BEFORE THE DISTRICT CONSUMER DISPTUES REDRESSAL FORUM, KAITHAL.

Complaint no.235/15.

Date of instt.: 06.10.2015. 

                                                    Date of Decision: 29.07.2016.

Suraj Mal son of Puran Chand, aged 50 years, resident of Village Kasan, Tehsil and Distt. Kaithal.

                                                            ……….Complainant.      

                                           Versus

1. LIC of India Anaj Mandi Pai Road, Pundri, Tehsil Pundri, Distt. Kaithal, through its Branch Manager.

2. Life Insurance Corporation of India Ltd. Geeta Bhawan, Kaithal, through its Chief Manager. 

..……..Opposite Parties.

COMPLAINT UNDER SEC. 12 OF CONSUMER PROTECTION ACT, 1986.                                                                                             

Before:           Sh. Jagmal Singh, President.

                      Sh. Rajbir Singh, Member.

     Smt. Harisha Mehta, Member.

Present :        Sh. R.K.Gill, Advocate for complainant.

Sh. Manoj Ichhpilani, Advocate for the opposite parties.

                     ORDER

(JAGMAL SINGH, PRESIDENT).

                      The complainant has filed the present complaint under Section 12 of Consumer Protection Act, 1986, with the averments that on 28.09.2010, the complainant was insured with the Op vide policy No.177492578 and the complainant paid premium to the Op from 28.09.2010 to 30.10.2012 and total amount deposited by the complainant was Rs.1,08,090/-.  It is further alleged that the complainant decided to surrender the policy and claimed the deposited amount of Rs.1,08,090/- from the Op but the Op refused to refund the deposited amount alongwith interest and bonus.  This way, the Ops are deficient in service.  Hence, this complaint is filed.   

2.      Upon notice, the opposite parties appeared before this forum and filed written statement raising preliminary objections with regard to maintainability; cause of action; locus-standi; that the complainant has concealed the true and material facts from this Forum.  The true facts are that the complainant had taken Jeevan Saral Policy bearing No.177492578 with date of commencement 28.09.2010 under table term 165-16 from the Ops.  During the subsistence of policy, the risk of sum assured is Rs.7.50 lac in case of death in the present case, provided the policy is being kept enforced by the life assured by paying the premium instalment regularly within time.  Further, if the life assured keeps the policy enforced by depositing of due premium till maturity, he is entitled to maturity sum assured and in the present case, it would be Rs.4,25,250/- as per schedule.  But in case, he does not deposit regular premium and wants to surrender the policy, then he is entitled for surrender value for the period of premium paid and surrender value payable therein as per terms and condition No.7 of the policy.  There is no deficiency in service on the part of answering Ops.  On merits, it is stated that the complainant is not entitled for Rs.1,08,090/- as alleged and he is entitled for surrender value of Rs.58,596/- as on 21.11.2015 as per the terms and conditions of policy.  The other contents of complaint are denied and so, prayed for dismissal of complaint.    

3.      In support of his case, the complainant tendered in evidence affidavit Ex.CW1/A and documents Ex.CA to Ex.CD and closed evidence on 13.05.2016.  On the other hand, the Ops tendered in evidence affidavit Ex.RW1/A and documents Ex.R1 to Ex.R6 and closed evidence on 02.06.2016.   

4.      We have heard ld. counsel for both the parties and perused the case file carefully and minutely and have also gone through the evidence led by the parties.

5.      Ld. Counsel for the complainant reiterated all the points mentioned in the complaint.  He argued that on 28.09.2010, the complainant was insured with the Ops vide policy No.177492578 and the complainant paid premium to the Ops from 28.09.2010 to 30.10.2012 and total amount deposited by the complainant was Rs.1,08,090/-.  He further argued that the complainant decided to surrender the policy and claimed the deposited amount of Rs.1,08,090/- from the Ops but the Ops refused to refund the deposited amount alongwith interest and bonus.  Ld. Counsel for the complainant submitted an authority cited in 2009(III) CPJ page 279 (NC) titled as LIC Vs. Dhiraj Khanna & another.  On the other hand, ld. Counsel for the Ops argued that the complainant has purchased the insurance policy namely “Jeevan Saral Policy” and the complainant is bound by the terms and conditions of the said policy.  He further argued that in case of surrender of the policy by the complainant, the complainant is only entitled to the surrender value of the policy as per terms and condition of the policy.  He further argued that according to the terms and conditions of the policy, the surrender value in case of complainant comes to Rs.58,596/- as on 21.11.2015.  He further argued that the surrener value will keep on changing with passage of time at the date of application.  The Ops are ready to pay the same.

6.      From the pleadings and evidence of the parties, it is clear that the complainant had taken “Jeevan Saral Policy” bearing No.177492578 with date of commencement 28.09.2010 under table term 165-16 from the Ops.  The complainant paid the premium instalments of Rs.36030/- per year for 3 years and then he stopped paying the instalments.  According to the allegations of the complainant, he surrendered the policy.  So, according to the terms and conditions of the policy, the complainant is entitled for surrender value only.  The authority submitted by ld. Counsel for the complainant is not applicable to the facts of instant case.  The Ops have placed on file copy of surrender value quotation, Ex.R4 and calculation of detail regarding surrender value quotation, Ex.R5 and as per these documents, the Ops have made the total surrender value payable to the tune of Rs.58,596/- as calculated on 21.11.2015.  So, we are of the considered view that the complainant is entitled for sum of Rs.58,596/- as surrender value made by the Ops on 21.11.2015.  The Ops have not released the said amount, so, they are deficient while rendering services to the complainant.  The said amount is remained with the Ops, therefore, the Ops are liable to pay interest on the same.

7.      Thus, in view of above discussion, we allow the complaint partly and direct the Ops to pay Rs.58,596/- to the complainant alongwith interest @ 12% p.a. from 21.11.2015, the date of calculation of surrender value till its payment.  The Ops are also burdened to pay Rs.3300/- as lump sum compensation on account of harassment, mental agony and costs of litigation charges.  Let the order be complied with within 30 days.  A copy of this order be sent to both the parties free of costs.  File be consigned to the record room after due compliance.

Announced.

Dt.29.07.2016.

                                                                     (Jagmal Singh),

                                                                     President.

                 (Harisha Mehta),     (Rajbir Singh),

                        Member.           Member.