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 Wednesday the 29th day of February, 2012 C.C.No.100/2011 Between: Segu Venkata Narayana, S/o S.V.Anand Mohan, R/o H.No.325/1, Main Road, Nandyal – 518 501, Kurnool District. …Complainant -Vs- The Divisional Manager, Life Insuranc Corporation of India, Divisional Office, D.No.4/361, Yarramukka Pelli, Kadapa – 516 001. ....Opposite ParTy This complaint is coming on this day for orders in the presence of Sri S.V.Krishna Reddy, Advocate for complainant and Sri G.Md.Habeebur Rahiman, Advocate for opposite party 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. 100/2011 1. This complaint is filed by the complainant under section 12 of C. P. Act, 1986 requesting an order directing opposite party for the payment of:- (a) Rs.68,230/- of policy amount due; (b) Rs.10,000/- for causing mental agony; (c) 24% per annum interest on the awarded amount from the date of submission of the claim; (d) Cost of the complaint. 2. Briefly the case of the complainant is that, the father of the complainant purchased “Childrens Deferred Assurance Endowment Plan Policy” bearing No.380191992 in the name of complainant. The policy period is 40 years commencing from 15-12-1970 and ending to 15-12-2009. The assured amount is Rs.30,000/-. The premium payable is Rs.528.60Ps. per year. The annual premiums were paid regularly by him and his father. The last 40th premium was due on the date of maturity. The complainant requested opposite party to pay the policy amount and the bonus due to him after deducting the final 40th premium from the total amount of Rs.1,57,182/- which he is entitled to receive. But the complainant received a cheque for Rs.88,952/- on 25-02-2011. The complainant on 29-03-2011 requested opposite party for the payment of balance amount of Rs.68,230/- deducting the 40th installment of Rs.528.60Ps from it. Inspite of repeated requests the opposite party did not choose to settle the claim. Hence this complaint is filed before this Forum claiming appropriate reliefs. 3. Ex.A1 to Ex.A4 are marked and sworn affidavit filed by the complainant to support his claim. 4. Persuent to the notice of this Forum, opposite party refused his liability to the complainant’s claim by filing written version. Admitting the issue of the policy for Rs.30,000/- and its maturity date on 15-12-2010, opposite party intimated the complainant to submit policy bond on 26-08-2010 informing the amount payable of Rs.1,57,182/- and premium payable for 12/2009. But the complainant handed over the policy bond on 24-02-2011 after the expiry of maturity date. As per Mktg/Claims/Claims/Circular No.3/2008 – 2009 the recovery of unpaid premium after maturity date is not possible and the policy is treated as paid-up. Accordingly the claim is settle for Rs.88,952/- on 25-02-2011 excluding interim Bonus of Rs.1,440/- and Final Additional Bonus of Rs.66,000/-. Further as per policy conditions the insured is entitled for Bonus from the deferred date of 15-12-1988. Even if policy is in force on the date of maturity and the premium is paid for full term of 40 years, the Bonus payable is only for 22 years. The final Additional Bonus payable is only Rs.8,160/- @ as 272 per 100 S.A. But by mistake the bonus is paid for 39 years instead of 21 years, resulting the excess payment of Bonus of Rs.18,002/-. In view of the above analysis opposite party prayed for the dismissal of the case with cost as there is no deficiency of service on his part. 5. Opposite party filed sworn affidavit and Ex.B1 to Ex.B6 to substantiate his case. 6. Both parties filed their written arguments. 7. Now the points that arise for consideration are: i. Whether the complainant has proved deficiency of service on the part of Opposite Party? ii. Whether the complainant is entitled for the reliefs as sought for? iii. To what relief? 8. POINTS i and ii:- Ex.B4 the policy bond bearing No.38019192 issued to the complainant’s father on 15-12-1970 covering the risk of S.Venkatanarayana till 15-12-2010. The date of payment of last premium was 15-12-2009. The installment premium payable was Rs.528.60Ps. The mode of payment was yearly. The complainant paid all installments of premium except the last 40th installment. Ex.B1, the claim payment voucher for Rs.88,952/-. Ex.B2, the letter from opposite party informing the complainant about maturity payment due on 15-12-2010 for Rs.88,952/-. Ex.B3, the Acknowledgement receipt from L.I.C. of India to the policy delivered to the corporation for its cancellation at Nandyal on 24-02-2011. The contention of opposite party is that according to Ex.B5, the circular from Manager (Claims), the claim settlement was made for Rs.88.952/- treating the status of the policy as paid up as the policy was delivered to the opposite party after the date of maturity. The opposite party also contended that insured is entitled for bonus from the deferred dated of 15-12-1988 at the rate of RS.272/- per Rs.100 S.A. Ex.A3, the letter of the complainant requesting for the payment of basic amount, vested bonus, final additional bonus etc. to a sum of Rs.1,57,182/- because he paid 39/40 installments and requested opposite party to adjust 40th installment from the amount due to him. The contention of the complainant is that opposite party irregularly deducted Rs.68,230/-. Never during the tenure of the policy the complainant was default at any time. The complainant requested opposite party on 29-03-2011 to pay the balance amount of Rs.67,701.40Ps after deducting 40th installment due of Rs.528.60Ps. In Ex.B5 the Branch Officers are informed by the Manager (claims) to settle a maturity claim by deducting one year premium, before date of maturity and got it up dated in the policy Master before settlement of maturity claim. No where it is mentioned in Ex.B5 that the deduction of last one year premium should be done after deliver of policy by the insured to the insurer or Branch Office. Further to avoid the policy with paid up status as on date of maturity and to bring the said policy into in force status, for settlement of maturity claim for full S.A. the insurer has to deduct last one year premium before the date of maturity and the deducted premium should be accounted through BPCB at least one or two days prior to the date of maturity and FUP should be got up dated. If the deduction of last one year premium was made from the amount entitled by the complainant 1 or 2 days prior to the date of maturity without waiting for the copy of the policy, the insured policy would be in the state of “in force”, and the complainant would not have suffered a loss of Rs.67,677.60Ps. Due to the negligent act of the insurer, for the sake of Rs.528.60 Ps. the last one year premium, (without any earlier gaps) though has provision for adjustment, the rejection of Rs.67,677.60Ps for which the complainant is entitled by treating the policy as paid up state cannot be appreciated. In view of the above reasons the Forum holds that the negligence of opposite party in settling the claim of the complainant is proved entitling the complainant to receive the compensation as claimed by him. 9. Point No.iii:- The complainant claimed Rs.68,230/- with 24% per annum interest from the date of submission of the claim. Upon persueing the documents filed in this case, the complainant is entitled for Rs.1,56,629.60Ps. He was paid Rs.88.952/- on 25-02-2011 and Rs.67,677.60Ps is due to him. Hence Rs.67,677.60Ps. is sanctioned with 9% per annum interest from the date settlement of claim on 25-02-2011. For causing mental agony Rs.5,000/- is granted as relief. 10. In the result, the complaint is partly allowed directing the opposite party to pay an amount of Rs.67,677.60 Ps with interest at 9% per annum from the date of settlement of claim i.e., on 25-02-2011, till the date of payment, further compensation of Rs.5,000/- for mental agony along with costs of Rs.1,000/-. Time period for compliance of the awarded amount is one month from the date of receipt of this order. Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 29th day of February, 2012. Sd/- Sd/- Sd/- MALE MEMBER PRESIDENT LADY MEMBER APPENDIX OF EVIDENCE Witnesses Examined For the complainant : Nil For the opposite party : Nill List of exhibits marked for the complainant:- Ex.A1 Photo copy of Policy bond bearing No.38019192. Ex.A2. Letter issued by opposite party to complainant dated 25-02-2011. Ex.A3 Office copy of Claimant Letter issued by complainant to opposite party dated 29-03-2011. Ex.A4 Postal Acknowledgement. List of exhibits marked for the opposite party:- Ex.B1 Payment Voucher No.M/20102011/001972 for Rs.88,952/- dated 25-02-2011. Ex.B2 Office copy of Letter issued by opposite party to complainant dated 25-02-2011. Ex.B3 Statement Discharge Voucher dated 24-02-2011. Ex.B4 Policy bond bearing No.38019192 Ex.B5 Photo copy of LIC Circular issued by Divisional Office, Kadapa dated 16-06-2008. Ex.B6 Photo copy of LIC Circular issued by Central Office, Mumbai dated 29-10-2010. 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 : | 
