BEFORE THE DAKSHINA KANNADA DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MANGALORE

Dated this the 24^th JUNE 2017

PRESENT

   SRI VISHWESHWARA BHAT D     : HON’BLE PRESIDENT

SMT.LAVANYA M. RAI                 : HON’BLE MEMBER

ORDERS IN

C.C.No.320/2016

(Admitted on 14.09.2016)

Mr. Ramachandra Bhat,

Aged about 46 years,

S/o late Krishdna Bhat,

Residing at Nisarga,

Behind Swaraj Maidan,

Kalanaka, Moodabidri Post,

Mangaluru  574 227.

                                                                          ….. COMPLAINANT 

(Advocate for the Complainant: Smt. MNA)

VERSUS

1. M/s Future Generali India Life

Insurance Co. Ltd,

Crop & Reg. Office. 001,

Delta Plaza, Ground Floor,

414, Veer Savarkar Marg,

Prabhadevi, Mumbai  400 025,

Represented by its Manager.

2. Future Generali India Life

Insurance Co., Ltd,

2^nd Floor, Empire Mall,

Kodailbail, Mangaluru  575003,

Represented by its Manager.

                                                                     …..........OPPOSITE PARTIES

 (Opposite Parties No.1 & No.2: Ex parte)

ORDER DELIVERED BY HON’BLE PRESIDENT

SRI VISHWESHWARA BHAT D:

     The above complaint filed under Section 12 of the Consumer Protection Act by the complainant against opposite parties alleging deficiency in service claiming certain reliefs. 

The brief facts of the case are as under:

The complainant claims being impressed by the sweet words and advertisement of opposite parties he subscribed for Future GeneraliBhimaGuarantee participating with profit money back plan insurance policy from opposite party No.1 through opposite party No.2 for an insured amount of Rs.3,36,837.  As per the terms and conditions of the policy complainant was paying premium instalment of Rs.30,000 per year has paid 4 instalments totally of Rs.1,20,000 a sum of Rs.56,117 was payable to complainant in the form of survival benefit of the completion of fourth year whichwas paid by opposite parties as complainant needed urgent money he opted to surrender the policy but opposite parties when approached by complainant asked for complainant of all the formalities for payment of the surrender value with bonus.  Though opposite parties represented to entire surrender value to be credit to complainant undertaken to pay to the bank account of complainant failed to comply and false represented that under the terms and conditions of the policy complainant has no option to surrender of the policy.  Even legal notice was issued to opposite parties but not complied despite service.  Hence seeks relief claimed in the complainant.

2.      Despite service of notice opposite parties have not appeared before the Forum hence placed Ex parte.

3.      In support of the above complaint Mr. Ramachandra Bhatfiled affidavit evidence as CW1 and produced documents got marked at Ex.C1 to C5 as detailed in the annexure here below.  On behalf of the opposite parties not filed affidavit evidence.

4.      In view of the above said facts, the points for consideration in the case are:

1. Whether the Complainant is a consumer and the dispute between the parties?
2. If so, whether the Complainant is entitled for any of the reliefs claimed?
3. What order?

     The learned counsel for complainantaddressed oral argument.  We have considered entire case file on record including evidence tendered by the party.   Our findings on the points are as under follows:

               Point No. (i)  : Affirmative

               Point No. (ii) : Affirmative

               Point No.(iii) : As per the final order

REASONS

5.        POINT NO. (i)& (ii):Complainant filed affidavit evidence.   Ex.C1 is acknowledgment on behalf of opposite party dated 31^st March 2012 is an acknowledgementsubscribed by the complainantto the policy for the purchase underwhich the policy inquestion was sent to complainant.  As seen from the copy of the policy produced by complainantis a part of Ex.C1the policy in the page pertaining to terms and conditions of the policy FG Bima Guarantee describes what surrender value it reads:

Surrender Value means the amount payable to the Policyholder upon early and voluntary termination of the 

Policy by the Policyholder. Any indebtedness will be deducted from the Surrender Value of the Policy before its payment.

6.    Again at introduction in the column pertaining to the policy benefits the following is mentioned:

2.1.1.A: Survival Benefit: Survival benefits are the amounts of pre stated proportion of sum assured payable at pre stated intervals of time during the policy term provided the life assured is then alive.

The first survival benefit under the policy would be payable after completion of 4^th policy year.  The subsequent survival benefits would be payable aftr completion of every three policy years thereafter.

For example, if policy term is 10 years, 3 survival payments would be paid at the end of 4^th, 7^th& 10^th policy anniversaries and each payment would be for an amount of 1/3 of sum assured. 

7.     Thus on a reading to the column quoted above on surrender value as to the benefits policy paid survival benefits and also the surrender of policy, it is clear that if at least 3 consecutive years from the commencement date the premium are paid by the policyholderheis entitled for surrender value.  The minimum surrender value as per the clause 10 of the policy is equal to 30% of all the premium paid excluding the first year premium paid isentitled for the 30% of the premium paid. But opposite parties had not paid that amount to complainant.  As such when the policy was surrendered excluding the first year premium and also for bonus for the first 4 years announced by opposite party, hence inour view it isa case were complainant proved deficiency in service on the part of the opposite party by holding that there is a relationship of consumer and service provider between the parties.  Hence we answer points No.1 and No.2 in the affirmative.

8.POINT NO.(iii):Hence in the circumstance it is a fit case directing opposite party to pay to the complainant apart from the surrender value as observed which comes to Rs.1,20,000.30,000=90,000x0.3= Rs.27,000/ with interest at 8% from the date of complaint till the date of payment. Opposite party shall also directed to pay compensation towards harassment and inconvenience caused as such at Rs.20,000 and also cost of complaint fixed at Rs.5,000.  Wherefore the following

ORDER

The complaint is allowed with cost.  Opposite parties are directed to pay minimum surrender value of 30% i.e. Rs.27,000/ (Rupees Twenty Seven thousand only)with interest at the rate of 8% per annum from the date of complaint till the date of payment to complainant.

2.      Opposite party is also directed to pay a sum of Rs.20,000/ (Rupees Twenty thousand only) towards compensation and another

sum of Rs.5,000/ (Rupees Five thousand only) towards cost of complaint.

3.      Payments shall be made within 30 days from the date of receipt of copy of this order.

Copy of this order as per statutory requirements, be forwarded to the parties free of cost and file shall be consigned to record room.          

     (Page No.1 to 7 directly typed by steno on computer system to the dictation of President revised and pronounced in the open court on this the 24^th June 2017)

             MEMBER                                                 PRESIDENT

      (LAVANYA M. RAI)                        (VISHWESHWARA BHAT D)

D.K. District Consumer Forum                   D.K. District Consumer Forum

           Mangalore                                                        Mangalore

ANNEXURE

Witnesses examined on behalf of the Complainant:

CW1  Mr. Ramachandra Bhat

Documents marked on behalf of the Complainant:

Ex.C1: Copy of Policy Bond

Ex.C2: Letter issued by the complainant dated 10.05.2016

Ex.C3: Legal Notice issued on behalf of the complainant Dated 07.07.2016

Ex.C4: Returned envelop of opposite party No.1

Ex.C5: Postal Acknowledgement of opposite party No.2

Witnesses examined on behalf of the Opposite Parties:

 Nil 

Documents marked on behalf of the Opposite Parties:

 Nil 

Dated: 24.06.2017                    PRESIDENT