Smt. Lalitha K.A. W/o. Late A.Y. Kasturappa Prasad A.Y.E. S/o. Late A.Y. Kasturappa Miss. Soumya A.Y. D/o. Late A.Y. Kasturapp
...........Appellant(s)
Vs.
The United India Insurance Co. Ltd.,
...........Respondent(s)
BEFORE:
Complainant(s)/Appellant(s):
OppositeParty/Respondent(s):
OppositeParty/Respondent(s):
OppositeParty/Respondent(s):
ORDER
This is a complaint filed U/s 12 of Consumer Protection Act by the complainants against Respondent United India Insurance Company, Divisional Office Raichur. The brief facts of the complaint are as under:- Late A.Y. Kasturappa the husband of complainant No-1 and father of complainant No-2 & 3 was working as Librarian in LVD College Raichur he died accidentally on 19-01-04 leaving behind him the complainants as his heirs and successors to his property and all other estate. During his life time the said Kasturappa was having a Janatha Personal Accident Insurance Policy with the Respondent Company for a sum of Rs. 5,00,000/- under policy No. 240200/47/98/1457 dated 02-02-99 and the premium of the said policy was paid up to date. In the said policy the present the complainant No-1 is shown as nominee being legally wedded wife. After the death the claim application with original policy, survival certificate and other necessary details has submitted through employer-LVD college Raichur on 26-03-04 to the Respondent Company for release of policy amount in favour of the complainant No-1 as nominee of late assured Kasturappa. Surprisingly Respondent send a letter dated 20-12-04 instructing the complainant to produce Succession Certificate from the court stating the amount involved under policy is Rs. 5,00,000/-. It was incumbent and necessary on the part of Respondent to release the policy amount to the complainant No-1 Nominee when she was ready to pass on valid discharge in favour of the company and when there was no rival claim by anybody. Therefore the complainant has further sent a letter dated 13-01-05 requesting the Respondent to release of policy amount but the Respondent has sent a similar reply asking the complainant to produce Succession Certificate etc., This in turn amounts to deficiency of service of the Respondent. However in order to avoid doubt regarding enjoyment of the policy amount, the complainant No-1 have failed this complaint along with her children, and we have no objections of whatsoever to release the policy amount to her. This aspect is again made clear by way of letter dated 13-01-05. Hence the complainant have prayed for direction to the Respondent to pay policy amount of Rs. 5,00,000/- to the complainant with interest at 18% P.A. from the date of claim dated 26-03-04 up to date along with Rs. 10,000/- towards cost. 2. The Respondent Corporation has filed written statement contending that the amount of Janatha Personal Insurance Policy is a huge amount of Rs. 5,00,000/- so to safeguard the interest of the company and interest of any claimants if other than the presence we have any claim to file so the Respondent Company asked to produce Succession Certificate to avoid future complication. On the other hand if the complainant produced Succession Certificate no loss will be caused to them. So the Respondent Corporation as rightly instructed for production of Succession Certificate and thereby there is no deficiency in service by the Respondent. So there is no cause of action for the complaint. Hence for all these reasons the Respondent Company has prayed for dismissal of the complaint. 3. During the course of enquiry the complainants have filed sworn affidavit of complainant No-1 as evidence and has got marked (10) documents at Ex.P.1 to P.10. The Respondent Company inspite of granting sufficient time has not neither led any evidence nor got marked any documents. 4. Heard the arguments of both sides and perused the records. The following points arise for our consideration and determination:- 1. Whether the complainants prove deficiency in service by the Respondent in not releasing the policy amount as alleged? 2. Whether the complainant is entitled to the reliefs sought for? 5. Our finding on the above points are as under:- 1. In the affirmative. 2. As per final order for the following. REASONS POINT NO.1:- 6. There is no dispute that late A.Y.Kasturappa had insured his life under Janatha Personal Accident Insurance Policy. The policy No 240200/47/98/1457 dated 02-02-99 for sum of Rs. 5,00,000/- and the complainant No-1 being his wife was shown as his nominee. It is also not in dispute that A.Y.Kasturappa the employee of LVD College has accidentally died on 19-01-04. It is the case of the complainants that after the death of the policy holder the complainant No-1 has filed a claim application along with original policy, survival certificate and other necessary details sent to LVD College Raichur on 26-03-04 but the Respondent sent a letter dated 20-12-04 instructing her to produce Succession Certificate from the court as the amount involved under policy is Rs. 5,00,000/- towards also her case that late A.Y.Kasturappa has died leaving behind complainant No-1 as his widow and complainant No- 2 & 3 as his children as hairs and successors to his property and other estate and has there is no revival claim for the policy amount so the complainant has sent another letter dated 13-01-05 for release of the policy amount for which the Respondent as sent a similar reply instruct to produce Succession Certificate which amounts to deficiency in service. It is the case of the Respondent Company that as the policy amount being huge amount of Rs. 5,00,000/- and in order to avoid safeguard the interest of the company and future complication in the policy claim if any. So the Respondent instructed to produce Succession Certificate from the court of law. 7. The complainants have produced (10) documents at Ex.P.1 to P.10. Ex.P.1 is the Photo Stat Copy of Inquest Report in UDR Crime No.2/04 of Nagar Kurnool P.S. on the dead body of late A.Y. Kasturappa. Ex.P.2 is the Attested Copy of Post Mortem Report issued by District Government Hospital, Raichur regarding the autopsy conducted on the dead body of A.Y.Kasturappa . Ex.P.3 is the Death Certificate of A.Y.Kasturappa issued by Register of Birth and Death [ Health Officer] CMC Raichur showing the date of death as 19-01-04 . Ex.P.4 is the Photo Stat Copy of Survival Certificate issued by Tahasildar Raichur dated 06-03-04 showing the three complainants as survivors of late A.Y. Kasturappa who was working as Senior Librarian in LVD College Raichur and who died on 19-01-04. Ex.P.5 is the Copy of Covering Letter dated 26-03-04 of Principal of LVD College Raichur submitting the claim application of the complainant under policy. Ex.P.6 is the Certificate issued by Respondent Company dated 06-04-99 stating the issuance of the said policy to A.Y. Kasturappa and showing the name of the complainant No-1 Lalitha K.A. as nominee for the policy amount of Rs. 5,00,000/-. Ex.P.7 is the Photo Stat Copy of Group Insurance Policy showing the name of insured A.Y.Kasturappa at Sl.no. 28 and the name of complainant No.1 as Nominee at sl.No. 48 for the insured sum of Rs. 5,00,000/-. Ex.P.8 is the reply of Respondent asking the complainants to produce Succession Certificate and no objection Certificate since the claim amount in favour of his Rs. 5,00,000/-. Ex.P.9 is the Application of Complainant dated 13-01-05 stating that the complainant No-1 being his wife and nominee under policy is entitled to receive the policy amount as per section 38 and 39 of Insurance Act and requesting to release the policy amount since there is no revival claim for the policy amount. Ex.P.10 is the Reply Letter of the Respondent dated 16-02-05 insisting to produce Succession Certificate and no objection Certificate by other members family and on 100/- Rs. Non-Judicial Stamp. 8. From perusal of these documents it amply shows that the late A.Y.Kasturappa who was working as Librarian in LVD College Raichur had taken Janatha Personal Accident Insurance Policy from the Respondent for sum of Rs. 5,00,000/- showing the complainant No-1 his wife as nominee. It also shows that the claim forms of the complainant has been forwarded by employer of late Kasturappa for releasing the policy amount being the widow- nominee of late policy holder Kasturappa. It also shows that the Respondent Insurance Company itself has issued a Certificate dated 06-04-99 certifying the issuance of Insurance Policy to the A.Y.Kasturappa under Group Janatha Accident Policy showing the present complainant Lalitha as nominee. So when the Insurance Policy and Certificate issued by the Respondent Company showing the name of complainant No-1 as wife-nominee of policyholder A.Y. Kasturappa and when the said Kasturappa has died accidentally on 19-01-04 as could be seen from the Police Report and P.M.Report further supported by the Survival Certificate showing the complainants as the only survivors of late policyholder, then we are at a loss to know as to how the Respondent Company insisted for production of Succession Certificate especially when the name of complainant No-1 has been shows as nominee to receive the policy amount on the death of policyholder who has died accidentally on 19-01-04. Hence the contention of the Respondent that in order to safeguard the interest of the Respondent Company and to avoid future claim by anybody and to avoid future loss they instructed for production of Succession Certificate, does stand to reason and contrary to section 39 of Insurance Act 1938 (Vide Divisional Manager LIC of India V/s. Uma Devi reported in: II 1991 CPJ 516 (520) National Commission. Hence we are in agreement with arguments advance by the learned counsel for the complainants and the two rulings relied upon by him reported in : 1) AIR 1995 Allahabad Page-299 Head Note B, AIR 1981 Calcutta Page 283 Head Note, are aptly applicable to the facts in hand. Therefore we hold that there is clear deficiency in service by the Respondent Company in not releasing the policy amount to the complainant by insisting to produce Succession Certificate. Hence Point No.1 is answered in the affirmative. POINT NO.2:- 9. The complainant as sought for the policy amount of Rs. 5,00,000/- together with interest at 18% P.A. from 26-03-04 the date of claim along with Rs. 10,000/- towards cost. So far as the policy amount is concerned, the complainant are entitled for the release of policy amount of Rs. 5,00,000/- in favour of complainant No-1 being the nominee, with regard to the claim of interest on the policy amount and cost of Rs. 10,000/- is concerned, having regard to the facts that the complainant was declined to release the policy amount by insisting to produce Succession Certificate in spite of provision of section 39 of Insurance Act we feel the complainant is entitled to the interest by way of compensation but having regard to the quantum of policy amount and the rate of interest claimed in the light of the facts and circumstance of the case. We feel it just and proper to allow the compensation of Rs. 3,000/- including cost of litigation. In the result we pass the following order: ORDER The complaint of the complainant is allowed in part. The Respondent Insurance Company shall pay the policy amount of Rs. 5,00,000/- to the complainant No-1 being nominee along with Rs. 30,000/- towards compensation and cost. The Respondent Company shall comply this order within (4) weeks from the date of receipt of copy of this order. (Dictated to the Stenographer, typed, corrected and then pronounced in the open Forum On 28 -10-05.) Sd/- Sri. N.H. Savalagi, President, District Forum-Raichur. Sd/- Sri. Pampannagouda, Member District Forum-Raichur. Sd/- Smt.Kavita Patil, Member. District Forum-Raichur
Consumer Court Lawyer
Best Law Firm for all your Consumer Court related cases.
