Karnataka

Kolar

CC/33/2015

Sri.S.Narayanaswamy - Complainant(s)

Versus

The Senior Superintendent of Post Officer - Opp.Party(s)

Sri.H.V.Krishne Gowda

23 Mar 2016

ORDER

Date of Filing: 14/08/2015

Date of Order: 23/03/2016

BEFORE THE KOLAR DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, D.C. OFFICE PREMISES, KOLAR.

 

Dated: 23^RD DAY OF MARCH 2016

PRESENT

SRI. N.B. KULKARNI, B.Sc., LLB,(Spl.)  …….    PRESIDENT

SRI. R. CHOWDAPPA, B.A., LLB        ..…..    MEMBER

SMT. A.C. LALITHA, BAL., LLB       ……      MEMBER

CONSUMER COMPLAINT NO :: 33 OF 2015

Sri. S. Narayanaswamy,

S/o. late Seetharamappa,

Aged About 60 Years,

C/o. Parthasarathi,

House # 1138, 6^th Cross,

Ward No.27, Keelukote Badavane,

Kuvempu nagar, Antharagange Road,

Kolar-563 101.

 

(Rep. by Sriyuth.H.V. Krishne Gowda, Advocate)     ….  Complainant.

 

- V/s -

Senior Superintendent of Post Officer,

Kolar Division, P.C. Extension,

Kolar-563 101.

 

(Rep. by Sriyuth.P.N.Krishna Reddy, Advocate)      …. Opposite Party.

-: ORDER:-

BY SMT. A.C. LALITHA, MEMBER

01.   The complainant having submitted this complaint Under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred in short as “the Act”) against the OP has sought issuance of directions to OP to make payment of insurance claim with bonus and excess amount collected by the OP and also a sum of Rs.50,000/- by way of damages – along with interest at the rate of 18% per annum.

 

02.   The facts in brief:-

It is contention of the complainant that, he was the policy holder of the postal life insurance policy bearing No.KT-192509-CS, for a term CWA/60 issued on 30.09.2002 for a sum of Rs.50,000/- risk commenced from the date of issuance of policy till maturity date being 9^th June 2013.

 

(a)    It is contended that, he has regularly paid premium amount of Rs.278/- per month and sometimes due to delay in payment he has paid premiums with fine and thus he has regularly paid premiums of the said policy till maturity.

 

(b)    It is also case of the complainant that, even after maturity of the said policy the OP had received premiums up to March-2015.  And that he had come to know about it only after March-2015.  And that when he questioned about it, and also claimed the policy amount the OP was silent in settling the matter. 

 

(c)    It is contended that, he had received a letter dated: 25.04.2015 from the OP stating that, policy was convertible to whole life insurance type which cannot be matured during the life time of the insured/complainant, it is so issued to compel him to go for whole life insurance type, which is against his interest.  And that the OP without prior intimation and without his consent converted the policy as life term policy.

 

(d)    It is further contended that, being aggrieved by the said act of OP he got issued legal notice through his counsel on 09.07.2015 same has been duly served to OP for which there could be no response.  So contending, the complainant has come up with this complaint seeking above set-out reliefs.

 

03.   In response to the notice issued with regard to the case on hand, OP has put in appearance through its said learned counsel and submitted written version.

 

(a)    The main contention of the OP is that, the complainant/insured had not paid premium till March-2015.  And that it has educated the complainant/insured at the time of proposal of policy itself, with regard to conversion of policy in to whole life term within 5 years from the date of acceptance of policy.

 

(b)    It is contended that, OP had issued notice to this complainant/insured on 28.08.2007 stating that his policy was convertible to Life term policy due to completion of five years by the end of September-2007 and if he had desired to convert it in to an endowment assurance policy his option might have been intimated before one month of the due date of conversion.  And that the complainant/insured replied through letter dated: 19.11.2007 stating that, he is not willing to change this policy into endowment or any other assurance.  And that thus it has converted the policy as whole life policy as per the terms and conditions of the policy the maturity amount is not payable during his life time.  So contending, dismissal of the complaint with exemplary costs has been sought.

 

04.   The complainant on 04.01.2016 has submitted his affidavit evidence and on behalf of the complainant following Xerox copies of documents have been submitted:-

(i) Copy of postal life insurance issued by OP to the complainant.

(ii) Copy of premium receipt book.

(iii) Copy of latter issued by the opponent to the complainant,

(iv) Office copy of the legal notice,

(v) Postal receipt,

(vi) Served postal acknowledgement.

 

05.   On 19.01.2016 the learned counsel appearing for OP has submitted affidavit evidence of Sri. K. Muniramaiah Senior Superintendent of Post Office, Kolar Division.

 

06.   The learned counsel appearing for complainant submitted written arguments on 11.02.2016; subsequently the learned counsel appearing for OP has submitted written arguments on 19.02.2016. 

 

07.   On 22.03.2016 heard the oral arguments of both the learned counsel.  And on this day the learned counsel appearing for OP has submitted Memo with two below mentioned documents:-

(i) Notice issued by OP dt: 28.04.2007

(ii) Reply given by the complainant dt: 19.11.2007.

 

08.   Therefore the points that do arise for our consideration in this case are:-

1. Whether there is any deficiency in service on the part of the Ops in settling the claim of the complainant?

2. Whether the complainant is entitled for the policy amount and excess amount he paid as well compensation?

 

3.  What order?

 

09.   Findings of the District Forum on the above stated points for the following reasons are:-

 

POINT 1:     In the Affirmative.

 

POINT 2:     The complainant is held entitled to recover Rs.50,000/- being the maturity value of the policy and excess amount received from 09.06.2013 to March-2015 with compensation of Rs.5,000/- together with interest @ 9% pa from 14.08.2015 till realization.

 

POINT 3:     As per final order for the following:-

 

REASONS

POINTS 1 & 2:-

10.   To avoid repetition in reasonings and as these points do warrant common course of discussion, the same are taken up for consideration at a time. 

 

(a)    It is contention of the learned counsel for the OP that, the complainant/insured has not paid premium till March-2015 and OP has educated the complainant/insured at the time of proposal of policy itself with regard to conversion of policy in to whole life term within 5 years from the date of acceptance of policy. (Reliance on Para-5 of written version)

 

(b)    This contention of OP is merely baseless and cannot be believed because, the very document of OP issued to complainant/insured, copy of premium book reveals which is in respect of policy bearing No.KT-192509-15 that the last date of premium paid is 28.03.2015.  Thus OP had received excess premiums up to March-2015 even though maturity date of said policy was 09.06.2013, and thus there was deficiency in service of OP.

 

(c)    Another contention of this OP is that, it had issued letter dated: 28.08.2007 to intimate this complainant/insured with regard to conversion of the policy in to life term and for this the complainant has given his consent through letter dated: 19.11.2007.

 

(d)    The above letter dated: 28.08.2007 was issued by post master general – PLI GPO Building, Bangalore, to the complainant/insured stating that non-credit of premiums for the months of August-2006, November-2006, December-2006, January-2007, February-2007, March-2007, April-2007, May-2007, June-2007, July-2007, August-2007, September-2007 and the said policy has lapsed due to non-payment of premiums.  And if it was case of lapse of policy, as per Head of the Department of OP, why were payments of premia for the months mentioned above received by this OP and entered in the pass-book would be the question?  By this contradictory statements and opinions of this OP and Head of department of the said OP, we cannot accept and believe the letter dated: 19.11.2007 was given by the complainant/insured.

 

(e)    Thus it reveals that the complainant/insured had paid all premiums regularly up to maturity date: 09.06.2013, and also paid excess premiums till March-2015.

 

(f)     By accepting premium up to March-2015, being beyond 09.06.2013 and even April-2014, the date for last payment of premium, the very OP has given up terms of the insurance policy, be it convertible endowment, or life-term policy.  Hence, the complainant is still entitled to get policy converted for endowment.

 

(g)    Moreover there is no evidence that the letter dated: 24.08.2007 educating the complainant either to opt for convertibility as endowment policy within specified time or to allow the policy to continue as Life Term Policy; was communicated to the complainant.  Merely on the strength of the production of Office copy of such letter it cannot be presumed that it was received by the complainant.  So non-communication shall have to be fatal.

 

(h)    Letter dated: 17.11.2007 contendedly written by the complaint does not refer to the said letter dated: 24.08.2007 contendedly written by the OP to the complainant.  Besides as the complainant has denied such a letter as being written by him, the onus to prove the said document since not discharged by the OP, it must fail. 

 

(i)     So construing the policy terms in a consumer friendly manner we state that it was only an endowment policy.

 

(j)     For the reasons and findings mentioned above we hold that, there is deficiency in service on the part of the OP in settling his claim.  Therefore in our view the complainant is entitled to policy amount and excess amount received up to March-2015.

 

(k)    Hence we allow the complaint of the complainant and direct the OP to pay policy amount a sum of Rs.50,000/- and also, the excess amount received up to March-2015 shall be calculated, along with 9% interest from the date of complaint and shall be paid to the complainant.

 

POINT 3:-

11.   In the result, we proceed to pass the following:-

ORDER

01.   For foregoing reasons, this complaint stands allowed with costs of Rs.1,000/- as hereunder:-

 

(a)    The complainant is held entitled to recover Rs.50,000/- being the maturity value of the insurance policy held as endowment policy and the excess amount received from 09.06.2013 up to March-2015 shall be calculated and paid, with compensation of Rs.5,000/- together with interest @ 9% pa from 14.08.2015 being the date of complaint till realization from the OP.

(b)    The OP is given time of one month to comply the order from the date of receipt of copy of this order.

 

(02)  Send a copy of this order to both parties free of costs.

 

(Dictated to the Stenographer in the Open Forum, transcribed by him, corrected and then pronounced by us on this 23^rd DAY OF MARCH  2016)

 

 

 

 

 

MEMBER                             MEMBER                 PRESIDENT