National Consumer Disputes Redressal
Life Insurance Corporation Of India vs Anil P. Tadkalkar on 8 November, 1995
Equivalent citations: 1(1996)CPJ159(NC)
ORDER
B.S. Yadav, J. (Member)
1. This Revision Petition is directed against the order dated 28th June, 1994 passed by the State Consumer Disputes Redressal Commission, Maharashtra by which the appeal filed by the present petitioner-Life Insurance Corporation of India (for short LIC) against the order of the District Forum, Pune, was dismissed. The District Forum had ordered LIC who was the Opposite Party in the complaint to pay Rs. 30,298/- to the present Respondent who had filed the complaint before the said Forum.
2. For the purpose of this Revision Petition we do not think it necessary to give the facts in detail. Suffice it to say that the present Respondent Complainant had obtained two policies from LIC. At that time he was in service and monthly premium used to be deducted from His pay. One policy was to mature on 28th March, 1994 and the other one on 20th March, 2004. After some years the Complainant left service and wrote to the Branch Office of the LIC about leaving the service and also indicated change in the mode of payment of premium under the policies from monthly to quarterly. It appears that some premia were not duly credited in the account of the Complainant and in respect of some premia interest was also claimed by the LIC on the ground that those premia were deposited late. The Complainant had a lengthy correspondence with the Branch Office; Divisional Office, Regional Office and the Chairman of LIC. Sometimes he got reply, some time he did not receive any reply. It is further the case of the Complainant that he was not satisfied with the service of LIC and therefore he had to cancel the policies. He, therefore, filed the complaint before the District Forum claiming refund of all the premia paid by him in respect of the two policies plus bonus.
2. The complaint was contested by the LIC who pleaded that on cancelling the policies the Complainant was entitled to be paid only to the surrender value and not to the refund of the premia paid by him. As noticed above the District Forum accepted the contention of the Complainant and allowed the complaint. The appeal filed by the LIC before the State Commission was dismissed. Hence this Revision Petition by the LIC.
3. We are of the opinion that the District Forum and the State Commission have exercised jurisdiction with material irregularity. It was held by this Commission in Revision Petition No. 123 of 1991 titled Life Insurance Corporation of India v. Dr. Sampooran Singh decided on January 8, 1992, that the service under the insurance policy can arise only under the accurance of the contingency (viz.) the maturity of the policy or the death of the insured. In the present case none of those contingencies have occurred by the time the complaint was filed. Merely because the officials of the LIC had made earlier some mistakes in crediting the account of the Complainant with the premia paid or not replying to his letters, it cannot be said that the LIC was guilty of deficiency in service under the contract of insurance. It is an admitted case that ultimately the LIC had credited his account with the missing premia and had intimated the Complainant and also waived the interest as it was found that the premia had been paid in time.
4. Moreover, we have not been able to understand how the Complainant can claim refund of all the premia paid by him during the period of the policies remained alive and the LIC had covered the risk. If during this period the Complainant had died (an event which did not occur) the insurer i.e. LIC would have had to pay the full amount due under the policies even though only some fraction of the premia would have been realised by that time by the insurer. Hence on cancelling the policies the Complainant is only entitled to the surrender values of the two policies. It is immaterial what circumstances prompted him to cancel the policies.
5. In the light of the above observations we set aside the order of the District Forum as well as of the State Commission and dismiss the complaint. It may be mentioned here that alter the order of the District Forum, the LIC has paid Rs. 19,700/- to the Complainant. The surrender value of the first policy is Rs. 9,029.20 and that of the second policy is Rs. 4,611.30. The Complainant will refund the remaining amount to the LIC within three months of the receipt of a copy of this order failing which the amount payable to the LIC will bear interest at the rate of 15% per annum from the date of this order till payment. The LIC will also be entitled to the cost of the present proceedings which we assess at Rs. 2,000/-.