The Personal Branch Manager LIC V/S S.Prakash S/o Samuel - Consumer Court Case

Karnataka

Raichur

DCFR 68/06

S.Prakash S/o Samuel - Complainant(s)

Versus

The Personal Branch Manager LIC - Opp.Party(s)

Sri.H.Narasappa

30 Nov 2006

ORDER

DIST. CONSUMER DISPUTES REDRESSAL FORUM
DIST. CONSUMER DISPUTES REDRESSAL FORUM,DC Office Compound, Sath Kacheri
consumer case(CC) No. DCFR 68/06

S.Prakash S/o Samuel						...........Appellant(s)
Vs.
The Personal Branch Manager LIC The Branch Manager of Indian Bank						...........Respondent(s)

BEFORE:

Complainant(s)/Appellant(s):

OppositeParty/Respondent(s):

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ORDER

This is a complaint filed U/s. 12 of Consumer Protection Act by the complainant against Personal Branch Manager LIC of India Chennai and Manager Indian Bank Raichur. The brief facts of the complaint are as under:- The complainant had assured his life with Respondent No-1 Corporation for Rs. 25,000/- under money back policy bearing No. 661055243 commencing from 28-03-89 and Respondent No-1 has issued policy bond to the complainant. The premium of the above policy was regularly deducted in his salary up to date. According to the terms and conditions of the policy Respondent NO-1 has to pay the survival benefits accrued on policy to the complainant periodically which is due on 28-03-04. Accordingly the complainant has submitted his application along with policy bond. But the Respondent Corporation has not taken any steps for the payments. The complainant was under financial crisis to provide educational facility to his kids so he personally met the Respondent NO-1 to settle the claim but there is no response from Respondent NO-1. Hence the complainant has got issued legal notice on 31-08-04 for which Respondent NO-1 informed vide letter dt. 03-09-04 stating that the Respondent NO-1 has received the Policy & assignment policy of the complainant with Indian Bank-Respondent No-2 and so directed the complainant to contact with Respondent NO-2 and send completed discharge forms along-with original policy for settlement of survival benefits. Accordingly the complainant has approached the Respondent NO-2 who informed that they have not received any policy as informed by Respondent No-1. Again Respondent No-1 after noticing the same about non-Receipt of the policy with Respondent No-2 vide a letter dt. 07-10-04 stating that the Respondent No-1 has received policy from Respondent No-2-Indian Bank Raichur for assignment along with requirements and the Respondent NO-1 has registered the assignment vide No. 4643 dt. 13-10-03 in their books and again the policy was returned to Respondent No-2 with other documents and deed of assignment by RPAD 8666 dt. 22-10-03. After receiving the letter dt. 07-10-04 from Respondent No-1 the complainant again sent a letter dt. 21-10-04 that he has not assigned his policy as stated by Respondent No-1 and that he had no any intention to assignment or to get loan on policy either with the Respondent No-1 or Respondent NO-2 and requested for cancellation of the assignment if registered in their book vide NO. 4643 dt. 13-10-03 and return the original policy and to disburse the survival benefits which is due by the end of March 2004 but no action was taken till today in disbursement of benefits or the Respondent No-1 has not returned the original policy. The complainant has informed Respondent No-1 through legal notice dt. 22-01-05 stating that his policy was not received either from Respondent NO-1 or from Respondent No-2. Respondent NO-2 has also informed to complainant and Respondent No-1 to cancel the assignment if registered the above policy vide Bank-Officer letter dt. 16-10-04 and 29-11-04 and requested to disburse the survival benefits since the bank has not received any policy from the Respondent No-1. The Respondent No-2 even enquired with the local Post Office with delivery details given by the Respondent NO-1, but the delivery details about registered Postal Receipt Number with given date sent by Respondent No-1 was not available with Post Office at Raichur. The complainant to trace out the original policy and to get survival benefits has issued legal notices and requested several times by personally, but all his efforts have gone in vain. In-spite of service of legal notices served on Respondent NO- 1 & 2 there is no response from the Respondents and complainant has not received his original policy or survival benefits from the Respondents. The above activities of Respondents clearly goes to show negligence and deficiency in service on the part of the Respondents. He has suffered heavy loss with loss of pain for which both the Respondents are liable to answer. Hence for all these reasons the cause of action arose on 21-10-04 for which the complainant has issued legal notice for cancellation of assignment and for payment of admissible survival benefits. Hence for all these reasons the complainant has prayed for a direction to Respondents to pay survival benefits, and to return original policy, to pay Rs. 25,000/- towards compensation, to pay Rs. 15,000/- towards damages, and Rs. 5,000/- towards cost of litigation together with interest at 24% p.a. till realization. 2. In response to service of notice Respondent NO-1 Insurance Company appeared through counsel Respondent No-2 Branch Manager remained absent when called out. So Respondent NO-2 is placed Ex-parte. The Respondent NO-1 LIC has filed written statement as under:- It is true that the complainant S. Prakash working in M/s. Bharat Petroleum Corporation Ltd., has assured his life under the policy bearing No. 661055243 for a sum of Rs. 25,000/- with monthly premium of Rs. 139.20 Ps. It was under Salary Saving Scheme and employer of the assured was at Chennai the policy subsequently transferred to Chennai for servicing. As per the policy terms and conditions the following amounts are payable to the life assured. 1) On Life assured surviving 5 years from the date of commencement 20% of Sum Assured Rs. 5000/- paid 2) On Life assured surviving 10 years from the date of commencement 20% of Sum Assured Rs. 5000/- paid 3) On Life assured surviving 15 years from the date of commencement 20% of Sum Assured Rs. 5000/- payable 4) On Life assured surviving the stipulated Date of Maturity. 40% Sum assured together with Bonus The Indian Bank vide letter dt. 08-08-03 requested this Respondent to issue Surrender Value Certificate stating that the complainant has approached them for credit facility and subsequently life assured executed assignment deed dt. 10-09-03 and notice of assignment also received by Respondent No-1. Hence the assignment in-favour of Indian Bank registered on 15-10-03 and policy bond sent to Indian Bank vide registered post RL No. 8666 dt. 22-10-03. As the policy bearing No. 661055243 absolutely assigned in-favour of Indian Bank Raichur vide assignment dt. 10-09-03 in consideration of Rs. 20,000/-. The life assured also served notice of assignment. In the corporation books the assignment registered vide Registration No. 4643 dt. 15-10-03 and the policy bond was sent to Indian Bank vide registered letter No. 8666 dt. 22-10-03. This Respondent No-1 prepared a cheque bearing No. 234834 for Rs. 5,000/- dt. 28-03-04 favouring Indian Bank towards Survival Benefits due on 28-03-04 and requested Indian Bank to send the discharge voucher and policy bond for endorsement but this Respondent NO-1 so far has not received the same and the cheque written was cancelled. This Respondent No-1 vide letter dt. 03-09-04 sent a reply to legal Notice of complainant and requested the Advocate of the complainant to send completed discharge form along with original policy bond for settlement of Survival Benefit and copy of the same was sent to the complainant. But instead of submitting requirements called the complainant has issued Legal Notice dt. 28-09-04 and this Respondent replied to the said notice vide letter dt. 07-10-04 and sent the copy of assignment deed executed by the complainant in favour of Indian Bank. This Respondent also written a letter dt. 29-10-04 and explained him the procedure of reassignment and also sent forms of reassignment for execution by the Indian Bank. So far they have not received the reassignment deed and policy bond from the Indian Bank, Raichur. Hence the payment of survival benefit is pending. In view of the above facts it is not tenable to say that there was no intention of assignment. This Respondent No-1 by letter dt. 29-10-04 requested the life assured to follow-up with Indian Bank. But so far they have not received the requisite forms for reassignment along with original policy bond for making payment to the complainant so there is no cause of action or deficiency of service on the part of this Respondent. Hence for all these reasons Respondent NO-1 has prayed for dismissal of the complaint. 3. During the course of enquiry the complainant has filed his sworn-affidavit as examination-in-chief and Manager of Respondent NO-1 has filed sworn-affidavit as rebuttal evidence. But both the parties have not chosen to cross-examine. The complainant has got marked (11) documents at Ex.P-1 to P-11. The Respondent NO-1 has got marked (7) documents at Ex.R-1 to R-7. 4. Heard the arguments of both sides and perused the records. The following points arise for our consideration and determination:- 1. Whether the complainant proves deficiency in service by the Respondent No-1 & 2 in not settling his claim for survival benefits under the policy, as alleged? 2. Whether the complainant is entitled for the reliefs sought for? 5. Our finding on the above points are as under:- 1. In the affirmative against the Respondent No-1 and in the negative against the Respondent NO-2 2. As per final order for the following REASONS POINT NO.1:- 6. There is no dispute that the complainant-S.Prakash had assured his life with Respondent NO-1 Corporation for Rs. 25,000/- under money back policy bearing No. 661055243 commencing from 28-03-89 and the policy premium was regularly deducted from his salary. It is the case of the complainant that according to the terms and conditions of the policy Respondent NO-1 has to pay the survival benefits accrued on policy to the complainant periodically which was due on 28-03-04 and the complainant by submitting his application with policy bond requested to disburse survival benefits accrued on 28-03-04. But the Respondent Corporation have not paid the survival benefits inspite of issuance of legal notice dt. 31-08-04. However Respondent No-1 informed vide letter dt. 03-09-04 stating that the Respondent No-1 has received policy assigned by the complainant with Indian Bank-Respondent No-2 and directed to contact the said Bank and to send discharge forms along with original policy for settlement of survival benefits. Accordingly the complainant has approached the Respondent NO-2 who informed that they have not received the policy Bond from the Respondent No-1. Then the Respondent NO-1 after noticing the non-receipt of the policy, wrote a letter dt. 07-10-04 stating that the Respondent No-1 has received policy from Respondent No-2-Indian Bank Raichur for assignment along with requirements and the Respondent NO-1 has registered the assignment bearing No. 4643 dt. 13-10-03 in their books and again the policy was returned to Respondent No-2 Bank along with of assignment deed by RPAD No. 8666 dt. 22-10-03. After receipt of the letter dt. 07-10-04 from Respondent No-1 the complainant again sent a letter dt. 21-10-04 that he has not assigned his policy as stated by Respondent No-1 and he has no any intention for assignment or to get loan on policy either with the Respondent No-1 or Respondent NO-2 and further requested for cancellation of the assignment if it is registered vide registered No. 4643 dt. 13-10-03 and requested to return the original policy and to disburse the survival benefits to which he is entitled but there is no response from the Respondent No-1. Thereafter the complainant issued legal notice dt. 22-01-05 stating that his policy was not received either by him or by Respondent NO-2 and requested Respondent No-1 to cancel the assignment if registered and to disburse the survival benefits. The Indian Bank- Respondent NO-2 even enquired with local Post Office with said details given by Respondent No-1 but the delivery details about Postal Registered Number and date sent by Respondent No-1 was not available with Post Office at Raichur. In-spite of legal notice served on the Respondent No- 1 & 2 there is no response from the Respondents so there is negligence, lapse and deficiency in service on the part of the Respondents. The complainant has reiterated the same in his affidavit-evidence. The Respondent No-2 Indian Bank has remained Ex-parte. Respondent No-1 LIC has contended that the policy in-question has been assigned in favour of Indian Bank Raichur vide assignment dt. 10-09-03 for Rs. 20,000/- and the assignment has been registered in the corporation books vide Registration No. 4643 dt. 15-10-03 and the policy bond has also been sent to Indian Bank vide Registered Post No. 8666 dt. 22-10-03. The Respondent No-1 requested to Indian Bank- Respondent No-2 to send discharge voucher and policy bond for endorsement but so far it is not received. Hence Respondent No-1 has cancelled the cheque written for Rs. 5,000/- towards survival benefits. Subsequently on 07-10-04 by way of reply to Legal Notice this Respondent sent a copy of assignment deed executed by the complainant in favour of Indian Bank and also wrote a letter dt. 29-10-04 & explained him the procedure of reassignment and also sent forms of reassignment for execution by Indian Bank. So far they have not received the reassignment deed and policy bond from the Indian Bank, Raichur. Hence the payment of survival benefit is pending. In view of these facts it is not tenable to say that there was no intention of assignment. So the complainant is not having any right to claim survival benefits under the policy. The same has been reiterated in the affidavit-evidence of Respondent No-1. 7. The complainant has produced in all (11) documents at Ex.P-1 to P-11. viz., Ex.P-1 is the letter dt. 03-09-04 by the Respondent NO-1 to the advocate for the complainant. Ex.P-2 is the letter dt. 07-10-04 by the Respondent NO-1 Corporation to the complainant. Ex.P-3 to P-5 are the three notices issued by the complainant dt. 21-10-04, 31-08-04 & 22-01-04 respectively. Ex.P-6 is the letter dt. 29-11-04 issued by Indian Bank Raichur to the Respondent No-1 LIC. Ex.P-7 is the Copy of letter dt. 03-03-1999 issued by Respondent NO-1 to the complainant. Ex.P-8 is the Salary Slip of the complainant. Ex.P-9 is the Copy of assignment of policy with Indian Bank Raichur for Rs. 20,000/- by the complainant-S.Prakash. Ex.P-10 is the Copy of letter dt. 16-10-04 by Respondent NO-2 Indian Bank addressed to Respondent No-1 Corporation. Ex.P-11 is the Copy of letter dt. 23-07-04 issued by Respondent No-1 Authority regarding Insurance Policy Particulars. 8. The Respondent No-1 has produced (7) documents namely Ex.R-1 to R-7. Ex.R-1 is the Copy of letter dt. 08-08-03 by the Indian Bank-Respondent No-2 addressed to Respondent NO-1 Corporation. Ex.R-2 is the Copy of deed notice of assignment dt. 10-09-03. (The complainant has also filed the same at Ex.P-9). Ex.R-3 is the Copy of letter of Respondent NO-1 Corporation to the Indian Bank Raichur-Respondent NO-2. Ex.R-4 is the Copy of cheque dt. 28-03-04 prepared and cancelled. Ex.R-5 is the Copy of letter dt. 07-10-04 issued by Respondent NO-1 Corporation to advocate for the complainant. Ex.R-6 is the letter dt. 29-10-04 by the Respondent No-1 Corporation to the Manager Indian Bank Raichur-Respondent No-2. Ex.R-7 is the Copy of Ex.R-6 marked to the complainant-S.Prakash. 9. Out of these documentary-evidence produced and relied on by both the parties, Ex.P-10 and Ex.P-6 are material for our purpose. Ex.P-10 is the Copy of letter dt. 16-10-04 of Indian Bank Raichur-Respondent No-2 addressed to the Branch Manager LIC of Indian City Branch Chennai-Respondent NO-1. A perusal of which it shows that the Indian Bank Raichur has informed the Respondent No-1 Corporation that as per the records available they have not received the Insurance Policy from Respondent NO-1 and they have not sanctioned any loan against the above policy and they Note that they will not sanction any loan against the above policy in-future and they have requested the Insurance Corporation to cancel the Registration of assignment made in their favour and further requested to make payment of survival benefits to the concerned ( complainant ) as per the procedure. This letter being material reads thus:- INDIAN BANK To, RAICHUR 16-10-04. The BRANCH MANAGER, LIC OF INDIA, CITY BRANCH NO-1, CHENNAI. Dear Sir, Sub:- REASSIGNMENT IN FAVOUR OF SHRI.S.PRAKASH POLICY NO. 661055243. ASSIGNMENT NO. 4643 DT. 13-10-03. Ref:- YOUR LETTER DT. 07-10-04 ADDRESSED TO SHRI.H.NARASAPPA, ADVOCATE, RAICHUR. ***** Referring to the above, we wish to inform you, that as per the records available, it seems we have not received the above policy from you, and hence, we have not sanctioned any loan against the above policy. And we note, not to sanction any loan against the above policy, in future. We request you, to cancel the Registration of assignment made in our favour, and you, may make the payment of Survival benefit to the concerned as per your procedures. Thanking you, Yours faithfully, Sd/- BRANCH MANAGER. Ex.P-6 is subsequent letter of Indian Bank dt. 29-11-04 addressed to the Branch Manager of Respondent NO-1 Corporation Chennai on the same subject and in-continuation of their earlier letter dt. 16-10-04 vide Ex.P-10 stating that they have already informed vide letter dt. 16-10-04 that the policy was not received by them and so they have not sanctioned any loan against the above policy and they have noted that they will not sanction any loan against the said policy in-future. Further they requested to cancel the Registration of assignment made in their favour and requested to make the payment of Survival benefit to the concerned. It further this letter further states that they have not received the policy they cannot send the Form of reassignment and requested to settle the Survival benefit amount without any further delay causing inconvenience to the customer and they have also enquired with local Post Office for delivery details but they given Registered Post Number with date was not available with them (Post Office) too. Please send the Xerox copy of acknowledgement you have if any and once again requested to settle and make payment after observing the formalities when the policy is lost in transit, without any further delay. This letter at Ex.P-6 which is material reads thus:- INDIAN BANK To, RAICHUR The BRANCH MANAGER, 29-11-2004. LIC OF INDIA, CITY BRANCH NO-1, CHENNAI. Dear Sir, Sub:- REASSIGNMENT IN FAVOUR OF SHRI.S.PRAKASH AND PAYMENT OF SURVIVAL BENEFIT POLICY NO. 661055243. ASSIGNMENT NO. 4643 DT. 13-10-03. Ref:- YOUR LETTER DT. 29-10-04 ADDRESSED TO SHRI.S.PRAKASH POLICY HOLDER, RAICHUR. OUR LETTER DT. 16-10-2004. ***** Referring to the above, we wish to remind you, that we have already informed you, vide our letter dt. 16-10-04 that the policy was not received by us, and hence, we have not sanctioned any loan against the above policy, and we have noted not to sanction any loan against the above policy in future. We have requested you, to cancel the Registration of assignment made in our favour, and to make the payment of Survival benefit to the concerned as per your procedure. As we have not received the policy, we cannot send the form of Reassignment, and request you, to settle the Survival benefit amount without any further delay, and inconvenience to the customer. We have also enquired with local Post Office, for delivery details, but given Regd Post No. with the given date was not available with them too. Please send us Xerox copy of acknowledgement you have, if any. We once again request you, to settle and make the payment after observing your formalities, when the policy is lost in transit, without any future delay. Thanking you, Yours faithfully, Sd/- BRANCH MANAGER. 10. From a close perusal of these two letters of Respondent NO-2 Bank it cuts the very case of Respondent No-1 Corporation and makes it clear that the Indian Bank Respondent No-2 has not sanctioned any loan to the complainant and have not acted upon the assignment deed said to have been executed by the complainant and that they have not received the assignment deed and original policy. Even the Respondent No-2 has informed the Respondent NO-1 that they enquired with local Post Office regarding Registered Post Number and date but the same was not available with them (Post Office) too and they have specifically requested to cancel the Registration of assignment made in their favour and to make payment of Survival benefit to the concerned (complainant). When the Indian Bank Branch Raichur (Respondent NO-2) with whom the policy was assigned according to the Respondent NO-1 has specifically stated that they have not received assignment deed and policy and they have not sanctioned the loan and will not sanction in-future and requested Respondent NO-1 to cancel the Registration of assignment made in favour of Bank and to make payment of Survival benefit under the policy to the policyholder, then we are at a loss to know as to how this Respondent NO-1 Corporation repeated the same story of assignment deed executed by the complainant-policyholder. The Respondent NO-1 Corporation has not produced any scrap of paper for having enquired with the Post Office through which they sent Assignment deed & original policy Bond by RPAD No. 8666 dt. 22-10-03 and what was the hurdle for them to cancel the Registration of Assignment deed registered in their book vide No. 4643 dt. 13-10-03 especially when Indian Bank-Respondent NO-2 the Bank by going a step ahead requested to cancel the Registration of assignment deed and to make payment of Survival benefit under the policy to the policyholder. In-spite of the above said two letters from Indian Bank Branch Manager the Respondent NO-1 Corporation did not act upon the said two letters in order to pay Survival benefits under the policy. This in-activeness on the part of the Respondent No-1 shows negligence & dereliction of their duty to the customer like the complainant, which amounts to deficiency in service. So we have no hesitation to hold that there is clear deficiency of service by the Respondent NO-1. Consequently we do not find deficiency of service by Respondent NO-2 Indian Bank which all the while wranged the bell by way of issuance of above said two letters to Respondent NO-1 to cancel the Registration of assignment and to make payment of Survival benefit to the complainant-policyholder. Hence we hold that the complainant has proved deficiency of service by Respondent No-1 only. So Point No-1 is answered in the affirmative against the Respondent NO-1 and in the negative against the Respondent NO-2 POINT NO.2:- 11. The complainant has sought for direction to Respondent NO-1 & 2 to pay a Survival benefits, to return original policy, to pay Rs. 25,000/- towards compensation to pay Rs. 15,000/- towards damages and to pay Rs. 5,000/- towards cost of litigation with interest at 24% p.a. In-view of our finding on Point NO-1, holding deficiency in service only by Respondent No-1. So the Respondent NO-1 Corporation is liable to pay Survival benefits under the policy in-question and to return original policy by tracing it out or if it is missing in transit, then they have to issue a duplicate policy, and to pay a global compensation of Rs. 25,000/- including cost of litigation. In this view of the matter we pass the following order: ORDER The complaint of the complainant is allowed in part against the Respondent NO-1 only. The Respondent No-1 LIC shall pay Survival benefits under the policy No. 661055243 due as on 28-03-04 with a global compensation of Rs. 25,000/- including cost of litigation. The Respondent NO-1 Corporation shall also return the original policy if traced out, if not, it shall issue a duplicate policy bond of money back policy. The Respondent NO-1 shall comply this order within (6) weeks from the date of receipt of copy of this order. (Dictated to the Stenographer, typed, corrected and then pronounced in the open Forum on 30-11-06.) Sd/- Sri. N.H. Savalagi President Dist.Consumer Forum-Raichur. Sd/- Sri.Pampannagouda Member. Dist.Consumer Forum-Raichur. On Leave Smt.Kavita Patil Member. Dist.Consumer Forum-Raichur.

This is a complaint filed U/s. 12 of Consumer Protection Act by the complainant against Personal Branch Manager LIC of India Chennai and Manager Indian Bank Raichur. The brief facts of the complaint are as under:- The complainant had assured his life with Respondent No-1 Corporation for Rs. 25,000/- under money back policy bearing No. 661055243 commencing from 28-03-89 and Respondent No-1 has issued policy bond to the complainant. The premium of the above policy was regularly deducted in his salary up to date. According to the terms and conditions of the policy Respondent NO-1 has to pay the survival benefits accrued on policy to the complainant periodically which is due on 28-03-04. Accordingly the complainant has submitted his application along with policy bond. But the Respondent Corporation has not taken any steps for the payments. The complainant was under financial crisis to provide educational facility to his kids so he personally met the Respondent NO-1 to settle the claim but there is no response from Respondent NO-1. Hence the complainant has got issued legal notice on 31-08-04 for which Respondent NO-1 informed vide letter dt. 03-09-04 stating that the Respondent NO-1 has received the Policy & assignment policy of the complainant with Indian Bank-Respondent No-2 and so directed the complainant to contact with Respondent NO-2 and send completed discharge forms along-with original policy for settlement of survival benefits. Accordingly the complainant has approached the Respondent NO-2 who informed that they have not received any policy as informed by Respondent No-1. Again Respondent No-1 after noticing the same about non-Receipt of the policy with Respondent No-2 vide a letter dt. 07-10-04 stating that the Respondent No-1 has received policy from Respondent No-2-Indian Bank Raichur for assignment along with requirements and the Respondent NO-1 has registered the assignment vide No. 4643 dt. 13-10-03 in their books and again the policy was returned to Respondent No-2 with other documents and deed of assignment by RPAD 8666 dt. 22-10-03. After receiving the letter dt. 07-10-04 from Respondent No-1 the complainant again sent a letter dt. 21-10-04 that he has not assigned his policy as stated by Respondent No-1 and that he had no any intention to assignment or to get loan on policy either with the Respondent No-1 or Respondent NO-2 and requested for cancellation of the assignment if registered in their book vide NO. 4643 dt. 13-10-03 and return the original policy and to disburse the survival benefits which is due by the end of March 2004 but no action was taken till today in disbursement of benefits or the Respondent No-1 has not returned the original policy. The complainant has informed Respondent No-1 through legal notice dt. 22-01-05 stating that his policy was not received either from Respondent NO-1 or from Respondent No-2. Respondent NO-2 has also informed to complainant and Respondent No-1 to cancel the assignment if registered the above policy vide Bank-Officer letter dt. 16-10-04 and 29-11-04 and requested to disburse the survival benefits since the bank has not received any policy from the Respondent No-1. The Respondent No-2 even enquired with the local Post Office with delivery details given by the Respondent NO-1, but the delivery details about registered Postal Receipt Number with given date sent by Respondent No-1 was not available with Post Office at Raichur. The complainant to trace out the original policy and to get survival benefits has issued legal notices and requested several times by personally, but all his efforts have gone in vain. In-spite of service of legal notices served on Respondent NO- 1 & 2 there is no response from the Respondents and complainant has not received his original policy or survival benefits from the Respondents. The above activities of Respondents clearly goes to show negligence and deficiency in service on the part of the Respondents. He has suffered heavy loss with loss of pain for which both the Respondents are liable to answer. Hence for all these reasons the cause of action arose on 21-10-04 for which the complainant has issued legal notice for cancellation of assignment and for payment of admissible survival benefits. Hence for all these reasons the complainant has prayed for a direction to Respondents to pay survival benefits, and to return original policy, to pay Rs. 25,000/- towards compensation, to pay Rs. 15,000/- towards damages, and Rs. 5,000/- towards cost of litigation together with interest at 24% p.a. till realization. 2. In response to service of notice Respondent NO-1 Insurance Company appeared through counsel Respondent No-2 Branch Manager remained absent when called out. So Respondent NO-2 is placed Ex-parte. The Respondent NO-1 LIC has filed written statement as under:- It is true that the complainant S. Prakash working in M/s. Bharat Petroleum Corporation Ltd., has assured his life under the policy bearing No. 661055243 for a sum of Rs. 25,000/- with monthly premium of Rs. 139.20 Ps. It was under Salary Saving Scheme and employer of the assured was at Chennai the policy subsequently transferred to Chennai for servicing. As per the policy terms and conditions the following amounts are payable to the life assured. 1) On Life assured surviving 5 years from the date of commencement 20% of Sum Assured Rs. 5000/- paid 2) On Life assured surviving 10 years from the date of commencement 20% of Sum Assured Rs. 5000/- paid 3) On Life assured surviving 15 years from the date of commencement 20% of Sum Assured Rs. 5000/- payable 4) On Life assured surviving the stipulated Date of Maturity. 40% Sum assured together with Bonus The Indian Bank vide letter dt. 08-08-03 requested this Respondent to issue Surrender Value Certificate stating that the complainant has approached them for credit facility and subsequently life assured executed assignment deed dt. 10-09-03 and notice of assignment also received by Respondent No-1. Hence the assignment in-favour of Indian Bank registered on 15-10-03 and policy bond sent to Indian Bank vide registered post RL No. 8666 dt. 22-10-03. As the policy bearing No. 661055243 absolutely assigned in-favour of Indian Bank Raichur vide assignment dt. 10-09-03 in consideration of Rs. 20,000/-. The life assured also served notice of assignment. In the corporation books the assignment registered vide Registration No. 4643 dt. 15-10-03 and the policy bond was sent to Indian Bank vide registered letter No. 8666 dt. 22-10-03. This Respondent No-1 prepared a cheque bearing No. 234834 for Rs. 5,000/- dt. 28-03-04 favouring Indian Bank towards Survival Benefits due on 28-03-04 and requested Indian Bank to send the discharge voucher and policy bond for endorsement but this Respondent NO-1 so far has not received the same and the cheque written was cancelled. This Respondent No-1 vide letter dt. 03-09-04 sent a reply to legal Notice of complainant and requested the Advocate of the complainant to send completed discharge form along with original policy bond for settlement of Survival Benefit and copy of the same was sent to the complainant. But instead of submitting requirements called the complainant has issued Legal Notice dt. 28-09-04 and this Respondent replied to the said notice vide letter dt. 07-10-04 and sent the copy of assignment deed executed by the complainant in favour of Indian Bank. This Respondent also written a letter dt. 29-10-04 and explained him the procedure of reassignment and also sent forms of reassignment for execution by the Indian Bank. So far they have not received the reassignment deed and policy bond from the Indian Bank, Raichur. Hence the payment of survival benefit is pending. In view of the above facts it is not tenable to say that there was no intention of assignment. This Respondent No-1 by letter dt. 29-10-04 requested the life assured to follow-up with Indian Bank. But so far they have not received the requisite forms for reassignment along with original policy bond for making payment to the complainant so there is no cause of action or deficiency of service on the part of this Respondent. Hence for all these reasons Respondent NO-1 has prayed for dismissal of the complaint. 3. During the course of enquiry the complainant has filed his sworn-affidavit as examination-in-chief and Manager of Respondent NO-1 has filed sworn-affidavit as rebuttal evidence. But both the parties have not chosen to cross-examine. The complainant has got marked (11) documents at Ex.P-1 to P-11. The Respondent NO-1 has got marked (7) documents at Ex.R-1 to R-7. 4. Heard the arguments of both sides and perused the records. The following points arise for our consideration and determination:- 1. Whether the complainant proves deficiency in service by the Respondent No-1 & 2 in not settling his claim for survival benefits under the policy, as alleged? 2. Whether the complainant is entitled for the reliefs sought for? 5. Our finding on the above points are as under:- 1. In the affirmative against the Respondent No-1 and in the negative against the Respondent NO-2 2. As per final order for the following REASONS POINT NO.1:- 6. There is no dispute that the complainant-S.Prakash had assured his life with Respondent NO-1 Corporation for Rs. 25,000/- under money back policy bearing No. 661055243 commencing from 28-03-89 and the policy premium was regularly deducted from his salary. It is the case of the complainant that according to the terms and conditions of the policy Respondent NO-1 has to pay the survival benefits accrued on policy to the complainant periodically which was due on 28-03-04 and the complainant by submitting his application with policy bond requested to disburse survival benefits accrued on 28-03-04. But the Respondent Corporation have not paid the survival benefits inspite of issuance of legal notice dt. 31-08-04. However Respondent No-1 informed vide letter dt. 03-09-04 stating that the Respondent No-1 has received policy assigned by the complainant with Indian Bank-Respondent No-2 and directed to contact the said Bank and to send discharge forms along with original policy for settlement of survival benefits. Accordingly the complainant has approached the Respondent NO-2 who informed that they have not received the policy Bond from the Respondent No-1. Then the Respondent NO-1 after noticing the non-receipt of the policy, wrote a letter dt. 07-10-04 stating that the Respondent No-1 has received policy from Respondent No-2-Indian Bank Raichur for assignment along with requirements and the Respondent NO-1 has registered the assignment bearing No. 4643 dt. 13-10-03 in their books and again the policy was returned to Respondent No-2 Bank along with of assignment deed by RPAD No. 8666 dt. 22-10-03. After receipt of the letter dt. 07-10-04 from Respondent No-1 the complainant again sent a letter dt. 21-10-04 that he has not assigned his policy as stated by Respondent No-1 and he has no any intention for assignment or to get loan on policy either with the Respondent No-1 or Respondent NO-2 and further requested for cancellation of the assignment if it is registered vide registered No. 4643 dt. 13-10-03 and requested to return the original policy and to disburse the survival benefits to which he is entitled but there is no response from the Respondent No-1. Thereafter the complainant issued legal notice dt. 22-01-05 stating that his policy was not received either by him or by Respondent NO-2 and requested Respondent No-1 to cancel the assignment if registered and to disburse the survival benefits. The Indian Bank- Respondent NO-2 even enquired with local Post Office with said details given by Respondent No-1 but the delivery details about Postal Registered Number and date sent by Respondent No-1 was not available with Post Office at Raichur. In-spite of legal notice served on the Respondent No- 1 & 2 there is no response from the Respondents so there is negligence, lapse and deficiency in service on the part of the Respondents. The complainant has reiterated the same in his affidavit-evidence. The Respondent No-2 Indian Bank has remained Ex-parte. Respondent No-1 LIC has contended that the policy in-question has been assigned in favour of Indian Bank Raichur vide assignment dt. 10-09-03 for Rs. 20,000/- and the assignment has been registered in the corporation books vide Registration No. 4643 dt. 15-10-03 and the policy bond has also been sent to Indian Bank vide Registered Post No. 8666 dt. 22-10-03. The Respondent No-1 requested to Indian Bank- Respondent No-2 to send discharge voucher and policy bond for endorsement but so far it is not received. Hence Respondent No-1 has cancelled the cheque written for Rs. 5,000/- towards survival benefits. Subsequently on 07-10-04 by way of reply to Legal Notice this Respondent sent a copy of assignment deed executed by the complainant in favour of Indian Bank and also wrote a letter dt. 29-10-04 & explained him the procedure of reassignment and also sent forms of reassignment for execution by Indian Bank. So far they have not received the reassignment deed and policy bond from the Indian Bank, Raichur. Hence the payment of survival benefit is pending. In view of these facts it is not tenable to say that there was no intention of assignment. So the complainant is not having any right to claim survival benefits under the policy. The same has been reiterated in the affidavit-evidence of Respondent No-1. 7. The complainant has produced in all (11) documents at Ex.P-1 to P-11. viz., Ex.P-1 is the letter dt. 03-09-04 by the Respondent NO-1 to the advocate for the complainant. Ex.P-2 is the letter dt. 07-10-04 by the Respondent NO-1 Corporation to the complainant. Ex.P-3 to P-5 are the three notices issued by the complainant dt. 21-10-04, 31-08-04 & 22-01-04 respectively. Ex.P-6 is the letter dt. 29-11-04 issued by Indian Bank Raichur to the Respondent No-1 LIC. Ex.P-7 is the Copy of letter dt. 03-03-1999 issued by Respondent NO-1 to the complainant. Ex.P-8 is the Salary Slip of the complainant. Ex.P-9 is the Copy of assignment of policy with Indian Bank Raichur for Rs. 20,000/- by the complainant-S.Prakash. Ex.P-10 is the Copy of letter dt. 16-10-04 by Respondent NO-2 Indian Bank addressed to Respondent No-1 Corporation. Ex.P-11 is the Copy of letter dt. 23-07-04 issued by Respondent No-1 Authority regarding Insurance Policy Particulars. 8. The Respondent No-1 has produced (7) documents namely Ex.R-1 to R-7. Ex.R-1 is the Copy of letter dt. 08-08-03 by the Indian Bank-Respondent No-2 addressed to Respondent NO-1 Corporation. Ex.R-2 is the Copy of deed notice of assignment dt. 10-09-03. (The complainant has also filed the same at Ex.P-9). Ex.R-3 is the Copy of letter of Respondent NO-1 Corporation to the Indian Bank Raichur-Respondent NO-2. Ex.R-4 is the Copy of cheque dt. 28-03-04 prepared and cancelled. Ex.R-5 is the Copy of letter dt. 07-10-04 issued by Respondent NO-1 Corporation to advocate for the complainant. Ex.R-6 is the letter dt. 29-10-04 by the Respondent No-1 Corporation to the Manager Indian Bank Raichur-Respondent No-2. Ex.R-7 is the Copy of Ex.R-6 marked to the complainant-S.Prakash. 9. Out of these documentary-evidence produced and relied on by both the parties, Ex.P-10 and Ex.P-6 are material for our purpose. Ex.P-10 is the Copy of letter dt. 16-10-04 of Indian Bank Raichur-Respondent No-2 addressed to the Branch Manager LIC of Indian City Branch Chennai-Respondent NO-1. A perusal of which it shows that the Indian Bank Raichur has informed the Respondent No-1 Corporation that as per the records available they have not received the Insurance Policy from Respondent NO-1 and they have not sanctioned any loan against the above policy and they Note that they will not sanction any loan against the above policy in-future and they have requested the Insurance Corporation to cancel the Registration of assignment made in their favour and further requested to make payment of survival benefits to the concerned ( complainant ) as per the procedure. This letter being material reads thus:- INDIAN BANK To, RAICHUR 16-10-04. The BRANCH MANAGER, LIC OF INDIA, CITY BRANCH NO-1, CHENNAI. Dear Sir, Sub:- REASSIGNMENT IN FAVOUR OF SHRI.S.PRAKASH POLICY NO. 661055243. ASSIGNMENT NO. 4643 DT. 13-10-03. Ref:- YOUR LETTER DT. 07-10-04 ADDRESSED TO SHRI.H.NARASAPPA, ADVOCATE, RAICHUR. ***** Referring to the above, we wish to inform you, that as per the records available, it seems we have not received the above policy from you, and hence, we have not sanctioned any loan against the above policy. And we note, not to sanction any loan against the above policy, in future. We request you, to cancel the Registration of assignment made in our favour, and you, may make the payment of Survival benefit to the concerned as per your procedures. Thanking you, Yours faithfully, Sd/- BRANCH MANAGER. Ex.P-6 is subsequent letter of Indian Bank dt. 29-11-04 addressed to the Branch Manager of Respondent NO-1 Corporation Chennai on the same subject and in-continuation of their earlier letter dt. 16-10-04 vide Ex.P-10 stating that they have already informed vide letter dt. 16-10-04 that the policy was not received by them and so they have not sanctioned any loan against the above policy and they have noted that they will not sanction any loan against the said policy in-future. Further they requested to cancel the Registration of assignment made in their favour and requested to make the payment of Survival benefit to the concerned. It further this letter further states that they have not received the policy they cannot send the Form of reassignment and requested to settle the Survival benefit amount without any further delay causing inconvenience to the customer and they have also enquired with local Post Office for delivery details but they given Registered Post Number with date was not available with them (Post Office) too. Please send the Xerox copy of acknowledgement you have if any and once again requested to settle and make payment after observing the formalities when the policy is lost in transit, without any further delay. This letter at Ex.P-6 which is material reads thus:- INDIAN BANK To, RAICHUR The BRANCH MANAGER, 29-11-2004. LIC OF INDIA, CITY BRANCH NO-1, CHENNAI. Dear Sir, Sub:- REASSIGNMENT IN FAVOUR OF SHRI.S.PRAKASH AND PAYMENT OF SURVIVAL BENEFIT POLICY NO. 661055243. ASSIGNMENT NO. 4643 DT. 13-10-03. Ref:- YOUR LETTER DT. 29-10-04 ADDRESSED TO SHRI.S.PRAKASH POLICY HOLDER, RAICHUR. OUR LETTER DT. 16-10-2004. ***** Referring to the above, we wish to remind you, that we have already informed you, vide our letter dt. 16-10-04 that the policy was not received by us, and hence, we have not sanctioned any loan against the above policy, and we have noted not to sanction any loan against the above policy in future. We have requested you, to cancel the Registration of assignment made in our favour, and to make the payment of Survival benefit to the concerned as per your procedure. As we have not received the policy, we cannot send the form of Reassignment, and request you, to settle the Survival benefit amount without any further delay, and inconvenience to the customer. We have also enquired with local Post Office, for delivery details, but given Regd Post No. with the given date was not available with them too. Please send us Xerox copy of acknowledgement you have, if any. We once again request you, to settle and make the payment after observing your formalities, when the policy is lost in transit, without any future delay. Thanking you, Yours faithfully, Sd/- BRANCH MANAGER. 10. From a close perusal of these two letters of Respondent NO-2 Bank it cuts the very case of Respondent No-1 Corporation and makes it clear that the Indian Bank Respondent No-2 has not sanctioned any loan to the complainant and have not acted upon the assignment deed said to have been executed by the complainant and that they have not received the assignment deed and original policy. Even the Respondent No-2 has informed the Respondent NO-1 that they enquired with local Post Office regarding Registered Post Number and date but the same was not available with them (Post Office) too and they have specifically requested to cancel the Registration of assignment made in their favour and to make payment of Survival benefit to the concerned (complainant). When the Indian Bank Branch Raichur (Respondent NO-2) with whom the policy was assigned according to the Respondent NO-1 has specifically stated that they have not received assignment deed and policy and they have not sanctioned the loan and will not sanction in-future and requested Respondent NO-1 to cancel the Registration of assignment made in favour of Bank and to make payment of Survival benefit under the policy to the policyholder, then we are at a loss to know as to how this Respondent NO-1 Corporation repeated the same story of assignment deed executed by the complainant-policyholder. The Respondent NO-1 Corporation has not produced any scrap of paper for having enquired with the Post Office through which they sent Assignment deed & original policy Bond by RPAD No. 8666 dt. 22-10-03 and what was the hurdle for them to cancel the Registration of Assignment deed registered in their book vide No. 4643 dt. 13-10-03 especially when Indian Bank-Respondent NO-2 the Bank by going a step ahead requested to cancel the Registration of assignment deed and to make payment of Survival benefit under the policy to the policyholder. In-spite of the above said two letters from Indian Bank Branch Manager the Respondent NO-1 Corporation did not act upon the said two letters in order to pay Survival benefits under the policy. This in-activeness on the part of the Respondent No-1 shows negligence & dereliction of their duty to the customer like the complainant, which amounts to deficiency in service. So we have no hesitation to hold that there is clear deficiency of service by the Respondent NO-1. Consequently we do not find deficiency of service by Respondent NO-2 Indian Bank which all the while wranged the bell by way of issuance of above said two letters to Respondent NO-1 to cancel the Registration of assignment and to make payment of Survival benefit to the complainant-policyholder. Hence we hold that the complainant has proved deficiency of service by Respondent No-1 only. So Point No-1 is answered in the affirmative against the Respondent NO-1 and in the negative against the Respondent NO-2 POINT NO.2:- 11. The complainant has sought for direction to Respondent NO-1 & 2 to pay a Survival benefits, to return original policy, to pay Rs. 25,000/- towards compensation to pay Rs. 15,000/- towards damages and to pay Rs. 5,000/- towards cost of litigation with interest at 24% p.a. In-view of our finding on Point NO-1, holding deficiency in service only by Respondent No-1. So the Respondent NO-1 Corporation is liable to pay Survival benefits under the policy in-question and to return original policy by tracing it out or if it is missing in transit, then they have to issue a duplicate policy, and to pay a global compensation of Rs. 25,000/- including cost of litigation. In this view of the matter we pass the following order: ORDER The complaint of the complainant is allowed in part against the Respondent NO-1 only. The Respondent No-1 LIC shall pay Survival benefits under the policy No. 661055243 due as on 28-03-04 with a global compensation of Rs. 25,000/- including cost of litigation. The Respondent NO-1 Corporation shall also return the original policy if traced out, if not, it shall issue a duplicate policy bond of money back policy. The Respondent NO-1 shall comply this order within (6) weeks from the date of receipt of copy of this order. (Dictated to the Stenographer, typed, corrected and then pronounced in the open Forum on 30-11-06.) Sd/- Sri. N.H. Savalagi President Dist.Consumer Forum-Raichur. Sd/- Sri.Pampannagouda Member. Dist.Consumer Forum-Raichur. On Leave Smt.Kavita Patil Member. Dist.Consumer Forum-Raichur.