RADHEY SHAM GUPTA Vs. LIC OF INDIA

JUDGEMENT

(1.) The revision petition arises out of the order of the State Consumer Disputes Redressal Commission whereby the State Commission set aside the order of the District Forum.

(2.) The facts in brief which lead the complainant to approach the District Forum are as under :

(3.) The complainant had a Money Back Policy from the opposite party, Life Insurance Corporation of India, for Rs. 1,25,000/- in the year 1990. The yearly instalment of premium was Rs. 10,878.40. According to the terms of the policy, the complainant had to get Rs. 32,150/-, the amount of maturity value after five years. Since the complainant was expecting transfer from the place of work, he had requested the opposite party by way of a letter to deduct the instalment permium which was due in August, 1995 and remit him the balance amount. According to him, he had written the letter much before the premium was due. He states that he had received a cheque from the LIC for Rs. 32,150/- without deduction of the instalment premium due. As the premium was not deducted, the policy had lapsed. Then he had written letter to the opposite party for payment of Rs. 54,492/- being along with interest at the rate of 19% as damages. He had also prayed for payment of the entire amount of Rs. 1,25,000/- after deducting the amount which has already been paid. Since the opposite parties did not respond, he moved the District Forum with the above mentioned prayers.