LIC OF INDIA & ORS Vs. S SIDDHARTHAN

JUDGEMENT

(1.) THE opposite parties are the appellants.

(2.) THE complainant filed a complaint against the opposite parties claiming direction for the return of Rs. 53,150 towards Extra Health Premium with refund of penal interest of Rs. 6,122, Rs. 1 lakh towards deficiency in service and for costs.

(3.) THE complainant obtained a life insurance policy on 20.2.1999 for a sum of Rs. 5 lakh with the maturity on 27.2.2024 for 25 years, for which, a sum of Rs. 30,049 was paid as Annual Premium and subsequently due to his economic condition, he has not paid the premium for 2006 and 2007. On 15.2.2008, he paid Rs. 60,098 + Rs. 6,122 as premium for two years and penal charges, in all Rs. 66,220 paid to the second opposite par ty and thereafter getting necessary medical documents sent to the first opposite party for approval and thereafter it was permitted to be renewed. For 2008 premium of Rs. 30,049, the complainant paid on 3.3.2008 and also for the loan obtained for Rs. 71,000 with interest, he has paid Rs. 95,481 on 2.5.2008. On 29.8.2008, the complainant received a letter from the second opposite party for payment of shortage amount of Rs. 422 towards the renewal of policy, that was also paid by the complainant. When the complainant approached on 3.4.2009 to pay the premium for 2009, the second opposite party informed that the policy became lapsed and renewal of the policy was cancelled on 26.3.2009, for which, a cheque for Rs. 96,269 along with the letter was sent by registered post to the complainant for the refund of renewal premium and penal charges already paid by the complainant. When the complainant approached the second opposite party, he was confirmed as per the Audit objection, the policy was cancelled and thereby without giving notice, cancellation of policy caused mental agony and deficiency on the part of the opposite parties and thereafter the second opposite party once again called for necessary medical records and other details to renew the policy and thereafter on 14.6.2009 and 11.7.2009, the complainant made necessary arrangement for the same and by remitting a sum of Rs. 1,65,919 towards premium dues and for the renewal charges and penal charges for Rs. 23,723 along with premium of Rs. 35,549 towards Extra Health Premium and thereafter the complainant explaining the details, requested to refund of extra penal charges collected from the complainant and extra premium by sending a registered notice on 10.8.2009, for which, a reply was received on 18.8.2009 from the firstopposite party, in which, they admitted that the defect in cancelling the policy and thereafter another reply was received on 26.10.2009 for the letter sent on 16.9.2009, in which, the opposite party requested the complainant to contact the second opposite party for making necessary endorsement regarding the revised premium amount for the policy and thereafter the complainant requested for refund of Rs. 53,150 towards Extra Health Premium after deducting a sum of Rs. 6,122 towards late fee charges, for which, no reply was received and thereby the complainant has come forward with this consumer complaint.