State Consumer Disputes Redressal Commission
Life Insurance Corporation Of India vs Veena Rani on 23 December, 2011
2nd Bench
STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB
SECTOR 37-A, DAKSHIN MARG, CHANDIGARH.
First Appeal No.220 of 2009.
Date of Institution: 25.02.2009.
Date of Decision: 23.12.2011.
1. Life Insurance Corporation of India, branch office Ferozepur Road,
Faridkot, through its Branch Manager.
2. Life Insurance Corporation of India, Jalandhar Division, through its
Divisional Manager.
.....Appellants.
Versus
Veena Rani, aged 19 years, D/o Sh. Nachhattar Singh, R/o Bhan Singh
Colony, St. No.3-B, Faridkot.
...Respondent.
First Appeal against the order dated
12.12.2008 of the District Consumer
Disputes Redressal Forum, Faridkot.
Before:-
Shri Inderjit Kaushik, Presiding Member.
Shri Baldev Singh Sekhon, Member.
Present:-
For the appellants : Sh. Nitesh Singhi, Advocate for Sh. Paramjit Batta, Advocate.
For the respondent : None.
INDERJIT KAUSHIK, PRESIDING MEMBER:-
This order will dispose of the following three similar appeals:-
Sr. No. Appeal Number Parties Name i) F.A.No.220 of 2009 Life Ins. Corp. of India Vs Veena Rani. ii) F.A.No.221 of 2009 Life Ins. Corp. of India Vs Kulwant Kaur. iii) F.A.No.222 of 2009 Life Ins. Corp. of India Vs Nachhattar Singh
as the same are directed against the similar orders dated 12.12.2008 passed by the District Consumer Disputes Redressal Forum, Faridkot (in short "District Forum"). The facts are taken from 'First Appeal No. 220 of 2009' and the parties would be referred by their status in this appeal. First Appeal No.220 of 2009 2
2. Facts in brief are that Miss Veena Rani, respondent/complainant (hereinafter called as "the respondent") filed a complaint under section 12 of the Consumer Protection Act, 1986 (in short, "the Act") against the appellants, pleading that she got her life assured vide policy no.131333275 dated 07.09.2000 under Table 14-10, Proposal No.1689 dated 28.04.2000 for Rs.25,000/- and was to pay 28 quarterly installments of Rs.663/- each. The respondent paid nine installments of Rs.663/-, totaling Rs.5967/- but later on, could not pay further installments due to some domestic problems.
3. The respondent requested the appellants to refund/pay the premium amount along with interest and also sent a written request dated 08.05.2007 for refund of the same, but no heed was paid by appellant no.1.
4. The act and conduct of the appellants caused mental harassment, tension and financial loss and the respondent is entitled to recover Rs.50,000/- as compensation along with interest. It was prayed that that the appellants be directed to refund/pay Rs.5967/- of the insurance premium deposited along with interest @ 18% p.a. along with compensation for harassment to the tune of Rs.50,000/- and Rs.5000/- as litigation expenses.
5. In the reply filed on behalf of the appellants, preliminary objections were taken that the respondent is not covered under the definition of consumer and the complaint is liable to be dismissed. There is no deficiency in service on the part of the appellants. As per the terms and conditions of the policy, the appellants are not liable to make any payment to the respondent and the complaint is liable to the dismissed. The complaint is time barred. The complicated questions of law and facts are involved and the District Forum has no jurisdiction. The respondent has no locus standi to file the present complaint.
6. According to the terms and conditions of the policy, rules and provisions of the Insurance Act, the whole of the benefit becomes payable either of occurrence or at the fixed interval or after occurrence of contingency First Appeal No.220 of 2009 3 if all the premiums have been paid for atleast three consecutive years, or for five years in case of policy issued by a provident society. In the present case, the policy has not run for consecutive three years. The life assured has paid nine quarterly premiums and due to non-payment of the rest of the premium, the policy has lapsed and now nothing is payable and no refund of the premium is allowed, as the appellant insurance company has covered the risk for the said period. The policy has not run for three years and it has not attained any paid-up or surrender value. Even u/s 113 of the Insurance Act, the respondent is not entitled for any amount or refund of any premium amount and the complaint is liable to be dismissed.
7. On merits, it was admitted that the respondent got insured her life vide policy no.131333275 dated 07.09.2000 for Rs.25,000/-. The said policy was issued and 40 quarterly premiums were to be paid and not 28 upto maturity. It was admitted that only nine installments have been paid by the respondent. Other similar pleas as taken in preliminary objections were repeated and denying all other allegations of the complaint, it was prayed that the complaint may be dismissed with costs.
8. Parties led evidence in support of their respective versions by way of affidavits and documents.
9. After going through the documents and material placed on file and after hearing the learned counsel for the parties, the learned District Forum observed that the respondent has been depositing the insurance premiums and has deposited nine installments of Rs.663/- each. The appellants have also admitted about the receiving of Rs.5967/-, but they have not placed on file the terms and conditions applicable to the respondent, which might have been signed by the respondent after admitting the terms and conditions to be correct. The respondent has also not taken benefit of the policy till the filing of this complaint and the respondent is entitled to refund of the amount deposited by her with the appellants, and allowed the complaint, directing the appellants to make payment of Rs.5967/- to the respondent First Appeal No.220 of 2009 4 along with Rs.1000/- as costs, failing which the respondent was held entitled to recover the above amounts with 12% interest p.a. from the date of filing the complaint till realization.
10. Aggrieved by the impugned order dated 12.12.2008, the appellants have come up in the present appeal.
11. We have gone through the grounds of appeal, perused the record of the learned District Forum and have examined the documents and other material placed on the file.
12. The plea taken in the grounds of appeal by the appellants is that the policy was lying lapsed since July, 2002 on account of non-payment of premium and the same was not renewed within a period of five years from the last date of unpaid premium and even the respondent is not entitled to the surrender value. It was further pleaded in the grounds of appeal that the District Forum has not taken into consideration the evidence produced and the Clauses 2, 3 and 7 of the terms and conditions of the policy and has committed illegality. The District Forum has not taken into consideration the law on the point and prayed that the appeal may be accepted.
13. The perusal of the file shows that the appellants have placed on file photo copy of policy Ex.R2 which is not signed by the respondent or anyone else on her behalf. There is no evidence that the terms and conditions of the policy were brought to the notice of the insured. The appellant insurance company has tendered the affidavit of Sh. Sanjay Sharma, Marketing Manager of the appellants which is nothing, but the copy of the reply in the form of affidavit.
14. Admittedly, the respondent has paid the installments amounting to Rs.5967/- and thereafter, the respondent could not pay the further installments due to certain difficulties and has also not availed any benefit of this cover through the period she paid the installments. The appellants had utilized this amount and now it does not lie in their mouth to say that no amount is payable. The District Forum has considered all these aspects and First Appeal No.220 of 2009 5 has passed a speaking order and there is no ground to interfere with the same.
15. In view of above discussion, the appeal is dismissed and the impugned order dated 12.12.2008 under appeal passed by the District Forum is affirmed and upheld. No order as to costs.
16. The appellants in F.A. No.220 of 2009 had deposited an amount of Rs.3490/- with this Commission at the time of filing of the appeal on 25.02.2009. This amount with interest accrued thereon, if any, be remitted by the registry to the respondent/complainant in F.A. No.220 of 2009 by way of a crossed cheque/demand draft after the expiry of 45 days under intimation to the learned District Forum and to the appellants.
17. Remaining amount as per order of the District Forum shall be paid by the appellants to the respondent/complainant within two months of the receipt of copy of the order.
F.A. No.221 of 2009:-
18. Similarly, in F.A. No.221 of 2009 (Life Insurance Corporation of India & Anr. Vs Kulwant Kaur), the respondent/complainant got her life assured vide policy no.131331539 dated 28.03.2000 under Table 14-7, Proposal No.4707 dated 31.03.2000 for Rs.25,000/- and was to pay 28 quarterly installments of Rs.964/- each. The respondent paid 12 installments of Rs.964/-, totaling Rs.11,569/- but later on, could not pay further installments due to some domestic problems. The respondent sent a written request dated 08.05.2007 for refund of the same, but no heed was paid by the appellants. It was prayed that that the appellants be directed to refund/pay Rs.11,569/- of the insurance premium deposited along with interest @ 18% p.a. along with compensation for harassment to the tune of Rs.50,000/- and Rs.5000/- as litigation expenses.
19. The appellants contested the complaint by filing written statement.
First Appeal No.220 of 2009 6
20. The District Forum after considering the evidence on the file and hearing the counsel for the parties, allowed the complaint, directing the appellants to make payment of Rs.10,605/- to the respondent along with Rs.1000/- as costs, failing which the respondent was held entitled to recover the above amounts with 12% interest p.a. from the date of filing the complaint till realization.
21. In view of the discussion and reasons given in F.A. No.220 of 2009 (Life Insurance Corporation of India & Anr. Vs Veena Rani), the F.A. No.221 of 2009 (Life Insurance Corporation of India & Anr. Vs Kulwant Kaur) is dismissed and the impugned order dated 12.12.2008 under appeal passed by the District Forum is affirmed and upheld. No order as to costs.
22. The appellants in F.A. No.221 of 2009 had deposited an amount of Rs.5810/- with this Commission at the time of filing of the appeal on 25.02.2009. This amount with interest accrued thereon, if any, be remitted by the registry to the respondent/complainant in F.A. No.221 of 2009 by way of a crossed cheque/demand draft after the expiry of 45 days under intimation to the learned District Forum and to the appellants.
23. Remaining amount as per order of the District Forum shall be paid by the appellants to the respondent/complainant within two months of the receipt of copy of the order.
F.A. No.222 of 2009:-
24. Similarly, in F.A. No.222 of 2009 (Life Insurance Corporation of India & Anr. Vs Nachhattar Singh), the respondent/complainant got his life assured vide policy no.1313331741 dated 28.04.2000 under Table 75-20, Proposal No.72 dated 31.03.2000 for Rs.25,000/- and was to pay 28 quarterly installments of Rs.425/- each. The respondent paid 9 installments of Rs.425/-, totaling Rs.3835/- but later on, could not pay further installments due to some domestic problems. The respondent sent a written request dated 08.05.2007 for refund of the same, but no heed was paid by the appellants. It was prayed that that the appellants be directed to refund/pay Rs.3835/- of the insurance First Appeal No.220 of 2009 7 premium deposited along with interest @ 18% p.a. along with compensation for harassment to the tune of Rs.50,000/- and Rs.5000/- as litigation expenses.
25. The appellants contested the complaint by filing written statement.
26. The District Forum after considering the evidence on the file and hearing the counsel for the parties, allowed the complaint, directing the appellants to make payment of Rs.3835/- to the respondent along with Rs.1000/- as costs, failing which the respondent was held entitled to recover the above amounts with 12% interest p.a. from the date of filing the complaint till realization.
27. In view of the discussion and reasons given in F.A. No.220 of 2009 (Life Insurance Corporation of India & Anr. Vs Veena Rani), the F.A. No.222 of 2009 (Life Insurance Corporation of India & Anr. Vs Nachhattar Singh) is dismissed and the impugned order dated 12.12.2008 under appeal passed by the District Forum is affirmed and upheld. No order as to costs.
28. The appellants in F.A. No.222 of 2009 had deposited an amount of Rs.2420/- with this Commission at the time of filing of the appeal on 25.02.2009. This amount with interest accrued thereon, if any, be remitted by the registry to the respondent/complainant in F.A. No.222 of 2009 by way of a crossed cheque/demand draft after the expiry of 45 days under intimation to the learned District Forum and to the appellants.
29. Remaining amount as per order of the District Forum shall be paid by the appellants to the respondent/complainant within two months of the receipt of copy of the order.
30. The arguments in all these appeals were heard on 19.12.2011 and the orders were reserved. Now the order be communicated to the parties.
31. The appeals could not be decided within the stipulated timeframe due to heavy pendency of court cases.
32. Copy of this order be placed in the following appeals:- First Appeal No.220 of 2009 8
ii) F.A.No.221 of 2009 Life Ins. Corp. of India Vs Kulwant Kaur.
iii) F.A.No.222 of 2009 Life Ins. Corp. of India Vs Nachhattar Singh (Inderjit Kaushik) Presiding Member (Baldev Singh Sekhon) Member December 23, 2011.
(Gurmeet S)