite Parties 1 & 2. The Insurance coverage has been granted subject to terms and conditions as stipulated in the Policy. The Complainant had assigned the above said policy in favour of M/s. Jayesh Investments, the 3 Opposite Party herein. The assignment under the policy was registered on 11.03.2002. Thereafter, no request for re-assignment of the policy in favour of the policy holder/Complainant was received.  The policy taken by the Complainant was matured on 28.04.2014. The formalities for payment of maturity amount were started immediately by the said Opposite Parties. After receiving a valid discharge voucher from the assignee, the maturity amount of Rs.40,080/- on the policy was paid to the assignee M/s.Jayesh Investments/3^rd Opposite Party by NEFT vide Account No. 26320200000152 at Bank of Baroda. Also, the credit of maturity amount on the policy to the assignee M/s. Jayesh Investments/3^rd  Opposite Party was duly intimated to the Complainant by the Opposite Parties 1 & 2 vide letter dated 28.08.2014. On assignment of the policy by the Complainant to the 3^rd Opposite Party, M/s Jayesh Investments/assignee becomes the beneficiary under the said policy. As such, no privity of contract survives between the Complainant and the Opposite Parties 1 & 2 herein, unless assignment is annulled.  In the present case, since there is no annulment of assignment, no contract exists between the Complainant and the Opposite Parties 1 & 2. Therefore, this complaint is not sustainable against these opposite parties. Further, as the maturity amount on the policy was duly paid to the assignee M/s. Jayesh Investments/3rd Opposite Party herein, nothing survives in the complaint as against the Opposite Parties 1 & 2. Hence prayed to dismiss the complaint.

 

4. Written Version filed by the 3^rd Opposite Party in brief is as follows:-

The 3^rd  opposite party submitted that the complainant has defaulted in repayment of the loan amount Rs.16,675/- payable in 15 EMIS and never paid a single EMI towards repayment of loan taken from the 3^rd opposite party. Further the complainant has made a valid assignment of Policy No. 712593178 in favour of the 3^rd Opposite Party. Since the complainant has defaulted in the repayment of loan taken from the 3^rd Opposite Party on 20.03.2003, the 3^rd Opposite Party had legally attached the assigned Policy No. 712593178 taken from 1^st  and 2^nd opposite parties and the attached policy matured on 20.08.2014 with the maturity value being Rs.40,080/- on attaching the said the 1^st and 2^nd opposite parties sent a letter dated 28.08.2014 to the complainant stating that they have credited the sum of Rs.40,080/- in to the Bank of Baroda A/C.No. 26320200000152. The complainant never furnished the detail of his bank account in the loan application and pro-note executed on 23.03.2003. The allegation that the complainant has paid the entire loan amount including principal and interest in the year 2005 itself and he requested the 3^rd Opposite Party to cancel the policy assignment are false and frivolous. The cause of action has become extinct on 19.03.2006 whereby the complainant did not make any acknowledgment of debt for extending the period of limitation for the recovery of excess sum credited by the 1^st  and 2^nd opposite parties into the account of 3^rd Opposite Party. Hence, this is a time bared money claim. Hence prayed to dismiss the complaint.

5.   The Complainant submitted his Proof Affidavit and Written Arguments. On the side of the Complainant, documents were marked as  Ex.A-1 to Ex.A-14 . The Opposite Parties 1, 2 and 3 submitted their Written Version. Proof Affidavit was filed by the Opposite Parties 1 and 2 and documents were marked as Ex.B-1 to Ex.B-4. Proof Affidavit of 3^rd Opposite Party was closed.

Points for Consideration

1. Whether there is deficiency in service on the part of the Opposite Parties?

2. Whether the Complainant is entitled for reliefs claimed?

3. To what other reliefs the Complainant is entitled to?

Point No.1:

The Complainant has availed Life Insurance Policy bearing Policy No.712593178 on 28.04.1999 from the 1^st and 2^nd Opposite Parties. The installment premium is Rs.215/- per month for the term period of 15 years. The sum assured is Rs.35,000/- and the maturity date is on 28.04.2014 as seen from Ex.B-1. He had paid premium amounts by way of deduction from his salary.

The 1^st and 2^nd Opposite Parties had sent a letter dated 26.04.2014, Ex.A-2  informing the Complainant that his policy No.712593178 has been matured and a sum of Rs.40,295/- is payable by the Opposite Parties and sought for bank account details of the Complainant. The maturity benefits of Rs.40,295/- has been arrived after deducting a sum of Rs.18,370/-, which is the loan + interest availed by the Complainant from Jayesh Investments, the 3^rd Opposite Party as elucidated from Ex.B-3, where the 3^rd Opposite Party had made calculations and submitted to the LIC in respect of the Policy No.712593178. Based on the calculations submitted by the 3^rd Opposite Party out of the gross payable amount of Rs.58,450/- a sum of Rs.18,155/- has been deducted towards the loan and the net amount payable to the Complainant is Rs.40,295/- as per Ex.A-3. As per Ex.A-4, the letter dated 28.08.2014 issued by the LIC to the Complainant, another amount of Rs.645/- has been deducted towards other deductions, which sum is mentioned in Ex.B-3 the calculations made by the 3^rd Opposite Party and the net payable is shown as Rs.40,080/-.

        It is seen from Ex.B-2 the Complainant had executed an Absolute Assignment on 04.03.2002 in favour of the 3^rd Opposite Party in consideration of the loan availed by the Complainant from the 3^rd Opposite Party for a sum of Rs.2250/-. Based on the Absolute Assignment dated 04.03.2002, Ex.B-2 the Opposite Parties 1 and 2 had transferred the maturity amount to the 3^rd Opposite Party as found in Ex.B-3.

        The contention of the Complainant is that he had paid the entire principal and interest to the 3^rd Opposite Party in the year 2005 and requested the 3^rd Opposite Party to cancel the assignment, who assured to cancel the assignment. However the 3^rd Opposite Party failed to cancel the assignment.  The 1^st and 2^nd Opposite Party had paid the maturity amount without the consent and knowledge of the Complainant and without prior notice to the Complainant the Opposite Parties had unlawfully credited the policy maturity amount to the account of the 3^rd Opposite Party.

The Opposite Parties contended that the Complainant had assigned the said policy in favour of the 3^rd Opposite Party and the same was registered on 11.03.2002. Thereafter there was no request for reassignment of the policy in favour of the Complainant. The policy taken by the Complainant matured on 28.04.2014. After receiving a valid discharge voucher from the assignee the maturity amount of Rs.40,080/- was paid to the assignee, the 3^rd Opposite Party by NEFT vide Account No.26320200000152 at Bank of Baroda. It is also admitted by the 3^rd Opposite Party that excess amount was credited by the 1^st and 2^nd Opposite Parties to the account of the 3^rd Opposite Party.

On careful consideration of the facts and circumstances of the case this Commission is of the considered view that the net amount of  Rs.40,080/- was arrived after deducting the loan availed by the Complainant from the 3^rd Opposite Party out of the maturity amount of Rs.58,450/-. Actually the net payable amount of Rs.40,080/- had to be transferred to the account of the Complainant instead the said amount has been transferred to the 3^rd Opposite Party by the 1^st and 2^nd Opposite Parties. Further no prior intimation was given to the Complainant who is the policy holder by the 1^st and 2^nd Opposite Parties before transferring the maturity amount to the assignee, the 3^rd Opposite Party. The 1^st and 2^nd Opposite Parties had acted in a negligent manner by effecting payment of maturity amounts to the 3^rd Opposite Party, which amount ought to be paid to the Complainant.  In view of the above discussions we hold that the act of the 1^st and 2^nd Opposite Parties in transferring the entire maturity amount to the 3^rd Opposite Party, when the 3^rd Opposite Party itelf had admitted as per their calculations only Rs.18,155/- is due to them and addressing a letter dated 28.08.2014 to the Complainant as through the balance of Rs.40,080/- after deducting Rs.18,155/- from the total payable of Rs.58,450/- is credited to the A/c of the Complainant when no such A/c is maintained by Complainant, while the fact remains that the A/c to which the amount transferred belong to the 3^rd Opposite Party as evident from Ex.B-3 and the 3^rd Opposite Party in wrongfully receiving the amount of Rs.40,080/- had committed deficiency in service. Accordingly, Point No.1 is answered.

Point Nos.2 and 3:-

As discussed and decided in Point No.1 the Opposite Parties 1,2 and 3 are jointly and severally liable to pay Rs.40,080/- with interest @ 9% from 28.04.2014 till repayment and a sum of Rs.50,000/- as compensation for the deficiency in service and mental agony caused to the Complainant along with cost of Rs.10,000/-. Accordingly, Point Nos. 2 and 3 are answered.

In the result, the complaint is allowed in part. The 1^st, 2^nd and 3^rd Opposite Parties are jointly and severally directed to pay Rs.40,080/- (Rupees Forty Thousand and Eighty Only) with interest @ 9% from 28.04.2014 till repayment and a sum of Rs.50,000/- (Rupees Fifty Thousand Only) as compensation for the deficiency in service and mental agony caused to the Complainant along with cost of Rs.10,000/- (Rupees Ten Thousand Only) within 8 weeks from the date of receipt of this order failing which the amount of Rs.40,080/- shall carry interest @12% p.a from 28.04.2014 till the date of realization.

          In the result this complaint is allowed in part. 

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 28^th of December 2022.

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                 B.JIJAA

         MEMBER II                       MEMBER I                        PRESIDENT

 

List of documents filed on the side of the Complainant:-

 

Ex.A1	-	Indian Bank pass book belong to the Complainant
Ex.A2	26.04.2014	Letter to Complainant
Ex.A3	28.04.2014	Letter sent by the Opposite Parties to the Complainant
Ex.A4	28.08.2014	Reminder sent by the Opposite Parties to the Complainant’s Advocate
Ex.A5	09.10.2014	Letter sent by complainant’s Advocate to the 1stOpposite Party
Ex.A6	09.10.2014	Letter sent by Complainant’s Advocate to the Ombudsman of the Opposite Parties
Ex.A7	13.10.2014	Letter sent by Complainant’s Advocate to the 1st Opposite Party Bank
Ex.A8	20.10.2014	Acknowledgement by Insurance Ombudsman of the Opposite Parties
Ex.A9	21.10.2014	reply by Insurance Ombudsman to the Complainant’s Advocate
Ex.A10	14.11.2014	Reminder sent by the Complainant’s Advocate to the Insurance Ombudsman
Ex.A11	14.11.2014	Letter of appeal Petition by the Complainant to the Insurance Ombudsman ad Opposite Parties
Ex.A12	18.11.2014	Reply letter-cum-information sent by the Opposite Party to the Complainant’s Advocate
Ex.A13	08.12.2014	Reply by Insurance Ombudsman to the Complainant’s Advocate
Ex.A14	15.12.2014	reply by Insurance Ombudsman to the Complainant’s Advocate

List of documents filed on the side of the 1^st & 2^nd Opposite Parties:-

Ex.B1	12.05.1999	Insurance Policy No.712593178
Ex.B2	11.03.2002	Absolute Assignment of Complainant
Ex.B3	-	Discharge voucher and NEFT – Mandate Form
Ex.B4	13.10.2014	Reply letter of LIC to the Complainant’s Advocate Notice dated 10.10.2014

 

List of documents filed on the side of the 3^rd Opposite Party:-

NIL

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                    B.JIJAA

         MEMBER II                       MEMBER I                         PRESIDENT