BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMRITSAR.

Consumer Complaint No.264-14

Date of Institution:14-05-2014

Date of Decision:16-03-2015

Joginder kaur wife of Sh.Nahar Singh Sidhu,  resident of 478, Green Avenue, Amritsar.

Complainant

Versus

1. AEGON Religare Life Insurance Company Limited, Unit No.102, First Floor, Nomura, B-Wing, Hiranandani Business Park, Hiranandani, Powai, Mumbai-400076, through its Authorized Signatory/ Person Over all Incharge.
2. Mr.Parveen Kumar, Business Development Manager, AEGON Religare Life Insurance Company Limited, SCO 26, 2^nd Floor, B-Block, District Shopping Complex, Ranjit Avenue, Amritsar.  

Opposite Parties

Complaint under section 11 and 12 of the Consumer Protection Act, 1986 as amended upto date.

Present: For the Complainant: Sh.Sandeep Kumar Sharma, Advocate

              For the Opposite Parties: Sh.Sunil Nayyar, Advocate.

Quorum:

Sh.Bhupinder Singh, President

Ms.Kulwant Kaur Bajwa, Member

Mr.Anoop Sharma, Member  

Order dictated by:

Sh.Bhupinder Singh, President.

1. Present complaint has been filed by Joginder Kaur under the provisions of the Consumer Protection Act alleging therein that she obtained life insurance policy bearing No.101212853028 from the Opposite Parties with commencement date 18.12.2010. Complainant alleges that he had been regularly paying the premium of installments of the said policy annually and lastly, the complainant has paid the amount of policy in the year 2013. At the time of obtaining the policy in question, the Opposite Party No.2 being the Business Development Manager told the complainant that the full term of the said policy is for the period of 16 years and in case, the complainant does not want to continue with said life insurance policy, then the complainant is at liberty to discontinue with such policy and to get release the amount so deposited by the complainant after the expiry of 3 years from the date of commencement of the policy. The complainant does not want to continue with the said life insurance policy and as such, the complainant has requested the Opposite Parties  to release the amount so deposited  in the said policy alongwith its upto date interest, but the Opposite Parties refused to release the said amount to the complainant and also stated that the complainant is not entitled to any amount and rather the complainant is  bound to continue with the said policy for the period of 16 years and if prior to the period of 16 years, the complainant stop making payment of premium then, the policy will be elapsed and the amount so deposited in the said policy will be forfeited.  Alleging the same to be deficiency in service, complaint was filed seeking directions to the opposite parties to release the amount so deposited by the complainant regularly for the period of 3 years alongwith interest @ 18% per annum.  Compensation and litigation expenses were also demanded.
2. On notice, opposite parties appeared and filed written version in which it was submitted that on receipt of the application and required documents, a policy bearing No. 101212853028 was issued on 18.12.2010 on the basis of information provided by the life assured in the said application and believing the same to be true and correct. The policy documents for the aforesaid policy were dispatched  to the life insured on 20.12.2010 vide Blue Dart AWB No.44181107902 and the same had been delivered at his address on 22.12.2010 which were received by one Mr.Balraj. The Opposite Parties  also made a call to the life assured at pre issuance stage to reconfirm the details and terms and conditions of the plan mentioned in the proposal form. During the call, the life assured had also confirmed to the Opposite Parties  that he had signed the proposal form and benefit illustration. A Welcome letter was sent with the said policy and it contained the ‘Free Look Option’. The risk for the said policy was underwritten  and the policy documents have been sent to the complainant on 20.12.2010 vide Blue Dart AWB No.44181107902 and the same has been delivered at his address on 22.12.2010 which was received by one Mr.Balraj. However, the complainant did not avail of the ‘Free Look Option’. The life assured has applied for the said policy only after being completely aware as regards the risks and consequences of the said policy. It is further submitted that the complainant failed to pay the regular renewal premium and accordingly, the policy was lapsed. The complainant as per the policy contract, could have reinstated the policy, within one year from the date of lapse of the policy by paying the requisite premium amount and by providing the certificate of  insurability and by adhering to the underwriting norms of the angering Opposite Party, however the complainant failed to do so and the policy eventually got lapsed on 18.1.2012. But inspite of a right to Free Look the policy, the complainant did not avail of the ‘Free Look Option’ and also failed to pay the renewal premiums and accordingly, the policy lying in a lapsed condition and  such contract is null and void. Therefore, there is no privity of contract between the parties.   While denying and controverting other allegations, dismissal of complaint was prayed.
3. Complainant tendered into evidence his affidavit Ex.C-1 alongwith documents Ex.C2 to Ex.C7 and closed the evidence on behalf of the complainant.
4. Opposite Parties tendered into evidence affidavit of Sh.Jitin Parekh, authorized representative Ex.OP1 alongwith documents Ex.OP2 to Ex.OP4 and closed the evidence on behalf of the Opposite Parties.
5. We have carefully gone through the pleadings of the parties; arguments advanced by the ld.counsel for the parties and have appreciated the evidence produced on record by both the parties with the valuable assistance of the ld.counsel for both the parties.
6. From the record i.e. pleadings of the parties and the evidence produced on record by the parties, it is clear that the complainant got  life insurance policy from the Opposite Parties bearing No.101212853028 with commencement date 18.12.2010. Complainant submitted that  he had been regularly paying the premium of installments of the said policy annually and lastly, he paid the amount of policy in the year 2013. The policy term was for 16 years. The complainant submitted that the Opposite Party No.2 being the Business Development Manager  of Opposite Party No.1 told the complainant that in case, the complainant does not  want to continue with the aforesaid life insurance policy, then the complainant is at liberty to discontinue the policy  and to get release the amount so deposited by the complainant after the expiry of 3 years from the date of commencement of the policy. The complainant did not want to continue with the said life insurance policy, so he  requested the Opposite Parties  that as the period of 3 years has already elapsed, the Opposite Parties  should release the amount so deposited by the complainant alongwith its upto date interest, but the Opposite Parties did not pay any heed to the request of the complainant. Ld.counsel for the complainant  submitted that all this amounts to deficiency of service on the part of the opposite parties.
7. Whereas the case of the opposite parties is that in order to obtain the policy, the complainant submitted application/ proposal form bearing No.EF1198498 dated 14.12.2010 Ex.C6/OP3 in which it has been categorically mentioned in the premium quotation form that the policy is for 16 years, premium payment term is 10 years, amount of premium is Rs.26026/- with premium frequency mode yearly and on the basis of application/ proposal form Ex.OP3, the Opposite Parties  issued policy bearing No. 101212853028 on 18.12.2010. The policy documents were dispatched to the complainant on 20.12.2010 through Blue Dart AWB No.44181107902 and the same had been delivered at the  address of the complainant on 22.12.2010. A Welcome letter was sent with the said policy and it contained the ‘Free Look Option’. The risk for the said policy was underwritten and the policy documents were sent to the complainant on 20.12.2010 vide Blue Dart AWB No.44181107902 and the same had been delivered at his address on 22.12.2010 which was received by one Mr.Balraj. However, the complainant did not avail of the ‘Free Look Option’. Ld.counsel for the opposite party, therefore, submitted that there is no deficiency of service on the part of the opposite parties.
8. From the entire above discussion, we have come to the conclusion that the complainant got  life insurance policy from the Opposite Parties bearing No.101212853028 with commencement date 18.12.2010 by filling in and signing the application/ proposal form Ex.C5 in which it has been categorically mentioned that the policy is for 16 years, premium payment term is 10 years, amount of premium is Rs.26026/- with premium frequency mode yearly. On the basis of application/ proposal form Ex.OP3, the Opposite Parties  issued policy bearing No. 101212853028 on 18.12.2010 which was dispatched to the complainant on 20.12.2010 through Blue Dart AWB No.44181107902  with thanks/ welcome letter Ex.C2. Policy documents Ex.C3 to Ex.C7 were dispatched to the complainant at the given address of the complainant on 22.12.2010 and this fact has been admitted by the complainant in his complaint that he had received the policy documents. Not only this, the complainant has produced policy documents himself in this Forum which are Ex.C2 to Ex.C7. If the complainant was not satisfied with the terms and conditions of the policy, he could have got the policy in question cancelled within free look period of 15 days from the date of receipt of the policy documents, but the complainant did not do so. The complainant did not pay the renewal annual second premium which was due on 7.1.2011 and after the expiry of grace period of one month, the policy lapsed on 8.1.2012. The complainant did not make any effort to get the policy renewed. The complainant has alleged that he paid the premium upto 2013, but he could not produce any receipt regarding the payment of premium in the year 2011, 2012 and 2013. As the policy has elapsed due to non payment of the premium and complainant did not make any effort to get the policy renewed on payment of amount of premium and other charges, so the complainant is not entitled to any  amount. It has been held by the Hon'ble National Commission in case LIC of India & Ors Vs. Siba Prasad Dash (Dr.) & Ors. 2009(1) CLT 131 that where the policy has elapsed for non payment of premium, no efforts made by the complainant to revive the policy, held that fora cannot direct refund of any premium for the simple reason that risk stood covered for the period for which the premium had been paid. The insured cannot be given advantage of risk coverage as also of refund of premium. Same view has been taken by the Hon'ble State Commission of UT Chandigarh in case Deep Singh Vs. HDFC Standard Life Insurance Company Ltd.& Anr 2012(2) CLT 541.
9. Consequently we hold that complainant has failed to prove on record any deficiency of service on the part of the opposite parties.
10. Resultantly the complaint is without merit and the same is hereby dismissed with no order as to costs. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum.

Dated: 16.03.2015.                                                             (Bhupinder Singh)                                                                                                President

hrg                                               (Kulwant Kaur Bajwa)       (Anoop Sharma)

              Member                          Member