Tamil Nadu

South Chennai

CC/384/2017

S.Jeyaraman - Complainant(s)

Versus

The Post Master General( Postal Life Insurance) - Opp.Party(s)

Party in Person

29 Aug 2022

ORDER

Date of Complaint Filed : 08.11.2017

Date of Reservation      : 27.08.2022

Date of Order               : 29.08.2022

 

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT:    TMT. B. JIJAA, M.L.,                                                 : PRESIDENT

                        THIRU. T.R. SIVAKUMHAR, B.A., B.L.,                :  MEMBER  I 

                        THIRU. S. NANDAGOPALAN., B.Sc., MBA.,         : MEMBER II

 

CONSUMER COMPLAINT No.384 /2017

MONDAY, THE 29^th DAY OF AUGUST 2022

 

S. Jeyaraman,

S/O G.Srinivasagam,

G1 Maharajothi House,

AGs Officers Colony,

Nanganallur,

Chennai 600 061. .                                                                                                                                                               ... Complainant                  

 

..Vs..

The Post Master General (PLI),

(Postal Life Insurance),

Chennai City Region,

Chennai - 600 002.                                                                                                                                                           ...  Opposite Party

 

******

Counsel for the Complainant          : M/s. B.R.Sankaranarayanan

Counsel for the Opposite Party       : M/s. S. Chandrasekharan

 

        On perusal of records and after having heard the oral arguments of the Counsel for the Opposite Party, we delivered the following:

ORDER

Pronounced by Member-I, Thiru, T.R. Sivakumhar., B.A., B.L.,

1.      The Complainant has filed this complaint as against the Opposite Party under section 12 of the Consumer Protection Act, 1986 and prays to that Relief to be granted to the extent of Rs.8.35 Lakhs with applicable interest at the rate of 18% per annum from the date of loan application i.e., 11.11.2015, for failing to disburse the loan amount within the stipulated time as promised by the opposite party in the citizen's / client's charter serial number 4.7, as compensation for loss in early forced surrender of the policy, as penalty in terms of excess interest paid to money lenders to meet urgent emergency medical fees for the complainant's wife, as incidental expenditure incurred by the complainant, as mental agony and physical harassment, as loss of peace and trauma suffered during the pendency of the loan disbursal.   

2.     The averments of Complaint in brief are as follows:-

The opposite party offered loan against the Postal Life Insurance Policy and had publicly declared in Sl.No.4.7 of their Citizen's/Clients Charter as the duration for settlement of loan amount against policies is within 10 days from the date of receipt of loan application which they have failed resulting in heavy loss to the complainant. The complainant has paid all the due premiums without any default. The nature of deviation from the claims made by the opposite party are Complainant's date of loan application was on, 11.11.2015, Date of loan sanction on 20.11.2015, time taken was 10 days. Whereas he received Loan sanction intimation to complainant on 26.11.2015 by the opposite party sent by Registered post which was 17 days from the date of loan application. Loan sanction intimation received by the complainant on 28.11.2015 which was 19 days. Cheque was dated 01.12.2015 which took 21 days. Cheque issued to Complainant on 07.12.2015 which took 28 days. Cheque deposited in the bank by the complainant on 08.12.2015-29 days. The Opposite Party promised full assured amount plus insurance amount in the event of risk and alternately on maturity benefits of return of assured amount, accrued bonus plus insurance amount. These statements are given as part of the policy document. As the Opposite Party miserably failed in honouring the promise made in the Citizen’s/client’s charter, the Complainant lost faith and had to surrender another of his PLI policy held with the Opposite Party No.TN-572151-CC for an assured value of Rs.2,50,000/- forgoing all maturity benefits to the tune of Rs.5,50,000/-. Further the Opposite Party while paying the surrender value deducted a sum of Rs.24433/- from the Complainant’s actual premiums paid so far in the policy. The PLI Insurance Policy Number DL-78244-CC dated 16.02.2006 for assured sum of Rs.1,00,000/- Term (EA/60): Date of Maturity. 16.02.2024, with a monthly premium of Rs.475/-. Policy document copy is attached. Original Policy document is held with the office of the Postmaster General. Against the above policy loan was applied on 11.11.2015 by the complainant for urgently meeting the medical expenses of the complainant's wife as she was under ICU care for medical emergency. However the complainant received the loan amount in his bank account only on 19.12.2015 after 40 days from the date of application resulting in heavy financial losses and mental agony and distress. Deficiency in after sales service in the nature of failure to make loan disbursal within the stipulated time as promised by the opposite party in their Citizen's/Client's charter which amounts to deficiency in service,  thus inflicting enormous amount of mental agony, failure to pay the medical fees in time incurred to provide medical care to the complainant wife, resorting to borrowing of money from private money lenders at high interest rates to meet the emergocy physical harassment, loss of peace and trauma suffered during the loan application pendency, Financial loss suffered by the Complainant. Hence the complaint.

3. Written Version filed by the Opposite Party in brief is as follows:-

The complainant submitted his loan application at Rajaji Bhavan Post Office on 12.11.2015. The application was completely filled up and not witnessed by any individual as prescribed in the form. Hence the application was returned to the complainant through Rajaji Bhavan Post Office. On 18.11.2015 and the loan sanction was dispatched to the complainant on 26.11.2015. The complainant submitted loan application at Rajaji Bhavan Post Office on 12.11.2015. The application was not completely filled up and not witnessed by any individual as prescribed in the form. Hence the application was returned to the complainant through Rajaji Bhavan post office. The loan application as received back by St.Thomas Mount Head Office on 18.11.2015 and loan sanction was dispatched to the complainant on 26.11.2015. The cheque dated 01.12.2015 was issued to the complainant.  The cheque issued by St. Thomas Mount Head Office is local cheque. There is no delay in the part of the Department of Posts. According to Section 6 of Indian Post Office Act, 1898, the government, shall not incur any liability by reason of the loss, delivery or delay of, or damaged to, any postal article in course of transmission by post, except in so far as such liability may in express terms be undertaken by the Central Government as herein after provided and no officer of the post office shall incur any liability by reason of any such loss, misdelivery, delay or damage unless he has caused the same fraudulently or by his willful act or default. Hence the complaint is to be dismissed.

 

4.      The Complainant submitted his Proof Affidavit and Written Arguments. On the side of the Complainant, documents Ex.A-1 to Ex.A-37 were marked. The Opposite Party submitted his Proof Affidavit and Written Arguments. On the side of the Opposite Party, no documents were marked.    

Points for Consideration

1. Whether there is deficiency in service on the part of the Opposite Party?

2. Whether the Complainant is entitled for reliefs claimed?

3. To what other reliefs the Complainant is entitled to?

Point No.1:

        The contention of the complaint is that loan against Postal Life Insurance Policy would be provided within 10 days from the date of loan application which the Opposite Party had failed to honour the commitments as assured. As he had submitted the loan application on 11.11.2015, loan should have been sanctioned on 20.11.2015 i.e,on the 10^th day whereas he had received the intimation on 26.11.2015 by Registered Post which is on 17^th day from the date of loan application and the loan sanction intimation was received by him on 28.11.2015 which is on 19^th day from the date of loan application, the cheque for loan amount was issued on 01.12.2015, cheque was received on 07.12.2015, and deposited on 08.12.2015. The said loan was applied against the policy was to meet out the medical expenses of his wife, who was under medical emergency in ICU. But he had realized the cheque only on 19.12.2015 after 40 days from the date of loan application, hence the act of the Opposite Party clearly amounts to deficiency of service, because of which he had sustained serious mental agony, as he could not pay the medical bills in time and has to borrow money from private money lenders at high rates. Further as the Opposite Party failed to honour the promise, he lost faith and had to surrender another PLI Policy bearing NO.TN-572151-CC for an assured value of Rs.2,50,000/- foregoing all maturity benefits to the tune of Rs.5,50,000/-.

        The contention of the Opposite Party is that the loan application was submitted by the Complainant on 12.11.2015 at Rajaji Bhavan Post Office, as the application was not witnessed by any individual as prescribed in the form, resulted in returning the form to the Complainant through Rajaji Bhavan Post Office and the same was received on 18.11.2015 from the Complainant. The loan sanction was sent to the Complainant on 26.11.2015 and the process of settlement of loan sent on 28.11.2015, as the Complainant wanted the payment of loan at Rajaji Bhavan, the cheque dated 01.12.2015 was sent to Rajaji Bhavan, from where on 07.12.2015 the Complainant had collected the cheque. The cheque issued by St.Thomas Mount Head office is local cheque. There is no delay on the part of the Opposite Party.

        From the perusal of the Exhibits marked by the Complainant as well as the complaint and written version, though the Complainant had raised delay of processing the loan against his policy, which he had availed to meet out his wife’s medical emergency, the complainant had not revealed the real facts of return of his loan application submitted on 11.11.2015 returned for want of witness signature and on return, the same was submitted on 18.11.2015 for processing of the loan, which he has not denied in his proof affidavit and written arguments, as well as the fact of collecting the loan cheque dated 01.12.2015, only on 07.12.2015 he has collected on his request from Rajaji Bhavan Post Office which is also not denied by the Complainant either in his proof affidavit or written arguments. Hence the loan application resubmitted on 18.11.2015 was sanctioned on 20.11.2015 as found in Ex.A-7 and the cheque was made ready on 01.12.2015 was collected by the Complainant on 07.12.2015 and presented the same on 08.12.2015, being the local/out station cheque the same found to be got cleared on 19.12.2015 as per Ex.A11, the bank statement. Further the purpose of loan availed was to meet out the medical emergency of his wife, who was in ICU, whereas as per Ex.A-4 in page No.11 and 12 the date of admission was found to be on 04.12.2015, as admitted by the Complainant the loan cheque was dated 01.12.2015, the collection of cheque was on 07.12.2015, which is not denied by the Complainant as discussed above, there is no delay on the part of the Opposite Party. If at all if there is any delay of delivery of posts to the Complainant, the same is exempted under section 6 of Indian Post office Act, 1898, which read as follows:-

“The Government shall not incur any liability by reasons of loss, misdelivery or delay or damage to, and Postal article in course of transmission by post, except in so far as such liability may in express terms be undertaken by the Central Government as hereinafter provided, and no officer of the Post Office shall incur any liability by reasons of any such loss, misdelivery, delay or damage, unless he has caused the same fraudulently or by his wilful act or deault”.

The Opposite Parties had relied upon the Orders passed by the Hon’ble National Consumer Disputes Redressal Commission on 13.01.2010 in Union of India & 4 others Vs- M.L.Bora, Registrar & Constitutional Attorney of Century, Enka Ltd as well as relied on order dated 09.10.2017 passed in Post Master & 2 others Vs- Sarbeswar Sahoo, wherein in the said orders, it was held that “The Government gives much more in service than it get in revenue. That is the reason for enacting Section 6 of Indian Post Office Act which gives absolute protection to the Government against any claim or damages on account of loss of postal article except in cases and to the extent to which it has been specifically provided in the act itself.” Further observed that “ As Supreme Court has pointed out the Post office is not a common carrier, it is not an agent of the sender for sending of the postal articles to the addressee. It is really a branch of the public service subject to the provisions of the Indian Post Office Act and the rules made thereunder.”

        On discussions made above and in the facts and circumstances of the case, we hold that there is no delay on the part of the Opposite Party in processing the loan against his Postal Life Insurance Policy and surrendering of another Postal Life Insurance is on his own volition. Therefore, we are of the considered view that the Opposite Party has not committed any deficiency of service. Accordingly, Point No.1 is answered.

Point Nos.2 and 3:-

        As discussed and decided Point No.1 against the Complaiannt, the Complainant is not entitled for the reliefs claimed in the complaint and hence, the Complainant is also not entitled for any other relief/s. Accordingly Point Nos. 2 & 3 are answered.

        In the result the complaint is dismissed. No costs.

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 29^th of August 2022. 

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                 B.JIJAA

         MEMBER II                       MEMBER I                        PRESIDENT

 List of documents filed on the side of the Complainant:-

 

Ex.A1	-	Copy of Affidavit notarized.
Ex.A2	-	Copy of Notice to the opposite Party before filing consumer complaint
Ex.A3	-	A copy of Citizen's/Client's Charter which is proof for stipulated time disbursal of loan against PLI policy fixed by Dept. of Posts (SI.No.4.7 in the charter)
Ex.A4	-	purpose of the PLI loan applied for Medical treatment to my wife's: A copy of advance paid slip and Medical Certificate and Summary of ICU Medical treatment.
Ex.A5	-	Copy of PLI policy no. DL-78244 CC &Acceptance letter. Paid since February, 2006. Date of Proposal  : 13.02.2006,Date of Acceptance : 16.02.2006, Date of Maturity 16.02.2024, Last premium : Jan,2024, Mode of Payment : Cash by monthly, Premium amount : Rs.475/- Per Month,Assured amount & Term: Rs.1,00,000/= & EA/60
Ex.A6	-	Replica of Loan application dated 11.11.2015 submitted at Rajaji Bhawan PO, Besant Nagar, Chennai -90.
Ex.A7	-	Copy of Loan Sanction letter dated 20.11.2015
Ex.A8	-	Sanction letter intimated to me by Regd. post on  26.11.2015 and received by me on 28.11.2015
Ex.A9	-	Issued/Received Cheque No. 731995 Dated 01.12.2015 for Rs.46,300/- on 07.12.2015 cheque dated as 01.12.2015
Ex.A10	-	Copy of Loan repayment book indicating Interest @ 10% charged for loan amount from 21.11.2015 (Cheque date was 01.12.2015, however the interest charged from 21.11.2015)
Ex.A11	-	The cheque deposited to bank on 08.12.2015, Cheque cleared by bank on 19.12.2015, Outstation cheque realization charges for Rs.115 deducted by bank on 19.12.2015
Ex.A12	-	My appeal to PMG complaining of poor response and delayed payment on 03.02.2016
Ex.A13	-	Surrender application sent to me without any reply for delayed payment by Manager(PLI), St. Thomas Mount Post Office on 13.02.2016
Ex.A14	-	As per instruction by Manager St. Thomas Mount Post Officer, surrender application submitted on 28.03.2016
Ex.A15	-	Reply letter to my surrender application, narrating his account on presumptions and assumptions and suppression of facts by Manager, CPC PLI dated 9.4.2015 received on 13.04.2015
Ex.A16	-	My letter indicating Poor response, delayed payment and administrative lapses and forcefully surrender details explained by me on 15.04.2016
Ex.A17	-	Reply for all lapses agreed by Manager, CPC-PLI, st.thomas mount post office on  29.04.2016.
Ex.A18	-	Again explained their lapses date wise details viz interest charged, Cheque date, Date of Cheque issued to me and sanction date, intimated sanction and received sanction letter date on 05.05.2016.
Ex.A19	-	Their reply acknowledges the lapses & regretted and misleading technically by Manager, CPC-PLI on 09.05.2016
Ex.A20	-	Pointed out misleading and proved date wise delayed payment and requested for accruing benefits on 20.05.2016
Ex.A21	-	Returning of all original documents of PLI policy DL- 78244-CC by manager, CPC-PLI, St.M.P.O. by presumption and assumption of my intention to surrender the policy on 24.05.2016
Ex.A22	-	Again I have explained with proof of administrative lapses and delayed payment and also again sent along with all original documents on 31.05.2016
Ex.A23	-	They decided and asked for acceptance letter for payment without any survival benefit and also they regretted their mistakes. However the reply dated 07.06.2016 was high handed and threatening way by Sr. Supdt. Pos, Chennai City South Dn., Chennai-17
Ex.A24	-	A letter sent to me without considering my earlier letters and they themselves have fixed the amount and intimated to me by mangaer, St.MPO, on 13.06.2016
Ex.A25	-	Reply for intimation of fixing the amount along all original again sent to me for continuing the policy by manager, cpc-pli, St.MPO on 28.06.2016
Ex.A26	-	I have pointed out vide my letter dated 30.06.2016 misleading and in appropriate interpretation and their lapses by manager CPC-PLI, to Sr. Supdt.ofPos, Chennai city south Division, Chennai -17
Ex.A27	-	Again false and misleading information sent to me as well as explainedpli policies unnecessarily by SR.Supdt., CCSDn, Ch-17 on 14.07.2016
Ex.A28	-	I explained to Public relation officer (P), nanganallur on the issue while she came and met me on 01.08.2016 but no action sofar.
Ex.A29	-	I have explained to Postmaster General (PLI) CCR, Ch for request for due settlement of my two policies on 07.10.2016
Ex.A30	-	MISLEADING reply received on 21.10.2016 from Sr.Supdt, of Posts, CCSDn, Chennai-17.
Ex.A31	-	Again I have explained the facts of the case to PMG,  ccr, cH on 31.10.2016
Ex.A32	-	Asst Director(RPLI), o/o PMG replied on 04.04.2017 by quoting and explaining Rules without addressing my issue and that too after more than 5 months reply was received
Ex.A33	-	Copy of another PLI policy no. TN-572151-CC from 08.04.2013 which was held without any premium default, acceptance letter and PLI policy Date of Proposal 08.04.2013, Date of Acceptance 08.04.2013, Date of Maturity 08.04.2013, Last premium Mar 2024, Mode of Payment: Cash by monthly Premium amount: Rs.1988/= + ST-P.M Assured amount & Term: Rs.2,50,000/= & EA/60
Ex.A34	-	Copy of forwarding letter dated 04.05.2016 & surrender application alongwith Originals
Ex.A35	-	Copy of manager (PLI) St. Thomas Mount Post office reply dated 24.05.2016, in which he himself assumes my stand and asked for acceptance letter for closing forcefully
Ex.A36	-	Reply letter from PMG office dated 04.04.2017 indicating the options for me, and my letter dated 21.06.2017 as reply given to The manager (PLI). St. Thomas Mount Post Office
Ex.A37	-	Copy of letter dated 04.07.2017 for sanctioning the surrender value for policy TN-572151 CC as an amount Rs.49,123/= instead of paid premium amount Rs.73556/- difference as Loss is Rs.24,433/. Over all loss of amount for this policy is Rs.5,50,000/= which is the maturity value, due to lost faith with PLI Policy held with the opposite party.

 

 

 

 

 

List of documents filed on the side of the Opposite Party:-

NIL

 

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                    B.JIJAA

         MEMBER II                       MEMBER I                         PRESIDENT