Complainant/s:             Ruthvika D/o Dhanesh @  

                                       Daneshkumar Kundagol,

                                            Age: 20 Years, Occ: Student and 

                                                Household Work, R/o C/o Veeresh

                                                Kundagol, Near Mulgund Naka, KEB Road,

                                                Old Sarvodaya Colony Road,

                                                Taluk & Dist: Gadag.

                                                (Rep. by Sri.S.P. Shettar, Advocate)   

V/s

ORDER

JUDGEMENT DELIVERED BY SMT.SAMIUNNISA .C.H. PRESIDENT:

This complaint is filed by the complainant against the OPs by invoking Sec. 35 of the Consumer Protection Act 2019 to pay Rs.1,87,073/- along with interest @ 18% p.a from the date of surrender of policy, Rs.1,00,000/- compensation towards harassment, inconvenience, frustration and mental agony with cost of Rs.2,000/- and such other reliefs.   

                             The averments of the complaint in brief are:

         2.  The above complaint filed by the complainant stating that, one Mallikarjuna S/o Sharanappa Sarvi is the agent of OPs with agent Code No.0084863C at Gadag.  The father of the complainant and the above agent were close relatives.  Such being the case, during the life time of father of complainant, the agent of OPs approached the complainant and his father and requested to make Life Insurance policy to reach goals.  As such, for his benefit, himself and his father have invested money in life insurance with the OPs and they have brought many policies from the OPs.  It is further submitted that, on 29.07.2006, father of the complainant died.  During his life time, father of the complainant has bought Policy bearing No.633357714.  After his death, complainant has claimed the money on the above said policy for an amount of Rs.2,00,000/-.  The said amount of Rs.2,00,000/- has been invested by complainant in policy bearing No.639213411 with the OPs and the same has been surrendered by the complainant on 14.03.2012 and the surrender value was Rs.2,41,441/-.  It is further submitted that, in the said surrendered amount, an amount of Rs.54,338/- has been invested in policy bearing No.638715509 on 15.03.2012.  The OPs have deducted an amount of Rs.54,338/- in the surrendered amount of Rs.2,41,441/-.  But out of the surrendered amount, the remaining amount has not been paid to the complainant till today and the sum of Rs.1,87,073/- has been kept with them.  The OPs are not the authorized persons to keep the surrendered value and their duty is to deposit the surrender value immediately to the account of complainant without delay.  But they failed to deposit the amount with the complainant’s account.  The OPs have misused the surrendered amount of Rs.1,87,073/-, which is a deficiency of service and failed to discharge their obligations in terms of guarantee given to complainant at the time of purchase of the policy.  The complainant approached the OPs many times from 14.03.2012 to till today, but it went in vain.  Therefore, on 19.07.2019, complainant got issued notice to the OPs.  Thereafter, on 20.01.2020, OPs have given a letter to the complainant stating that, the OPs are liable to pay only Rs.1,87,073/-, the same is not acceptable.  The OPs are acted in most negligent manner and failed to return the remaining surrendered value to the complainant and the OPs are liable to compensate the complainant for loss and injury caused to her.  Lastly on 19.03.2020, the complainant has given notice to the OPs, the same has been served on the OPs on 24.03.2020 and replied the same on 23.11.2020.  The cause of action for this complaint arose in between 19.03.2020 to 23.11.2020.   Therefore, the OPs are liable to pay Rs.1,87,073/- along with interest @ 18% p.a from the date of surrender of policy, Rs.1,00,000/- compensation towards mental harassment, inconvenience and frustration suffered by the complainant, for deficiency in service and therefore, prayed to allow the complaint against the OPs.

         3.   In pursuance of the notice issued by this Commission, the OPs appeared through Advocate and filed written version. 

          The brief facts of the Written Version of OP No.1 & 2

          4.       The OPs contended that, the complaint is not maintainable either on facts or on law and the same is required to be dismissed in limine.  It is further submitted that, the gross claim amount under policy No.633357714 is Rs.2,53,000/- and the net claim amount is Rs.2,37,999/-.  Out of the said amount, Rs.2,00,000/- has been invested in policy No.639213411 on the life of Pritvikha D. Kundgol under plan and term 188-20 for a sum assured amount of Rs.2,50,000/- under single premium mode.  The policy stands surrendered by the grand-mother, who is also appointee under the said policy since the complainant was minor as on 14.03.2012.  It is true that, Smt. Sulochanabai V. Kundgol has surrendered the Policy No.639213411 on 14.03.2012 who is a grand-mother and proposer under the said policy, now she is no more.  After that, V.S. Kundgol who is younger brother of complainant’s father gave a letter on 16.03.2012 asking LIC to utilize Rs.54,338/- to issue new policy on Prithvika and balance of Rs.1,87,073/- towards issue of other policies under the agency of M.S. Sarvi, who is a close family friend and relative.  Accordingly, out of the surrendered policy amount of Rs.2,41,411/-, Rs.54,338/- was utilized to take new policy No.638715509 on the life of Prithvika D. Kundgol under plan and term 179-12 for sum assured of Rs.10,00,000/- with yearly premium of Rs.54,338/-.  The proposer under the said policy No.638715509 is V.S. Kundgol, the balance of Rs.1,87,073/- was utilized to issue other policies.  It is further submitted that, Prithvika attained majority only on 20.09.2017.  The complainant never approached the OPs against the said dispute from the completion of new policy i.e., from 03/2012 onwards and up to 22.07.2019 on which date, OPs have received a complaint on 19.07.2019.  The same has been verified and came to know that, OPs have adjusted the balance surrender value of Rs.1,87,073/- out of good faith and as per the request of Sri. V.S. Kundgol, the appointee under the said new policy No.638715509.  Further, complainant sent a written complaint to the Chairman of OPs.  Thereafter, the OPs have contacted the complainant over her Mobile No.8310709150 and 9663443474 and written a registered post letter on 20.01.2020 seeking submission of NEFT details i.e., copy of Bank Pass Book or cancelled cheque leaf for refunding the said amount of Rs.1,87,073/- which stands recovered from the said agent Sri. M.S. Sarvi on 06.03.2020 and deputed two officials to Gadag Branch for obtaining the said Bank details and also had discussion with the complainant’s uncle Sri. Veeresh S. Kundgol and requested him to furnish Bank details of complainant, who rightly told that he was not aware of the whereabouts of the complainant and hence, OPs have kept the said amount in deposit.  Thereafter, OPs have written a registered letter to the complainant on 23.11.2020 for furnishing her Bank details and also to contact their branch at Gadag, for that, the complainant has not responded.  It is further submitted that, complainant is a minor up to 20.09.2017 and Sri. V.S. Kundgol, who is the proposer under the policy and only guardian available has not approached them for any service/issue until a letter dated 19.07.2019 is addressed to Divisional Manager, LIC, Dharwad regarding refund of balance surrender value of Rs.1,87,073/-.  The OPs have replied vide letter dated 20.01.2020.  The complainant is a minor up to 20.09.2017 and LIC has followed the request given by Sri. V.S. Kundgol, who is an appointee under the policy No.633715509, who is a younger brother of complainant’s father.  It is further submitted that, the OPs are ready to pay Rs.1,87,073/- to the complainant with interest @ 6.65% from the date of complaint i.e., 19.07.2019, the same is being the rate of penal interest on delayed settlement of claims of the financial year 2020-21 by the Corporation and approved by the Insurance Regulator IRDAI guidelines.  The same has been reiterated to the complainant vide letter dated 20.01.2020 and 23.11.2020.  But, so far, OPs have not received the NEFT details of complainant’s Bank account to credit the amount in the complainant’s account.  It is further submitted that, the provisions of interest Act 1978 deals with payment of interest up to date of suit claim.  The Act was enabled to prescribe the general law of interest in a comprehensive and precise manner.  The Commission if thinks to allow as the case may be, at a rate not exceeding the current rate of interest.  As such there is no deficiency of service or unfair trade practice on their part and prayed to dismiss the complaint with heavy costs.

         5.  The complainant filed her Chief affidavit along with 13 documents.  On the other hand, the Administrative Officer of OPs filed chief affidavit with 5 documents.

    COMPLAINANT FILED DOCUMENTS AS follows

          OPs FILED DOCUMENTS AS follows

          6.   On pursuance of the materials, placed by the complainant and OPs, the following points arises for our consideration:-

1. Whether the complainant has proved the deficiency in service

and on the part of the OPs as averred in the complaint and entitled to any relief?

2. What Order?

    7.       Our findings to the above points are:-

              Point No. 1:  Partly in affirmative.

              Point No. 2:  As per the final Order       

R E A S O N S

           8.  POINT NO.1:  The case of the complainant is that, for his benefit, himself and her father have invested money with the OPs and they have brought many policies from the OPs.  On 29.07.2006, father of the complainant died.  During his life time, father of the complainant has bought Policy bearing No.633357714.  After his death, complainant has claimed the money on the above said policy for an amount of Rs.2,00,000/-.  The said amount of Rs.2,00,000/- has been invested by complainant in policy bearing No.639213411 with the OPs and the same has been surrendered by the complainant on 14.03.2012 and the surrender value was Rs.2,41,441/-.  It is further submitted that, in the said surrendered amount, an amount of Rs.54,338/- has been invested in policy bearing No.638715509 on 15.03.2012.  The OPs have deducted an amount of Rs.54,338/- in the surrendered amount of Rs.2,41,441/-.  But out of the surrendered amount, the remaining amount has not been paid to the complainant till today and the sum of Rs.1,87,073/- has been kept with them.  Now the Complainant has filed this Complaint against the OPs seeking relief for payment of the remaining amount of surrendered policy amount of Rs.1,87,073/-.  OPs submits that, they are ready to pay the amount with interest at the rate of 6.65% from 19.07.2019. 

          9.       It is an admitted fact by the OPs that, the complainant is eligible for the payment of Rs.1,87,073/-.  The only dispute between the parties is the rate of interest and the period.  The Commission comes to the conclusion that, it is the duty of the insurance company to pay the remaining amount of the surrender value or else as per the request of the minor guardian, it has to be invested in other policy also.  But it is best known to the OPs itself that, they had invested in other policy, the remaining amount has been kept with them.  The contention taken by the OPs is that, whereabouts of the complainant and corresponded the same is not acceptable because there is no record to show that, they have communicated with the minor guardian or else the complainant.  Hence, it clearly shows that, the OPs have made deficiency in service.  Hence, we answer Point No.1 partly affirmative.          

           10.  POINT NO. 2: In view of our findings on the above point, the complaint filed by the complainant is partially allowed. In the result, we pass the following: 

//O R D E R//

1. The above Complaint is partly allowed.
2. The OPs are hereby directed to pay an amount of Rs.1,87,073/- with interest at the rate of 8% p.a from the date of surrendering the policy till realization within 30 days from the date of receipt of this order.
3. Further the OPs are directed to pay compensation of Rs.2,000/- towards mental agony and Rs.1,000/- towards litigation charges.

          4.  Send the copies of this order to the parties free of cost.

           (Dictated to the Stenographer, transcribed by him, corrected and then pronounced by me in the Open Court on this 19^th day of August-2021)

,            

          (Shri B.S.Keri)                               (Smt.C.H.Samiunnisa Abrar)

               MEMBER                                                 PRESIDENT