Date of Filing:08/05/2017
Date of Order:26/06/2018
BEFORE THE BANGALORE I ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SHANTHINAGAR BANGALORE - 27.
Dated: 26TH DAY OF JUNE 2018
PRESENT
SRI.H.R. SRINIVAS, B.Sc., LL.B. Rtd. Prl. District & Sessions Judge And PRESIDENT
SRI D.SURESH, B.Com., LL.B., MEMBER
COMPLAINT NO.942/2017
COMPLAINANT/S | | |
| 1 | Shankar Kiran.B., Sri Durga Electronics, No.238, 16th Cross, Sampige Road, Malleswaram, Bangalore 560 003 (Complainant – In person ) |
V/s
OPPOSITE PARTY/IES | | |
| 1 | The Branch Manager, LIC of India, Branch Code 614, Residency Road Branch, Bangalore 560 025. (Sri G.N.Harish Adv. for O.P.) |
ORDER
BY SRI.H.R. SRINIVAS, PRESIDENT.
1. This is the complaint filed by the complainant against the Opposite Party (hereinafter referred to as O.P) under Section 12 of the Consumer Protection Act, 1986 praying this Forum to direct the O.P to renew the LIC policies purchased by him and get all the benefits out of it as per the LIC table and terms on receiving the premium without penalty and late fee and for compensation of Rs.5,00,000/- as damages for suffering financially and mentally.
2. The brief facts of the complainant’s case are that: he has purchased three policies “limited payment whole life with profit” scheme bearing No.363275813, 353275969. 363275970. The sum assured under each policy is Rs.5 lakhs, yearly premium Rs.15,581/-each, date of commencement 28.11.2004, date of maturity when the insurer attains 80 years. Earlier the policy premium period was half yearly premium and later during December 2005 the same was changed to annual premium payable policy. That he had paid earlier premium by issuing cheques and also across the cash counter. During December 2005 he requested the O.P for ECS facility so that, the amount of premium could be directly credited to the O.P by his bank. He has given the necessary applications for the ECS facility. But to his surprise during December 2006 the premium amount for the said policies were not deducted from his account. When it came to his notice during 2007, he approached the O.P and its higher officials and they issued a letter stating that due to some technical reasons, they were unable to collect the premium through ECS and ask him to pay the same across the cash counter without penalty and interest. That he paid the said amount accordingly. In the year 2007 also, O.P did not effected ECS. When it came to his knowledge in the year 2008, he approached O.P and his higher authorities who asked him to pay the late fee and penalty for reviving the policy and he refused to do so to pay the late fee as it was not at his fault. He is a self employed and running a service shop and he is alone to look after the business and has no time to go to bank branch or to the LIC branch to pay the amount and hence he sought ECS facility which the O.Ps did not carry-out due to their mistakes. Hence he lost his business and health. The cause for this complaint arose during December 2016 when he received the reply from the custom relation manager and hence this complaint.
3. After service of notice O.P appeared through its counsel and filed its version contending that, the complaint is not maintainable and also barred by limitation. The cause of action arose during May 2008. After lapse of 9 (nine) years the complainant has filed this complaint which is not maintainable and the same is liable to be dismissed with heavy costs. O.P admitted that the complainant has obtained three policies bearing No.363275813, 353275969. 363275970 by paying the premium of Rs.7,864/- each and the assured amount is Rs.5,00,000/- each. The premium payment period was half yearly, date of commencement 28.11.2004. They have also admitted that the mode of premium which was first half yearly was later changed to annual premium on the request of the complainant and the annual premium was paid on 26.12.2005, though the due date was November 2005.
4. It is contended that complainant in the year 2005 requested O.P for registration of his policies under Electronic Clearance Service (ECS Mode) and the same could not be registered due to some technical reasons at their end and the same was informed to the complainant and the service branch of the O.P was also instructed to receive the premium for these three policies to revive the same waiving the interest and the revival requirement which are mandatory. The complainant has taken the benefit of waiver of revival requirements, waiver of interest for delayed payment for the three policies and paid the premium on 20.3.2007 though the yearly premium was due during November 2006. Inspite of it, complainant has not taken care to pay the further premium within the time limit. It is his duty to remit the premium within time prescribed for the continuation of the policy either by remitting the cash across the counter, or by issuing cheque or DD’s. If he had submitted his ECS mandate forms to LIC of India along with the counter certification of his banker after payment of the premium in March 2007, then the O.P’/LIC of India would have affected the ECS particulars under the policy to receive the premium. LIC policy is a contract between the insurer and the insured. Once the obligation to pay the installment premium stopped before the date of event, the contract comes to an end. If the insured wants to continue or revive the policy, he has to pay the premium amount within the time or within the grace period. It is for the insurer to extend the policy or reject the request. They are to abide by the rules and regulations of the LIC. In case already lapsed policies to revive the same, fresh health checkup to be conducted to accept the lapsed policy.
5. It has also stated in the version that what are all the procedure to be carried out in case of lapsed policy. Further an opportunity was given to the complainant to revive the policy lapsed for ten years by waiving the condition of lapsed policies which are to be revived within the period of five years by paying the premium, interest on the delayed payment and penal interest to bring the policy into force which the complainant did not do it. Hence there is no deficiency in service on their part. In case the complainant is really aggrieved, he ought to have approached the officials of LIC or file a complaint before the District Consumer Forum within 2008 itself. After lapse of nine (9) years he has approached this Forum which is highly belated. It has also mentioned how ECS works and what are all to be done by the complainant and on all these grounds O.P prayed the Forum to dismiss the complaint.
6. As per the averments of the complaint and the version, the following points arise for our consideration:-
1) Whether the complaint filed is within the time limit of two years as contemplated in Section 24 A of the Consumer Protection Act?
2) Whether there is deficiency in service on the part of O.P in not carrying out the ECS mandate?
3) Is the complainant entitle for the reliefs claimed in the complaint?
7. Our answers to the above points are:-
POINT 1 : In the Negative.
POINT 2 : In the Negative.
POINT 3 : In the Negative
For the following:-
REASONS
ON POINT No.1 TO 3:-
8. The complainant and O.P have filed their affidavit evidence reiterating the contents of the complaint and the version.
9. It is not in dispute that the complainant in the year 2004 obtained three LIC Policies bearing No.363275813, 353275969. 363275970. The sum assured under each policy is Rs.5 lakhs, yearly premium Ra.15,581/- each, date of commencement 28.11.2004, date of maturity when the insurer attains 80 years under “Limited Payment Life Policy with profits”. It was earlier half yearly premium and later converted into annual premium. It is also admitted and evident from the document produced by the complainant that on 2.12.2015 the O.P has received ECS for five policies of Bharathi K and seven policies of B.S. Kiran the complainant. ECS means Electronic Clearing Service offered by O.P and the banks for the payments in order to avoid and obviate the need for issuing and handling paper instruments and thereby facilitate improved customer service by banks, companies, corporations, Government Department etc collecting / receiving the payments and to avoid cash payment or payment of cheque. The object of ECS the terms and conditions and procedures to be followed by the user and destination account holder sponsor bank and destination bank branches and what are all the destination account providers right to information on ECS and the requirement to be done by the destination account holder is mentioned by the Reserve Bank of India in its procedural guidelines dated 30.6.2015 filed before this Forum by the O.P.
10. It is admitted fact that, on 16.3.2007 O.P informed the complainant that though they have registered for ECS payment facility out of the five policies, the policies i.e. 363275970, 363275813, 363275969 ECS facility could not be carried-out due to some technical problems, mandate for the above policies due can’t be sent to the bank. In this regard we request you to review the above policy without any requirement and waiving the interest portion. The amount for the above three policies is Rs.15,480 each and the period of premium is 11/2006. This letter is issued on 16.03.2007 addressed to the branch manager LIC of India, , Residency Road branch Bengaluru with a copy to the complainant. On 9.5.2014 and 17.12.2016 complainant has made representation in this respect to the Manager LIC, Residency Road Bengaluru, the Customer Relation Manager, LIC of India, Indiranagar. The Indira nagar office on 10.1.2017 wrote a letter to the complainant stating that the matter was placed before the competent authority, who on analyzing the facts of the case have informed that request for waiver of interest cannot be acceded too. We would therefore request you to contact the serving branch for revival of the policies by submitting the necessary health requirement and payment of the arrears of premium with applicable late fee thereon and bring the mode of premium payment to ECS mode by submitting fresh NACH mandate (Post revival of the policies). It is on the basis of these two letters the complainant has come-up before this Forum.
11. In the year 2006 itself, O.P has informed the complainant that ECS mandate could not be sent to the Bank due to technical reasons and on the request of the complainant they waived the interest on the premium and received the premium and renewed the above three policies. Again in the year 2007 when the ECS was not effected complainant in the 2016 raises his claim regarding not following the mandate given by him for ECS facility and again requested to revive the policy and that he is not liable to pay the interest, penalty or late fee in respect of the premiums payables towards the policies which O.Ps has stated in the above letter refused to do so and directed the complainant to revive the policy by paying the premium and the late fee and also subject himself for health requirements.
12. It is the duty of the complainant to pay the premium amount well in time so that the policy would be in force. There is a provision that if there is any default in paying the premium, there is 30 days grace period for paying the same and to revive the policy. O.P has brought to the notice of forum that the policy could be revived if it is within five years and before maturity if the insured pays the balance of premium amount with late fee and interest thereon. In this case, by considering the letter issued by the O.P that the complainant pays the arrears of premium from 2007 onwards till date with late fee and undergo health checkup requirements they would consider for reviving the policy, it can be held that they would revive the policy subject to the payment of the premium amount.
13. From the above, one thing is certain that the complainant has opted for ECS facility which the O.Ps have received the details and it is evident from the letter that due to technical reasons, it did not send mandate to the bank and hence ECS could not be effected. It is its duty to do the needful which it has failed. But at the same time, when the same was brought to the notice of the complainant by writing a letter dated 16.03.2007 and waived the interest and penalty for the delayed payment of the premium by four months, on the representation made by the complainant to the higher authorities of the O.P, from then onwards, no efforts have been made by the complainant to pay the premium towards the policy and also did not make any efforts to know what happened to his request for ECS. Even the O.P is silent as to sending the mandate to the bank after 16.03.2007. The cause of action for the complaint has really arisen when the next policy premium became due. In view of this, the complaint filed in the years 2017 is barred by limitation. Further no deficiency in service on the part of OP is established by the complainant.
14. Having come to know that the ECS mandates could not sent to the bank due to technical problems, he could have availed the different modes of payment and would have again insisted for ECS facilities which he had not done so. In view of this, we are of the opinion that the complainant failed to prove Point No.(2) and (3) and that the complaint is barred by limitation prescribed under Section 24 of the consumer Protection Act. Hence we answer Points No. 1, 2 and 3 in the Negative and pass the following:
ORDER
1. The complaint is hereby dismissed. Parties to bear their own cost.
2. This order of dismissal of the complaint in no way come in the way of O.P receiving the balance of premium amount with the statutory applicable fee and obtaining necessary health requirement of the complainant to revive the policies.
3. Send a copy of this order to both parties free of cost.
(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Forum on this 26th Day of June 2018)
MEMBER PRESIDENT
*RAK
ANNEXURES
1. Witness examined on behalf of the Complainant/s by way of affidavit:
CW-1: Sri Shanakar Kiran.B - Complainant.
Copies of Documents produced on behalf of Complainant/s:
Doc.No.1: Copy of the Policy bearing No. 363275813
Doc.No.2:Copy of the Policy bearing No. 363275969
Doc.No.3: Copy of the Policy bearing No. 363275970
Doc.No.4: Copy of the ECS – details
Dco.No.5: Copy of the letter to O.P dtd:16.3.2007
Doc.No.6: Copy of the letter to O.P dtd: 9.5.2014
Doc.No.7: Copy of the letter to O.P by complainant dtd: 17.12.2016.
Doc.No.8: Copy of the letter to complainant by O.P dtd:10.1.2017.
2. Witness examined on behalf of the Opposite party/s by way of affidavit:
RW-1: T.Tanuja Surendra, Manager (L&HPF) of O.P.
Copies of Documents produced on behalf of Opposite Party/s
Ex.D1: Copy of the Policy bearing No. 363275813.
Ex.D2: Copy of the Policy bearing No. 363275969.
Ex. D3: Copy of the Policy bearing No. 363275970.
Ex D4: Copy of marked portion of condition No.3 of the Policy.
Ex.D5: Copy of marked portion of Definition No.xxi) of Reserve Bank of India.
MEMBER PRESIDENT
