Andhra Pradesh

Visakhapatnam-II

CC/96/2011

T. Naga Venkata Rao - Complainant(s)

Versus

The General Manager - Opp.Party(s)

Adari Appa Rao

13 Jul 2015

ORDER

                  Reg. of the Complaint:10-03-2011                                                                                                                                    Date of Order:13-07-2015

BEFORE THE DISTRICT CONSUMERS FORUM-II

AT VISAKHAPATNAM

                   Present:

1.Sri H.ANANDA RAO, M.A., L.L.B.,

       President

2.Sri C.V.RAO, M.A., B.L.,

                                             Male Member

3.Smt.K.SAROJA, M.A., B.L.,

       Lady Member

                                            

 

MONDAY, THE 13^TH DAY OF JULY, 2015

CONSUMER CASE NO.96/2011

 

BETWEEN:

SRI TUTTA NAGA VENAKTA RAO S/O LATE VENKATA RAMANA,

HINDU, AGED 31 YEARS, HOUSE NO.3-3, THIMMARAJUPETA,

ATCHUTAPURAM MANDAL, VISAKHAPATNAM DISTRICT.

…Complainant

AND:

1.THE GENERAL MANAGER, TATA AIG LIFE INSURANCE COMPANY LIMITED,

CORPORATE /REGD., OFFICE, 5^TH AND 6^TH FLOOR, PENINSULA TOWERS,

PENINSUAL CORPORATE PARK, GANPATRAO KADAM MARG, LOWER PAREL (W)

MUMBAI-400 013.

2.THE BRANCH MANAGER, TATA AIG LIFE INSURANCE COMPANY LIMITED,

2^ND FLOOR, UPSTAIR OF ANDHRA BANK, OPP: VEMANA MANDIRAM,

ASEELUMETTA JUNCTION, VISAKHAPATNAM-530 003.

…Opposite Parties

 

This case coming on 02-07-2015 for final hearing before us in the presence of   SRI ADARI APPA RAO, Advocate for the Complainant, and of                                     SRI T.V.S.KANAKA RAJU, Advocate for the 1^st and 2^nd Opposite Parties is being exparte, and having stood over till this date for consideration, this Forum made the following.

 

ORDER

 (As per the Honourable President on behalf of the Bench)                                                                              

1. The Complainant filed the present complaint against the Opposite Parties directing them to pay an amount of Rs.8,50,000 /- with interest @ 24% p.a, from the date of claiming the amount till its payment, Rs.50,000/- towards compensation and costs.
2. The case of the complainant in brief is that his mother during her life time took two life insurance policies from Opposite Parties for an amount of Rs.3,00,000/- and Rs.5,50,000/- and the complainant was shown him as her nominee and on 1-7-2008, his mother accidentally slipped and fell down in their house while  cleaning and faced head injury and immediately she was shifted to area hospital, Anakapalle for treatment and later shifted to their house and on the next day i.e.,  02-07-2008 she was died due to the said accident and immediately, the relevant papers and original policy bond submitted to OP informing the death and on that an investigator was appointed and repudiated his claim by way of letter received on 30-08-2010 on the ground that suppression of material facts and deliberate non disclosure of death.
3. The case of OPs, denying the material averments of the complaint, admitted by misleading them the deceased obtained insurance policy on 17-04-2008 in the name of dead person by playing fraud and as such the complainant is not entitled for any benefits.
4. To prove the case on behalf of the complainant, he filed his affidavit and got marked Exhibits A1 to A12. On the other hand, on behalf of the OPs, Manager of the 2^nd OP, filed his affidavit and got marked Exhibits B1 to B5.
5. Exhibit A1 is the Policy Details 2 in Nos. dated 17-04-2008, Exhibit A2 is the Treatment details dated 01-07-2008, Exhibit A3 is the Death Certificate, dated 22-06-2009, Exhibit A4 is the Death intimation letter sent to the 1^st Opposite party, dated 24-02-2010, Exhibit A5 is the Courier Receipt, dated 25-02-2010, Exhibit A6 is the Courier Acknowledgement, dated 25-02-2010, Exhibit A7 is the Repudiation letter send by the 1^st OP, dated 27-05-2010, Exhibit A8 is the Repudiation letter cover send by the 1^st OP, Exhibit A9 is the Covering letter send by the Complainant, dated 10-09-2010 and Exhibit A10 is the Postal Acknowledgement, dated 11-11-2010, Exhibit A11 is the 10^th Class Certificate and Exhibit A12 is the Aadhar Card.
6. Exhibit B1 is the Tata AIG Application Form, Exhibit B2 is the Tata AIG Application Form, Exhibit B3 is the Anganwadi Survey Register, Exhibit B4 is the Death Register and Exhibit B5 is the Pension Pass Book. 
7. Both Parties filed their written arguments.
8. Heard oral arguments from both sides.
9. Now the point for determination to be determined in this case is;

Whether there is any deficiency of service on the part of the OPs and the Complainant is entitled to any reliefs asked for?

10.    The 1^st contention of 1^st OP is that by playing fraud on them, the policy was obtained in the name of a dead person on 17-04-2008 though the complainant died on 25-03-2008. To prove the same, they relied upon Exhibit B3 Anganwadi Survey Register personal family record. Exhibit B4 death extract of March and B5 is pension pass book together with house hold card. Exhibit B3 shows at the relevant column, the name of the deceased Venkata Lakshmi as she died on 25-03-2008. Exhibit B4 is only a Xerox copy which is not certified in a Competent Authority. Therefore, basing on Exhibit B4 nothing can be inferred. In our view it cannot be looked into Exhibit B5 reveals the deceased Venkata Lakshmi took phone from the month so also the for the month of March. Perusal of Exhibit B5 nothing can be said in favour of the case of the OP. Now it is to be seen who is the competent authority for issuance of a death certificate. Admittedly,  Panchayat secretary is the competent person for issuance of death certificate as per the Government Orders issued from time to time. In order to substantiate the case of the complainant, they relied upon Exhibit A1 to A9. In respect of death is concerned, they relied upon by the certificate issued by the Secretary Thimmarajupeta Mandal marked as Exhibit A2 which clearly goes to show that the deceased Tutta Venkata lakshmi died on 2-7-2008 and it was registered on 5-7-2008. On scrutiny of Exhibit B1 and A3 we have to rely upon Exhibit A3 certificate issued by competent authority; if that be so, Exhibit B1 stated to have been issued by Anganwadi can not be relied upon Exhibit B1. There is no evidence whatever let in by the OP to substantiate their plea that the deceased died prior to obtaining Insurance Policy. Thus, for these reasons, we held that the OP failed to establish that the complainant obtained policy in the name of a dead person.

11.     The evidence of complainant as well as the Exhibits marked on his behalf vide Exhibit A1 to A12 clearly and categorically goes to show that during the life time of the deceased, she obtained policy in her name showing the complainant as her nominee and Exhibit A2 medical record reveals while she fell down in the house, she faced head injury and immediately shifted to area hospital Anakapalle for treatment and later she died on 2-7-2008 and immediately her death was intimated to the OP for settling the claim in the capacity of nominee of the deceased but there was no response from the OP and thereafter addressed letters but finally the OP by virtue of letter dated 30-08-2010 i.e., Exhibit A8 informed claim was repudiated.  When the complainant informed all the details to OP instead of allowing without proper and reasonable cause, repudiated the claim of the complainant. The accts of the OPs, indicates that there is a clear deficiency of service on their part. For all these reasons, the complainant is entitled for the reliefs as sought for.

12.     Now the question that comes up for consideration, at this stage of our discussion is, what is the rate of interest for which the Complainant is entitled.   The rate of interest claimed by the Complainant is 24% p.a.  This rate of interest claimed by the Complainant appears to be excessive, of course, it is a fact that the transaction covered by Ex.A1 is commercial in nature, but that does not and cannot mean to say that the Complainant is licensed to claim interest @ 24% p.a. from the date of the death of the deceased husband of the complainant.  But at the same time, it is imperative on our part to award a reasonable interest.   Having regard to all these facts and circumstances, we sincerely feel having considered the case on hand awarding of interest @ 9% p.a. would better serve the ends of justice.    Consequently, we proposed to fix the rate of interest @ 9% p.a. 10-03-2011 i.e., from the date of registration of the complaint.   Accordingly interest is ordered.

13.     Whether the Complainant is entitled for compensation of Rs.50,000/- is to be considered.   It appears as seen from the evidence of Complainant that the Complainant was compelled to approach the Opposite Parties and therefore experienced a lot of physical strain besides mental agony and financial loss. It is an un-disputed fact that the Opposite Parties did not pay the sum assured to the complainant.   Naturally, that might have put the Complainant to suffer some mental agony besides physical stress and strain.   In this view of the matter, we sincerely feel that it is a fit case to award compensation.   But that does not and cannot mean to say that the Complainant claim for compensation is acceptable.    Having regard to all these facts and circumstances, we are of the considered opinion, award of compensation of 40,000/- would serve the ends of justice.   We therefore, proposed to award compensation of Rs.40,000 /-,  in the circumstances of the case on hand. Accordingly this point is answered.

14.     Before parting our discussion, it is incumbent and imperative on our part to consider the costs of litigation.    The Complainants ought         not have to approach this Forum had his claim for payment of Rs.8,50,000/- or reliefs sought for have been honored by the Opposite Parties within a reasonable time and in view of the matter, the Complainant’s claim for costs deserves to be allowed.   In our considered and unanimous opinion awarding a sum of Rs.2,500/- as costs would appropriate and reasonable.   Accordingly costs are awarded.

15.     In the light of our discussion, referred supra, the complainant is entitled to receive the sum of Rs.8,50,000/-  with interest for the said sum @ 9% only from 10-03-2011, compensation of Rs.40,000/- and costs of Rs.2,500/-.

16.     In the result, this complaint is allowed in part directing the opposite parties to pay an amount of Rs.8,50,000/- (Rupees eight thousand and five hundred only) with subsequent interest @ 9% p.a., from 10-03-2011, till the date of realization, Rs.40,000/- (Rupees Forty Thousand only) towards compensation and Rs.2,500/- (Rupees Two thousand and five hundred only) towards costs to the complainant. Time for compliance, one month from the date of this order.

Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, on this the 13^th day of July, 2015.      

Sd/-                                               Sd/-                                                       Sd/-

LADY MEMBER                            MALE MEMBER                        PRESIDENT  

    

APPENDIX OF EVIDENCE

  For the Complainant:-

Exhibits	Date	Description	Remarks
A1	17-04-2008	Policy Details (2 in nos.)	Photocopy
A2	01-07-2008	Treatment Details	Original
A3	22-06-2009	Death Certificate	Original
A4	24-02-2010	Death intimation letter sent to the 1st OP	Photocopy
A5	25-02-2010	Courier Receipt	Original
A6	25-02-2010	Courier acknowledgement	Original
A7	27-05-2010	Repudiation letter send by the 1st OP	Photocopy
A8	30-08-2010	Repudiation letter cover send by the 1st OP	Original
A9	10-09-2010	Covering letter send by the complainant	Photocopy
A10	11-11-2010	Postal acknowledgement	Original
A11		10th class certificate	Photocopy
A12		Aadhar  Card	Photocopy

For the Opposite Parties:-          

Exhibits	Date	Description	Remarks
B1	10-04-2008	Tata AIG Application Form	Attested copies
B2	10-04-2008	Tata AIG Application Form	Attested copies
B3		Anganwadi Survey Register	Attested Copies
B4		Death Register	Attested copies
B5		Pension Pass Book	Attested copies

 

Sd/-                                               Sd/-                                           Sd/-

LADY MEMBER                            MALE MEMBER                        PRESIDENT