ORDER

SRI.H.R. SRINIVAS.  PRESIDENT

1.     This is the Complaint filed by the Complainants against the Opposite Party (herein referred to as OP) under section 35 of the Consumer Protection Act 2019 for the deficiency in service in not sending the cheque in respect of the premium amount paid towards the insurance policy taken and for refund of the said amount along with interest at 18% per annum with cost and for such other reliefs as the Hon’ble District Commission deems fit.

2.     The brief facts of the complaint are that; the complainant purchased insurance for a sum of Rs.5,00,000/- lakhs by paying Rs.1,00,000/- as annual premium from OP-1 through its agent Pragathi Gramina Bank on 01.03.2010. The term of the policy was for15 years. She paid the 2^nd and 3^rd installment on 30.03.2011 and 09.05.2012 and in all she paid a total sum of Rs.3,84,882.34 as per their endorsement and receipt given by the OP towards the premium. She suffered a loss in the business and was in financial crises and could not continue to pay the premium. 

3.     She requested OP to refund the premium paid, for which OP kept on promising and dodging. She made several representation to OP in writing with bank account number and other details. Email communication was also sent. OP issued an endorsement that as discussed with the team, inform to customer that the amount will be refund on 20.02.2020.  OP instead of refunding the amount, has sent an untenable reply dated 12.11.2020 referring  to the cheque dated 24.02.2016 bearing No.305050 for Rs.3,90,660.85 handed over to the complainant and further the said amount was encashed in the account number 60248319971 standing with Bank of Maharastra.  She was not at all having any account in the said bank and the said account number do not belongs to her. There is negligence on the part of OP in not refunding the policy premium paid amount in respect of insurance purchased by her and hence the complaint. 

4.     As per the postal track record notice was served to OP-1, and since OP-1 remained absent, placed exparte. Notice sent to OP.2 and 3 served to the said persons through the postal department as per the acknowledgement received.  The service was held sufficient and they also remained absents and hence placed exparte and hence this complaint has not been challenged by the Ops.

5.     In order to prove the case, complainant has filed her affidavit evidence and produced documents. Arguments Heard. The following points arise for our consideration:-

1) Whether the complainant has proved deficiency in service on the part of the Opposite Parties?

2) Whether the complainant is entitled to the relief prayed for in the complaint?

6.     Our answers to the above points are:-

POINT NO.1 :   In the Affirmative

POINT NO.2 : Partly in the Affirmative.

                        For the following.

REASONS

POINT No.1:-

7.     We have perused the documents produced and also the affidavit evidence adduced. From the documents it becomes clear that the complainant purchased the policy for a sum of Rs.5,00,000/- for a policy terms of 15 years by paying premium for 7 years and the mode of payment was Rs.1,00,000/- per annum.  The address given by the complainant in the policy is wife of Suresh Reddy, Jai Hanuman Agro Foods, Chikkalaparavi Road, Manvi, Raichuru. The insurance document clearly shows that complainant has purchased the insurance agreeing to pay Rs.1,00,000/-  as premium.  She has made a request to the Pragathi Gramina Bank, Manvi requesting the insurance company to refund the policy amount. It is also mentioned therein that, she has not surrendered the policy whereas, the said policy was with her business partner Sri Jai Hanuman Agro foods. When she tried to get a copy of  the policy, she was informed that the said policy was already surrendered in 2016 itself, whereas she did not got the amount credited to her account.  She requested OP-1 to send the amount to her account. There is an endorsement dated 14.02.2020 on the back of  Ex P6 as discussed with the team, they informed the customer that the amount will be refund on 20.02.2020. Ex.P8 is again a letter from the complainant. Ex.P9 is the email correspondence written by OP-2 to the complainant stating that they have sent cheque No.305050 on 24.02.2016 for an amount Rs.3,90,660.90 and the cheque was cleared on May 2016 to the account No.60248319971 with the Bank of Maharastra, Jailakshmipuram, Mysore and the cheque was cleared on 16.05.2016.  

8.     The complainant herself produced the photocopy of the cheques sent as attachment to the said email.  Ex P11 is the copy of the legal notice and P12 is the reply wherein OP has reiterated the said fact regarding the payment of amount through cheque encashed with Bank of Maharastra. 

9.     It is the specific case of the complainant that, she has not received the premium amount, which she has paid the annual premium in respect of the policy purchased by her from OP.1. Though OP-1 has by attachment sent the  copy of the cheque and reiterated that the said cheque was encashed to the account number standing with Bank of Maharastra, Jayalakshmipuram, Mysore, which gives a doubt as to why the said cheque was presented at Mysore when the complainant was residing Chikkalaparavi Road, Manvi, Raichur District.  OP has also not provided the name of the account holder of Account number: 60248319971 standing with Bank of Maharastra, when complainant has clearly stated that the said bank account do not belong to her. 

10.   It ought to have also sent the requisition or request letter regarding surrendering of the policy and letter requesting to return the premium paid after surrender. Those documents have not been provided by OP in order to establish its bona-fideness regarding return of the premiums due to surrender of the policy.  OP-1 might have issued the cheque for Rs.3,84,882.34 upon termination of the policy to some person who is not the complainant.  There is no proof of sending the cheque to the complainant address.  When such being the case, it appears that some mischief has been played by Ops in issuing the cheques and encashing the same. Hence we are of the opinion that, there is deficiency in service in not sending the cheque in respect of surrendering the policy and in payment of the premium amount to the right person i.e. the complainant. Hence we answer POINT NO.1 IN THE AFFIRMATIVE.

POINT No.2:-

11.   Complainant has sought for the payment of the said amount. She has paid the said amount i.e. Rs.3,00,000/- for a period of three years.  Since she has sought for refund of the premium amount on the ground that she is not in a position to continue the policy due to business loss, OP is bound to pay the said amount to the complainant.  For the first time she has sought the refund only in 2019 and not earlier. Hence she is entitle for interest on the said amount at 12% per annum from 27.12.2019  till the payment of the entire amount.  Further OPs are also liable to pay the cost of the litigation which we fix at Rs.5,000/-. It is to be observed  here that in case OP-1 has paid the amount of Rs.3,90,660.90 to the account No.60248319971 through Bank of Maharastra, Jailakshmipuram, Mysore, it is at liberty to recover the same from the said account holder. Hence we answer POINT NO.2 PARTLY IN THE AFFIRMATIVE and pass the following:

ORDER

1. The complaint is partly allowed with cost.

2. OPs No.1 to 3 are jointly and severally hereby directed to pay a sum of Rs.3,00,000/- along with  interest at 12% per annum from 27.12.2019  till the payment of the entire amount

4.        Further OPs are directed to pay a sum of Rs.5,000/- towards litigation expenses.

5.    OPs are hereby directed to comply the above order within 30 days from the date of receipt of this order and submit the compliance report to this commission within 15 days thereafter.

6. Send a copy of this order to both parties free of cost.

Note: You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Commission on this day the 23^rd day of September 2021)

MEMBER                        PRESIDENT

ANNEXURES

1. Witness examined on behalf of the Complainant/s by way of affidavit:

Copies of Documents produced on behalf of Complainant/s:

Ex P1: Copy of the welcome letter issued by OP-4

Ex P2: Copy of the policy schedule

Ex. P3: Copy of the Statement of account with terms and conditions.

Ex P4: Copy of second installment payment record

Ex P5: Copy of third  installment payment record

Ex P6 & P8: Copy of the Letter dated 27.12.2019, 18.01.2020 and 20.06.2020 to OP.

Ex P9: Email correspondences

Ex P10: Letter written by OP

Ex P11: Copy of the legal notice

Ex P12: Copy of the reply.

2. Witness examined on behalf of the Opposite party/s by way of affidavit:

RW-1: - Nil-

Copies of Documents produced on behalf of Opposite Party/s

- Nil -

MEMBER                        PRESIDENT

RAK*