The case of the complainant No.1 in brief is that he applied for ECS Mode for the policies 436127291, 437442831 and 436153688 through State Bank of India letter dated 24.3.2008.  He also applied for ECS Mode for the policies 436127341, 437442831 and 436153688 through Axis Bank on 15.9.2009 and this time it was confirmed positives for the said policies  vide letter dated 3.2.2009 and 10.2.2009 again requested him to make payment arrangement for the policy being No.436127341. On August 2009 agent told that Rs.6183/- premium and Rs.165/- as fine has to be deposited in cash to continue the policy being No.437442831. He was compelled to pay the Branch Manager for waiving of fine/interest and made the cash payment of Rs.6183/- in Kamarpukur Branch.  Again in the month of October, 2009 he got an e-mail that premium of Rs.4382/- of policy being No.436153688 has not been cleared by Axis Bank without any reason.  When he checked his pass book he saw that the same amount was debited on 10.11.2009 through his bank account.  Again in the year 2010 he was compelled to make payment arrangement for two policies being Nos. 437442831 and 436153688.  From 2011 to 2013 premiums amount were directly debited from the Axis Bank Account but some unknown reason premium of Rs.4719/- of policy No.436127341 was not debited as per his Axis Bank Pass Book record. Again on 5.2.2013 he applied for fresh ECS through SBI for five policies.  Initially the receiving person was not agreed to receive but after a long discussion he could get receive the copy.  In the second week of October, 2014 and on second week of October, 2015 he received two unsigned letters from LICI dated 10.10.2014 and 1.4.2015 stating that ECS has been dishonored by the Bank due to insufficient fund  and he has paid premium, interest and dishonored charges to revive the policy .  He wrote a letter on 27.2.2015 to Zonal Manager but received no reply till date.  That on 21.5.2015 Branch Manager, Arambagh sent a mail saying that the man does not know what he wants.  So, he really shocked at the comment of the Branch Manager.  Through E-mail dated 27.2.2016 it was informed that complaint No.1415055352, 1415055665 and 1415062380 has been resolved by Development Officer at his residence but in fact no Development Officer never came to his home.  He was advised to submit fresh ECS mandate and pay the requisite premium but he could not understand the logic behind it.  He contacted Mr. A.K. Das, MGR, CRM for further query.  But nobody attend the telephone and casual reply like “late see or contact branch”.  He also sought RTI in different dates but received no satisfactory reply.  The policies are defunct due to inactivity of LIC Officers and he has been compelled to deposit cheque/cash to continue the policy. Major problem is that he is the sole bread earner of his family having numerous dependents.  If, any untoward incident happened on him then the nominee will not get the compensation of defunct policies.  He approached the SBI for non-deduction of ECS amount, they replied that no ECS mandate receipt for deduction of premium.  For the deficiency of the O.Ps., he prayed compensation of Rs.12,68,890/- as sum assured for all the said policies of LICI, Rs.3,00,000/- from D.K. Das, Chief Manager, LICI, Arambagh branch for mental harassment, giving wrong information, making a false and fabricated plan for uncertain risk which my family and he has gone through,  Rs.2,00,000/- compensation from D.Nandi, D.O. of LIC, Arambagh Branch,  Rs.1,00,00/- from Zonal Manager, Easter Zone, Mr. A.K. Das for not replying parawise through RTI, Rs.1,20,000/- litigation cost.

O.P. files written version denying the allegations leveled against them and averred that the cause of action in connection with the policies of the complainants ought to have been arose as back as on 10.10.2014 and 1.4.2015 when the complainants were informed by the O.P. LICI that premiums of the policies in question remain unpaid due to failure in ECS services for want of insufficient fund in the bank account of the complainants.  The complainant Benoy Kr. Bhuin lodged a complaint on 27.10.2014 and it was duly replied by O.P. LICI on 25.11.2014.  So, in the event of any dissatisfaction with the action of O.P. LICI, the complainants ought to have filed any complaint case before this Ld. Forum within two years.  Regarding law of limitations the O.P. filed a few judgment and deserved that the complaint petition filed by the complainants is liable to be rejected u/s-24A of the C.P. Act.  This O.P. submits that any other mode of payment of money, any policy holder may either tender his/her premium through cheque/cash or online mode, e.g. ECS, NACH, through bank debit.  It is his/her personal option.  The O.P. is only to see as to whether the premium is paid to the corporation or not.  But in the event of ECS Mandate dishonour by the concerned bank due to any technical reason, in that case, premium must invariably be paid in cash throughout the cash counter of the corporation for the due premium.  At any rate, it is the sole responsibility of the policy holder to keep his/her policy in force by making payment of the periodical premium in due times to ensure all benefits of the policy.

O.P. further submit that under the same policies, ICMS complaints were registered by the policy holder vide complaint No.1415055352 dated 27.10.2014, complaint No.1415055665 dated 28.10.2014 and complaint No.1415062380 dated 23.11.2014 which were also duly replied by the Arambagh Branch of the corporation as well as CRM Department, Howrah Divisional Office. 

Electronic Clearing System (ECS) is a retail payment system.  That can be used to make bulk payment of a similar nature especially where each individual payment is of a repetitive nature and of relative smaller amount.  This facility is meant for companies and government department to make large volume of payment rather than fund transfer by individuals.  The ECS is further divided into two type; ECS (Credit) to make bulk payments to individuals; The ECS (Debit) to receive bulk utility payments from individuals.  O.P. also stated the requirement to avail ECS/ direct debit service, in which the policy holder has to submit ‘Mandate Form’ along with the proposal form to the LIC Branch office,  copy of the mandate form is required to be submitted to the policy holder’s bank also.  O.P. also state the mandate form, as it is an authorized letter to the bank by the policy holder for deduction of premium from his bank account, instead of making payment of insurance premium payment by cash or by cheque.  Consumer cannot to make payment directly to the account of insurance provider from his own bank account.  Bank attested mandate Form requires to be submitted to LIC also.  O.P. also defines the mandate dishonour as, if credit for any mandate is not received from any participating bank by the user it is said to be dishonored.  Mandate dishonors are indicate by separate code in the return file with a flag regarding reason of the dishonour and the reasons for dishonour with the code are, account closed and insufficient balance.  O.P. stated what to be done in case of mandate failure is that premium should be paid at the cash counter at any LIC branch for that due premium and subsequent premium will be collected through ECS.  In the present case the O.P. averred that the original petition of complaint the petitioner raised so many queries to the O.P. LICI in the letter signed by the complainants and which is replied by the O.P. chronologically as follows;

The premiums under ECS policy No.437442831 and 436153688 were not received by O.P. due to ECS mandate failure by the policy holder’s banker Axis Bank due to reason in sufficient fund.  In confirmation the bank statement of account and the mail of branch head of Axis Bank is produced while complying ICMS complaint dated 28.10.2014 of the policy holder, the O.P. requested him to pay the premium at the cash counter of the branch.  They also informed him that ECS deduction will resume only after the policy becomes upto date by paying the default premium.  The incident happened due to ECS mandate failure.  LICI, Arambagh Branch has repeatedly requested to pay the dishonored premium at the cash counter of the branch but the same has not complied by the policy holder.  The O.P. branch has received NEFT forms from the respective policy holders Sri Abhik Bhuin and Sri Benoy Kr. Bhuin for the policy being No.437442831, 436153688 and 496673269 and the same has been entered by the branch in due time and the policy holders have received their money back payments due on 10/2013, 3/2014 and 10/2014 directly credited in their respective bank accounts with SBI, Maheshpur.  The O.P. since November, 2014 requested the policy holder to pay the premium at the earliest but the policies which were in force at the earliest date have become ‘lapsed’ as on date.  The O.P. requested the policy holder to pay the premium due to the counter of the branch as ECS mandate once dishonored will work again only after paying all the dues upto date at the cash counter of the branch.  The premiums under the policies are paid by the policy holders, the above policies will again attain ‘in force’ status and the policy holders will become entitled for full benefits under the above policies. ICMS complaints were registered by the policy holder earlier also vide complaint No.1415055352 dated 27.10.2014, complaint No.1415055665 dated 28.10.2014 and complaint No.1415062380 dated 23.11.2014, which were also duly replied by the Arambagh Branch of the corporation as well as CRM Department, Howrah Division Office.

In the above premises, the O.Ps. further beg to submit the chronological facts, involved in this case which are as follows;

1. Vide letter dated 15.1.2009, the complainants requested ECS through Axis Bank.

2. ECS confirmed for policy Nos. 437442831 and 436153688 vide letter of LICI dated 3.2.2009 and 10.2.2009.

3. ECs for the policy No.436127341 was not done, hence requested to update premium over cash counter.

4. In August 2009, the policy holder paid premium at the cash counter for policy No.437442831, interest was waived, as per request of the policy holder vide letter dated 4.8.2009.

5. In October, 2009 premium was not cleared by Axis Bank for the policy No.436153688 (though as per pass book of policy holder, the amount has been debited by Axis Bank vide A/c.364010100092940).

6. In the year 2010 again, the policy holder had to pay the cash counter for the above 2 policies.

7. From 2011 to 2013, ECS mandate worked and all amount directly debited from the policy holder’s account for the above two policies.

8. The ECS mandate for the policy Nos.437442831 and 436153688 were dishonored due to insufficient fund which was duly informed by LIC vide letter dated 1.4.2015 and 10.10.2014.  The confirmation of dishonour is complied with by proving the bank statement and mail of Branch Head of Arambagh, Axis Bank.

9. All the five policies are in lapsed condition due to non-payment of premium by using any other mode of payment of premium.

The complainants lodged complaints on 27.10.2014, 28.10.2014, 23.11.2014 and 23.2.2016.  The O.P. replied to each and every of those complaints then and there on 25.11.2014, 30.10.2014, 25.11.2014 and 27.2.2016 respectively. Thus there was no deficiency in service or negligence on the part of the O.Ps., on the contrary, the complainants themselves who suffered due to sheer latches and negligence in each steps on their part.  This O.P. do not admit any statement of the petition of complaint save and except which would appear from the documents itself, as have been submitted by them.  Thus, the instant complaint case is, therefore, liable to be dismissed with cost.

The complainants filed evidence on affidavit on 10.11.2017 stating that Axis Bank has cleared the ECS for the specific mandate period. Thereafter SBI referred letter No.BR/Gen/17/08 dated 8.6.2016.  LIC, India representative has not approached to the SBI for deduction of premium as per SBI letter. As per ECS mandate dated 5.2.2013 and 11.2.2013 LIC is supposed to approach to SBI not Axis Bank.

O.P. also filed evidence on affidavit on 18.01.2018 in which he stated that through e-mail dated 1.7.2017 the Axis Bank intimated that ECS deduction could not be effected for policy No.437442831 and policy No.436153688 due to insufficient fund along with bank statement of the complainants for the period 1.4.2014 to 31.3.2015.  So, the ECS mandate could not be honoured.  In pertaining to policy No.436127341 the status report of the said policy speaks that ECS mandate could not be executed as per request of the complainants as the policy was in lapsed condition. Apart from that the answering O.P. requested the complainants to make payment of the premium in cash directly as ECS mandate has dishonored.  So, the O.P. acted in accordance with the policy condition as well as complied the demand of the policy holder/complainants.

  Argument advanced by the parties heard in full.  Both sides files BNA which are taken into consideration during passing of final order. 

From the discussion herein above we find the following issues/points for consideration.

ISSUES/POINTS FOR CONSIDERATION

1. Whether the complainants Binoy Kumar Bhuin, Rita Bhuin and Abhik Bhuin are the consumers of the Opposite Party?
2. Whether this Forum has territorial/pecuniary jurisdiction to entertain and try the case?
3. Whether the O.ps. Carried on unfair trade practice/rendered any deficiency in service towards the complainants?
4. Whether the complainants proved their case against the O.Ps. as alleged and whether the O.Ps. are liable to pay any compensation to these complainants?

DECISION WITH REASONS

In the light of discussion herein above we find the issues /points should be decided based on the above perspectives.

1). Whether the complainants Binoy Kumar Bhuin, Rita Bhuin and Abhik Bhuin are the consumer of the Opposite Party?

     From the material on record it is transparent that complainants are consumers as provided by the spirit of Section 2(1)(d)(ii) of the Consumer Protection Act, 1986. The complainants being the policy holder of LICI is entitled to get service from its service provider/insurer.

2).Whether this Forum has territorial/pecuniary jurisdiction to entertain and try the case?

    Both the complainants and O.Ps. are residing/ carrying on business within the district of Hooghly. The complaint valued within Rs.20,00,000/- ad valorem.  So, this Forum has territorial and pecuniary jurisdiction to entertain and try the case.

3).Whether the O.ps. carried on unfair trade practice/rendered any deficiency in service  towards the complainants?

  The case of the complainants is that they applied for ECS mode as per the LIC’s form for three policies through SBI on 24.3.2008 but they could not get any response from LICI for want of MICR number of the bank.  Then they submitted through Axis Bank on 29.11.2008 and LIC responded with written letter dated 10.3.2009.  That policy No.2 & 3 as stated in the schedule will be covered under ECS mode and complainant No.1have to pay premium for one policy.  After confirming ECS deduction for the policy No.437442831 LIC failed to deduct the premium.  So, he himself deposited in cash.  On October, 2009 the complainant got an electronic mail that premium of Rs.4382/- of policy No. 436153688 has not been cleared by Axis Bank without any reason and the incident occurred due to latches on the part of the bank. For the year 2010 again the complainant No.1 compelled to make payment arrangement for the two policies being No.437442831 and 436153668 and from year 2011 to 2013 premium amounts were directly debited from the Axis Bank Account.   Later on the complainant No.1 purchased other two policies in the name of his son through one Dinabandhu Nandi who visited his house and assured him that these policies will be deposited through ECS and he applied for ECS dated 25.1.2013 through SBI. Then he received two unsigned letters from LICI dated 10.10.2014 and 1.4.2015 stating that ECS has been dishonored by the bank due to insufficient fund and he has to pay premium, interest and dishonored charges to revive the policies.  Then the complainant No.1 wrote a letter to Zonal Manager, Eastern Zone through Chief Manager, Arambagh Branch but no response till to date.  So, he preferred the redress of District Forum as per advice of the State Consumer Disputes Redressal Commission alleging the deficiency of service and gross negligence of the different port folio holders of the LICI i.e. O.P. No.1 to 3.

   O.P. No.1 to 3 contesting the case and denied the allegations leveled against them and averred that after long lapse of more than three years when the complainants enquired about the fate of the policies then they could know that the policies were lapsed due to non-payment of respective premiums as the ECS mandate could not be effectuated by the respective banks due to insufficient funds at the relevant point of time.  Answering O.P. alleged that the complaint petition suffers from non-joinder of necessary party and also the complaint petition filed after the limitation period as depicted in Section 24A of Consumer Protection Act, 1986.  The O.P. referred the decision of Hon’ble Apex Court in that regard.  The O.P. No.1 to 3 averred that there was option for the policy holder to make payment of periodical premiums in cash at the cash counter of LICI.  If, there is any problem ever arose in payment of policy premium through ECS via the relevant bank of choice of the policy holder.  The answering O.P. while answering the questions put by the complainant stated that premiums of policy No.437442831 and 436153688 were not received by us due to ECS mandate failure by the banker of the policy holder i.e. Axis Bank due to in sufficient fund in account of the complainant.  They also requested the policy holder to pay premium at the cash counter to revive the policies and also informed that ECS deduction will resume only after the policy becomes upto date.  The O.P. branch received NEFT forms from the respective policy holders Abhik Bhuin and Binoy Kr. Bhuin and the same has been entered by the branch in due time so the policy holders received their money back payments (survival benefits) due on 3/2014 and 10/2014 directly credited in the account of the policy holder. The answering O.P. duly replied the letters of the complainants and provided advice to the complainants.  So, they have no deficiency in service.

     After perusing the e-mail dated 1.7.2017 of Axis Bank in which Axis Bank stated that the account could not be debited due to the reason of insufficient funds for the period from 1.4.2014 to 31.3.2015 in respect of policy No.437442831 of premium amount Rs.6183/- due on 28.3.2015 and policy No.436153688 of premium amount Rs.4382/- due on 8.10.2014.  So, due to insufficient fund in the corresponding account of the policy holder leads to fetal for the complainants.  As a result the policy became unpaid for the said period although ECS was in working condition. The statement of Axis Bank in respect of account of complainant No.1 speaks that ECS debit rental charge of LICI, KMDO-1 collected Rs.393.26 paisa and the closing balance is Rs.-393.26.  For which the policy premium of the complainant became unpaid due to lack of fund in his account.  Another document is status report of policy No.436127341 in which first unpaid premium date 2/2012.  The last document that perused written to the complainant No.1 Binoy Bhuin dated 27.2.2014 by the LICI in which it is stated that the policy holder already being informed through mail dated 24.11.2014 regarding ECS in two policies stated earlier but the necessary requirement has not been complied till dated and requested to note that ECS premium claimed by LICI under the above policies has been dishonored by their banker Axis Bank citing reasons and other three number of policies being Nos.496219342, 496673269 and 436127341 are not under ECS scheme.  Lastly the O.P. requested to kindly pay requisite premiums as per rules of the corporation under the above policies to continue the policy and policy holder is requested to submit a fresh ECS mandate form so that necessary action to change the bank particulars for deduction of premium through ECS can be taken up by the Arambagh branch office. But the complainants failed to do so. It is quite difficult to ascertain whether the bank is responsible to ECS default for which the op could not collect the premiums of the complainants in absence of them. The versions of the corresponding banks are essential for the proper adjudication of the case. The complainant being well acquainted regarding the banking operations failed to maintain the required balance for which his ECS became failure. From the above the discussions this Forum hold that there is no deficiency on the part of the OP corporation.

Considering all the facts and circumstances we may hold that the complaint petition has no leg to stand so the complaint petition is deserved to be rejected.

From the above discussion we can safely conclude that the complainant failed to prove her case by producing sufficient documents. 

4). whether the complainants proved their case against the opposite party, as alleged and   whether the opposite party is liable for compensation to them?

 The discussion made herein before, we have no hesitation to come in a conclusion that the Complainants have failed to prove their case and the opposite Party is not liable to pay any compensation & other reliefs as prayed in the complaint petition.

ORDER

Hence, it is ordered that the complaint being NO. C.C. 39/2017 be and the same is dismissed on contest against the opposite Party.

The opposite parties are exonerated from this case.

               Let a plain copy of this order be supplied free of cost to the parties/their Ld. Advocates/Agents on record by hand under proper acknowledgement/ sent by ordinary Post for information & necessary action.