CC Filed on 09.07.2009<br /> Disposed on 22.09.2009<br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.<br /> <br /> Dated: 22nd day of September 2009<br /> <br /> PRESENT:<br /> Sri. G.V.HEGDE, President.<br /> <br /> Sri. T.NAGARAJA, Member.<br /> Smt. K.G.SHANTALA, Member.<br /> ---<br /> <br /> Consumer Complaint No. 48/2009<br /> <br /> Between:<br /> <br /> <br /> Smt. Paranjyothamma,<br /> W/o. Ramnath,<br /> D/o. Late. Viayendra Samuel,<br /> Aged about 25 years,<br /> R/o. # 31, KHB Colony,<br /> Keelukote Layout,<br /> Kuvempu Nagar,<br /> Kolar – 563 101.<br /> <br /> <br /> (By Advocate Sri. V. Sridhar & others) <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> ….Complainant<br /> <br /> V/S<br /> <br /> <br /> The Life Insurance Corporation of India,<br /> Branch Office, Kolar Branch,<br /> Antharaganga Road,<br /> Kolar – 563 101.<br /> Represented by its Branch Manager.<br /> <br /> <br /> (By Advocate Sri. Samarangappa) <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> ….Opposite Party<br /> <br /> ORDERS<br /> <br /> This is a complaint filed under section 12 of the Consumer Protection Act, 1986 praying for a direction against the opposite party to pay a sum of Rs.50,000/- with interest at 12% p.a. from the date of claim application of complainant till its realization with accrued benefits in respect of the life insurance policy obtained by complainant’s deceased father, with costs, etc.,<br /> <br /> 2. One Vijayendra Samuel the father of complainant had obtained a life insurance policy bearing No. 361150969 for Rs.50,000/- on 23.07.1999 from OP. The premium was Rs.267/- per month payable out of the salary of the insurer who was a lineman in K.E.B at Kolar. Smt. Esther Padmavathi the wife of insurer was nominee under the policy. She died during the life time of insurer in January 2001 and thereafter the complainant who is the daughter of the insurer was registered as nominee and the same was endorsed on the policy on 29.11.2001. <br /> <br /> The insurer was regularly paying the premium. He died on 13.10.2007. Thereafter the complainant preferred claim before the OP for payment of policy amount with accrued benefits to her. Then she was informed that the insurer had pledged the said policy in favour of M/s. Pragathi Gramina Bank, Kolar Branch, Kolar and had assigned the policy in favour of that Bank and the assignment was endorsed on 11.10.2004/14.10.2004 on the policy. It is alleged that then complainant approached that Bank and cleared the loan amount and in the month of January 2009 she submitted loan clearance certificate issued by that Bank along with original policy bond. It is alleged that the OP insisted to produce succession certificate for payment of the amount payable under the policy. She claims that insistence for production of succession certificate is unwarranted and such demand amounts to deficiency in service. <br /> <br /> 3. The OP admitted the issuance of policy and the claim preferred by complainant. It contended that the life assured had absolutely assigned the policy for valuable consideration in favour of Pragathi Gramina Bank, Kolar Branch, Kolar and the assignment was duly registered by this OP on 11.10.2004/14.10.2004. Further it contended that on the death of Life assured on 13.10.2007 the amount payable under policy vested with assignee – Pragathi Gramina Bank, Kolar Branch, Kolar and that assignee had not preferred any claim and instead of it, the said Bank submitted letter dated 13.10.2008 stating that it has no right title or interest in the policy consequent on the repayment of the loan with interest and further submitted form of reassignment dated 24.09.2008 with notice of reassignment dated 24.09.2008 and that the said reassignment was not in order as the reassignment was in favour of original policy holder, who was not alive on the date of reassignment. Further it contended that in such circumstance succession certificate was insisted but the complainant failed to produce it. It also contended that it is prepared to settle the claim in favour of all the legal heirs provided there is no dispute among them and all the legal heirs execute an indemnity bond jointly with an approved surety. Therefore it contended that there is no deficiency in service on its part. <br /> <br /> 4. The parties filed affidavits and documents. We heard the Learned Counsel for parties. <br /> <br /> 5. The assignment of policy by the life assured during his life time on 14.10.2004 in favour of Pragathi Gramina Bank, Kolar Branch is not disputed. In that event as per section 39 (4) of the Insurance Act 1938, automatically the nomination in favour of complainant stands cancelled. The reassignment by the said Bank should have been in favour of complainant, but it was made wrongly in favour of deceased life assured. Therefore we found that insistence for production of succession certificate is not unwarranted. <br /> <br /> 6. The OP has contended that it has also requested the complainant to inform the details of legal heirs in order to process the claim in favour of legal heirs of the deceased life assured. The complainant has stated in her evidence that her father died instate leaving behind her, his second wife Smt. Sujan Rani and the complainant and her two younger brothers. She stated that the deceased was having different LIC policies and he had nominated each of the other heirs in other policies and those persons received the policy amounts under those policies after the death of her father and that her step mother Smt. Sujan Rani had already given her no objection to OP for payment of the amount under the present policy to complainant. The complainant has filed the affidavits of her two younger brothers who stated that they have no objection for paying the amount under the present policy to complainant. From the above facts and circumstances we are satisfied that complainant alone is entitled to receive the entire amount under the present policy as the other heirs of deceased life assured have no objection for payment of the entire amount to her. Hence we pass the following:<br /> <br /> O R D E R<br /> <br /> The OP is directed to deposit the amount payable under policy No. 361150969 issued in the name of late Vijayendar Samuel with accrued benefits before this Forum within 30 days from the date of this order, for payment of the same to complainant. In default the OP shall pay costs of Rs.1,000/- and interest at the rate of 9% p.a. on the amount payable from the date of default till the date of realization. <br /> <br /> Dictated to the Stenographer, corrected and pronounced in open Forum this the 22nd day of September 2009.<br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> <br /> <br />