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Judgment
THE unsuccessful opposite parties are the appellants before this Commission.
THE facts in brief are the complainant obtained a policy for Rs. 20,000/- on payment of premium of Rs. 57.30 ps. Subsequently on the inducement of the opposite parties he converted the said policy into endowment assurance with profits policy for the sum assured payable on 5.9.1996 or at the time of death, and the monthly premium payable from 5.10.1986 i.e., five years after the date of commencement to 5.9.1996 is fixed by the opposite parties at Rs. 163.10 ps. per month. THE complainant accordingly paid the premium at the rate of Rs. 163.10 ps. from 5.10.1986 to 5.9.1996. When the policy matured, the opposite parties have issued a cheque for Rs. 19,867/- and they have not paid the amount due under the endowment assurance with profits policy, the complainant, thereupon approached the District Forum. The opposite parties admitted of the conversion of the policy into endowment policy, but asserted that the policy was endowment with profits which commenced from 5.10.1986 under the Salary Savings Scheme and the monthly premium was Rs. 132.50 ps. Had the life assured sent a written request for conversion of the policy into a policy with profits, the opposite parties would have converted it, but as the complainant has not done so it remained as a policy without profits. The policy holder should have paid an amount of Rs. 163.10 ps. towards every premium.
Basing on these pleadings and the evidence adduced, the District Forum found that there was deficiency of service on the part of opposite parties, allowed the complaint and directed the opposite parties to pay the amount due under the endowment policy and collect the difference of amount payable under the policy.
AGGRIEVED by the said finding and order the opposite parties approached this Commission. The point for consideration is, whether there is any deficiency of service on the part of opposite parties ? The facts which are not in dispute are that the complainant had insured his life for Rs. 20,000/- on 5.10.1986 on payment of premium of Rs. 57.30 ps. under the Salary Savings Scheme and later on the policy was converted into endowment insurance policy with profits according to the complainant and without profits according to the opposite parties. When the policy was matured on 5.9.1996, the complainant was paid the amount due under the policy without any profits. The complainant claims that he is entitled for the amount due under the policy with profits.
THE opposite parties claimed that the complainant was paying only Rs. 132.50 ps. towards premium per month. This is the premium for endowment policy without profits and, therefore, he was paid the amount due under the said policy. It is, no doubt, true that only Rs. 132.50 ps. was being deducted from his salary towards the premium every month by the concerned Drawing and Disbursement Officer. In Form No. 3139 issued by the Life Insurance Corporation of India, it is specifically mentioned that : ".... be converted into an Endowment Insurance with Profits Policy for the Sum Assured shown in the Schedule ......premium payable from 5.10.1986 to 5.9.1996 will be Rs. 163.10."
When the Divisional Manager himself has signed this Form and issued the policy it is the duty of the Life Insurance Corporation of India to collect the said premium, and if the premium falls short of, it is their duty to inform the Drawing and Disbursement Officer and collect the balance of the premium. THEy cannot go on receiving the amount towards the premium and at the end say that proper premium was not paid. THE fault lies on them and the burden to collect the correct premium is on them. THErefore, the District Forum has rightly held that there is deficiency of service on the part of the opposite parties and allowed the complaint. We find no merit in the appeal and the appeal is, therefore, dismissed with costs of Rs. 1,000/-. Time for compliance six weeks. Appeal dismissed.