Tamil Nadu

North Chennai

188/2013

Mr.Paneer Selvam - Complainant(s)

Versus

The Manager and one another - Opp.Party(s)

M/S.T.R.Udayakumar

27 Dec 2016

ORDER

                                                            Complaint presented on:  04.10.2013

                                                                Order pronounced on:  27.12.2016

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

    2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

 

PRESENT: THIRU.K.JAYABALAN, B.Sc., B.L.,        PRESIDENT

                    TMT.T.KALAIYARASI, B.A.B.L.,           MEMBER II

 

TUESDAY THE 27^th   DAY OF DECEMBER 2016

 

C.C.NO.188/2013

 

Mr.Panneerselvam,

No.11, Kannadasan Street,

Thanthai periyar Nagar,

Sathya Moorthy  Nagar Post,

Thirumullaivoyal,

Chennai – 600 062.

                                                                                            ….. Complainant

 

..Vs..

 

1. The Manager,

Life Insurance Corporation of India,

Chennai Division – II,

City branch No.17 (71S),

C-42, 2^nd Avenue, Anna Nagar Plaza,

Anna Nagar,

Chennai – 600 040.

 

2.The chief Regional Manager,

Life Insurance Corporation of India,

Regional Office,

LIC Building, 7^th Floor,

Annasalai, Chennai – 600 002.

 

	...Opposite Parties

Date of complaint                                  : 07.10.2013

Counsel for Complainant                      : M/s. T.R.Udaya Kumar & R.Selvi

Counsel for Opposite Parties                : M.B.Gopalan, N.Vijayaraghavan,

                                                                 M.B.Raghavan

 

O R D E R

BY PRESIDENT THIRU. K.JAYABALAN B.Sc., B.L.,

          This complaint is filed by the complainant u/s 12 of the Consumer Protection Act.1986.

1.THE COMPLAINT IN BRIEF:

          The Complainant is a subscriber of an endowment assurance policy with profit bearing policy No.710709445 dated 20.08.1992 from the 1^st Opposite Party. The sum assured in the policy is Rs.25,000/- with installment premium payable at Rs.119/- per month. The data of maturity of the said policy was 20.08.2012.  The status report of the above said policy dated 23.07.2012 sent by the 1^st respondent, it has been mentioned that on 07.01.1998 the Complainant has obtained a loan to a sum of Rs.2,140/- towards the above mentioned insurance policy. The Complainant categorically states that he never obtained any loan against the said policy. On 23.07.2012 the Complainant has sent a representation to the 1^st respondent stating that the loan details were wrongly mentioned in the aforesaid status report. The Complainant also requested the 1^st respondent to pay him the entire maturity amount of Rs.54,250/- of the said policy which will be matured on 20.08.2012 without deducting any amount. The date of last payment of the monthly premium was on 20.07.2012 and he has also paid the said premium amount on 23.07.2012. The Opposite Party said that there was an unpaid loan due in the said policy and only when the dues are cleared, then alone the maturity amount will be paid to him. The Complainant made representation dated 14.09.2012, requesting the 1^st Opposite Party  to pay the maturity amount. The 1^st Opposite Party have given him a discharge voucher bearing No.05821 having no signature or date, mentioning the gross maturity amount as Rs.54,250/- and the details of the deduction as unpaid premium of Rs.119+late fee of Rs.5/-, the loan amount of Rs.2,140/- and unpaid loan interest of Rs.6,505/- and after deducting all these dues it has been stated that the net payable maturity amount as Rs.45,481/- only. Thereafter on 17.10.2012 the Complainant has sent a detailed representation to the 1^st respondent requesting the payment of maturity amount. On 07.11.2012 the Complainant received another status report of the policy which doesn’t even whispered anything about the alleged loan. Aggrieved by the inaction of the 1^st Opposite Party to his representations, he made a representation to the 2^nd respondent through letter dated 17.12.2012 by Registered Post Acknowledgement due. The respondents has neither paid him the actual maturity amount of Rs.54,250/- nor have furnished him the necessary details sought by him regarding the alleged loan.  The act of the respondents claiming the money for which he is not at all liable is a glaring piece of unfair trade practice. The Complainant made to suffer a great mental agony and financial stress by not getting his maturity amount of Rs.54,250/-.  A communication dated 13.06.2013, the 1^st respondent has informed the Complainant that the maturity amount of Rs.54,250/- shall be collected from him by the Complainant on furnishing the documents. In the mean time the Complainant has sent a legal notice dated 14.06.2013 to the respondents, but both have not chose to reply the same. The opposite party failed to pay the matured amount to the complainant even after the date of maturity, the opposite parties have committed deficiency in service.  Hence the complainant filed this complainant to pay the maturity amount of Rs.54,250/- with 24% interest from the date of maturity and also to pay compensation for mental agony and unfair trade practice with cost of the complainant.       

2. WRITTERN VERSION OF THE OPPOSITE PARTIES  IN BRIEF:

          The Complainant is attempting to take undue advantage of an error in mention of loan amount in the policy status report, which has subsequently been verified and informed that maturity amount of Complainant’s policy of Rs.54,250/- would be paid in full without any deduction whatsoever for any loan. The Complainant was requested to surrender the policy along with the voucher for payment, by letter dated 13.06.2013. Surprisingly, instead of submitting the documents and enabling payment, has chosen to file the present Complaint and make an unreasonable claim which is nothing but an attempt to make unjust enrichment by misusing the Consumer Protection Act.  The Opposite Party could not release payment without the surrender of the policy bond and the submission of the discharge voucher. The Opposite Party submits that every mistake or error cannot be the basis for making fanciful claims as it only amount to misuse of the beneficial legislation and not seeking any legitimate relief. It is true that the Complainant is the holder of policy No.710709445 for sum Insured of Rs.25,000/- which matured for payment on 20.08.2012. Due to computer error in coordinating records, there was mention of outstanding loan of Rs.2,140/- in a status report of the policy. However, on receipt of representation from the Complainant dated 14.09.2012, the matter was referred to the Group salary Savings Branch, Kodambakkam which had issued the policy and obtained confirmation that there was no loan on the policy. The Opposite Parties have attempted to close the matter by releasing payment but the Complainant failed to cooperate. Hence on 09.03.2013, letter was sent to the Complainant to provide the original policy with discharge forms to release payment. The error in the records had been corrected as revealed by the status report of November 2012 and May 2013 filed by the Complainant himself which carries no loan amount. The complainant has no locus standi to blame the opposite parties for any deficiency in service and there is no cause of action for complaint and prays to dismiss the complaint with cost. 

3.POINTS FOR CONSIDERATION:

          1. Whether there is deficiency in service on the part of the opposite parties?

          2. Whether the complaint is entitled to any relief? If so to what extent?

4.POINT : 1

          The Complainant is the holder of policy No.710709445 for sum insured of Rs.25,000/- which was issued by the Opposite Parties and the said policy matured on 20.08.2012 for payment to the  complainant.   Ex.A1 is the 1^st premium receipt issued by the Opposite Parties to the complainant.  Ex.A2 & A3 is the pay slip of the complainant.  Ex.A4 & A5 are the renewal premium receipts. 

          5. The complainant contented that he had received Ex.A6 status report dated 23.07.2012 which discloses that he had obtained the loan of Rs.2,140/- on 7.1.1998 form the Opposite Parties.  The date of maturity of the policy was on 20.08.2012.  The complainant wrote Ex.A9 letter dated 14.09.2012 to the 1^st Opposite Party he had not availed any loan on the policy and hence he requested to pay the matured policy amount to him.  However on 12.10.2012 the Opposite Parties sent Ex.A10 statement that after deducting the loan amount including interest the complainant is entitled only a net amount of Rs.45,481/- from the matured value of Rs.54,250/-. Again the complainant sent Ex.A12 letter dated 17.10.2012 to the 1^st opposite party that he had not taken any loan from the policy and requesting to pay the matured amount of Rs.54,250/- to him.  However, even after such a request the opposite party sent Ex.A13 statement dated 22.10.2012 to the complainant    with the entry of loan amount as if borrowed by the complainant.  However in a subsequent statement Ex.A14 dated 17.12.2012, the Opposite Parties have not shown the loan borrowed by the complainant.  This fact clearly proves that only after representation of the complainant under Ex.A9 and A12 the Opposite Parties have omitted the wrongly entered loan amount of Rs.2,140/- in Ex.A14 status statement.  Further, even after request made by the complainant in Ex.A9 and A12 that he had not borrowed any loan from the Opposite Parties and thereafter the Opposite Parties sent Ex.10 and A13 status statements showing that the complainant borrowed loan amount of Rs.2,140/- based on his policy is a clear case of wrong committed by the Opposite Parties in preparing and sending statement to the Complainant and therefore we hold that the Opposite Parties have committed deficiency in service.

 6.POINT :2

          Admittedly the Complainant is entitled for the maturity amount of Rs.54,250/-. The said amount was matured on 20.08.2012. Therefore it would be appropriate to order that the Complainant is entitled to 9% interest for the matured amount from the date of maturity on 20.08.2012. Further, the Opposite Party failed to pay the matured amount to the Complainant is negligent act on their part and therefore the Complainant suffered with mental agony is accepted and hence we inclined to order a sum of Rs.10,000/- towards compensation for mental agony, besides a sum of Rs.5,000/- towards litigation expenses.   

In the result the Complaint is partly allowed. The Opposite parties 1 & 2 jointly or severally are ordered to pay a sum of Rs.54,250/- (Rupees  fifty four thousand two hundred and fifty only) towards the matured policy amount to the Complainant   with 9% interest  from the date of maturity on 20.08.2012 to till the date of this order  and also to pay a sum of Rs. 10,000/- (Rupees ten thousand only) towards compensation for mental agony besides a sum of Rs.5,000/- (Rupees five thousand only) towards litigation expenses. Regarding other reliefs the Complaint is dismissed.

          The above amount shall be paid to the complainant within 6 weeks from the date of receipt of the copy of this order failing which the above said amount shall carry 9% interest till the date of payment.               

Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 27^th day of December 2016.

MEMBER – II                                                               PRESIDENT

 

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1 dated 27.06.1992                   Acceptance letter cum first premium receipt

Ex.A2 dated Jan 1997             Pay slip

Es.A3 dated April 1997          Pay slip

Ex.A4 dated 08.09.1997                   Premium receipt

Ex.A5 dated 09.09.1997                   Renewal premium receipt

Ex,A6 dated 23.07.2012                   Status report of the policy

Ex.A7 dated 23.07.2012                   Renewal premium receipt

Ex.A8 dated 23.07.2012                   Representation of the petitioner

Ex.A9 dated 14.09.2012                   Representation of petitioner

Ex.A10 dated NIL                             Statement of the policy

Ex.A11 dated 17.10.2012                 Copy of the policy

Ex.A12 dated 17.10.2012                 Representation of the petitioner

Ex.A13 dated 22.10.2012                 Status report of the policy

Ex.A14 dated 07.11.2012                 Status report of the policy

Ex.A15 dated 17.12.2012                 Representation of the petitioner

Ex.A16 dated 19.12.2012                 Letter from the 1^st respondent

Ex.A17 dated 27.02.2013                 Representation of the petitioner

Ex.A18 dated 09.05.2013                 Status report

Ex.A19 dated 17.05.2013                 Representation of the petitioner

Ex.A20 dated 18.05.2012                 Acknowledgement card of the 1^st Opposite

                                                    Party

Ex.A21 dated 28.05.2013                 Letter sent by the Opposite Party

Ex.A22 dated 14.06.2013                 Legal notice

Ex.A23 dated 18.06.2013                 Acknowledgement card of the 1^st Opposite

                                                    Party copy

Ex.A24 dated 13.06.2013                 The settlement letter sent by 1^st Opposite

                                                    Party

Ex.A25 dated 20.06.2013                 Letter sent by 1^st Opposite Party

 

LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTIES:

 

Ex.B1 dated 09.03.2013                   Letter from 1^st Opposite Party to

                                                    Complainant

Ex.B2 dated 02.05.2013                   Letter from 1^st Opposite Party to

                                                    Complainant

Ex.B3 dated 13.06.2013                   Letter from 1^st Opposite Party to

                                                    Complainant                              

MEMBER – II                                                               PRESIDENT