IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA
Monday the 30th day of November, 2015
Filed on 03.03.2015
Present
- Smt. Elizabeth George (President)
- Sri. Antony Xavier (Member)
- Smt.Jasmine.D. (Member)
in
C.C.No.69/2015
between
Complainant:- Opposite Parties:-
Sri. Balachandran. P.S. 1. The Manage, LIC of India
Pozhikkadavil House Vellakkinar, Alappuzha
Kuthirappanthy Ward
Thiruvambady P.O. 2. The Assistant A.D.M.N. Officer
Alappuzha LIC of India, Regional Office
Kottayam
(By Adv. Devalal for opposite parties)
O R D E R
SMT. ELIZABETH GEORGE (PRESIDENT)
The case of the complainant is as follows:-
The complainant was the holder of insurance policy No.390882385 issued by the opposite parties by remitting Rs.9,523/- on 15.5.1999. At the time of joining the policy, the agent of the opposite parties assured that if the complainant failed to remit the further premium, he will get the premium amount with interest after the period of maturity. While he joined the policy he had job at abroad, and thereafter he lost his job. Due to the financial stringency he could not remit the further premium amount. So he made request to the opposite parties for a repayment of premium. He was told by the opposite parties that he will get a solution only after 15 years. After period of maturity he again approached the opposite parties. But they repudiated the claim. Hence the complaint is filed.
2. The version of the first opposite party is as follows:-
It is admitted that complainant was issued a 20 year policy with date of commencement 13.5.1999 for sum assured Rs.2 lakhs. But nowhere it was stated that all money received as premium amount will be refunded in the event of policy becomes lapse. The allegation that at the time of taking out the policy, the agent of the LIC make believed by the complainant that in the event of default of future premiums, the amount remitted will be refunded after 15 years along with interest not correct. The complaint is barred by limitation. The complainant after availing the coverage of policy for 6 months is stopped from asking for the return of the said money for the reason that during period no risk was involved. The terms and conditions of the policy also stated that 3 years premium amount is to be paid for attainment of paid up value/surrender value and there is no condition in the policy for the refund of premium without payment of premium for at least 3 years. There is no defect or deficiency in service or unfair trade practice on the part of the opposite parties.
3.The Complainant was examined as PW1.The documents produced were marked as Exts.A1 to A6 series.The opposite party was examined as RW1.The documents produced were marked as Exts.B1 and B2.
4.The points came up for considerations are:-
- Whether there is any deficiency in service on the part of the opposite parties?
- Whether the complainant is entitled to get relief and cost?
5. It is an admitted fact that the complainant has remitted premium amount of Rs.9,523/- and had taken a policy No. 390882385 from the opposite parties.It is also an admitted fact that complainant had committed default in remitting the premium.According to the complainant, the time of taking out the policy, the agent of the opposite party made to believe that in the event of default of future premium, the amount remitted will be refunded of future premium, the amount remitted will be refunded after15 years along with interest.While taking the policy, he had job at abroad.But after that he lost his job and due to the financial difficulty, he could not remit the further premium.So he approached the first opposite party and gave a request for refunding the premium amount.The letter given by the complainant to the first opposite party dated 19.2.2000 is produced and marked as Ext.A3.Thereafter as per the direction of the first opposite party, the complainant made a request for the repayment of premium to the second opposite party on 19.2.2000 itself.The copy of the said letter with acknowledgement produced and marked as Exts.A4 and A5.It is pertinent to notice that even after receiving that letters, no reply rejecting his claim was given to the complainant.The learned counsel of opposite party vehemently argued that the surrender value etc. are governed by the conditions in the policy and statute, there is no condition in the policy for the refund of premium without payment of premium for at least of 3 years.In Ext.A2 clause 7 it is specifically stated that, “The policy can be surrendered for cash after the premiums have been paid for at least 3 years.”In the instant case, complainant is not surrendering his policy.According to the complainant, due to the financial stringency, he could not remit the further premium amount and hence he is claiming for the repayment of premium that he remitted.Exts.A3 and A4 show that he had sent letters to opposite parties 1 and 2 demanding his claim.But not even a scrap of paper produced by the opposite parties to prove that they have informed the repudiation of his claim as and when they received the request of the complainant.According to the complainant he was under the belief that he will get the amount after attaining the maturity period.So he approached the opposite party after the period of maturity claiming the repayment of premium.Ext.A6 series evidenced the same.Since the cause of action is continuing the contention of the opposite parties that the claim is barred by limitation is not sustainable.Ext.B2 is the letter dated 7.2.2015 sent by the opposite party intimating the fact that as per the policy condition, no amount is repayable with respect to the policy.Why the opposite party waited for a period of 15 years to give a repudiation letter is not answerable.During these period the complainant is living with hope that he will get back this amount of Rs.9,523/- with interest.The failure on the part of the opposite party in informing the complainant about his claim within the proper time amounts to deficiency in service.
In the result, the complaint is allowed partly. The opposite parties are directed to
pay Rs.5,000/- (Rupees five thousand only) towards compensation to the complainant for the mental agony sustained due to the defect and deficiency in service on the part of the opposite parties. The order shall be complied within one month from the date of receipt of this order, in default the opposite parties are directed to pay Rs.5,000/- with 12% interest from the date of filing the complaint till realization. There is no order as to costs.
Dictated to the Confidential Assistant transcribed by her corrected by me and
pronounced in open Forum on this the 30th day of November, 2015.
Sd/- Smt.Elizabeth George (President) :
Sd/- Sri. Antony Xavier (Member) :
Sd/- Smt.Jasmine.D. (Member) :
Appendix:-
Evidence of the complainant:-
PW1 - Balachandran P.S. (Witness)
Ext.A1 - Premium receipt for Rs.9523/-
Ext.A2 - Insurance Policy
Ext.A3 - Copy of the Letter dated 19.2.2000 to first opposite party
Ext.A4 - Copy of the Letter dated 19.2.2000 to second opposite party
Ext.A5 - Acknowledgement card
Ext.A6 series - Copy of the letters (5 Nos.)
Evidence of the opposite parties:-
RW1 - Johny K.J. (Witness)
Ext.B1 - Copy of the letter dated 7.2.2015
Ext.B2 - Copy of the Extract of despatch register dated 11.2.2015
// True Copy //
By Order
Senior Superintendent
To
Complainant/Opposite parties/S.F.
Typed by:- pr/- Compared by:-
