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Judgment
THIS is an appeal against the order dated 7.7.1997 passed by the District Forum, Pitthoragarh whereby the order has been passed that if the complainant deposits a sum of Rs. 4,375/- (Rupees four thousand three hundred seventy-five), the complainant shall be relieved of his liability and nothing shall be due against the complainant. It was further directed that if the complainant does not deposit this amount within a month, then he had to pay interest @ 18% till the date of payment. The appellant was directed to pay a sum of Rs. 500/- (Rupees five hundred) as compensation and cost of the proceedings.
THE brief facts of the case are that the complainant took a loan of Rs. 15,000/- (Rupees fifteen thousand) from the appellant for construction of the house. He used to deposit premium instalments regularly. He was also paying interest. Due to financial reasons, he could continue the policy for 5 years only. On 14.12.1994, he informed the Insurance Company that he is unable to continue the policy. He should be informed the balance so that he may deposit it. THE complainant was informed that he has to pay a sum of Rs. 4,601.40 (Rupees four thousand six hundred one and forty paise). THE complainant deposited this amount in February 1995, but the surrender amount of the policy was not adjusted. He wrote several times but the Insurance Company did not hear, then he filed a complaint that the Insurance Company be directed to pay the surrender amount. The Insurance Company filed written statement and admitted the debt. It further admitted that the policies have lapsed on 15.12.1991 for non-payment of premium. It is said that surrender value of the policies was Rs. 5,703/- (Rupees five thousand seven hundred three) and Rs. 3,821/- (Rupees three thousand eight hundred twenty-one) and after adjustment of this amount, a sum of Rs. 6,715/- (Rupees six thousand seven hundred fifteen) was due against the complainant. It is said that the complainant was informed of the entire facts.
The learned Forum after taking the evidence of the parties found that there was nothing on record to show that by 14.12.1994, the amount of surrender value was adjusted in the payment made by the complainant. This is the date of which the complainant has written to the Insurance Company that he is unable to continue the policy. the learned Forum has held that even after the request of the complainant, surrender value of his policy was not adjusted. It was further held that even if the policies have lapsed on 15.11.1991, then also by that date the surrender value should have been adjusted.
IN Paper No. 25Ga/2, the surrender of the policies was informed to be Rs. 10,625/- (Rupees ten thousand six hundred twenty-five), therefore, it was decided by the learned Forum that to writ surrender value of the policies as Rs. 6,715/- (Rupees six thousand seven hundred fifteen) in para 12 of the written statement is incorrect. The amount so calculated was in 1991 and by 1994 it became Rs. 10,625/- (Rupees ten thousand six hundred twenty-five). According to the learned Forum, the notice of the INsurance Company, Paper No. 5Ga/2 shows that in December 1994, only a sum of Rs. 4,601.40 (Rupees four thousand six hundred one and forty paise) was due against the complainant. The complainant has deposited this amount in February 1995, and by deciding this way the learned Forum held that a sum of Rs. 4,375/- (Rupees four thousand three hundred seventy-five) was due against the complainant and to adjust the equities, the complainant was directed to deposit this amount within a month after which it was held that nothing shall be due against the complainant. It is clear from the receipt dated 5.8.1997, that the said amount has been deposited by the complainant. After deposit of this amount, the order of the learned Forum stands satisfied.
THE way in which further accounts have been filed by the appellant, a sum of Rs. 9,066.60 (Rupees nine thousand sixty-six and sixty paise) is still due against the complainant. THEre had been deficiency in service of the Insurance Company as held by the learned Forum. We also agree that the surrender amount has not been properly adjusted. THE Insurance Company shall not get premium over its own deficiency in service. The matter is petty one. We do not want to go into further details and accounting of the case. The case of the complainant stands satisfied, however the order of cost of Rs. 500/- (Rupees five hundred only) is liable to be quashed. ORDER The appeal is hereby partly allowed and partly dismissed. The order of payment of Rs. 500/- (Rupees five hundred only) is hereby quashed. Rest part of the order passed by the learned Forum is hereby confirmed. The order under appeal stands complied. The complaint stands satisfied. No lis remains open between the parties. Cost of this appeal shall be easy. Appeal partly allowed.