Kashi Prasad vs DIRECTOR, POSTAL DEPARTMENT, INDIAN POSTAL DEPARTMENT

KASHI Prasad was the complainant in Complaint Case No. 47/1997 which he preferred before District Forum, Fatehpur in which the Post Master, Husainganj, Fatehpur and other postal authorities including the Director, Postal Department, New Delhi were impleaded as opposite parties. The District Forum by the impugned order dated 12.12.1997 has allowed the complaint in part and has commanded that a sum of Rs. 1,730/-, which is the total amount of the premia deposited by the complainant towards the postal insurance, be refunded forthwith alongwith 14% per annum interest.

MR. A.P. Rastogi, learned Counsel for the appellant, has been heard at length and the entire record has been perused. Smt. P.L. Nigam assisted by Sri Umesh Sharma has put in appearance for the respondents.

The appeal was dismissed on 2.4.1998 ex parte. An application was moved for restoration of the matter at its original number. No objection has been filed. In fact ex parte orders are not generally refused to be recalled. The cause shown was sufficient. Therefore, the order dated 2.4.1998 was recalled and the appeal was restored on 18.1.2002 by the erstwhile Bench. The Miscellaneous Case No. 60/SC/2000 has thus been finally disposed of.

THE complainant went to the District Forum with the allegation that he purchased a policy of Rs. 25,000/- under the non-medical scheme, the term of which was 11 years, on 22.12.1995 at monthly premium of Rs. 192/-. Having deposited the first instalment on 22.12.1995, he made further deposits till 27.8.1996 amounting to Rs 1,730/-. THE postal authorities unilaterally rejected the proposal and proposed to return the premium amount, but the premium amount was not refunded. At this stage, it may be pointed out that in the judgment there is a wrong mention, perhaps inadvertently, that on 6.9.1996 the premium amount deposited was refunded to the complainant/appellant. It was the proposal which was returned and the application which was moved for refunding the premium amount was left undecided and no premium amount was in fact returned. All these caused mental agony to the complainant and hence he went to the District Forum which passed the aforesaid order. The claim of the complainant was rejected by the postal authorities/respondents with the allegation that the complainant had not completed the formalities required for making effective the said policy, therefore, it was not accepted. According to the scheme and the terms applicable in the case of the complainant, he should have put himself for medical examination which was not done, hence the proposal was rejected. They claimed that no case for refund of the amount was made and further the complaint was time barred.

THE District Forum went into the issue in detail and has found that as per the scheme and the terms applicable, the complainant''s right was only to offer himself as a proposer and since the opposite parties/respondents did not think the complainant to be an insurable person under that scheme, it was well within its rights to reject the proposal. It, therefore, directed to refund the amount of Rs. 1,730/- with 14% per annum interest. Before parting it may be pointed out that any such matters where claim or refund of the premium amount in an insurance policy is involved, interest payable should be only at the rate of 9%. In view of what has been discussed above, the appeal is disposed of with the direction that the appellant/complainant will be entitled to a refund of Rs. 1,730/- along with 9% per annum interest with effect from 22.12.1995 till the date of payment.

NO costs are payable by either side. Two months are allowed for making the payment to the complainant thereafter execution proceedings may be initiated. Let copy as per rules be made available to the parties. Appeal disposed of.