DISTRICT CONSUMER DISPUTES REDRESSAL FORUM Civil Station, Palakkad – 678 001, Kerala Dated this the 19th day of May, 2009 Present: Smt.Seena.H, President Smt.Preetha.G.Nair, Member Smt.Bhanumathi.A.K, Member CC No.78/2007
M.Vanajadalakshan, S/o.S.Manikkan, Punote House, Kalayamkulambu, Nallepilly.P.O, Palakkad. - Complainant (By Adv.S.M.Unnikrishnan) Vs
1. The Manager, LIC of India, Chittur Branch, Palakkad.
2. The Manager, KGSD Department, LIC Divisional Office, M.G.Road, Ernakulam, Kochi 682011. - Opposite parties O R D E R By Preetha.G.Nair, Member
The complainant has availed a money back policy from the opposite parties and the policy No. is 772042128. The sum assured under the policy is Rs.1 lakh and the survival benefit of Rs.30,000/- is payable on the life assured surviving 4 years and 8 years from the date of commencement of the policy. The first survival benefit for Rs.30,000/- became due on 10.4.02 and the second survival benefit became due on 10.4.2006. The complainant contacted the LIC Divisional Office at Kochi for the survival benefit. Thereafter both these amounts were paid on 28.05.2007.
Complainant received a voucher for Rs.15,080/- towards the interest for belated payment after deducting an amount of Rs.1,539/- as income tax. According to the complainant, if he received the amount of Rs.30,000/- on 10.4.2002, he could have invested the same in other schemes fetching him more interest. Complainant calculated the loss by way of interest as Rs.40,000/-. The delay in making the payments was due to the deficiency in service on the part of the opposite parties. The loss of huge amount by way of interest and the other avenues has resulted in great mental agony to the complainant. The complainant is claiming an amount of Rs.40,000/- as compensation for the deficiency in service on the part of opposite party and Rs.10,000/- as compensation for mental agony and cost of the proceedings.
Opposite parties filed version stating the following contentions. The opposite parties admitted that the complainant holds a policy of assurance of his life numbered 772042128. Further the opposite parties admitted that in the case of the complainant, the 1st and 2nd survival benefits fell due on 10.4.2002 and 10.4.2006 respectively. According to the opposite parties every month the Information Technology Department of the Corporation generates a list containing the list of policy numbers. Due to some software problem, the complainant’s policy number was not listed by the computer in 2002 and 2006 while generating the list of policies for which survival benefits were due. The fact of non settlement of survival benefit was brought to the notice of the 2nd opposite party by a telephonic intimation from the complainant. Immediately the survival benefits due under the policy on 10.4.2002 and 10.4.2006 were settled by the opposite parties vide cheque No.441959 for Rs.60,000/-. While issuing the cheque special care was taken by the 2nd opposite party to send an advance receipt for Rs.15,080/- towards payment of interest for delayed settlement of survival benefits. The complainant vide letter dated 23.6.2007 was reminded to return the duly signed receipt so as to make the payment at the earliest. According to the opposite parties the interest for delayed payment of claim is fixed at 8% p.a based on the bank rate as on 1.4.2007. The opposite parties submitted that from the above submissions there has been no deficiency in service on the part of opposite parties.
Complainant filed affidavit and documents. Exts.A1 to A6 marked. Opposite parties also filed affidavit. Exts.B1 to B11 marked on the side of opposite parties.
Matter was heard.
The issues for consideration are; Whether there is deficiency of service on the part of opposite parties? If so, what is the relief and cost?
Issues 1 & 2: Admittedly there is delay in disbursing the survival benefits of the complainant by the opposite parties. The reason stated by the opposite parties for the same is that of software problem because of which the complainant’s policy No. 772042128 was not listed by the computer in 2002 and 2006 while generating the list of policies for which survival benefits were due. Opposite parties admitting the mistake was ready to issue a cheque of Rs.15,080/- for delayed payment as per the rules. According to the complainant, the interest offered is too low. We are of the view that software problem in the opposite parties’ office is not at all an excuse for the delayed payment. Fault is also with the complainant that he has enquired about the amount due in the year 2002 only in the year 2007. It can be seen that the opposite party has cleared the same immediately on receiving information from the complainant. But we agree with the stand of the complainant that amount received for delayed payment is too low. As there is an admitted mistake on the part of the opposite parties and the mistake amounts to deficiency of service on their part, complainant is entitled to some amount as compensation.
In view of the above discussions, we hold the view that complainant is entitled for Rs.15,080/- (Rupees Fifteen thousand and eighty only) being the agreed amount for delayed payment together with Rs.8,000/- (Rupees Eight thousand only) as compensation for the deficiency in service.
In the result complaint allowed. Opposite parties are directed to pay an amount
of Rs.15,080/- (Rupees Fifteen thousand and eighty only) together Rs.8,000/- (Rupees Eight thousand only) as compensation for the deficiency in service and Rs.1,000/- (Rupees One thousand only) as cost of the proceedings. Order shall be complied within one month from the date of receipt of order failing which the whole amount shall carry interest at the rate of 9% p.a from the date of order till realisation.
Pronounced in the open court on this the 19th day of May, 2009 Sd/- Seena.H, President Sd/- Preetha.G.Nair, Member Sd/- Bhanumathi.A.K, Member Appendix
Witness examined on the side of complainant Nil Witness examined on the side of opposite party Nil Exhibits marked on the side of complainant Ext.A1 – Copy of the policy dtd.17.3.1999 Ext.A2 – Letter from complainant to IRDA dt.19.05.2007 Ext.A3 – Reply from IRDA dt.11.6.2007 Ext.A4 – Letter by LIC, Ernakulam Division, Kochi Ext.A5 – Letter by6 LIC, Ernakulam Division to the complainant Ext.A6 – Advance (Draft receipt) issued by LIC to complainant
Exhibits marked on the side of opposite party Ext.B1 – True copy of Policy No.772042128 Ext.B2 – Copy of letter dt.15.05.2007 sent by 2nd opposite party to complainant Ext.B3 - Copy of letter dt.31.05.2007 sent by 2nd opposite party to complainant Ext.B4 - Copy of letter dt.31.05.2007 sent by 2nd opposite party to complainant Ext.B5 - Copy of letter dt.23.06.2007 sent by 2nd opposite party to complainant Ext.B6 – Copy of circular Ext.B7 – Copy of Policy Servicing Manual Page No.111 Ext.B8 – Copy of list of policies generated by computer due in April 2002 Ext.B9 - Copy of list of policies generated by computer due in April 2006 Ext.B10 – True copy of circular Ref.No.Actl/2107/4 dt.7.4.2007 Ext.B11 – Copy of IRDA Regulations 2002 Costs (Allowed) Rs.1,000/- (Rupees One thousand only) as cost of the proceedings
......................Smt.Bhanumathi.A.K
......................Smt.Preetha.G.Nair
......................Smt.Seena.H | | 
