IMPORTANT POINT
Under Jeevan Dhara Policy no bonus is payable.

Dr. B.C. Gupta, Memer—This revision petition has been filed under section 21(b) of the Consumer Protection Act, 1986 against the impugnedORDER dated 04.02.2008 passed by the Karnataka State Consumer Disputes Redressal Commission (for short ‘the State Commission’) in FA No. 1428/2007, “The Branch Manager, Life Insurance Corporation of India (hereinafter referred to as ‘LIC’) v. Nagaraj T.V.” vide which while allowing the appeal, theORDER dated 06.06.2007 in consumer complaint no. 22/2007, passed by the District Consumer Disputes Redressal Forum, Mandya, allowing the said complaint, was set aside, and the complaint wasORDERed to be dismissed.

2. Brief facts of the case are that the petitioner/complainant obtained Jeevan Dhara Policy, bearing no. 623015283 for a sum of Rs.1,20,000/- from the LIC, with date of maturity as 19.10.2006. The complainant contended that he was entitled to Rs. 4,800/- as monthly instalment of annuity from the date of maturity, whereas the OP was paying him a monthly instalment of Rs. 1200/- only. He also contended that in addition to the sum assured under the policy, he is entitled to receive 1% of the enhanced amount and also entitled for the bonus declared by the LIC / OP. Despite taking up the matter with the zonal office of the OP and the Insurance Ombudsman, he failed to get proper relief. The LIC took the stand that as per the circular/instructions issued by them, the complainant was entitled to receive 1% of the Gross Insurance Value Element (GIVE) and, therefore, the monthly instalment of Annuity was fixed at Rs. 1200/-. The OP contended that they had already paid Rs. 3600/- as one-time payment under the policy, in view of the instructions contained in the circular. They further contended that the LIC had not declared any Bonus under the Jeevan Dhara Policy and hence, the complainant was not entitled to any bonus under the said policy. The complainant, on the other hand, took the plea that GIVE amount was enhanced by Rs. 2,496/- as per the terms and conditions of the policy with deferred participation in profit. The petitioner was eligible for bonus at two stages – the first stage at the end of the deferred period as addition to the GIVE amount and proportionately increasing the annuity, and the second stage as addition to GIVE amount, payable on death. The District Forum vide theirORDER dated 06.06.2007, allowed the complaint and directed the LIC to add bonus as admissible to any other annuity policy for 15 years, to the GIVE amount and to enhance the annuity at 1% of the enhanced GIVE amount and also directed to pay Rs. 5000/- as litigation cost. Aggrieved by thisORDER of the District Forum, the LIC preferred an appeal before the State Commission, which was allowed as per the impugnedORDER and theORDER of the District Forum was set aside and the consumer complaint was dismissed. The State Commission upheld the version of the LIC that no bonus had been declared under the Jeevan Dhara policy issued in favour of the complainant and hence, the OP was not bound to pay bonus to the complainant. It is against thisORDER that the present petition has come up.

3. The petitioner put in personal appearance during some hearings before the Commission, but after hearing on 06.02.2013, he absented himself on subsequent dates, i.e., 13.08.2013, 23.09.2013, 16.12.2013, 25.02.2014 and 13.03.2014. A notice was sent to him in the interest of justice but despite the service of the notice, neither the petitioner, nor his counsel appeared. The arguments of both the parties had been heard on 06.02.2013 and the arguments were again heard from the respondent on 13.03.2014.

4. During arguments on 06.02.2013, the petitioner stated in person that under the terms and conditions of the policy, the LIC was supposed to declare bonus as guaranteed maturity addition. The LIC was paying him Rs. 1200/- per month, whereas they were supposed to pay Rs. 1248/- per month. On 06.12.2013, the respondent LIC was directed to explain, o