BEFORE THE DISTRICT FORUM: KURNOOL
Present: Sri. T.Sundara Ramaiah , B.Com B.L., President
And
Sri. M.Krishna Reddy , M.Sc., M.Phil., Male Member
Thursday the 13th day of January, 2011
C.C.No 78/10
Between:
U.W. Prem Sagar, S/o. U. Jaya Chandra,
R/o. Mutyalapadu Village, Chagalamarri Mandal , Kurnool District. 518 533
……Complainant
-Vs-
1. The Sub Post Master,
Muthyalapadu Village, Chagalamarri Mandal, Kurnool District.
2. The Superintendent of Post Offices,
Nandyal , Kurnool District.
3. The Assistant Director,O/o. Post Master General of Post Offices,
B.Camp, Kurnool.
…OPPOSITE PARTIES
This complaint is coming on this day for orders in the presence of Sri. S.Sivaramakrishna Prasad, Advocate, for complainant, and opposite party No.1& 2 Sri. M.D.V.Jogaiah Sarma and opposite party No.3 is called absent set ex-parte and upon perusing the material papers on record, the Forum made the following.
ORDER
(As Per Sri, T.Sundara Ramaiah, President)
CC No.78/2010
The Compliant is filed under section 11 and 12 of C.P. Act, 1986 praying to direct the Opposite parties to :-
(a) pay the surrender value of the insurance policy bearing NO.R-AP-KR-EA-149057 with accrued bonus and interest at the rate of 18 % per annum from the date of surrender i.e. from 3-11.2009.
(b) Grant a sum of Rs.1,00,000/- towards mental agony:
(c) Cost of the complaint.
(d) Such other relief or relief’s as the Hon’ble Forum deems fit and proper in the circumstances of the case.
2. The case of the complainant in brief is as under:- The complainant obtained an insurance policy bearing No.R-AP-KR-EA-149057 from the opposite party No.2 on 19-1-2005. The date of maturity of the policy is 18-1-2023. The complainant paid installments from 2-2-2005 to 13-10-2008. The complainant submitted an application for surrender of the policy. On 13-12-2008 OP No3 sent a letter recommending for payment of Rs.10,542/- towards surrender value including bonus and accrued interest under the policy. The complainant is entitled for refund of the Rs.20,240/- including interest and bonus. In spite of several demands the opposite parties did not take care for refund of paid up value interest and bonus there on. There is deficiency of service on the part of the opposite parties. Hence the complaint.
3. Opposite Party No.3 is set exparte. Opposite party No.2 filed written version and it was adopted by opposite party No.1. It is stated in the written version of opposite party No.2 that the complaint is not maintainable. It is admitted that the complainant obtained rural postal life insurance policy for a sum of Rs.1,00,000/- on 19-1-2005. The complainant applied for the surrender of the policy. After following rules and surrender value of the policy was arrived at Rs.10,542/- (21,296/- paid up value X 0.495 surrender factor). There was no deficiency of service on the part of the opposite parties. The complainant is not entitled to Rs.20,240/-. The complainant is liable to be dismissed.
4. Ob behalf of the complainant Ex.A1 to A5 are marked and sworn affidavit of the complainant is filed. On behalf of the complainant Ex. A1 to A5 are marked. On behalf of the opposite parties Ex.B1and 2 are marked and sworn affidavit of opposite party NO 2 is filed.
5. Both parties filed written arguments.
6. The points that arise for consideration are:-
i) Whether there is deficiency of service on part of the opposite
parties?
ii) Whether the complainant is entitled to the reliefs as prayed for?
iii) To what relief?
7. Points 1 and 2 :- Admittedly the complainant obtained rural postal Life insurance policy (RPLI) Ex.A1 bearing NO.R-AP-KR-EA-149057 dated 19-1-2005 from opposite party No.2. The date of maturity of the policy is 18-1-2023 and the sum assured under the policy was Rs. 1,00,000/-. The complainant paid premium at Rs.440/- per month from 2-2-2005 to 13-10-2008. It is also admitted that the complainant submitted application for surrender of the policy. Ex.A3 is the copy letter for surrender of the policy.
8. On the application of the complainant the opposite parties calculated the surrender value of the policy and accorded sanction for the payment of Rs. 10,542/-. It is the case of the complainant that he paid on amount of Rs. 20,240/- and that he is entitled for refund of the said amount along with interest and bonus. As seen from Ex. A2 pass book it is very clear that the paid up value under the policy of the complainant is Rs. 21,296/-. Admittedly the policy in quotation can be surrendered three years after the commencement of policy for payment. Rule 13 of the policy provides that paid up quotation are liable to changed from time to time. It is the case of opposite parties that surrender factor was arrived at 0.495/- as per surrender facts chart relating to RPLI policy.
9. Admittedly the complainants age was 30 years 5 months on the date of surrender of policy. As per surrender factor chart Ex.B2, the surrender factor is o.485/- if the insured is 30 years old and 0.509 if the insured is 31 years old. In this case as the complainant was 30 years 5 months old by the date of surrender of the policy the opposite parties adopted average factor and rightly arrived surrender factor at 0.495. Basing on the paid up value and surrender factor applicable the opposite parties fixed the surrender value of the policy at Rs. 10,542/- (Rs.21,296 X 0.495). The opposite parties fixed the paid up value as per the rules and guidelines of the postal department. The contention of the complainant that he is entitled for refund of entire paid up value of Rs. 21,296/- is not supported by the rules under the policy Ex.A1. There is no mention in Ex.A1 that the complainant is entitled to entire paid up value in case of premature surrender of the policy (RPLI). No deficiency of service on the part of opposite parties is found. The complainant is not entitled to the relief as prayed for.
10. In the result the complaint is dismissed without costs. Opposite Party No2 is directed to pay Rs.10,542/- to the complainant immediately if not already paid.
Dictated to the Typist, transcribed by him, corrected and pronounced by us in the open bench on this the 13th day of January, 2011.
Sd/- Sd/-
MALE MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant : For the opposite parties :Nil
List of exhibits marked for the complainant:-
Ex.A1 Photo copy of Rural postal life insurance Policy NO.R-AP-
KR-EA-149057
Ex.A2. Photo copy of pass book issued by OP2.
Ex.A3. Office copy of surrender letter dt. 30-12-2008.
Ex.A4. Courier consignment note and postal receipt No.3998.
Ex.A5. Office copy of letter dt. 13-12-21008 issued by
Complainant to OP1.
List of exhibits marked for the opposite parties:
Ex.B1. Photo copy of the RPLI Surrender Value Calculation Sheet.
Ex.B2. Photo copy of letter Instruction of the Directorate of Postal
Life Insurance, New Delhi in Letter NO.29-14/98-LI dt. 18-11-2003 along with the surrender factor chart relating to the RPLI Policies.
Sd/- Sd/-
MALE MEMBER PRESIDENT
// Certified free copy communicated under Rule 4 (10) of the
A.P.S.C.D.R.C. Rules, 1987//
Copy to:-
Complainant and Opposite parties
Copy was made ready on :
Copy was dispatched on :
