BRAJA KISHORE SAHOO vs Life Insurance Corporation of India

-THIS appeal has been directed against the orders dated 26. 3. 2003 of the District Forum, Cuttack in C. D. Case No. 111 of 2002.

THE brief facts of the case, out of which this appeal arose is that the complainant-Braja Kishore Sahoo entered into an LIC Policy bearing No. 60469427 with the Life Insurance Corporation of India, represented by the opposite party for a period of twenty years on half yearly premium basis of Rs. 93 payable in the month of June and December each year. Last premium was to be paid in June, 2001. The complainant''s specific case is that he had taken a loan from Vijaya Bank, Buxibazar, Cuttack pleasing the aforesaid policy on 19. 4. 2000 authorising the Vijaya Bank to collect the policy amount. Vide letter dated 15. 5. 2002, the opposite party informed as per a letter that Rs. 20,160 are due to him as against the LIC policy, but after deduction of Rs. 12,462 on different heads only a sum of Rs. 7,698 has been paid to the Vijaya Bank on 15. 5. 2002. According to the complainant, the LIC is not entitled to deduct Rs. 12,462 out of the policy amount on different heads. Therefore, he filed the aforesaid C. D. case to direct the opposite parties to release said amount with interest @ 12% per annum and for compensation of Rs. 5,000. Both the opposite parties as per their written version have challenged the aforesaid claim of the complainant as not genuine. They have also stated that as Vijaya Bank - the assignee of the complainant, accepted without protest the claim amount of Rs. 7,698, complainant is estopped to challenge the same and demand a further sum of Rs. 12,462. It is also stated by them that in view of the conversion provision under the policy such as after payment of premium for five years, the policy will be covered to enhance premium coverage on payment of insurance premium of Rs. 350 from 28. 12. 1986 to 28. 12. 2001 before which the policy holder was to pay half yearly premium of Rs. 93 from 28. 12. 1981 till 28. 12. 1986, the opposite parties had adjusted enhanced premium of Rs. 350 for fifteen years i. e. , 28. 12. 1986 to 28. 12. 2001. Thus in the process of enhancement, the opposite parties have adjusted Rs. 12,462. After deduction of Rs. 12,462, out of the maturity value, the claim has been settled at Rs. 7,698 which has been paid to complainant''s assignee, Vijaya Bank, Buxibazar, Cuttack. They claimed that Vijaya Bank received the said amount towards full and final settlement of claim.

Taking into consideration of all these facts, the District Forum, Cuttack laid confidence upon the aforesaid stand of the opposite parties. The District Forum finally decided the case in favour of the opposite parties as Vijaya Bank has received the policy amount towards full and final satisfaction of the claim and dismissed the C. D. case.

THE aforesaid order of the District Forum has been challenged by the complainant in this appeal. We have heard both sides and perused the materials on record.

NOWHERE the complainant/appellant has proved that there was no conversion provision in the policy entered upon by him as has been stated by the opposite parties. He has not proved by any means that he was not required to pay the half-yearly premium of Rs. 93 till 28. 12. 1986 and thereafter premium of Rs. 350 from 28. 12. 1986 to 28. 12. 2001 was to be paid and he has deposited the premiums as per this policy condition. Therefore, we have no reason to disbelieve that as the complainant/appellant did not deposit the enhanced premium of Rs. 350 for the period from 28. 12. 1986 to 28. 12. 2001, the opposite parties/respondent have to adjust said amount deducting from the maturity value of the policy. There is no material before us to differ from that after such deduction and adjustment, the complainant/vijaya Bank has only entitled to Rs. 7,698. The law is well settled that once the settled amount of claim by the insurer is received towards full and final satisfaction of the claim and the discharge voucher has been signed by the assured, the assured cannot raise objection. That there is wrong settlement of claim. In such circumstance, the complainant cannot claim for refund of the deducted amount of Rs. 12,462 from the respondent and a case filed for refund of the deducted amount is not maintainable. We find the impugned order of the District Forum is reasonable and proper. Therefore, no reason is there to set aside the said orders. In the result, the appeal is dismissed on contest without cost. The impugned order dated 26. 3. 2003 of the District Forum, Cuttack in C. D. Case No. 111 of 2002 is confirmed. Records received from the District Forum may be sent back fortwith. Appeal dismissed.