The bonus payable under an insurance policy is determined by the rate in effect on the date of maturity, regardless of any subsequent increases in the bonus rate.

Mr. Justice S.K.M. Lodha, President—This appeal under Sec. 15 of the Consumer Protection Act, 1986 ('the Act' herein) is directed against the order dated 31.1.92 passed by the District Forum, Sri Ganganagar in Complaint Case No. 30/91. By the impugned order the District Forum directed the opposite parties-appellants to pay Rs. 11,684/- to the complainant-respondent. It further ordered that amount of Rs. 1,000/- should also be paid to the complainantrespondent on account of financial loss and mental agony.

2. The complainant-respondent had endowment policy No. 19100 from the State Insurance. He retired from Government service as District Education Officer on 30.6.89 on attaining superannuation age of 58 years. The claims were paid on 12.7.89 vide authority letter dated 7.7.89. The complainant-respondent was also paid a reversionery and interim bonus @ Rs. 41/- per thousand. The complainant has alleged that the rate of bonus as declared on 9.1.90 was Rs. 66/- for the period from 1983 to 1989 and Rs. 72/- were declared on 5.2.91 for the period subsequent thereto. He has claimed bonus @ Rs. 66/- per thousand instead of Rs. 41/- per thousand and also the difference of actual paid bonus and declared bonus. The amount as such came to Rs. 3,784/-. He has prayed that this amount may be ordered to be paid to him. The complainant has further claimed the conesquential increase on the basis of revised formulas. Thus the total amount claimed by him was Rs. 11,663.95. A sum of Rs. 10,000/- was claimed as compensation for mental agony. Expenses were also claimed.

3. The opposite parties-appellants contested the complaint. It was pleaded that vide para 5 of Rajasthan Finance (R & A I) Department Order No. 13(30) FD/R&AI/76 dated 9.1.90 the bonus as prevailed on the date of maturity of the policy was payable and that the increase in bonus was not admissible on the policies matured prior to the date of the announcement of the bonus. It was also pleaded by the Department of State Insurance that while multiple formula applied for calculation and that it was correctly applied on the new sum assured as per rules applicable in the case of the complainant. The amounts claimed by the complainant were denied. It was submitted that a sum or Rs. 452/- was recoverable from the complainant as that sum was paid in excess to him on account of calculation mistake. A prayer was made in the version of the case for the refund of the amount of Rs. 452/-.

4. 4.The District Forum heard the arguments on 15.1.92 and passed the impugned order on 30.1.92. We heard Mr. M.L. Vyas, Advocate for the appellants and Mr. Sagarmal, respondent in person. We have also perused the written reply which was received from the complainant-respondent on 12.11.92.

5. After bestowing our most anxious and thoughtful consideration to the rival contentions raised by the learned Counsel for the appellants and the complainant-respondent, we have come to the conclusion that the order under appeal has to be set aside. Before we proceed further it may be mentioned that the District Forum relied on an order passed by the State Commission in Damodar Das Maheshwari v. Director, State Insurance Department (Appeal No. 79/89 decided on 7.12.89) and observed that the complainant-respondent is entitled to the increase in the reversionery bonus, interim bonus and terminal bonus according to the formulas as were applicable on the old sum assured. The District Forum in the impugned order has stated that the order No. F.13 (30) FD/E & A/76 dated 9.1.90 being contrary to the order rendered in Damodar Das Maheshwari's case (supra) is ineffective and cannot be said to be legal Mr. Vyas has placed reliance on the Departmental order dated 9.1.90 which reads as under:

"The Governor has been pleased to accord sanction to the following bonus being declared on the basis of recommendations made in the Actual Valuation Report of the Insurance Fund of the State Insurance Department, Government of Rajasthan as at 31st Ma