VIRENDRA KUMAR MANCHANDA vs L.I.C.

COMPLAINANT is the appellant who has preferred the appeal against the order dated 4.12.1995 passed by District Forum, Patna in Complaint Case No. 781/92 whereby the complaint has been dismissed and a cost of Rs. 500/- was awarded against the complainant to be paid to the O.P.-L.I.C. for filing the frivolous complaint.

THE brief fact of the case is that the complainant filed the case before the District Forum with a prayer for a direction to the L.I.C. to return his policy bond and allowed him to run the policy to its full period. THE complainant had taken two life insurance policies on 28.3.1987 for Rs. 50,000/- and on 23.8.1989 for Rs. 35,000/-. Both the policies were Jeevan Sathi policy along with the wife of the complainant and covered the risk of both the partners. THE wife of the complainant died on 2.8.1990 and he filed a claim under the aforesaid policy before the L.I.C. but it was rejected. Later on, an ex gratia payment of Rs. 85,000/- was offered to the complainant on the condition that the aforesaid policies would no longer operate after the payment of the aforesaid amount. THE complainant agreed and accepted a sum of Rs. 85,000/- from the O.P. THE complainant again filed a complaint with a claim for continuance of his policy on his own life after the death of his wife and also prayed for a compensation of Rs. 10,000/- for the harassment and mental agony. The O.P.-L.I.C. appeared and filed written statement stating therein that claim of the complainant has been repudiated on merit but on a representation made by him to the Chairman of the L.I.C. a compassionate view was taken and a sum of Rs. 85,000/- as ex gratia payment was offered to the complainant on the condition that two policies would be closed after the payment of the said amount. The complainant wilfully accepted the amount of Rs. 85,000/- on the terms and conditions aforesaid and he accepted the amount without any objection. Therefore, he is now estopped from his any acceptance made earlier. The L.I.C.'s further contention was that claim of the complainant is frivolous and it is with a view to harass the L.I.C. and to extract further money from it.

The District Forum after considering the submissions of both the parties held that the complaint of the complainant is frivolous. He has accepted the amount of Rs. 85,000/- without any objection and has agreed to the contention that the two policies shall be closed after the receipt of this amount. Therefore, his complaint was found to be frivolous and he was directed to pay a sum of Rs. 500/- to the L.I.C.

WE have heard the parties and perused the impugned order. Almost all the facts in the case are admitted. It is admitted fact that complainant has received Rs. 85,000/- as ex gratia payment on the above two policies on his petition filed before the Chairman, L.I.C. The condition for this payment was that two policies in the joint name of the complainant and his wife shall be closed with which he has agreed, therefore, this complaint with a prayer that L.I.C. be directed to continue his policy even after the receipt of this amount was found to be frivolous. In our view there is no merit in the contention of the complainant-appellant and District Forum finding that the complaint is frivolous is fully justified. The complainant has received Rs. 85,000/- without any objection as ex gratia payment on the condition of full and final satisfaction of the claim with regard to the two policies. Therefore, now he is not entitled to make any prayer to revive these policies. Such policy is devoid of any reasoning. The District Forum has rightly allowed a cost of Rs. 500/- against the complainant. In the result, the appeal is dismissed and the order of the District Forum is confirmed. The complainant is directed to pay Rs. 500/- to the L.I.C.-O.P. within two months from the date of this order. However, there shall be no order as to cost. Appeal dismissed.