GROUP INSURANCE SCHEME Vs. NAIK HANS RAJ YADAV

JUDGEMENT

(1.) This appeal is directed against order dated 12.6.1998 passed by the learned District Consumer Disputes Redressal Forum, Gurgaon in C. P. A. No.502, dated 10.4.1998 whereby the claims of the complainant/respondent to the extent of benefit of length of service upto 20 years as against 17 years, granted by the Army Authorities, has been extended and the appellants have been directed to pay the amount of Rs.41,250/- within a month.

(2.) The facts giving rise to the disputes as noticed by the District Forum are that the respondent is an ex-serviceman from Army bearing No.4172300-L Naik of Kumaon Regiment who was enrolled in the Army on 23.12.1978. He was invalidated from the Army service on medical grounds and was placed in category "eee" due to Exfoliative-Dermatitls-lndiopathic and the Medical Board has assessed the disability 50% in review after two years the Medical Board assessed the disability at 50% vide letter dated 5.3.1998. All the defence personnel are members of the appellant Society which is like a Life Insurance Company for defence personnel only who pay the premium through their respective pay account officers. On happening of any eventuality like death or disability a certain amount is paid to the disabled or the legal heirs of the deceased. The complainant on his disability, claimed amount of Rs.41,250/- by filing C. P. A. No.502 dated 10.4.1998 before District Forum Gurgaon.

(3.) The appellant filed reply, inter alia, stating that appellant is a Registered Society and was incorporated in pursuance of a Special Army Order No.5.5.78 dated May, 1978 for providing speedy financial assistance to the families of those Army Personnel who may die during service, to provide lump sum terminal benefit at the time of retirement and any other benefit/ assistance which the Board of Trustee may decide The Army Group Insurance Scheme is totally Departmental and is run by the Army Group Insurance Directorate at Army Headquarters. No complaint under consumer jurisdiction is maintainable and the respondent does not fall within the definition of consumer. Respondent has already been paid an amount of Rs.26,931/- as maturity benefit on 12.12.1995. But the amount claimed by way of insurance benefits under Disability Benefit Scheme Rs.41,250/- is not available to respondent as there was no cut short in the length of his service. As per rules one who retires after the completion of contractual service limit, even though disabled about 40% or above is not entitled to any payment from AGIS on account of that disability.