DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, LUDHIANA.
Complaint No: 632 dated 20.10.2015.
Date of decision: 29.10.2020.
Ankit Aggarwal s/o. Sh. Sandeep Aggarwal, resident of B-XI-480, Naulakha Garden Colony, Benjamin Road, Ludhiana. 3 ..…Complainant
Versus
- Life Insurance Corporation of India, Jeewan Prakash, Phase-I, Dugri, Ludhiana.
- Manager, L.I.C. of India, Miller Ganj Branch, Ludhiana.
…..Opposite parties
Complaint under Section 12 of Consumer Protection Act.
QUORUM:
SH. K.K. KAREER, PRESIDENT
MS. JYOTSNA THATAI, MEMBER
COUNSEL FOR THE PARTIES:
For complainant : Sh. Maninder Heer, Advocate.
For OPs : Ms. Anju Khullar, Advocate.
ORDER
PER K.K. KAREER, PRESIDENT
1. This complaint under Section 12 of The Consumer Protection Act, 1986 (herein-after in short to be referred as ‘Act’) has been filed by the above named complainant on the allegations that he purchased Jeewan Kishore policy from OPs on 28.01.1994. It had annual premium of Rs.5021/-. The policy had maturity amount of Rs.2,16,300/-. All the installments were regularly paid by the complainant up to 28.01.2012 and after 28.01.2012 no further installment was due. However, the OPs wrongly informed the complainant that the next installment would be due in February 2013. As per advice given by the OPs, the complainant paid an extra installment on 11.02.2013 of Rs.5021/- vide receipt No.3400062. The said installment was wrongly got deposited by the OPs. The OPs further did not pay the maturity value of the policy amount of Rs.2,16,300/- in time. In the end, it has been requested that the OPs be directed to refund the amount of one extra installment paid by the complainant and also to pay interest @24% on the delayed payment on maturity amount of the policy. The complainant has further claimed compensation of Rs.50,000/-.
2. Upon notice, OP1 & OP2 appeared and filed joint written statement stating that the complaint is false, frivolous and vexatious in nature. No case of deficiency is made out. It has, however, been admitted that the term of policy was 20 years and the complainant paid an extra installment of Rs.5021/- on 11.02.2012. The amount of extra premium charged from the complainant has been returned to him with interest. Actually the maturity payment of the policy of Rs.2,16,121/- has also been paid to the complainant and it has been accepted by him. The other averments made in the complaint have been denied as wrong and in the end a prayer for dismissal of complaint has been made.
3. To prove his case, the complainant tendered his affidavit Ex. CA along with documents Ex. C1 to Ex. C11 along with Ex. C11A and thereafter, counsel for the complainant closed evidence.
4. On the other hand, counsel for OPs tendered affidavit of Krishan Kumar Arora, Manager Legal of OPs as Ex. RW1/A along with documents Ex. R1 to Ex. R6 and closed the evidence.
5. We have gone through the record and have also heard the arguments addressed by the counsel for parties.
6. By way of this complaint, the complainant has put forth two grievances. Firstly, he was made to pay the extra installment of Rs.5021/- in February 2013, which was not due and further the maturity amount of Rs.2,16,300/- was also not promptly paid on maturity and the OPs are liable to pay interest on the delayed payment.
7. As regard to first grievance, it has been conceded by the counsel for OPs that an installment of Rs.5021/- paid by the complainant on 11.02.2013 was not due. It has also been conceded by the counsel for OPs that the amount of Rs.5021/- has not been refunded to the complainant though interest amount of Rs.527/- has been paid on 10.04.2014. Under these circumstances, this Commission is of the considered view that the OPs were not supposed to accept the installment of Rs.5021/- in February 2013 as by that time the policy had also matured and no further premium was due. The OPs are, therefore, held liable to refund the amount of Rs.5021/- with interest @8% per annum from the date of payment till date of recovery. The amount of Rs.527/- paid as interest shall, however, be deducted/adjusted from the amount of interest.
8. Admittedly, the policy matured on 28.01.2013. As such, the maturity amount of Rs.2,16,300/- had become due on 28.01.2013 itself and the payment of maturity amount should have been made within a reasonable time. However, as per evidence on record, this payment was made on 29.01.2014 by way of NEFT transfer. In this regard, the contention raised by the counsel for OPs that since the policy documents were submitted by the complainant in January 2014 only, the payment was promptly made on 29.01.2014. However, in this case it is noteworthy that after the policy matured on 28.01.2013, no intimation or letter has been sent by the OPs asking the complainant to submit any document for release of maturity amount of the policy. In this regard, no such letter has been placed on record by the OPs. In these circumstances, the OPs cannot escape from the liability of paying interest on the delayed payment. In the considered opinion of this Commission, the payment of maturity amount should have been made at the most within a period of two months from the date of maturity. As it was not done, the OPs are held liable to pay interest on the maturity amount of Rs.2,16,300/- @8% per annum from 28.03.2013 till 29.01.2014.
9. As a result of above discussion, the complaint is allowed to the extent that OPs shall pay the amount of Rs.5021/- with interest @8% per annum from the date of payment till date of recovery. The amount of Rs.527/- paid as interest shall be, however, be deducted/adjusted from the amount of interest. The OPs are further directed to pay interest on the maturity amount of Rs.2,16,300/- @8% per annum from 28.03.2013 till 29.01.2014 to the complainant. OPs are further directed to pay Rs.5,000/- (Rupees Five Thousand only) as compensation on account of mental tension and agony besides Rs.2,000/- (Rupees Two Thousand only) as litigation expenses to the complainant. Copies of order be supplied to parties free of costs as per rules. File be indexed and consigned to record room.
(Jyotsna Thatai) (K.K. Kareer)
Member President
Announced in Open Commission.
Dated.29.10.2020.
Gobind Ram.
