Date of Filing:18.08.2009<br /> Date of Order: 12.10.2010<br /> <br /> 2<br /> <br /> BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SESHADRIPURAM BANGALORE-20<br /> <br /> Dated: 12TH DAY OF OCTOBER 2010<br /> <br /> PRESENT<br /> <br /> <br /> <br /> Sri S.S. NAGARALE, B.A, LL.B. (SPL.), President.<br /> Smt. D. LEELAVATHI, M.A.LL.B, Member.<br /> Sri BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member.<br /> COMPLAINT NO.: 1990 OF 2009<br /> <br /> P. Sethumadhavan<br /> No. 55, 9th ‘A’Cross, Gokula I Stage<br /> I Phase, Bangalore 560 054 Complainant<br /> V/S<br /> The Senior Manager<br /> LIC of India – City Branch I<br /> I Floor, United India Building<br /> J.C. Road, Bangalore 560 002 Opposite Party<br /> <br /> ORDER<br /> By the Member Sri Balakrishna V. Masali<br /> This is a complaint filed under Section 12 of the Consumer Protection Act.<br /> The brief facts of the case are that I have taken a LIC risk coverage insurance policy No. 611866950 dated 26.03.1997 for the period of 20 years quarterly premium of Rs. 873/- with risk coverage of Rs. 50,000/-. The LIC to be paid the 20% survival benefit amount of Rs. 10,000/- every 5 years from 26.03.1997. I could not pay the quarterly premium of Rs. 873/- from 2004 due to financial problems. Since, they have to pay the survival amount of Rs. 10,000/- on 26.03.2007 they agreed to adjust against quarterly premium and asked me to pay the balance amount with interest from 2004, till 10.07.2007 Rs. 655/- accordingly, the LIC adjusted the amount of Rs. 10,000/- the premium amount including interest amount of Rs. 655/- has been paid. The amount of Rs. 10,000/- adjusted on 10.07.2007 against above policy and endorsed on the policy certificate for having adjusted. I went to the LIC office in November 2007 to pay the next premium. But they refused to accept the premium saying that the policy lapsed in 2004 and no payment as per their records. I visited again with bond and receipt and explained the payment on 10.07.2007 with revival that time they told me that the above amount has not adjusted because the original policy bond sent for scanning and revival of policy will be done. The LIC will not issue receipt if full payment is not made with full interest till 10.07.2007. They never accept past – payment moreover I have not collected the survival benefit amount of Rs. 10,000/- till today. Hence, they have issued the receipt on 10.07.2007 for Rs. 655/- after reviving the policy No. 611866950 and they demanded for premium with interest for 2004 are baseless. Hence, the complaint.<br /> 2. Notice was issued to the opposite party. The opposite party put in appearance through advocate and filed defence version. In the defence version it is submitted that the opposite party does not admit any of the averments those that are specifically admitted herein. It is a fact that the complainant had taken the policy bearing No. 611866950 on 26.03.1997 wherein an amount of 20% of the assured amount is payable to the life assured every five years from the date of the commencement of the policy. Provided all the premiums due prior to the due date of such payments are received in full. As per the terms of the policy the first survival benefit was paid to the complainant on 25.03.2002 which is not disputed. The complainant has admitted that he has not paid premiums from 26.12.2004 to 26.03.2007 and hence, the second survival benefit is not paid on 26.03.2007. As per the policy condition which is printed on the policy bond if the premium is not paid before the expiry of days of grace which is 30 days from the due date of premiums the policy lapses and the policy can be revived within a period of 5 years from the date of first unpaid premium on submission of proof of continued insurability of the assured to the satisfaction of the opposite party. The complainant has not submitted any evidence of health / declaration of good health or medical certificate at any point of time till date to the opposite party for considering the revival of policy and hence, the policy is not revived till date. The opposite party admits that an amount of Rs. 655/- was paid on 10.07.2007 for effecting revival of his policy but however, he has not submitted the proof of his continued insurability. The amount of Rs. 655/- has been adjusted towards the renewal premium along with the survival benefit due to provide for higher paid – up value to the life assured which is permissible under the rules of the opposite party to provide the benefit of higher paid-up value to the life assured if by such adjustments the policy is not brought in to force. The opposite party has not committed any deficiency of service as contended by the complainant and thus, there is no reason for the complainant to seek for penalty compensation and costs. Hence, the opposite party respectfully prays that this Hon’ble forum may be pleased to dismiss the complaint.<br /> 3. Affidavit evidence of parties filed. Arguments are heard.<br /> 4. The points for consideration are:<br /> Whether there was deficiency of service on the part of the opposite party?<br /> <br /> 5. The opposite party admitted that the complainant had taken the policy bearing No. 611866950 on 26.03.1997 where in an amount of 20% of the assured amount is payable to the life assured every five years from the date of commencement of the policy provided all the premiums due prior to the due date of such payments are received in full. As per the terms of the policy the first survival benefit was paid to the complainant on 25.03.2002 which is not disputed. The complainant has admitted that he has not paid premiums from 26.12.2004 to 26.03.2007 and hence, the second survival benefit is not paid on 26.03.2007. As per the policy condition the premium is not paid before expiry of days of grace which is 30 days from the due date of premiums the policy lapses and the policy can be revived within a period of 5 years from the date of first unpaid premium. The complainant has admitted in his complaint that he was advised to pay the arrears of premium with interest along with medical certificate which is as per the rules of the policy. The officials of the opposite party have always being advising the complainant to submit the evidence of health and also pay the arrears of premium with interest as per the rules of the policy which would solve the problem. The opposite party submitted in the version that the complainant called on the office of the opposite party during the pendency of this complaint. He was informed about the officer waiver of interest of Rs. 720/- payable towards late fees. If the complainant is agreeable to pay quarterly premium due from September 2007 to September 2009 after furnishing declaration of good health as per the rules of the policy the opposite party is willing to revive the policy and further, the opposite party has filed a memo dated 16.09.2010 along with documents, in the policy documents mentioned the surrender value payable is Rs. 18,366/- in respect of policy No. 611866950. Now, the opposite party is ready to give the surrender value. The complainant shall approach Insurance Regulatory and Development Authority which will address the grievances of the complainant. The complainant shall register his complaint before the IRDA and he can also contact IRDA grievances call centre toll free No. 155255. There are no disputes with other policies. In the result I proceed to pass the following:<br /> ORDER<br /> 6. The complaint is partly allowed. The complainant shall take the surrender value of Rs. 18,366/- or he can revive the policy as per the rules and regulation or the complainant shall approach the IRDA that is the proper authority to address the grievances of complainant.<br /> 7. Send the copy of this Order to both the parties free of costs immediately. <br /> 8. Pronounced in the Open Forum on this 12TH DAY OF OCTOBER 2010. <br /> Order accordingly,<br /> <br /> MEMBER<br /> We concur the above findings.<br /> <br /> MEMBER PRESIDENT<br />