Complaint filed on: 16.12.2015
Complaint Disposed on:24.04.2017
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AT CHICKMAGALUR.
COMPLAINT NO.152/2015
DATED THIS THE 24th DAY OF APRIL 2017
:PRESENT:
HON’BLE SRI RAVISHANKAR, B.A.L, LL.B., - PRESIDENT
HON’BLE SMT B.U.GEETHA, M. COM., LL.B., -MEMBER
COMPLAINANT:
C.A.Lakshmi Narayana,
S/o Ananthaiah, A/a 61 years,
Retd. Shirastedar, R/o Haravari,
Asanabalu Village, Nellur Post,
Sringeri Taluk.
(By Sri/Smt.S.H.Mahesh Kumar, Advocate)
V/s
OPPONENT:
1.The Chief Senior,
Branch Manager,
Life Insurance Corporation
of India, Division Office,
Jeevan Krishna Ajjarkad,
Udupi-576101.
2.The Branch Manager,
Life Insurance Corporation
Of India, Branch Office,
Jeevan Jyothi, Library Road,
Gandhi Nagar, Koppa-577126.
(OP No.1 & 2 By Sri/Smt. H.C.Krishna, Advocate)
By Hon’ble President Sri. Ravishankar,
:O R D E R:
The complainant filed this complaint U/s 12 of the Consumer Protection Act 1986 against OP Nos. 1 & 2 alleging deficiency in service in not paying matured amount of Rs.48,040/- after maturity of the LIC’s Jeevan Saral policy. Hence, prays for direction against Op no.1 & 2 to pay the matured amount of Rs.48,040/- with interest along with compensation of Rs.30,000/- for deficiency in service.
2. The brief facts of the complaint is that:
The complainant had obtained the Jeevan Saral Insurance policy from Op no.1 & 2 on 21.05.2005 for an assured amount of Rs.1,00,000/-, the premium amount towards the said policy is Rs.5,077/- every year and the maturity amount of the policy of Rs.48,040/-. After obtaining the policy the Op no.1 & 2 have issued bond by mentioning the maturity date as 21.05.2015. The complainant was regular in paying the yearly premium towards the policy and after payment of the entire premium the policy issued by Op no.1 & 2 was matured and complainant approached the 2nd Op to pay the matured amount of Rs.48,040/- on its maturity. For which the Op discloses that the complainant is only entitled to get Rs.15,394/- against the matured amount of Rs.48,040/-. Aggrieved the attitude of the Op complainant made several requisitions and efforts to receive the maturity amount as mentioned in the policy bond. Inspite of said efforts Op had not made the payment of maturity value of the policy. Hence, Op rendered a deficiency in service in not paying the matured amount as per the policy.
Subsequently, complainant issued a legal notice dated 09.11.2015 and called upon the Op no.1 & 2 to pay the maturity amount of the policy. Even inspite of receipt of the legal notice Op no.1 & 2 failed to comply.
Hence, Complainant filed this complaint and prays for payment of the matured amount along with interest from 21.05.2015 till payment along with compensation for deficiency in service as prayed above.
3. After service of notice Op no.1 & 2 appeared through their counsel and filed version and contended that they have issued Jeevan Saral policy dated 21.05.2005 vide policy no.622615452 in the name of complainant, the date of maturity of the policy shown in the policy is 21.05.2015. But it is false that they have assured to pay Rs.1,00,000/- as sum assured and maturity value of Rs.48,040/-. As per the proposal given by complainant, the complainant shall pay sum of Rs.5,077/- every year towards installment which includes service charges and there is no dispute regarding the issuance of the policy to the complainant under Jeevan Saral (Profit Life Insurance) the policy issued to the complainant was explained to the complainant about policy envisages i.e., death sum assured and maturity sum assured. After understanding the terms and conditions of the policy only complainant signed the proposal and accepted to pay the installments.
The maturity value and death sum assured are entirely different in this unique plan Jeevan Saral Policy, the policy is more of term assurance and hence has more death benefit and therefore the maturity value is less. The yearly premium payable under the policy is Rs.4,804/- and the maturity sum assured under the policy is Rs.12,236/- as per the terms and conditions of the policy and not Rs.48,040/-, the said amount was wrongly mentioned in the policy by typographical error, it is only by mistake the amount of Rs.48,040/- was mentioned as maturity value of the Jeevan Saral policy. The said fact was communicated to the complainant through registered letter dated 16.10.2015 and complainant had acknowledged the same on 21.10.2015. The total maturity value payable under the Jeevan Saral Policy is Rs.15,295/- inclusive of loyalty addition of Rs.3,059/-. The complainant knowing fully the said actual payment has filed this false complaint in order to gain wrongfully.
There is no any deficiency in service on the part of this Op in paying the actual maturity value of the policy to the complainant and they are not liable to pay any compensation claimed by complainant and there is no cause of action arose in the complaint. Hence, prays for dismissal of the complaint.
4. Complainant filed affidavit and marked documents as Ex.P.1 to P.12. Op no.1 & 2 also filed affidavit and documents marked as Ex.R.1 to R.4.
5. Heard the arguments.
6. In the proceedings, the following points do arise for our consideration and decision:
- Whether there is deficiency in service on the part of OPs.
- Whether complainant entitled for any relief & what Order?
7. Our findings on the above points are as follows:-
- Point No.1: Affirmative.
- Point No.2: As per Order below.
: R E A S O N S :
POINT NOs. 1 & 2:
8. There is no dispute that complainant had obtained Jeevan Saral Policy on 21.05.2005 for sum assured of Rs.1,00,000/-, after obtaining the policy the complainant had paid a premium amount of Rs.5,077/- which includes service charges towards the policy till maturity date i.e., 21.05.2014. After the every payment of installments the policy was matured on 21.05.2015, after maturity complainant approached Op no.2 for maturity sum of Rs.48,040/-, but Op instead of paying the said maturity value of the policy have only agreed to pay Rs.15,295/- towards the maturity value. Hence, alleges a deficiency in service on the part of Op no.1 & 2 and prays for direction against Op no.1 & 2 to pay the maturity amount of Rs.48,040/- as mentioned in the policy bond issued by Op no.1 & 2. In support of this complainant had produced policy bond marked as Ex.P.1 and also produced receipt towards payment of premium marked as Ex.P.2, office copy of the legal notice marked as Ex.P.3. For which on contrary Op had taken a contention that as per the terms and conditions of the policy the maturity value of the Jeevan Saral policy is only of Rs.12,236/-, the amount payable after the maturity is Rs.15,295/- including loyalty addition of Rs.3,059/- and not Rs.48,040/- as alleged by complainant. It is only by typographical error, the amount was wrongly mentioned in the bond and also submits that they are ready to pay Rs.15,295/- as per the policy terms and conditions and submits no deficiency in service. In support of that Op produced chart showing maturity sum assured marked as Ex.R.1, reply notice issued to the complainant marked as Ex.R.2, proposal given by complainant marked as Ex.R.4.
There is no dispute that on looking at the chart the maturity value of the Jeevan Saral policy is Rs.12,236/- and the amount payable towards maturity value with loyalty benefit of Rs.3,059/- which amounts to Rs.15,295/-, but the bond issued to the complainant which is marked as Ex.P.1 discloses that the Op no.1 & 2 have undertaken to pay maturity sum of Rs.48,040/-, basing on the said bond complainant had requested to Op no.1 & 2 to pay the maturity value of Rs.48,040/-, but Ops have convinced the complainant and explained with respect to the terms and conditions of the policy and also tendered voucher for payment of Rs.15,295/- which is marked as Ex.P.11.
9. The learned advocate for Ops vehemently argued that it is only mistake and typographical error the amount was wrongly mentioned as Rs.48,040/- instead of Rs.12,236/- in order to establish the said mistake the Ops had produced some other policy bond issued to different persons before this Forum and explained how the maturity amount was calculated under Jeevan Saral Policy. Of course we agree there is a mistake in printing the maturity value of the Jeevan Saral policy issued to the complainant. The Ops would have rectified the mistake at the earlier point of time, but they have clarified the mistake only after the claim made by complainant. We are of the opinion that there is a gross negligence on the part of Op no.1 & 2 in not rectifying the mistake made at the time of issuance of the policy. The Op no.1 & 2 are dealing with the public money in issuance of the policies to the public at large they should be very careful and the policies should be scrutinized before issuance. Hence, we are of the opinion that Op no.1 & 2 are rendered a deficiency in service in not rectifying the mistake made in the policy issued to the complainant by showing maturity value of Rs.48,040/- instead of Rs.12,236/-.
10. On going through other similar policies issued to some other persons we noticed that the complainant is only entitled to get the maturity amount of Rs.12,029/- plus loyalty addition as per the terms and conditions. Hence, complainant is only entitled to get the said rectified maturity amount under the Jeevan Saral Policy. The Ops are liable to pay compensation of Rs.5,000/- for deficiency in service in not rectifying the mistake at the earliest point and Op no.1 & 2 are also liable to pay litigation expenses of Rs.2,000/- to the complainant. As such complaint is partly allowed. As such for the above said reasons, we answer the above point no.1 and 2 in the Affirmative and proceed to pass the following:-
: O R D E R :
- The complaint filed by the complainant is partly allowed.
- OP no.1 & 2 are directed to pay maturity value of Rs.15,394/- (Fifteen thousand three ninety four Rupees only) along with compensation of Rs.5,000/- (Five thousand Rupees only) and litigation expenses of Rs.2,000/- (Two thousand Rupees only) to the complainant within one month from the date of receipt/knowledge of the order, failing which the payable amount shall carry interest @ 9% P.A. till realization.
- Send free copies of this order to both the parties.
(Dictated to the Stenographer transcribed typed by her, transcript corrected by me and then pronounced in Open Court on this the 24th day of April 2017).
(B.U.GEETHA) (RAVISHANKAR)
Member President
ANNEXURES
Documents produced on behalf of the complainant:
Ex.P.1 - Original policy issued by Op.
Ex.P.2 - 10 cash paid receipts towards renewal of policy.
Ex.P.3 - Office copy of the legal notice.
Ex.P.4 & 5 - 2 Ack. due.
Ex.P.6 - Reply to the legal notice.
Ex.P.7 - Letter issued by Op to complainant dtd:20.06.15.
Ex.P.8 - Another letter issued by Op to complainant dtd:03.09.15.
Ex.P.9 - Letter dtd:03.09.2015.
Ex.P.10 - Another letter dtd:28.02.2015.
Ex.P.11 - Payment Intimation dtd:21.05.2015.
Ex.P.12 - Maturity Intimation dtd:13.06.2015.
Documents produced on behalf of the OPs:
Ex.R.1 - Chart showing maturity sum assured.
Ex.R.2 - Reply notice dated 23.11.2015.
Ex.R.3 - LIC bond.
Ex.R.4 - Policy proposal Form.
Dated:24.04.2017 President
District Consumer Forum,
Chikmagalur.
