BEFORE THE DISTRICT CONSUMER DISPTUES REDRESSAL FORUM, FATEHABAD.
Complaint no.37/2019.
Date of instt.11.01.2019.
Date of Decision:24.12.2019
Anil Aggarwal S/o Sh. Lakhi Ram R/o H.NO. 89, Old Model Town, Tehsil Tohana & District Fatehabad.
..Complainant.
Versus
- Vikas Gupta(Branch Manager, Life Insurance Corporation of India, Branch Tohana)
- Naresh Dalla (Assistant Officer, Life Insurance Corporation of India, Branch Tohana)
- Senior Divisional Manager, Divisional Office-Rohtak3,4,5, SCO, Sector-1, HUDA Rohtak-124001.
- Regional Manager (CRM) (Life Insurance Corporation of india), Northern Zone, Tower-11 nd, 124 Connaught Circus New Delhi-110001.
- Head Office,(Life Insurance Corporation of India), Yogakshema, West Wing, J.B.Marg, Bombay-400021.
..Respondents/OPs.
Complaint under Section 12 of Consumer Protection Act, 1986.
Before: Sh.Raghbir Singh, President. Sh. Jasvinder Singh, Member.
Argued by: Sh. Rajiv Mangla, Advocate for complainant. Sh. Naresh Sachdeva, Advocate for Ops.
ORDER
The present complaint under Section 12 of Consumer Protection Act 1986 has been filed by the complainant against the Ops with the averments that he had obtained a pension plan policy bearing no. 172980260 from OP No. 1 on 04.10.2001 and the vesting date of the policy was 04.10.2018 and thereafter pension was to be started. It is further submitted that on 10.08.2018 on account of domestic financial problem the complainant requested the OP company for making payment of surrender value. However until 19.09.2018 no action was taken by the Ops on the request of the complainant dated 10.08.2018. Thereafter on 19.09.2018 an application was sought afresh from the complainant by Sh.Naresh Dalla, Assistant Officer and thereafter his case was recommended to Senior Divisional Manager Rohtak. However until 28.09.2018 no action was taken by the LIC in the matter. It is further submitted that thereafter on 03.10.2018 in a meeting with Zonal Officer Delhi the Senior Divisional Manager Rohtak sent a message to Branch Manager for giving complete information regarding his application and it was also recommended to furnish the case to the Senior Divisional Manager. Thereafter the matter remained pending and same could not be finalized up to 04.10.2018 i.e. the date of maturity of the insurance policy. The correspondence between the officers remained continued but no proper action was taken whereas the complainant was in severe need of the amount for domestic purposes. Thereafter a legal notice dated 09.11.2018 was sent to the Ops by the complainant through his counsel. After receiving the legal notice the surrender value was disbursed to the complainant after a lapse of one month and 10 days after the maturity date of the policy. Despite many requests made by the complainant the surrender value was paid to the complainant after the maturity date. On account of the delay on the part of the Ops in making payment of the surrender value the complainant has suffered huge financial loss, mental agony and physical harassment. Moreover, no interest was paid to the complainant on the delayed amount. It is further submitted that the above said act on the part of Ops amounts to deficiency on their part in rendering service to the complainant. The complainant has further prayed that Ops may be directed for making a payment of interest at the rate of 18 % per annum on the amount of surrender value for the delayed period. The complainant has further prayed that the Ops may be directed for making a payment of Rs.3,00,000/- to the complainant as compensation. Hence, the present complaint.
2. On being served, the Ops no. 3 to 5 appeared through their counsel and filed a joint written statement wherein various preliminary objections with regard to locus standi, cause of action, concealment of true and correct facts, misjoinder and non-joinder of necessary parties etc. have been raised.
3. In reply, on merits it is admitted that the answering Ops had issued the policy in question to the complainant and the vesting date of the said policy was 04.10.2018. However the remaining contents of the complaint and the allegations levelled against the answering Ops have been denied. It is further submitted that application for surrender values was received by the Ops on 10.09.2018 and the requirement for surrender value in lieu of taking pension was given by the complainant after 19.09.2018. It is further submitted that after completion of the requirement by the complainant the Ops made the payment of surrender value to the complainant. Therefore, there is no delay or deficiency on the part of Ops in disbursing the surrender value to the complainant. It is further submitted that the present complaint is without any merits and the same is liable to be dismissed. OP No. 1 & 2 made a statement on 08.05.2019 that the written statement filed on behalf of OP No. 3 to 5 may be read as written statement on behalf of OP No. 1
& 2 also.
4. The complainant tendered in evidence his affidavit as Ex. CW-1/A alongwith documents as Annexure P-1 to Annexure P-4, Ex. P-5, Ex. P-6, Ex. P-10 to Ex. P-16 and Annexure P-7 to P-9 and closed his evidence. On the other hand the learned counsel for the Ops tendered in evidence affidavit of Rajender Singh, Manager as Annexure R-1 and closed the evidence of Ops.
5. We have heard the learned counsel for the parties and have also perused the documents placed on record. It is the case of the complainant that he obtained the pension plan policy from the Ops on 04.10.2001 and the vesting date of the said policy was 04.10.2018 and thereafter pension was to be paid to the complainant. It is further the case of the complainant that on account of domestic financial problem, the complainant submitted an application on 10.08.2018 for making payment of surrender value of the above said policy. However for a long time the matter remained pending without any reason. Correspondence between the officials of the Ops remained continued but no action was taken on his application within time. Therefore, the complainant had to issue a legal notice to the Ops and thereafter the surrender value was disbursed to the complainant after a lapse of one month and 10 days from the date of maturity i.e. 04.10.2018. Therefore, the Ops failed to help the complainant in the difficult time and the purpose of obtaining insurance has been defeated. The above said act on the part of Ops amounts to deficiency and unfair trade practice in rendering service to him. In support of his case, the complainant has placed on record the document Ex. P-6 and Annexure P-7 and a perusal of the same would show that the complainant had applied for surrender value on 10.08.2018 and the application was duly received by the Ops. The complainant also placed on record letter dated 19.09.2018(Ex. P-10) and a perusal of the same reveals that the application was again moved by the complainant for payment of surrender value. It is further revealed that the application of the complainant was further recommended by the concerned officer for making payment of the surrender value at the earliest on the ground that the complainant was in urgent need of money. The complainant in his support has also placed on record copy of legal notices dated 09.11.2018 & 26.11.2018 issued to the Ops by the counsel of the complainant.
6. On the other hand, it is the case of the Ops that the application for surrender value was received on 10.09.2018 and requirements for surrender were given by the complainant after 19.09.2018. It is further the case of the Ops that after completion of requirements by the complainant, the Ops made payment of the surrender value and as such there is no delay or deficiency on the part of the Ops in making payment of the surrender value to the complainant.
7. After considering the arguments advanced by the counsel for the parties and going through the pleadings and documents placed on record, we are of the considered opinion that defence taken by the Ops in their written statement is not factually correct. Ops have denied that the complainant had submitted the application on 10.08.2018 for making a payment of surrender value. However from perusal of the Ex. P-6 which is a document issued by the Ops, it is evident that the complainant had applied for surrender value on 10.08.2018. In para no. 4 of reply on merits of the written statement, it has been submitted by the Ops that the complainant/life assured had given the application for pension and not for surrender value. However from perusal of the documents placed on record, it is very much clear that the complainant had submitted an application to the Ops for making payment of the surrender value. In view of the above, the Ops have not approached this Forum with clean hands and has concealed the correct facts. In view of the documents placed on record, we are of the considered opinion that the Ops have failed to make payment of the surrender value to the complainant in time and there is delay in making payment of the same. The surrender value has been paid to the complainant even after a lapse of more than 1 month from the date of maturity of the insurance policy. The Ops have failed to explain the delay on their part in making payment to the complainant.
8. In view of the aforesaid discussion, we are of the considered opinion that the complainant has been able to prove deficiency on the part of Ops 3 to 5 in rendering service to the complainant. The present complaint is accordingly allowed against OP no. 3 to 5 and they are directed for making a payment of interest at the rate of 8% per annum on the amount of surrender value for the delayed period i.e. from the date for submitting of the application till the date when the payment was made. The OP no. 3 to 5 are further directed for making the payment of Rs.10,000/- to the complainant as compensation and litigation charges. No deficiency is proved against OP no. 1 and 2. The present order be complied with within a period of 45 days from the date of passing of this order, otherwise the amount shall carry an interest at the rate of 8% per annum for the default period. The present complaint is accordingly disposed of. A copy of this order be furnished to both the parties free of cost as provided in the rules. File be consigned to record room after due compliance.
Announced in open Forum:
Dt.24.12.2019.
(Jasvinder Singh) (Raghbir Singh) Member President DCDRF, Fatehabad.
