Complaint filed on: 08-08-2016                                                     

Disposed on: 19-08-2017

BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL FORUM,

OLD DC OFFICE COMPOUND, TUMAKURU-572 101

CC.No.109/2016

DATED THIS THE 19^th DAY OF AUGUST 2017

PRESENT

SMT.PRATHIBHA. R.K. BAL, LLM, PRESIDENT

SMT.GIRIJA, B.A., LADY MEMBER

Complainants: -       

1. Smt.Saraswathi

W/o. Late H.D.Umesh,

Aged about 35 years,

2. Kum.Lakshmi.H.U.

D/o. Late H.D.Umesh,

Aged about 11 years, minor

3. Kum.Yashaswini.H.U.

D/o. Late H.D.Umesh,

Aged about 8 years, minor

Reptd.by mother as natural guardian for the minors No.2 and 3

All are residing at 63/B Railway Quarters, near railway station, Tumakuru      

(By advocate Sri.G.H.Rajashekaraiah)

V/s

Opposite parties:-    

1. The Manager,

Claims Department, LIC of India, Divisional Office-I Jeevan Prakash, JC Road, Bengaluru

2. The Manager, LIC of India, Near Taluk office, BH Road, Tiptur
3. Smt.Renukamma

W/o. Late Doddaiah @ Doddegowda, aged about 65 years, Residing at Honnenahalli, Kasaba hobli, Tiptur taluk, Tumakuru

(OP No.1 & 2 by advocate Sri.G.S.Narayan)

(OP No.3-exparte)

ORDER

SMT.PRATHIBHA. R.K. PRESIDENT

This complaint is filed by the complainant against the OPs, under Section 12 of the Consumer Protection Act. The complainant prays to direct the OPs to pay policy amount of Rs.8,21,618=00 including the 3^rd OP nominated policies and to pay damages of Rs.8,00,000=00 @ 18% interest per annum since from the date of death from 19-3-2011 till disposal of this complaint which includes penal interest paid to Sri Udayaravi Pattina Sahakara Sangha, Tiptur of Rs.46,505=00 and also to award Rs.2,00,000=00 towards mental agony and sufferance, in the interest of justice and equity.

2. The brief facts of the complaint is as under.

          The complainants submit that, the husband of the 1^st complainant and father of the complainant No.2 and 3 i.e. late Sri.H.D.Umesh had obtained the LIC policies from the OPs insurance company vide bearing policies No.616284327, 616159791, 616025697, 612523053, 614436374, 615217284, 612519972 and 611247038, for a total amount of Rs.8,21,618=00.

          The complainants submit that, Late Sri.H.D.Umesh died due to massive heart attack on 19-3-2011. The complainant No.1 to 3 and 3^rd OP are the class-1 heir of the deceased late Sri.H.D.Umesh and the 3^rd OP is a formal party to this proceeding.

          The complainants further submit that, after the death of Sri.H.D.Umesh, the complainants had approached the 2^nd OP and filed the claim form along with required documents, but till today, the 2^nd OP has not settled the insurance claim amount  through policies were in force at the time of death of the 1^st complainant husband.   

          The complainants further submit that, the complainants filed a case earlier before this forum in CC No.183/2012 and the said case was dismissed on 30-8-2013 on technical ground. The complainants further submit that, one Nethravathi D/o. Doddaiah who is the sister of the deceased H.D.Umesh and the father of late H.D.Umesh died on 18-2-2003 Smt.Nethravathi filed a suit for partition and separate possession in OS.111/11 before the Civil Judge (JD) Tiptur. The above said policies were made as B-Schedule in the suit. Hence, the complaint filed by the complainant in CC No.183/2012 was dismissed on 30-8-2013 on technical grounds.

The complainants further submit that, Civil Suit in OS.111/2011 filed by one Smt.Nethravathi D/o. Doddaiah was dismissed on 20-4-2016 and the same was informed to the OP No.1 and 2 to release the LIC policies to the nominees.

The complainants further submit that, 1^st OP in the reply letter dated 29-6-2016 stated that get a confirmation letter from the Registrar of the Principal Civil Judge and JMFC, Tiptur as to whether any appeal has been filed by the Smt.Nethravathi to set-aside the dismissal order dated 20-4-2016 for the settlement of the policies claim. Hence the complainants issued a legal notice along with complainant affidavit stating that, there is no such confirmation letter from the Registrar of the Civil Judge, Tiptur and the complainants filed Affidavit verifying before the court that no appeal is preferred in respect to the Civil Suit OS No.111/2011. The 1^st complainant has also filed a Caveat petition before the Sr. Civil Judge, Tiptur and the same was registered as Caveat No.50/2016 dated 27-4-2016. The Caveat Notice has been duly served to OPs. However, the OPs Insurance Company has not released the insurance claim amount till today. Hence, the complainants have come up with the present complaint.

3. After service of the notice, the 3^rd OP has not appeared before the forum and she has been called out absent and she has placed exparte.

4. The OP No.1 and 2 have appeared through their counsel and filed common objections contending interalia as under.

The complaint filed by the complainants is not maintainable either in law or on facts. The complainants have not come to the forum with clean hands. Hence, on the ground alone, the complaint filed by the complainant is liable to be dismissed in limine. There is no deficiency of service on the part of the OP No.1 and 2.

The OP No.1 and 2 further submitted that, the OPs Corporation is a statutory body and has to act in accordance with law and procedure and there is no personal grievance or enmity against any one. The OPs Corporation being the Trustee of the public money has to guard and safeguard the interest of all policyholders and will act only in accordance with law and procedure.

The OP No.1 and 2 further submitted that, one Sri.H.D.Umesh had taken total 10 LIC policies, namely 615217284, 616284327, 616159791, 614436374, 616025697, 612523053, 612519972, 611247038, 614751127 and 615749638. Among the ten policies, the policy bearing No.6152217284 was surrendered during the life time of late H.D.Umesh and has drawn surrender value amount on 8-4-2010 itself. Hence, the OP No.1 and 2 submits that nothing is payable under the said policy now.

The OP No.1 and 2 further submitted that, as the policy No.614751127 and 615749638 are concerned, both are children’s policies in the name of Chi.Lakshmi and Chi.Yashaswini children of deceased H.D.Umesh and hence nothing is payable under the policy no.614751127. The OP No.1 and 2 submitted that, the nominee Chi.Lakshmi will be eligible to get an amount of Rs.20,000=00 being the Term Rider Benefit immediately on completing 18 years of age, coinciding with the policy anniversary. No class one legal heir of the deceased is entitled for any payment. Future premiums under the policy are waived till the child attains majority i.e. 18 years of age and all further benefits at the end of 18 years, 20 years, 22 years, 24 years and maturity on 26 years shall be settled to Chi.Lakshmi daughter of deceased life assured. The other policy No.615749638 of Chi.Yashaswini consequent on the death of H.D.Umesh nothing is payable on death of deceased H.D.Umesh. However payment of future premiums are waived under the policy till the child attains majority i.e. 18 years of age and all further benefits at the end of 18 years, 20 years, 22 years, 24 years and maturity on 26 years shall be settled to Chi.Yashaswini. Hence, consideration of settlement of claim under the above two children’s policies do not arise at all at the present juncture.

  The OP No.1 and 2 further submitted that, the remaining policies are 616284327, 616159791, 61443634, 616025697, 612523053, 612519972 and 611247038, if the policies were in force as on the date of maturity, the amount will be paid to the life assured. If the assured is dead and if there is a valid nomination, Nominee makes the claim submitting such documents required and if there are no prohibitory orders for disbursement, then the amount will be paid to the nominee without prejudice to the interest of the corporation.

The OP No.1 and 2 further submitted that, if there is any prohibitory orders, then nothing will be paid till the litigation is finally adjudicated and whoever succeeds to have the title shall be paid the claim.

The OP No.1 and 2 further submitted that, one Smt.Nethravathi filed a suit in OS No.111/2011 on the file of Civil Judge, Jr. Division, Tumakuru against the complainant Saraswathi making her as defendant no.4 and her two children and against three others and obtained a prohibitory order restraining the OPs corporation from payment. In view of the prohibitory orders passed by the Hon’ble court nothing was paid on the said policies. Suppressing that fact and order of prohibitory orders, the very complainants filed a complaint on the file of this forum in CC. No.183/2012. On merits, the complaint was dismissed on 30-8-2013. Hence, on the above facts it is clear that, there is no deficiency on the part of the OPs Corporation.

The OP No.1 and 2 further submitted that, in the objections filed in the previous complaint itself, in CC No.183/2012 that, the OPs were ready to consider the claim under the policies where claim is payable provided if the nominee fulfils the terms and conditions of the policies producing all documents as required by the OPs corporation. She had not submitted the claim proceeds even after fulfilling all these procedural aspects of the OPs Corporation. The complainant could have approached this forum but without fulfilling any of the above, she has approached this forum with a false complaint. Further, the OPs have informed the complainant to produce all relevant documents, in respect of any appeal and to submit discharge forms and original policy bonds.

 The OP No.1 and 2 further submitted that, the 3^rd OP Smt.Renukamma is the mother of the deceased life assured H.D.Umesh and she is also a class-1 heir. As per Hindu Succession Act, all class-I heirs are equally entitled and succeed to the estate of the deceased. Hence, a single person cannot claim the benefits of the deceased. The complaint has to necessarily disclose all class-I heirs who are there at the time of death of the assured.

 The OP No.1 and 2 further submitted that, it is observed that, in the case on hand, the complainant and her two children and the 3^rd OP are the class-I legal heirs and the OPs corporation is not having any right to decide the legal share. The complainant has not submitted the original documents, discharge forms in any of the policies, Hence, there is no deficiency from the end of the OPs Corporation, which is doing its duty very promptly in accordance with law, being the guardian of public money. Even now, the OPs Corporation is ready to deposit the claim amount before the forum under the policies for which claim is admissible. Hence it is prayed to dismiss the complaint with cost, in the interest of justice and equity.

4.  In the course of enquiry into the complaint, the complainant and OPs have filed their affidavit evidence reproducing what they have stated in their respective complaint and version.   The 1^st complainant has filed written arguments. The complainants have produced documents which were marked as Ex-C1 to Ex-C30. The complainant has also filed two documents i.e. 1) Certified copy of the Register Extract with respect to the R.A. Cases from 12-4-2016 to 16-2-2017 before the Sr. Civil Judge, Tiptur and 2) Certified copy of the Miscellaneous Register Extract from 14-3-2016 to 16-2-2017 before the Jr. Civil Judge, Tiptur.  We have heard the arguments of both sides and perused the documents and posted the case for order.

5. Based on the above materials, the following points will arise for our consideration.

1. Whether there was deficiency in service on the part of the OPs as alleged by the complainant?
2. What Order?  

6. Our findings on the above points are;

          Point no.1: In the affirmative

          Point no.2: As per the final order below.

REASONS

          7. On perusal of the averments of complaint, objections of the OP No.1 and 2 and affidavit evidence of both parties, it is an admitted fact that, husband of the 1^st OP late Sri.H.D.Umesh had obtained the insurance policies from the OP No.1 and 2, vide policies bearing No.616284327, 616159791, 616025697, 612523053, 614436374, 612519972, 611247038, 614751127 and 615749638 and he was died on massive heart attack on 19-3-2011. Thereafter the complainants have made claim before the 2^nd OP office. It is also an admitted fact that, the deceased H.D.Umesh had made the complainant No.1 to 3 and the 3^rd OP as a nominee to the above said policies to receive the insurance policies amount. To substantiate the above said facts, the complainant has produced the LIC’S JEEVAN SHREE-1 policy no.616284327/ExC-22; LIC WEALTH PLUS policy no.616159791/Ex-C23; Endowment assurance policy No.616025697/Ex-C24; NON-MEDICAL policy No.612523053/ Ex-C25; New Janaraksha plan with profits (with accident benefit) policy No.614436374/Ex-C26; Endowment Assurance policy – with profit policy No.612519972/Ex-C27; NON-MEDICAL policy no.611247038/Ex-C28; KOMAL JEEVAN PLAN policy No.614751127/Ex-C29 and KOMAL JEEVAN PLAN policy no.615749638. As looking into these insurance policies, it is discloses that, the husband of the 1^st complainant late Sir. H.D.Umesh had purchased the above said policies from the OPs Corporation on different dates. This evidence has not been denied by the OPs Insurance Company, therefore it is proper to accept the contention of the complainant.

          8. The main contention of the complainants is that, after the death of Sri.H.D.Umesh, the 1^st complainant had approached the 2^nd OP office and filed the claim form before the 2^nd OP, but till today, the OP No.1 and 2 have not settled the insurance claim amount. Further, the complainants submitted that, one Nethravathi D/o. Doddaiah so called sister of the deceased H.D.Umesh had filed a partition suit in OS No.111/2011 before the Civil Judge (JD), Tiptur and the same was dismissed on 20-4-2016. After the dismissal of the said suit, the 1^st complainant had approached the OP No.1 and 2 to settle the insurance policy amount claim, but the OP No.1 and 2 have not settled the insurance claim amount. To substantiate the above said facts, the 1^st complainant has produced order-sheet of OS No.111/2011/Ex-C1.

          9. On perusal of the above said order sheet of the OS No.111/2011 discloses that, the said suit was dismissed for non-prosecution.  Thereafter, the 1^st the complainant had approached the OP No.1 and 2 to release the insurance policies amount. In this regard, the complainant has produced the letter correspondence with the 2^nd OP office and the same is marked as Ex-C2. The OPs LIC Corporation had sent a reply letter to the complainant dated 29-6-2016, wherein it is stated that, “For the above, we request you to kindly arrange a confirmation letter from the registrar of the principal civil judge and JMFC, Tiptur as whether any appeal or any petition filed by the plaintiff Mrs.Nethravathi, for set-aside the dismissal order dated 20-4-2016 for the above case to proceed further”.

          10. Thereafter, the complainant had issued a legal notice dated 9-7-2016/Ex-C5 along with affidavit/Ex-C6 stating that there is no case pending before the Civil Court with regard to the above said policies and also stated that, there is no format of such confirmation letter from the Registrar of the Civil Judge, Tiptur and requested the OP No.1 and 2 to settle the insurance claim amount.  And the complainant has also filed a Caveat petition before the Sr. Civil Judge at Tiptur as Caveat No.50/2016 dated 27-4-2016/Ex-C18. The above documents produced by the complainant, it is clearly establish that, there is no case pending before the Civil Judge, Tiptur regarding the insurance policy amount.

          11. On perusal of the policies produced by the complainant, it is seen that, the policy No.616284327 and 616159791, the 1^st complainant by name Smt.Saraswathi.N is the nominee. Further with regard to the policy No.616025697, the 2^nd complainant by name Lakshmi is the nominee. The nominees are made for the purpose of receiving the benefits for the insurance policies. In the instant case, the deceased H.D.Umesh has made the complainant no.1 and 2 as nominees to the above said policies. Hence, the complainant no.1 and 2 being the nominees of the above said three policies and class-1 legal heir of the deceased H.D.Umesh have a legitimate right to get the policy amount. The OP No.1 and 2 is an Insurance Company who being a statutory body cannot be escape from liability by paying insurance amount and it is also bounden duty of the OP No.1 and 2 to release the insurance amount to the complainant No.1 and 2, but the OP No.1 and 2 in not doing so, have committed deficiency in service on the part of the OP No.1 and 2.

          12. Further with regard to the policies No.612523053, 614436374, 612519972 and 611247038, the above said four policies, the 3^rd OP is a nominee. The 3^rd OP who being the nominee of the above said four policies, the 3^rd OP has a right over the above said policies amount. The complainant cannot step into the shoes of the 3^rd OP to claim the 3^rd OP insurance amount. Unless the 3^rd OP has given no objection certificate to the complainants to claim the amount the complainant are not entitled to the same. In the instant case, the  complainants has not produced any documents to show that, the 3^rd OP has given any authorization or No objection certificate to claim the said four insurance policies amount on behalf of the 3^rd OP. The 3^rd OP being a nominee has right to claim the insurance claim amount. Hence the claim of the complainants to give policy amount in respect of policy No.612523053, 614436374, 612519972 and 611247038 cannot be accepted. Hence rejected. 

          13. Further, with regard to the policies No.614751127 and 615749638, the OP No.1 and 2 in the objection stated that, these two policies are the children policies. No class-1 legal heir of the deceased is entitled for any payment. Future premiums under the policies are waived till the child attains majority i.e. 18 years of age and all further benefits at the end of 18 years, 20 years, 22 years, 24 years and maturity on 26 years shall be settled to nominee of the policies. On perusal of the policies bearing No.614751127 and 615749638/Ex-C29 to C30, it is clearly mentioned that, when the complainant No.2 and 3 have attained majority, they will get the benefits at the age of 18 years, 20 years, 22 years, 24 years and 26 years.  Hence, on the above discussion made hitherto, the complainant No.2 and 3 are eligible to get the benefits only after attaining majorities.

          14. The OP No.1 and 2 have also stated in the objection that, they are ready to deposit the claim amount before the Forum under the policies for which are admissible, after the complainants have provided/submitted the all original policy bonds, death certificate, discharge forum and no objection from the other class-1 legal heirs of the deceased H.D.Umesh. The complainants being the nominees of the policies are legitimately entitled to the same as per the policy. The OP No.1 and 2 cannot demand the complainants to produce no objection from the other class-1 legal heirs.

15. Admittedly, the complainants and the 3^rd OP being the mother of deceased H.D.Umesh are the class-1 legal heirs. This forum has come to the conclusion that, the complainants being the nominees are entitled to the policy benefits amount. The 3^rd OP is also entitled to the benefit of the policies as per the terms. Hence, the OP No.1 and 2 cannot demand No Objection Certificate from the class-1 legal heirs. Hence, we come to conclusion that, it is just and proper to direct the OP No.1 and 2 to pay the benefits of policies bearing No. 616284327 and 616159791 to the nominee of 1^st complainant Smt.Saraswathi.N and to pay benefits of policy bearing No.616025697 to the nominee of 2^nd complainant Kum.Lakshmi. With regard to the policies bearing No.614751127 and 615749638, the complainant No.2 and 3 i.e. Kum.Lakshmi and Kum.Yashaswini, will be entitled to get the policies amount only after attaining the majority; they will get the benefits as per the terms of the policies. Further, the OP No.1 and 2 shall pay the compensation of Rs.30,000=00 toward deficiency in service and negligence and litigation cost of Rs.10,000=00 to the complainants. Accordingly we answered this point in the affirmative. In result, for the foregoing reasons, we proceed to pass the following order.

ORDER

The complaint of the complainants is allowed in part.

The OP No.1 and 2 to pay the benefits amount of policies bearing No. 616284327 and 616159791 to the  1^st complainant Smt.Saraswathi.N and  policy bearing and No.616025697 to the  2^nd complainant Kum.Lakshmi, along with 9% interest from the date of filing of this complaint till  realization.

The OP No.1 and 2 are further directed to pay compensation of Rs.30,000=00 towards deficiency in service and negligence and litigation cost of Rs.10,000=00 to the complainants respectively.

This order is to be complied by the OP No.1 and 2 within 30 days from the date of this order.

Supply free copy of this order to both parties. 

          (Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open forum on this, the 19^th day of August 2017).

LADY MEMBER                          PRESIDENT