POSTAL LIFE INSURANCE Vs. VINOD KUMAR

JUDGEMENT

(1.) THE complainant had taken postal life insurance policy and after three years filed an application on 23.9.2004 for surrender of the policy. According to the Complainant he had paid 36 instalments @ Rs. 440 and as such he sought refund of a sum of Rs. 15,840. The Opposite Party sanctioned payment of Rs. 5,628 being the surrender value of the policy. Consequently, the Complainant approached the District Forum for payment of the full amount of Rs. 15,840 with interest as also compensation of Rs. 20,000.

(2.) THE Opposite Party had, however, contended that the Complainant had paid 38 instalments of Rs. 440 and the total amount paid was Rs. 16,720. The Complainant was paid surrender value of the policy, namely, Rs. 5,628 in terms of the existing rules and letter No. 29 -14/98 -LI dated 18.11.2003.

(3.) THE District Forum after relying upon the instructions contained in aforesaid letter dated 18.11.2003 held that the Complainant was not entitled to any bonus, but he could not be denied the actual payment deposited by the Complainant under the said policy. Accordingly, the District Forum directed the Opposite Party to pay the balance amount of Rs. 11,092 with 9% interest per annum from the date of filing of the complaint. Besides this, cost of Rs. 1,000 was awarded. This order was challenged by the Opposite Party before the State Commission.