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Tamil Nadu
Coimbatore: State Consumer Disputes Redressal Commission, Chennai, had dismissed an appeal and ordered the Regional Provident Fund Commissioner (RPFC), Coimbatore, to pay a sum of Rs.10,000 for mental agony and Rs.2,000 as cost to the affected consumer Shanthi. According to a release from K. Kathirmathiyon, Secretary of Coimbatore Consumer Cause (CCC), P. Ramachandran, who had taken a policy for Rs.25,000, died on January 12, 1996. His nominee i.e., wife Shanthi was not aware of such a policy since no policy records were available at her home. Based on the first premium receipt, Shanthi approached Life Insurance Corporation of India that rejected the claim citing, ‘lapsed policy’ as the reason. She represented the same to CCC and when attempted the consumer organisation was not able to find that it was a ‘Labour Benefit Policy’ wherein premiums were paid from the balance of the PF contributions of the employee by the Provident Fund office. Hence, the policy was assigned in favour of PF office. The CCC approached the Coimbatore District Consumer Disputes Redressal Forum (CDCRF) against LIC and PF office to settle the policy amount with bonus and interest with compensation. The LIC claimed that the yearly premiums were not paid by PF office for the years 1995 and 1996 on its due dates and were paid only on September 23, 2006 i.e. after the death of the policyholder. The PF office contended that whenever they receive demand notice from LIC and they remitted the total amount for all the policies. On July 12, 2005 the District Forum ordered LIC of India to pay the insured amount of Rs.25,000 plus bonus Rs 5,075 with interest at the rate of 9 per cent from January 12, 1996 till the date of payment and refund of premium of Rs.1,868 and to pay Rs.5,000 towards compensation. The Forum directed the RPFC, Coimbatore to pay Rs.10,000 towards compensation for the mental agony and Rs.2,000 towards cost of the proceedings. The LIC of India paid the full amount to the complainant as per the order. But the Provident Fund office preferred an appeal before the State Consumer Disputes Commission, Chennai. The RPFC appealed that the premiums for the LIC polices were paid as and when demands were received from LIC and hence there was no negligence on its part. After hearing the arguments and going through the records, the State Commission rejected the arguments. It concluded that the District Forum had correctly analysed the materials and came to proper conclusion that both LIC and RPFC were at fault and were liable to compensate the complainant for the lapses on their part. The RPFC should have also complied with that order. There are absolutely no merits in the appeal and dismissed the same. The CCC has proposed to move the District Forum for execution of the order if the amount was not paid to the complainant at the earliest.
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