BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

VAZHUTHACAUD, THIRUVANANTHAPURAM.

PRESENT

SRI. P. SUDHIR                                       :  PRESIDENT

SMT. R. SATHI                                         :  MEMBER

SMT. LIJU B. NAIR                                  : MEMBER

C.C. No. 49/2013 Filed on 02.02.2013

ORDER DATED: 30.05.2015

Complainant:

Manoharan Thampi, S/o Bhaskaran Nair, T.C 9/236, (0-13/1), Jawahar Nagar, Kawdiar P.O, Thiruvananthapuram-695 003.

                                      (Party in person)

Opposite parties:

1. Manager, LIC of India, KGSD Branch, Pattom P.O, Thiruvananthapuram-4.

2. Manager, LIC of India, KGSD Department, Vth Floor, Huzur Road, Kozhikode-673 001.

              (By Adv. Anitha Aji)

This C.C having been heard on 27.04.2015, the Forum on 30.05.2015 delivered the following:

ORDER

SMT. R. SATHI:  MEMBER

The case of the complainant is that on 15.05.2007 he took a money back policy No. 783521454 from opposite party LIC of India for Rs. 1,00,000/-.  He remitted the first installment directly and the remaining installments were deducted from his salary.  The complainant alleges that he has every right to get 20% of the policy amount after 5 years i.e; Rs. 20,000/-.  But he didn’t get the policy amount in time, so he enquired about it and the opposite party informed him that he defaulted two installments and hence his policy lapsed.  So he will not get the survival benefit.  But an e-mail was sent to the 2^nd opposite party office on 03.01.2013 stating that the installments for the month of 07/07 and 08/07 were deducted by the 1^st opposite party office.  On 03.01.2013 itself opposite party sent a cheque for Rs. 18,816/- to the complainant after deducting two months installments i.e; Rs. 1,184/-.  The complainant also encashed the cheque amount of Rs. 18,816/-.  The complainant received only Rs. 18,816/- after 7 months 18 days that is also after reducing the two installment amount.  Hence the complainant approached this Forum for directing the opposite parties to give interest at the rate of 10.75% from 15.05.2012 to 15.01.2013 for Rs. 18,816/- and interest for Rs. 1,184/- from 15.05.2012 till payment along with compensation and costs of Rs. 1,00,000/- and Rs. 1,000/- respectively. 

The opposite party appeared and filed version admitting the policy of the complainant.  It is also admitted that the payment of the policy was deducted from the salary of the policy holder.  As per the policy condition, 20% of the sum assured is payable to the policy holder on the expiry of 5 years, i.e; on 15.05.2012 subject to the payment of up to date premium.  It is submitted that as the employees are on frequent transfers the employer has to send the premium deducted from the salary to the designated branch of LIC and if it is not sent it may cause delay in adjustment of premium to the policy.  An amount of Rs. 20,000/- was due to the policy holder as on 15.05.2012 and hence disputed policy was not crept in the list of policies where the survival benefit is due in May 2012.  The complainant was an employee at Thiruvananthapuram was transferred to Kozhikode and his employer there deducted the premium amount and sent it to KGSD, Thiruvananthapuram instead of sending it to designated branch of LIC.  When the complainant approached KGSD Kozhikode they enquired into the matter and the lapse that occurred nearly 5 years back the actual position of the payment could not be traced out easily.  The delay was due to technical/procedural complication on the part of the opposite parties and they have settled the survival benefit on 03.01.2013.  It is submitted that now LIC is ready to refund the said amount of Rs. 1,184/- with interest @ 11.50% from 15.05.2012 to 13.03.2013 i.e; from the date of the expiry of 5 years till the date of the complaint.  Moreover LIC is also ready to refund the interest for the said amount of Rs. 18,816/- @ 11.50% from 15.05.2012 till 03.01.2013, the day on which the amount was settled to the complainant.  Hence the Forum may be pleased to accept this version and dismiss the complaint. 

Complainant filed affidavit and documents marked.  The complainant was cross examined and opposite party marked Ext. D1 through him.  Opposite party did not file any affidavit. 

Issues:-

1. Whether there is any deficiency of service or unfair trade practice on the opposite party’s side?
2. Whether complainant is entitled for any reliefs as sought for?

Issues (i) & (ii):- In this complaint at the time of filing the version opposite party handed over a cheque for Rs. 2,678/- to the complainant as the amount of Rs. 1,184/- with interest @ 11.50% from the date of the expiry till payment i.e; 15.05.2012 to 13.03.2013 and interest for the refunded amount of Rs. 18,816/- @ 11.50% from 15.05.2012 till 03.01.2013, the day on which the amount was settled to the complainant.  The relief sought by the complainant is to give interest @ 10.75% for Rs. 18,816/- from 15.05.2012 to 15.01.2013.  The opposite party has given interest at the rate of 11.50% from 15.05.2012 to 03.01.2013 the day on which the amount was settled.  The other relief sought by the complainant is interest @ 10.75% for the remaining amount of Rs. 1,184/- from 15.05.2012 till payment.  For this the opposite parties paid 11.50% interest from 15.05.2012 till 03.01.2013, the date of payment.  But these amounts are paid to the complainant after he approached this Forum, so the complainant seeks compensation for his mental agony and other difficulties.  The amount he claimed is Rs. 10,000/- and Rs. 1,000/- towards compensation and costs respectively.  In the version itself opposite parties admit that the delay is due to some technical/procedure complication on the part of opposite parties.  So it is clear that there is deficiency of service on the part of the opposite parties for which complainant is liable to be compensated.  We find that though interest is paid it is only nominal and the amount is paid only after the complainant has approached this Forum.  Hence it is our considered view that the opposite parties are liable to pay compensation of Rs. 3,000/- also with cost of Rs. 1,000/-.

In the result, complaint is allowed and opposite parties are directed to pay compensation of Rs. 3,000/- with costs of Rs. 1,000/- within one month from the date of receipt of this order failing which the amount of Rs. 3,000/- shall carry interest @ 12% from the date of order till payment. 

A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room. 

          Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the Open Forum, this the 30^th day of May 2015.

     Sd/-

R. SATHI                      : MEMBER

      Sd/-

P. SUDHIR                    : PRESIDENT

      Sd/-

                                                                        LIJU B. NAIR                : MEMBER

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C.C. No. 49/2013

APPENDIX

  I      COMPLAINANT’S WITNESS:

          PW1  - Thampi. B

 II      COMPLAINANT’S DOCUMENTS:

P1     - Copy of policy No. 783521454.

P1(a) - LIC Pass Book of complainant.

P2     - Copy of first premium receipt       

III      OPPOSITE PARTY’S WITNESS:

                             NIL

 IV     OPPOSITE PARTY’S DOCUMENTS:

D1     - Brochure issued by LIC of India, KGSD Department, Divisional  

  Office, Pattom, Thiruvananthapuram.              

                                                                                                      Sd/-

PRESIDENT

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