Date of Filing:19-4-2018
Date of Order:16 -3-2020
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM – I, HYDERABAD
P r e s e n t
HON’BLE Sri P.VIJENDER, B.Sc. L.L.B., PRESIDENT
HON’BLE Sri K.RAM MOHAN, B.Sc. M.A L.L.B., MALE MEMBER
HON’BLE Smt. CH. LAKSHMI PRASANNA, B.Sc. LLM.,(PGD (ADR) LADY MEMBER
Monday, the 16th day of March, 2020
C.C.No.178 /2018
Between
Sri Vallabha Toshniwal,
Aged about 60 years, Occ: Business,
# H.No.4-1-4/B, Edengagh Ramkote,
Near Eden Garden Function Hall,
Hyderabad – 500001 ……Complainant
And
- Bajaj Allianz Life Insurance Co.Ltd.,
Rep. by its Managing Director,
Regd. Head office GE, Airport Road,
Yarwada, Pune-411006
- M/s. Bajaj Allianz Life Insurance Co.Ltd.,
Rep. by its Branch Manager,
3rd floor, North East Plaza, Opp: Khairatabad RTA Office,
Erramanzi, Somajigud, Beside BMW Show room,
Hyderabad - 500082 ….Opposite Parties
Counsel for the complainant : M/s. Gopi Rajesh & Associates
Counsel for the opposite Parties : Mr. S.Ravinder
O R D E R
(By Sri P. Vijender, B.Sc., LL.B., President on behalf of the bench)
This complaint has been preferred under Section 12 of C.P. Act 1986 alleging that non- payment of assured amount under the policy issued by the opposite parties amounts to unfair trade practice and deficiency of service hence a direction to the opposite parties to pay an assured amount with interest at 24% P.A from the date of surrender of the policy to the date of payment and to award compensation of Rs.2,00,000/- for causing mental agony and loss by not paying the amount at the time of surrender of the policy and to award a further sum of Rs.5,000/- towards cost of this complaint.
- Complainant’s case in brief is that he is managing partner of M/s Bharat Rice & Oil Mills and obtained a loan of Rs.9,10,00,000/- from Bajaj finance Ltd. and the said loan includes an amount of Rs.10,00,000/- as premium for the obtaining of a policy from the opposite parties. The loan tenure is 180 months of 11,66,380/- as EMI and complainant paid entire loan amount and collected NOC on 27-4-2015 in the name of his company. M/.s Bajaj Finance Ltd., also gave another NOC in respect of another loan account dated 25-6-2009 over the personal business and gold loans referred in the agreement earlier. At the time of availing of the loan from M/s. Bajaj Finance Ltd., insurance was taken by paying premium of Rs.10,00,000/- and three policies were issued and policy of the complainant is for assured amount of Rs.5,86,000/- covering period of 5 years, another policy is in the name of Dayawati Toshniwal in respect of the loan account No. 400LAP00011409 and coverage period is from 30-6-2009 for an assured amount of Rs.49,21,000/- and another policy in the name of Ramanlal Toshniwal in respect of the loan account No.400LAP00011409 coverage period from 30-6-2009 for an assured amount of Rs.64,10,000/- . All these policies were issued by the opposite parties .
In the policy certificate of the complainant the assured amount mentioned in the relevant column is Rs.5,86,000/- and it is a Group Suraksha policy issued infavour of Bajaj Finance Company Ltd., to protect the loan borrowers from risk of death for any unforeseen circumstances during the loan period. After repayment of the entire loan amount complainant surrendered the policy with a request to pay the assured amount to his account. He also enclosed NOC issued by M/s. Bajaj Finance Company Ltd.,. The opposite party acknowledged the same on 9-6-2015 but the failed to pay maturity amount of Rs.5,86,000/-. Hence he lodged a complaint with higher authorities and same was registered as complaint No.59048544 but issue was not resolved and he was not paid maturity value. He sent a mail to the opposite parties on 15-7-2015 informing that though they have received Rs.4,50,000/- for the policies but not paying 23.38% of the premium paid. There was no reply for the said mail. He addressed a letter on 15-6-2016 remaindering that the policy was surrendered with necessary documents on 9-6-2015 for payment of the maturity value and when there was no reply he got issued another letter dated 19-7-2017 and having received the same the opposite parties neither paid the amount nor gave a reply. Hence the present complaint.
- Opposite parties denying the allegation of unfair trade practice and deficiency of service on their part filed written version. The stand in the written version is that as per the certificate of insurance filed by the complainant policy was issued to Bajaj Auto Finance Company Ltd who is the master of the policy holder and the policy was known as Suraksha policy. As per the details of the policy it was issued on 25-6-2009 loan disbursement date was 24-4-2009, loan account No.40000000006070, assured amount was Rs.5,86,000/-, Coverage Tenure is 5 years, premium paid was Rs.38,271, Nominee name is Ramanlal Toshniwal. The conditions of the policy are it is a group Suraksha policy issued infavour of the Bajaj Allianz Life Insurance Company Ltd to protect the loan borrowers from risk of death due to any reason during the term of the scheme. Insurance company will not be liable to pay the benefits to insured. The benefits assured are strictly personal and cannot be assigned. The Group insurance scheme is available to Bajaj Allianz Life Insurance Company Ltd. The claim will be intimated to Master policy holder who inturn intimate to insurer the claims have to be intimated in writing within 180 days of death and it should contain Claimant statement, insurance certificate , death certificate of the member medical cause of death, certificate from the doctor last attended , copies of the PM report, FIR , Police inquest report in case of accidental death. The complainant failed to state as to what are the major terms and conditions requiring him to pay the amount. Since the policy is a Group Surakha policy and sum assured is payable only on the death of the life assured during the currency of the coverage there is no surrender clause in the policy.
The complainant’s son obtained policy bearing No.0256924786 from opposite party No.1. To the letter of the complainant dated 17/6/2015 enquiring about the surrender value payable. The opposite party No.1 replied through email dated 17/6/2015 informing Gross surrender value payable under the policy in the name of son and wife. In the case of policy in the name of Bajaj finance Company Ltd there is no surrender value payable since it is a Suraksha group policy payable on the death of the life assured during the currency of coverage. The complainant son and wife already filed separate complaint before Telangana State Commission on the surrender value of their policies taken by them and the said complaints are pending enquiry. The complainant is not entitled for any of the amount under the Group Suraksha policy and complaint is devoid of cause of action and is liable to be dismissed.
In the enquiry the complainant has got filed evidence affidavit reiterating the material facts of the complaint and got exhibited nine (9) documents in support of the contentions. For the Opposite Parties evidence affidavit of Manager of opposite party No.2 branch is got filed and the substance of the same is in line with the stand taken in the written version. Three (3) documents are exhibited for the opposite parties. Both sides have filed written arguments and made oral submissions.
On a consideration of material available on the record the following points have emerged for consideration .
- Whether the complainant could make out a case of either unfair trade practice or deficiency of service on the part of the opposite parties ?
- Whether the complainant is entitled for the amounts claimed in the complaint?
- To what relief?
Point No.1: The undisputed facts are the complainant as a managing partner of M/s. Bharat Rice & Oil Mills availed a loan of Rs.9,10,00,000/- from Bajaj finance Ltd. Ex.A1 is the sanctioned letter for it from F Bajaj finance Ltd.. As per Ex.A2 and A3 NOC issued by Bajaj finance Ltd. the complainant repaid the entire loan availed by him. Ex.A4 is the subject policy and it evidences the policy covers loan availed by the complainant from Bajaj finance Ltd. but not by the complainant so as to say that he is entitled for assured amount after the closure of the loan period. The terms and conditions of Ex.A4 itself shows it is a Group Surakha policy issued by the opposite party No.1 in the name of Bajaj Auto Finance Limited from which the complainant has availed the loan in order to protect the borrower of the complainant from the risk of the death for any reason during the term of the loan and nothing else. If death is caused to the complainant during the subsistence of the loan period the sum assured amount of Rs.5,80,000/- is payable by the opposite party No.1 to the Bajaj Auto Finance Limited. As rightly contended by the opposite parties that there is no surrender value payable by the opposite parties after completion of loan period and on surrendering of the policy. Thus it is crystal clear the policy under Ex.A4 was issued to Bajaj Auto finance only but not to complainant as an individual. The policy is protect the borrower during the loan period and there is no assured amount payable to the complainant after the repayment of the entire loan available from Bajaj Auto finance Ltd. The complainant is under mis-conception that he obtained Ex.A4 subject policy from opposite party No.1 and he is assured person under the policy and entitled the policy amount after the loan period is over. The policy is issued to Bajaj Auto finance Ltd., to protect the borrower from the risk of death during the loan period and nothing else, hence complainant is not entitled for any amount under the subject policy Ex.A4 after the tenure of the loan period is completed. Hence there is no unfair trade practice or deficiency of service on the part of the opposite parties.
Point No.2: Since the complainant could not make out case of either unfair trade practice or deficiency of service on the part of the opposite parties is not entitled for any amount claimed in the complaint
Point No.3: In the result, the complaint is dismissed. No order as to costs.
Dictated to steno, transcribed and typed by her, pronounced by us on this the 16th day of March , 2020.
LADY MEMBER MALE MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Exs. filed on behalf of the Complainant:
Ex.A1- Sanction letter cum insurance premium receipt
Ex.A2-No objection certificate dt.24-04-2009
Ex.A3- No objection certificate dt.27-01-2011
Ex.A4- certificate of insurance
Ex.A5- Intimation of opposite party
Ex.A6- letter dt.9-6-2015
Ex.A7-letter dt.15-7-2015
Ex.A8-letter dt.15-6-2016
Ex.A9- letter dt.17-7-2017
Exs. filed on behalf of the Opposite parties:
Ex.B1 – proposal form/enrollment form
Ex.B2-policy details summary
Ex.B3-Group master policy
LADY MEMBER MALE MEMBER PRESIDENT
