Karnataka

Chitradurga

CC/80/2015

Mallikarjunappa T.D. Lecturer Bapuji College - Complainant(s)

Versus

The Supdt. of Post Offices, - Opp.Party(s)

In Person

07 Oct 2016

ORDER

COMPLAINT FILED ON : 10/09/2015

     DISPOSED ON: 07/10/2016

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA

CC. NO. 80/2015 DATED:  7th October 2016

 

PRESENT :-     SRI. T.N. SREENIVASAIAH,     PRESIDENT                                      B.A., LL.B.,

                        SRI.N. THIPPESWAMY             MEMBER

                                         B.A., LL.B.,                   

 

COMPLAINANT	Mallikarjunappa T.D, Lecturer, Bapuji College, Bharamasagar, Chitradurga Taluk and District.   (In Person)
OPPOSITE PARTIES	1. The Superintendent of Post Offices, Chitradurga Division, Chitradurga .   2. The Post Master Generl, Postal Life Insurance Division, G.P.O, Bangalore.   (Rep by Sri. C.M. Veeranna,  District Government Pleader.)

SRI. T.N. SREENIVASAIAH. PRESIDENT.

ORDER

The complainant has filed a complaint U/s 12 of C.P. Act 1986 against the OPs for a direction to pay Rs.88,835/- towards interest at the rate of 10.45% p.a on the matured amount of Rs.1,71,600/- and interest at the rate of 8.4% p.a on Rs.78,660/-, the excess premium amount paid for 5 years, Rs.20,000/- towards mental agony, Rs.20,000/- towards costs and 500/- towards postal expenses.

 2.    The brief facts of the case of the complainant are that, he has taken whole life assurance policy on 20.08.1999 for Rs.1,00,000/- instead of taking endowment assurance policy as per the insufficient information given by the Postal Life Insurance Agent.  As per his request, the OPs have  converted the same into endowment assurance policy and the premium was increased from Rs.375/- to Rs.1,311/- and he was paying the premiums regularly and he has taken loan of Rs.27,000/- on 04.07.2005 on the said policy for his personal expenses by pledging the original policy with the OPs.  The said policy has been matured in the month of August 2009.  But he did know about the same because the policy bond was with the OPs and in the pass book, the OPs have not mentioned about the matured date or with regard to the conversion of whole life assurance policy into endowment policy.  Therefore, he has paid Rs.1,311/- in excess towards premium from August 2009 up to July 2014.  It is further submitted that, at the time of paying premium amount for the month of July 2014, Bharamasagar Post Man informed that, the said premium was the last premium and informed to submit the application for matured amount.  After few days, the Chitradurga Divisional Office informed the complainant over phone that, the policy has been matured in the month of July 2009 and paid premiums in excess.  In turn complainant informed the OPs that, as the policy bond was with the OPs and there is no intimation was given with regard to the maturity date, therefore, he has paid premiums in excess for 5 years.   Thereafter, Postal Department has paid the maturity amount to him as per the sanction memo dated 07.08.2014 as under:

Face Value	Rs.1,00,000-00
Bonus paid	Rs.71,000-00
Principal Loan amount	Rs.27,000-00
Interest on the loan	Rs.15,584-00
Excess premium paid for 5 years	Rs.78,660-00
Net amount paid	Rs.2,07,676-00

 

It is further submitted that, the above amount has been received by him.  It is further submitted that, Rs.1,71,600/- the matured amount as on July 2009 was with the OPs for nearly 5 years and also the excess premium amount paid from August 2009 to July 2014 for Rs.78,660/- was with the OPs, for the said sum OPs have not any bonus or interest, caused financial loss and mental agony and etc., and prayed for allow the complaint.

3.     On service of notice, OPs appeared through Sri. C.M. Veeranna, District Government Pleader and filed version admitting about taking of whole life assurance policy on 20.08.1999 for Rs.1,00,000/-.  It is denied that, he has taken the same instead of endowment assurance policy due to the insufficient information given by the agent of Postal Life Insurance.  It is stated that, as per the proposal of PLI application dated 19.08.1999, complainant opted for whole life assurance policy for Rs.1,00,000/- and the same has been accepted by  the OP No.2 vide policy No.KT-138647-CS-WLA and as per the request of the complainant dated 26.07.2002, the same was converted into endowment policy by increasing the premium amount from Rs.375/- to Rs.1,311/- and the premium amount has been paid by the complainant regularly.  Vide letter dated 13.08.2014, complainant requested to surrender the above said policy due to his personal reasons and in the said letter, he confirms that, the said policy has been converted and the premium was fixed at Rs.1,311/-.  Subsequently, vide letter dated 14.09.2004, complainant requested for cancellation of surrender and to grant loan on the said policy and accordingly, loan of Rs.27,000/- was sanctioned on 30.12.2004.  It is denied that, the above policy has been matured in the month of August 2009 and the same was not known to the complainant  as the policy bond with the OP and the date of maturity was not mentioned in the pass book and there is no information about conversion of policy into endowment policy as such, excess premium of Rs.1,311/- p.m has been paid from August 2009 to July 2014.  It is stated that, necessary corrections with regard to the conversion of policy and premium amount and date of maturity has been clearly made in the converted policy bond in the red ink.  It is further denied that, as per the say of Postman he came to know about maturity of policy and he has paid excess premium amount nearly for 5 years.  It is further submitted that, complainant submitted claim form for maturity amount of endowment policy bearing No.KW-138647-CS on 22.07.2014 and an amount of Rs.2,07,676/- was sanctioned duly recovering loan amount and interest.  After conversion of whole life assurance policy into endowment assurance policy, the policy bond with the insurant till the date of applying the loan and he was well aware about the date of maturity.  It is incorrect to state that, the maturity policy bond was with the Postal Department, they have not given interest for the maturity amount and also to the excess premium amount paid.  Therefore, there is no cause of action to file this complaint and prayed for dismissal of the complaint.

        4. Complainant himself examined as PW-1 by filing affidavit evidence in which he has reiterated the contents of complainant and Ex.A-1 and Ex.A-7 documents are marked. 

        5.     OPs have examined one Sri. O. Govindappa, Superintendent of Post Offices as DW-1 by filing affidavit evidence in which he has reiterated the contents of version and 3 documents filed which are Xerox copies. 

 

        6.     Arguments heard.

 

7.     Now the Points that arise for our consideration for the decision of the complaint are that:

 

Point No.1:- Whether the complainant proves that, the claim made by him has been repudiated by the OPs and thereby the OPs have committed deficiency of service and thereby complainant has sustained financial loss and mental agony and entitled for the relief as prayed in the complaint?

 

Point No.2:- What order?

 

        8.     Our findings on the above points are as follows:

 

        Point No.1:- Partly Affirmative.

        Point No.2:- As per the final order.

::REASONS::

9. Point No. 1:- It is not in dispute that, complainant has taken Whole Life Assurance policy No.KT-138647-CS-WLA on 20.08.1999 for Rs.1,00,000/- as per the information given by the Postal Life Insurance Agent and the same has been converted into endowment assurance policy by increasing premium amount from Rs.375/- to Rs.1,311/- and he was paying the premiums regularly.  On 04.07.2005 complainant has taken loan of Rs.27,000/- on the said policy for his personal expenses by pledging the original policy with the OPs and the same has been matured in the month of August 2009 but, he did know about the same as the policy bond was with the OPs and in the pass book, the OPs have not mentioned about the matured date or with regard to the conversion of whole life assurance policy into endowment policy.  Complainant has paid Rs.1,311/- in excess towards premium from August 2009 up to July 2014.  At the time of paying premium amount for the month of July 2014, Bharamasagar Post Man informed that, the said premium was the last premium and informed to submit the application for matured amount.  After few days, he came to know from the Chitradurga Divisional Office informed the complainant over phone that, the policy has been matured in the month of July 2009 and paid the premiums in excess for 5 years.   Then the Postal Department has paid the maturity amount to him as per the sanction memo dated 07.08.2014 at Rs.2,07,676/- by deducting loan dues and the same has been received by him.  The matured amount of Rs.1,71,600/- as on July 2009 was with the OPs for nearly 5 years and also the excess premium amount paid from August 2009 to July 2014 for Rs.78,660/- was with the OPs, for the said sum, OPs have not paid any bonus or interest which caused financial loss and mental agony.

10.  In support of his contentions,  complainant has relied on his affidavit evidence in which he has reiterated the contents of complaint.  Complainant has also relied on documents like certified copy of letter from OP No.1 to complainant giving information under RTI, wherein it has been stated that, there is a provision of intimating the insurant regarding maturity of postal life insurance policies marked as Ex.A-1, certified copy of the letter by the OP No.1 to complainant marked as Ex.A-2, certified copy of letter by the OP No.1 to OP No.2 marked as Ex.A-3, Certified copy of the letter dated 17.03.2015 by OP No.2 to complainant marked as Ex.A-4, Certified copy of settlement letter written to complainant by OP No.1 marked as Ex.A-5, Certified copy of Pass Book marked as Ex.A-6, copy of legal notice marked as Ex.A-7, which are not in dispute.    

 

11.   On the other hand, OPs have vehemently argued the matter admitting about taking of whole life assurance policy on 20.08.1999 for Rs.1,00,000/- but, denied that, he has taken the same instead of endowment assurance policy due to the insufficient information given by the agent of Postal Life Insurance.  It is argued that, as per the proposal of PLI application dated 19.08.1999, complainant opted for whole life assurance policy for Rs.1,00,000/- and the same has been accepted by  the OP No.2 vide policy No.KT-138647-CS-WLA and on 26.07.2002, the said policy was converted into endowment policy by increasing the premium amount from Rs.375/- to Rs.1,311/- and the premium amount has been paid by the complainant regularly.  Vide letter dated 13.08.2014, complainant requested the OPs to surrender the above said policy  and in the said letter, he confirms that, the said policy has been converted into endowment policy and the premium was fixed at Rs.1,311/- and thereafter on  14.09.2004, complainant requested for cancellation of surrender and to grant loan on the said policy and accordingly, loan of Rs.27,000/- was sanctioned on 30.12.2004.  It is argued that, the above policy has been matured in the month of August 2009 and the same was not known to the complainant as the policy bond with the OP and the date of maturity was not mentioned in the pass book and there is no information about conversion of policy into endowment policy as such, excess premium of Rs.1,311/- p.m has been paid from August 2009 to July 2014 is denied as false.  Necessary corrections with regard to the conversion of policy and premium amount and the date of maturity has been clearly mentioned in the converted policy bond in red ink. Complainant submitted claim form claiming maturity amount on 22.07.2014 and an amount of Rs.2,07,676/- was sanctioned duly recovering loan amount and interest under the said policy.  After conversion of whole life assurance policy into endowment assurance policy, the policy bond was  with the insurant till the date of applying the loan and he was well aware about the date of maturity.  Therefore, there is no deficiency of service on their part.

12.   In support of their contentions,  OPs have relied on affidavit evidence of one Sri. O. Govindappa, Superintendent of Post Offices as DW-1, in which he has reiterated the contents of their version but, no documents have been filed/marked. 

13.   On hearing the rival contentions of both the sides and on careful perusal of the entire records, it clearly goes to show that, complainant has taken whole life assurance under policy No.KT-138647-CS-WLA for Rs.1,00,000/- on 20.08.1999 and the same was converted into endowment life assurance policy by increasing premium of Rs.375/- to 1,311/-.  The complainant was regular in making premium amount and the said policy was matured in the month of August 2009 itself but, the OPs have received the premium amount up to August 2014.  In the meanwhile complainant obtained a loan of Rs.27,000/- from the OPs by pledging the said policy bond.  As the bond was with the OPs, complainant did not know the maturity date.  It is the duty of the OPs to inform the insured about the maturity of the policy but, here the OPs have not intimated about the maturity of policy.  Complainant has invested his hard earned money in the insurance policy, he has to get the benefit from the same.  But, in this case, the said matured amount was with the OPs nearly for 5 years, for which the complainant is entitled for the interest.  In addition to the same, the complainant has paid excess premium amount of Rs.1,311/- p.m nearly for five years, for which the complainant is entitled for the interest.  Therefore, we come to the conclusion that, the OPs have committed deficiency of service in settling the matured amount under the above policy and the complainant is entitled for the relief from the OPs as claimed in the complaint, compensation for mental agony and also cost towards the proceedings.  Accordingly, this Point No.1 is partly held as affirmative to the complainant.

14.   Point No.2:- For the foregoing reasons, we pass the following:

ORDER

The complaint filed by the complainant U/s 12 of CP Act 1986 is partly allowed.

It is ordered that, the OPs are hereby directed to pay interest at the rate of 10.45% p.a to the complainant for Rs.1,71,600/- from August 2009 till realization.

It is further ordered that, the OPs are hereby directed to pay interest at the rate of 8.4% p.a to the complainant for Rs.78,660/- i.e, the excess premium paid from August 2009 till realization.

It is further ordered that, the OPs are hereby directed to pay a sum of  Rs.10,000/- towards mental agony and Rs.5,000/- towards costs of this proceedings.

  It is further ordered that, the OPs are hereby  directed to comply the above said order within two months. 

        (This order is made with the consent of Member after the correction of the draft on 07/10/2016 and it is pronounced in the open Court after our signatures.)         

 

 

                                                          

MEMBER                                                         PRESIDENT

 

-:ANNEXURES:-

 

Complainant by filing affidavit evidence taken as PW-1.

Witness examined on behalf of complainant:

                                                -Nil-

On behalf of OPs one Sri. O. Govindappa, Superintendent of Post Offices by filing affidavit evidence as DW-1:

Witnesses examined on behalf of OPs:

-Nil-

Documents marked on behalf of complainant:

01	Ex-A-1:-	Letter by the OPs to the complainant
02	Ex-A-2:-	Letter by the OPs to the complainant
03	Ex-A-3:-	Letter by the OP No.1 to OP No.2
04	Ex-A-4:-	Letter to complainant by OP No.2
05	Ex-A-5:-	Sanction letter dated 07.08.2014
06	Ex-A-6:-	Pass Book
07	Ex-A-7:-	Legal Notice

 

Documents marked on behalf of OPs:

-Nil-

 

 

MEMBER                                                         PRESIDENT

Rhr.