BEFORE THE A.P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION

AT HYDERABAD.

F.A. 1640/2006 against C.C.  1018/2005, Dist. Forum-I, Hyderabad    

Between:

P. Ram Mohan Rao

S/o. Veeranna

Age: 63 years,

Retd. Employee

Flat No. 207,

Priyanka Block

ROI Developers, Miyapur

Hyderabad- 500 050.                                  ***                         Appellant/

                                                                                                Complainant

And

The Divisional Manager

Life Insurance Corporation of India

Secretariat Road, Hyderabad.,                    ***                         Respondent/

                                                                                                Opposite Party

Counsel for the Appellant:                          M/s. Gopi Rajesh & Associates

Counsel for the Resps:                               Mr. M. Venkataramana Reddy

QUORUM:

                          HON’BLE SRI JUSTICE D. APPA RAO, PRESIDENT     

&

                                            SMT. M. SHREESHA, MEMBER

FRIDAY, THIS THE TWENTY THIRD  DAY OF JANUARY TWO THOUSAND NINE

Oral Order: (Per Hon’ble Justice D. Appa Rao, President)

                                                          *****

          The complainant preferred this appeal against the order of the Dist. Forum in granting inadequate amount besides not awarding interest.

          The case of the complainant in brief is that he  took  an insurance policy with the respondent LIC  on  4.10.1976  for Rs. 10,000/- under salary saving scheme wherein  the employer had deducted monthly premium from his salary  and paid it to LIC directly.   When certain amounts were not credited properly he addressed letters  and the LIC  on its part informed that the records were not available in view of decentralization  of its office.  When the policy was matured in May, 1995 though the  Divisional Office at Hyderabad requested the office at  Raepally to pay the amount, it gave a reply stating that the policy was not available.   Despite his approach to Ombudsman  he could not receive any amount.  Therefore he requested to pay the maturity amount with interest @ 24% p.a., from the date of maturity of  the policy till the date of realization together with compensation of Rs. 10,000/- towards mental agony, and Rs. 1,000/- towards costs.

          LIC respondent resisted the case.   It averred that the complainant ought to have filed the case either within the jurisdiction of  Kurnool or Machilipatnam not at Hyderabad as the entire record would be available at those places.   They did not have the record of the complainant policy, and therefore prayed that the complaint be dismissed for lack of jurisdiction.

          The complainant filed his affidavit evidence and got Exs. A1 to A22  marked, while the LIC did not file any documents.  The Dist. Forum after considering the evidence placed on record opined that the complainant was entitled to Rs. 10,000/- covered under the policy besides Rs. 3,000/- towards compensation and costs of Rs. 1,000/-.

          Aggrieved by the said decision, the complainant preferred this appeal contending that LIC  itself admitted that it had to pay Rs.  19,869.24  and he being a retired employee  suffering for finances,  the amount  of compensation awarded was inadequate.   He is also entitled to interest.

          It is an undisputed fact that the complainant had taken LIC policy for an amount of Rs. 10,000/- under  salary savings scheme wherein the premium would be deducted from out of his salary.  The complainant being a government employee worked at various places like Kurnool, Raepalle, Nellore, Gudur, Machilpatnam, Ibrahimpatnam, Tadepallygudem etc. Naturally the records pertaining to the complainant were accordingly  transferred.   When he was claiming the amount,  the LIC itself addressed letters evidenced under exhibits that the policy records were not available and they were searching for the same.  On 17.1.1994 by its letter addressed to the complainant  it requested him to inform the office in which he was working at Hyderabad so that it could advise the concerned servicing branch to transfer the policy from  Vijayawada branch.   He was repeatedly requesting to pay the amount for which it gave reply “We verified our records and found that your policy records are not available at our end.  However, we shall try to get the premium position within a short period and inform the same to you.  Please co-operate in this regard.”

Finally by letter Dt.  18.8.2006  it has agreed to pay sum assured  Rs. 5,000/-,  bonus  of Rs. 5,233/- together with penal interest  at Rs. 9,210/- and Rs. 426.24 towards refund of excess premium collected from him, in all   Rs. 19,869.24.  Despite  its  admission, it  did not pay even when the complainant filed his complaint.   The question of  jurisdiction was raised forgetting the fact  that they themselves gave reply that they would pay the amount when he addressed a letter from Hyderabad.  The complainant is  a resident of Hyderabad, he cannot be asked to go to some other Divisional Office,  when they could process the claim, and pay it to him.  

           When the LIC itself agreed to pay Rs. 19,869.24  which was in fact due by them, we would direct the LIC to pay the said amount.  Since it had calculated penal interest awarding interest @ 24% p.a., will not arise.   we confirm the compensation of  Rs. 3,000/- that was awarded by the Dist. Forum besides costs of Rs. 1,000/-.

          In the result the appeal is allowed.  Consequently, the complaint is allowed in part directing the insurance company to pay  Rs. 19,869.24 with interest @ 12% p.a., on Rs. 10,660/- being the amount payable excluding penal interest  from 18.8.2006 till the date of realization besides compensation of Rs. 3,000/- together  with costs of Rs. 1,000/-.   The appellant/complainant is also entitled to costs of Rs. 1,000/- in the  appeal.  Time for compliance four weeks.

                   PRESIDENT                                      LADY MEMBER

                                           Dt. 23. 01. 2009.