Orissa

Debagarh

CC/47/2019

Sri Alekha Biswal, aged about 43 years, S/O- Late Kartika Biswal - Complainant(s)

Versus

The Post Master, Reamal Post Office - Opp.Party(s)

09 Dec 2019

ORDER

IN THE COURT OF DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, DEOGARH

C.C NO-47/2019

Present-         Sri Dipak Kumar Mahapatra, President, Smt. Jayanti Pradhan, Member (W) and Smt. Arati Das, Member.

 

Sri Alekha Biswal, aged about 43 years,

S/O- Late Kartika Biswal,

R/O-At/P.O/P.s-Reamal, P.S/Dist-Deogarh.

                                                                                                            .....Complainant.

Versus

1. The Post Master,

          Reamal Post Office,

         At/P.O/P.S- Reamal,

          Dist-Deogarh

2. The Post Master,

          Deogarh Head Post Office,

          P.O/P.S/Dist-Deogarh-768108(Orissa).

    3.  The Superintendent of Posts, Sambalpur,

         P.O/P.S/Dist- Sambalpur (Orissa).                                                                  …..Opp. Parties.

             Counsels:-

             For the Complainant:- Nemo

            For the O.Ps:- Ms. Shrabani Pradhan, Inspector of Posts, Deogarh

Sub-Division.(Authorised Person).

 

DATE OF HEARING : 25.11.2019, DATE OF ORDER : 09.12.2019

Sri Dipak Kumar Mahapatra, President- Brief facts of the case is that the Complainant on dtd. 03.12.2019 has availed a Postal  Rural Life Insurance Policy from the O.P-1  vide policy no-R-OR-EA-42194 and the sum assured was Rs.60,000/- having a maturity date on dtd.03.12.2029. He paid the premium up to dtd.31.03.2016 and stopped paying due to financial problems. On dtd.06.04 2018 the Complainant written a letter to the O.P-1 to surrender the policy and surrender the original PRB along with application for surrender. The O.P-3 vide letter no-PLI-CPC/SBP HO/2017-18 dtd. 24.05.2018 has denied accepting the policy for surrender for the reason that it is already lapsed due to discontinuation in payment of premium. But the O.P-1 suggested the Complainant to convert the policy to reduce paid up policy where the premium amount will be reduced and the Complainant accepted the proposal. On dtd.15.02.2019 the O.P-3 informed the Complainant regarding the reduced paid up policy and the new sum assured is Rs.20,952/- and directed to contact the O.P-1 or his agent for more information and queries. The Complainant on dtd.24.08.2019 had written a letter to the O.P-3 that since 14 months, he has not received the surrender value or the RPLI book till date. On dtd.28.08.2019, the Manager PLI CPC Sambalpur H.O has intimated that he has already sent the above book on dtd. 19.02.2019 along with required enclosures and requested him to confirm about the date on which surrender application was sent to his office. After submitting all the required documents with the O.P-1 & 2 he has requested several times for payment against the surrender policy but in vain and he has been harassed by the O.Ps in various ways. Again the Complainant filed petition before the Forum regarding receipt of a letter through post on dtd.04.12.2019 where it is mentioned that the O.Ps has calculated the surrender value amounting to Rs.17,218/- against the deposit of Rs.29,568/- and made prayer for seeking a direction to the O.Ps to pay at least the amount deposited by the Complainant in the RPLI. According to the O.Ps after three years of inception of any policy, if the premium is unpaid for more than 12 months, the policy will be lapse automatically. In this case as the Complainant has paid up to march 2016 and applied for surrender of the policy on April -2018, hence the surrender was not allowed and the Complainant was to revive the same by paying the up to date policy premium. The Complainant was duly intimated regarding the accepting of his request for reduced paid up policy by Sambalpur SH and sought information regarding the submission of surrender application with the SH to confirm process the surrender . But the Complainant remained silent over the matter in spite of several reminders. Hence they have not committed any deficiency in service to the Complainant.

 

POINTS OF DETERMINATION:-

1. Whether the Complainant is comes under the purview of Consumer Protection Act.1986?
2. Whether the O.Ps has committed any Deficiency in Service to the Complainant?

 

From the above discussion and material available on the records we inferred that the Complainant is a Consumer of the O.Ps as he has availed RPLI from the O.Ps. The Complainant has opted a RPLI but due to his financial problems he could not continue the same and wanted to surrender. Though the O.Ps suggested him to convert the policy by reducing the sum assured and the premium as well they did not carried out the process of surrender even after submission of complete surrender application along with documents since April-2018. But on dtd. 28.08.2019, the O.P-3 shifted the burden of payment with a plea that he has not received the surrender application and sought confirmation about the date which he has sent the same. Again after filling this case, on dtd. 20.11.2019 the O.P-3 has again sent an application form to the Complainant, for further submission of surrender application for processing is quite surprising. Here gross negligence on the part of the O.Ps can be observed. According to the guidelines of the postal dept. whenever an insured wants to surrender his PLI after paying premium after a specified period, his policy will continue but with lower sum assured which is called as paid-up value or paid-up sum assured. Paid-up value is calculated by multiplying the original sum assured and the ratio of the number of premiums paid to the number of premiums payable. If anyone discontinues the policy, the amount he will get is called the special surrender value. This is arrived at by multiplying the total paid-up value (paid-up value + bonus) with a multiplier called the surrender value factor. This matter has been well settled in the case of Postal Life Insurance Department ... vs Smt. Deepak Devi decided on 3^rd August, 2010 by State Consumer Disputes Redressal Commission, Haryana. The O.Ps has calculated the surrender value accurately after following the prescribed guidelines. In addition to this the O.Ps has caused unexpected delay to settle the matter and committed deficiency in service u/s-2(1)(g) of Consumer Protection Act-1986. Hence we order as under:-

                                                                              ORDER

The Complaint petition is allowed. The O.P-1,2 & 3 are jointly and severally directed to release the surrender value in favour of the Complainant. Further the O.Ps are jointly and severally directed to pay Rs.2,000/- compensation towards metal agony and pain and Rs.1,000/- towards cost of litigation. All the above direction are to be complied within 30 (Thirty) days from receipt of this order, failing which, the Complainant is at liberty to proceed in due process of law.

Office is directed to supply the free copies of the order to the parties receiving acknowledgement of the delivery of thereof.

Order pronounced in the open court today i.e. 9^th day of December, 2019 under my hand and seal of this forum.

            I      agree,                                         I     agree,

          MEMBER(W).                                    MEMBER.                                          PRESIDENT.

             Dictated and Corrected

              by me.

 

                                                                   PRESIDENT.