Ludhiana, February 20
The District Consumer Disputes Redressal Forum has directed the Unit Trust of India (UTI) to pay Rs 2,000 on account of deficiency in service and cost of litigation to Mr Jagtar Singh, a resident of Sahabana village, for illegally scraping his ULIP policy. The UTI had closed the policy of the complainant as its records showed that the man was dead, although he was alive.
According to the orders, the consumer had obtained a ULIP saving policy (No. 9740111008620) for 10 years from the UTI on February 17, 1997. The representative of the consumer, Mr S.D. Nagpal, stated before the forum that payment of Rs 6,000 was to be made every year and the target amount was Rs 60,000. The last payment was to be made on January 1, 2006, and the date of maturity was February 17, 2007. He added that the policy was issued by the UTI on March 20, 1997.
The consumer deposited five instalments of Rs 6,000 each up to December 27, 2000, against the said policy. After depositing the fifth instalment on December 27, 2000, the consumer approached the clerk concerned to get the annual statement. He was told that the said policy had been closed and payment had been made against the policy to someone else. After that the consumer, on January 4, 2001, wrote a letter to the respondent about the whole incident. He received a reply on February 1, 2001, which was wrongly addressed to ‘Mrs Manjit Kaur, wife of Late Jagtar Singh, son of Ajaib Singh, resident of Sahabana village, Ludhiana.’
Mr Nagpal stated that the name of consumer’s father was Mr Balwant Singh instead of Ajaib Singh. Moreover the complainant was still alive while the word ‘late’ had been used before his name. It was alleged that there was deficiency in service on the part of the UTI. It was demanded that the UTI should be directed to make the policy regular and issue annual statement. Besides, directing the respondent to pay compensation of Rs 10,000 for deficiency in service and Rs 2,500 on account of cost of litigation.
The UTI pleaded that the deletion of the policy was due to an error as the name of two units holders were same and they were the residents of same village. The respondent clarified that the error had been rectified and the policy stood revived.
The respondent further stated that in November, 1998, claim papers and other documents, which were also in the name of Jagtar Singh, were received from Ms Manjit Kaur, the policy was erroneously deleted as the village name was also the same.
The respondent further said that the policy was revived immediately after receiving the complaint and the complainant did not suffer any loss. The respondent stated there was no deficiency in service and the complaint was liable to be dismissed.
The forum observed that it was an admitted fact that the consumer had taken the said policy and the same had been closed wrongly by the UTI.
The forum stated that the consumer suffered mental pain and agony when he came to know about the illegal closing of the policy due to an error of the UTI. The forum held that there was deficiency in service.