BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, MYSORE-570023

CONSUMER COMPLAINT NO.178/2019

DATED ON THIS THE 29^th November 2022

Present:   1) Sri. B.Narayanappa

M.A., LL.B., - PRESIDENT  

                     2) Smt.Lalitha.M.K.,

M.A., B.A.L., LL.B., - MEMBER  

                        3) Sri Maruthi Vaddar,

                                                B.A., LLB (Special)  - MEMBER

Sri B.NARAYANAPPA,

PRESIDENT

1.       The complainant Sri Nagesha.R resident of Mysuru has filed this complaint against the OP – Life Insurance Corporation of India, Mysuru  praying to direct the OP to pay an actual maturity amount of LIC policy bearing No.724160064 and to pay Rs.50,000/- towards causing severe mental agony, frustration and monetary loss and such other reliefs as this Commission deems fit to grant.   
2.       The brief facts are that:-

The complainant has purchased a term policy bearing No.724160064 for a period of 10 years from OP commencing from 26.11.2008 and the said policy was matured on 26.11.2018, monthly premium of Rs.408/- was remitted to OP by way of ECS and the complainant was regular in payment of premium from the date of commencement till 28.02.2016.But, due to discrepancy in the software programmed for ECS mode of deduction, the remittance did not happen regularly.To satisfy the regular premium amount, the complainant was in touch with OP.Upon knowing the non-remittance of the premium, the complainant approached OP to issue a fresh ECS deduction letter. But, the OP instead of solving the said technical issue informed the complainant to approach Bangalore ECS Centre to get the fresh ECS letter.Due to personal reasons, the complainant could not able to go to Bangalore to get the letter which resulted in lapse of the said policy and as per the advise of the OP, the complainant has paid arrears. As on 13.02.2017 and totally the complainant had paid a sum of Rs.41,208/- towards premium and during the year 2017, the complainant undertook construction of his house, therefore, he was in requirement of money, he approached OP to surrender the policy.At that juncture, the OP informed that the complainant would get only Rs.36,000/- and further informed that the said policy going to mature very soon.Therefore, the complainant waited till maturity of the policy on 26.11.2018 and received claim settlement letter from OP stating that maturity amount is Rs.29,378/-, the complainant shocked to see the said letter though complainant has paid Rs.41,208/-, but the OP sent settlement letter for Rs.29,378/-. Therefore, on 15.12.2018 complainant sent a letter to OP to pay actual maturity amount with accrued bonus.But, the OP not settled the claim of the complainant. Hence, this complaint.

3.       After registration of this complaint, notice was ordered to be issued to OP.  In response to notice, OP appeared before this Commission through his counsel and has filed version contending that the complaint is not maintainable either in law or on facts and same is liable to be dismissed and admitted that the complainant has proposed for Life Insurance cover, OP accepted the same and issued the policy bearing No.724160064 for a death sum assured of Rs.1,00,000/- and maturity sum of Rs.34,904/- commencing from 26.11.2008 for a period of 10 years on monthly premium of Rs.408/- payable through ECS and date of maturity was 26.11.2018.  In the present policy, the policy not continued till maturity up to 26.11.2018 and only paid up value of Rs.29,378/- is eligible and even loyalty addition payable after full receipt of 10 years premium is also not eligible.  Therefore, the OP sent discharge voucher for Rs.29,378/- to complainant to send back the same by putting signature, but OP not received the same.  It is the duty of the complainant to keep the policy in force by paying premium regularly, but OP has received premium up to 13.03.2017 and subsequent premium till the date of maturity was not remitted by the complainant.  Hence, the policy was in the lapsed condition.  Hence, it was informed to complainant that OP is liable to pay Rs.29,378/- as per policy schedule.  But, the complainant failed to submit discharge voucher.  For all these reasons, OP prays to dismiss the complaint.                    
4.        The complainant has filed his affidavit by way of examination in chief and the same was taken as P.W.1 and got marked the documents as Ex.P.1 to Ex.P.7.    
5.     On the other hand, the OP also filed affidavit by way of examination in chief and the same was taken as R.W.1 and got marked the documents as Ex.R.1 to Ex.R.3.
6.       We have heard the arguments of both sides.      
7.        The points that would arise for our consideration are as under

1. Whether the complainant proves that the alleged deficiency in service on the part of the opposite party and thereby he is entitled to the reliefs as sought for?
2.  What order?

8.       Our findings on the aforesaid points are as follows:

      Point No.1 :- In the negative.

      Point No.2 :- As per final order for the following

:: R E A S O N S ::

9.          Point No.1:- It is not in dispute that the complainant has purchased term policy bearing No.724160064 for a period of 10 years from OP commencing from 26.11.2008 and the maturity date is 26.11.2018 on payment of monthly premium of Rs.408/- by way of ECS and it is also not in dispute that the complainant was regular in payment of monthly premium till 13.03.2017.  Thereafter, the complainant discontinued the policy.  Therefore, the policy was lapsed in condition.  It is the contention of the complainant that he had paid arrears of premium as on 13.02.2017 totally Rs.41,208/- and in the year 2017 he undertook construction of his house, therefore, he was in requirement of money.  Hence, he approached the OP to surrender the policy, the OP informed that the complainant would get Rs.36,000/- on surrendering of the policy and asked the complainant to wait till maturity since policy going to mature very soon on 26.11.2018 on maturity OP sent claim settlement letter for Rs.29,378/-, but the complainant did not sent back the settlement letter by subscribing the signature, instead he has sent a representation to OP on 15.12.2018 to pay the actual maturity amount with accrued bonus. But, the OP did not settle the claim.  Therefore, it is alleged deficiency in service on the part of OP.
10. The complainant produced documents such as insurance policy bearing No.724160064 standing in his name commencing from 26.11.2008, maturity date is 26.11.2018 and in the policy schedule, it is clearly mentioned that the maturity sum assured is Rs.34,904/-, death benefit sum assured Rs.1,00,000/- and accident benefit sum is Rs.1,00,000/-.
11. It is the specific contention of the OP that as per the schedule of the policy, maturity sum assured amount and death benefit sum assured and accident benefit sum assured is as stated above, but the complainant as failed to keep the policy in force and he had paid monthly premium up to 13.03.2017.  Thereafter, he did not pay the premium, therefore, the policy was lapsed.  It is the duty of the complainant to keep the policy in force, but he failed to keep the policy in force.  Therefore, the complainant is not entitled to maturity sum assured of Rs.34,904/-, but he is entitled only Rs.29,378/- in view of the policy was lapsed, the complainant was also not entitled to loyalty addition of Rs.10,200/-.  Therefore, the OP sent claim settlement letter to complainant for Rs.29,378/-.  But, the complainant did not resent the same by subscribing his signature instead he sent a letter dated 15.12.2018 requesting the Op to pay the maturity amount with accrued bonus, for which complainant is not entitled as per the schedule of the policy in view of the policy was in lapsed condition.  Under such circumstances, the complainant cannot claim the maturity value of the policy, since the policy was in lapsed condition and the complainant has failed to keep the policy in force till the date of maturity.  Therefore, the complainant has also looses his right to get the bonus and loyalty addition of Rs.10,200/- on the said policy.  Therefore, in view of the policy was in lapsed condition and as per the schedule of the policy, the complainant is only entitled to receive Rs.29,378/-, but the complainant has refused to receive the same.  On going through the complaint averments, version of OP and documentary evidence produced by either parties to complaint, it is crystal clear that the OP has not at all committed any deficiency in service.  Hence, we are of the considered view that the complainant has not proved the alleged deficiency in service on the part of OP.  Hence, we do not find any merits in the complaint of the complainant. Hence, we answer point No.1 in the negative.
12.       Point No.2:- For the aforesaid reasons, we proceed to pass the following

:: ORDER ::

1. The complaint of the complainant is dismissed.
2. No order as to costs.
3. Furnish the copy of order to both parties at free of cost.

(Dictated to the Stenographer transcribed, typed by her, corrected by us and then pronounced in open Commission on this the 29^th November 2022)