Smt. Sangita Paul, Member
This is a case filed by Shri Manoj Das, S/o. Bhusan Chandra Das of R-17, Srinagar, P.O. – Panchasayer, P.S. – Narendrapur, Kolkata – 700 094 against Managing Director and CEO, IDBI Federal Life Insurance Company Limited, Mumbai-400 013 and Branch Manager, IDBI Federal Life Insurance Company Ltd., Kolkata-700 017 with a prayer for directing the OP to refund the amount paid by the complainant to the tune of Rs.1,48,330.90 with simple interest @ 10% p.a. up to the date of crediting the amount to the complainant’s account, to pay compensation to the tune of Rs.40,000/- for harassment, bad faith insurance practices under valuation of insurance claim and inordinate delay, to impose heavy penalty for making false affidavit and to award cost of litigation as the Ld. Commission may deem fit.
OP No.1 is the Managing Director and CEO IDBI Federal Life Insurance Company Ltd. The address is 22nd floor. A wing Marathon, Futurex, N.M. Joshi Marg. Lower Parel (East) Mumbai-400 013.
OP No.2 has got a branch office situated at Kolkata. The address of OP No.2 is 44, Shakespeare Sarani, Kolkata-700 017.
Complainant, by filing this case states that being allured by the lively representation of Mr. Koushik Halder, an agent of the OP, complainant made an insurance policy and issued a cheque bearing No.003047 dated 07.10.2012 for Rs.30,086/-.
The first plan was of a lump sum coverage amounting to Rs.3,11,000/-. The yearly premium was Rs.30,086/-. It started on 08.10.2012 for 10 years. The complainant signed another enhanced lumpsum coverage of Rs.49,330/- with yearly premium of Rs.30086/- for 15 years. Since the cheque 003047 dated 07.10.2012 for Rs.30,086/- was in the custody of the agent, the complainant signed the proposal form. The complainant signed on the blank proposal form.
The complainant paid premium in 5 instalments under the policy No:4000475480. In the year 2012, the complainant paid Rs.30,086/-, in 2013 Rs.29,184/-, in 2014 Rs.29,635/-, in 2015 Rs.29,694.72 and in 2016 Rs.29731.20.
The complainant by an e-mail communication wanted to know as to how much amount was deposited and what would be the refundable amount if the policy is surrendered. The complainant sent the 1st reminder on 17.06.2018 and the 2nd reminder was sent on 27.07.2018 by Speed Post and requested the OP to refund the amount of Rs.1,48,330.90 with interest. Unfortunately, the OP denied the information. All the original documents were provided except the original Policy No:4000475480 along with the Speed Post communication dated 27.07.2018. The rightful insurance claim of the complainant was arbitrarily rejected by the OP on 30.08.2018. The complainant agreed to surrender the original policy subject to prior acceptance in writing regarding full reimbursement of Rs.148330.90 being the deposited amount excluding interest. But the OP denied the full claim.
In 2014 Rs.2,29,635/- was paid and the payment of Rs.29,634.89 was confirmed. But 0.11, the excess payment was not adjusted with the next year’s premium. Moreover, the Chief Manager of the OP wrongly claimed further amount of Rs.351/- recoverable towards the last premium. The next premium of Rs.29,694.72 for 2015 due on 31.10.2015 was paid on 27.10.2015. Moreover, the communication dated 15.05.2019 of Junior Manager, Legal of IDBI Federal Life Insurance Company Ltd. mentioned that the renewal premium under policy for the years 2013, 2014, 2015 and 2016 were regularly paid. There was no claim of outstanding dues. So no question of further payment of Rs.351/- arises. IDBI wanted to pay the surrender value of Rs.44,691.50 against the claim of Rs.1,48,330.90. The OP furnishes inaccurate particulars of payment. Excess amount was recovered for the year 2012 and 2014 than that was fixed in the policy. Hence, the complainant prays for directing the OP to refund the amount of Rs. 148330.90 being yearly premiums deposited with interest @ 10% p.a. upto the date of crediting the amount to the complainant’s account, to pay compensation to the tune of Rs.40,000/- for harassment and inordinate delay to award penalty for making false affidavit and to award the cost of litigation as the Hon’ble Commission may deem fit.
OPs 1 & 2 in their written version state that IDBI Fedeal Life Insurance Company Ltd. is registered under the provisions of Section 3 of the Insurance Act and it is being operated under license from IRDA (Insurance Regulatory and Development Authority).
The OPs denied all the allegations contained in the complaint. The OPs state that the instant complaint is malicious, incorrect and malafide and is nothing but an abuse of the process of law. The complaint has been filed just to avail of undue advantage. The complaint is liable to be dismissed.
That the office of OPs 1 & 2 are situated outside the territorial jurisdiction of Ld. Commission. The cause of action did not arise within the territorial jurisdiction of Hon’ble Commission.
The Managing Director of IDBI Federal Life Insurance Company Ltd. and one of the officers did not accept money and they would never return the money. So there is no reason of filing the complaint against them.
The said policy was issued on 31.10.2012 with the consent of the complainant. The complainant has not cancelled the policy within the stipulated time of 15 days and had continued for 4 subsequent years. The Policy No of complainant is 4000475480. The complainant did not surrender the policy during the free-look period of 15 days. Complainant paid the premium for the year 2013, 2014, 2015 and 2016. It proves the complainant was well aware of the terms and conditions of the policy. The insured is bound by the terms and conditions of the policy. So the present complaint deserves to be dismissed, because the OP is not liable to cancel the policy or return the policy amount.
The OP is not responsible for the fault of the agent. OP states that there is no option to pay the surrender value of the Policy No.4000475480. The claim of refund of premium after enjoying the insurance is bad in the eye of law. It was stated that as on date the complainant is entitled to receive the sum of Rs.83412.28 being the surrender value as on 01.11.2019.
The OPs 1 & 2 state that the complaint being frivolous and is meant to harass the OP, the same be dismissed with heavy cost.
The complaint was filed on 19.09.2019. The complaint was admitted on 23.09.2019. On 15.11.2019 W/V was filed. On 19.07.2022 Ld. Lawyer of OPs was present and filed BNA. On 01.09.2022 argument of Ld. Lawyer for the OP was heard in full and complainant was absent on call. Then we proceeded for giving judgement.
Points of Consideration
01.Is the complainant, a consumer?
02.Are the OPs guilty of deficiency in service and unfair trade practice?
03.Is the complainant entitled to get relief as prayed for?
Decision with Reasons :-
- On perusal of records and documents, it appears that being allured by the lively representation of the agent, Mr. Koushik Halder who works for IDBI Federal Life Insurance Company Ltd., the complainant bought an insurance policy. The coverage of the policy is Rs.3,11,000/- with yearly premium of Rs.30,086/- . The complainant was supposed to pay premium for 10 years and the policy-term was for 20 years. The complainant paid premium from 2012-2016. In 2012 the complainant paid Rs.30086/-, the complainant paid premium of Rs.29,184/-, in 2013, in 2014 the complainant paid premium of Rs.29635/-, in 2015 the complainant paid premium of Rs.29694.72 and the complainant paid premium for 29731.20 for the year 2016. As the complainant paid the premium from the year 2012-2016 he is a consumer u/s 2 (7) of the consumer protection Act, 2019. So, the 1st point is decided in favour of the complainant.
- The complainant bought the policy with a hope of good return. The complainant paid the premium for five consecutive years. The agent of the said company misrepresented about the details of the policy. Complainant believed in the attractive representation and took the policy. But in reality he faced difficulty and wanted to surrender the policy. It is a long term policy. Complainant was not in a position to continue it. After perusal of the policy documents, complainant realized that it was not the right policy which can be continued for long period of time. There is no provision of IRDA Act.1999 or other rules or prevailing law to recover yearly insurance premium in excess of whatever was stipulated in the original policy. The OPs knowing fully well intentionally suppressed the fact of the excess amount of Rs.0.21 in 2012 and 0.11 in 2014.
It was assured that for individuals, premiums paid under the plan may be eligible for tax deduction under section 80D of the Income Tax Act 1961.This is absolutely wrong and a misleading effort to influence the policy holder.All these are examples of deficiency in service.So, the 2nd point is decided in favour of the complainant and against the OPs.
- The complainant took the insurance policy on good faith, but excess premium has been collected by the OP in the year 2012 and 2014. The excess amount is required to be adjusted with the premium of the next year. Such act of the OP created confusion. It is a deliberate attempt of the OP to deprive the complainant of getting back the actual amount. Even the OPs did not mention any thing in their statement. Rather they failed to understand that an extra amount was charged. The acts of the OP is the cause of mental agony and pain of the complainant. It appears that the complainant is entitled to get the relief as prayed for. Hence the 3rd point is decided in favour of the complainant and against the OPs.
In the result, the complaint case succeeds.
Hence, it is,
ORDERED
That the complaint case be and the same is allowed on contest against the OPs. 1 and 2 with cost of Rs.20,000/- (Rupees twenty thousand).
That the OPs1 and 2 jointly or severally are directed to pay Rs.83,412.28 (Rupees eighty three thousand, four hundred twelve point two eight) (being the surrender value as on 01.11.2019) with simple interest @10% per annum with effect from 05.09.2019 till realization within 60 days from the date of this order.
That the OPs 1 & 2 jointly or severally are directed to pay compensation to the tune to Rs.50,000/- (Rupees fifty thousand) to the complainant within the stipulated period of 60 days from the date of this order.
That the OPs 1 & 2 jointly or severally are directed to pay the litigation cost of Rs.20,000/- (Rupees twenty thousand) within the stipulated period of 60 days.
That the complainant is at liberty to put the order into execution if the orders are not complied with within the stipulated period of 60 days from the date of this order.
Let a copy of the order be supplied to the parties concerned free of cost.
That the final order will be available in the following website www.confonet.nic.in.
Dictated and corrected by me.
(Sangita Paul)
Member
