GUMMADI SRIDHAR Vs. K. VIJAYA

JUDGEMENT

(1.) The present Revision Petition has been filed by the Revisionist (Sarthak Kapoor) under Section 21(b) of the Consumer Protection Act, 1986 against the impugned Order dated 26.11.2019 of the State Consumer Disputes Redressal Commission, Punjab (hereinafter referred to as the "State Commission") in FA/513/2018 wherein the State Commission partly allowed the appeal and directed the OPs to pay interest on Rs.20,000/- at the rate of 8% p.a. as well as directed to pay Rs.2500/- as litigation expenses.

(2.) Brief facts of the case are that the Complainant's father took an LIC policy which insured him for future studies. The sum assured was Rs.1,00,000/- with premium of Rs.1541/-. The payment of premium was to cease after the Complainant had attained majority. At the time of first anniversary policy, the Complainant was to be paid Survival Benefit @ 20% of the sum assured. The Survival Benefit was due to the Complainant on 15.02.2016 and the Complainant attained majority on 01.11.2015. Therefore, the Complainant submitted a letter dated 22.06.2015 to the OPs for mandatory registration under NEFT for settling claims/benefits payable by OPs. However, even after a lapse of one year, the NEFT mandate was not registered which caused a delay of more than two months to get the survival benefits to the Complainant. It was remitted to the Complainant's account only on 12.04.2016 through cheque. It was alleged that the OPs did not pay interest for the delayed period of two months. It was violation of IRDA guidelines by the OPs amounting to deficiency of services. Being aggrieved, the Complainant filed the Consumer Complaint in the District Commission, Ludhiana to claim interest on Rs. 20,000/- for a period of 2 months; compensation of Rs. 4,00,000/-; litigation expenses amounting to Rs. 11,000/-; and exemplary and punitive costs of Rs.80,000/-.

(3.) The District Forum dismissed the complaint with the following observation: