Before the District Consumer Disputes Redressal Forum, Amritsar.
Complaint No.550-14
Date of institution : 17.10.2014
Date of decision : 24.7.2015
Avtar Singh son of Sh.Parkash Singh, resident of House No.94, Kapoor Nagar, Gali No.2 Wala Bazar, Amritsar.
..............Complainant
Versus
Aegon Religare Life Insurance Company Limited, Nomura, B-Wing First Floor, Unit No.102, Near D Mart, Hiranandani Business Park, Hiranandani Garden, Powai, Mumbai – 400076.
Aegon Religare Life Insurance Company Limited, through is Branch Manager, District Shopping Centre, Ranjit Avenue, Amritsar.
...............Opposite parties
Complaint under section 12 & 13 of the Consumer Protection Act
Present : For the complainant : Sh.Rajiv Sharma , Advocate
For the opposite parties : Sh.Sahil Sharma, Advocate
QUORUM : Sh.Bhupinder Singh, President, Sh.Anoop Sharma, Member and Ms.Kulwant Kaur Bajwa, Member
Order Dictated by :
Sh.Bhupinder Singh, President
Present complaint has been filed by Sh.Avtar Singh under the provisions of Consumer Protection Act alleging therein that the complainant purchased insurance policy from the opposite party and paid a sum of Rs.20000/- through cheque No.485801 dated 24.1.2011 drawn on Oriental Bank of Commerce, Sharifpura Branch, Amritsar which was duly encashed by the opposite party. It was alleged by the complainant that he has not received the insurance policy despite the assurance given by the opposite
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party at the time of obtaining the policy that policy will be delivered through post within a period of one year. Complainant made so many requests to the opposite party to issue insurance policy but the opposite party did not pay any heed to the request of the complainant. The complainant also served a legal notice dated 28.5.2014. While alleging deficiency in service on the part of the opposite party, complainant has filed the present complaint seeking directions to the opposite party to refund back the amount of Rs.20000/- along with interest. He also demanded compensation of Rs.50000/- alongwith litigation expenses of Rs.5000/-.
On notice, opposite party appeared and filed written version in which it was submitted that the complainant has availed two insurance policies bearing Nos..100812088792 dated 9.8.2010 and 110112949674 dated 9.2.2011. The complainant had requested the opposite parties to cancel the insurance policy bearing No.110112949674 within free look period and subsequently, the opposite parties cancelled the policy. The opposite parties sent a cheque bearing No.19992 for Rs. 19915/- and same was received by the complainant on 8.3.2011. Therefore, opposite parties have discharge their liability for the policy No. 110112949674. It was submitted that opposite parties as per clause 4(1) of the Insurance Regulatory and Development Authority Regulations 2002, a copy of the proposal form bearing No. 100812088792 was sent to the policy holder alongwith the policy documents thereby giving an opportunity to the policy holders to re-examine the replies made by him in the proposal form. In the present case as well, a copy of the proposal form alongwith the policy documents were directly collected by the complainant on 20.10.2010 from the Branch office. After receiving the policy documents, the complainant never approached the opposite party for cancellation of the policy within
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free look period. It is only on 3.5.2012, when the opposite parties received request for cancellation of the policy bearing No. 100812088792 which is not within free look period. Therefore, opposite parties are not liable to cancel the said policy as per terms and conditions of the policy in question. Opposite parties have duly conveyed the same vide letter dated 12.5.2012 to the complainant. While denying and controverting other allegations, opposite parties have prayed for the dismissal of the complaint.
Complainant tendered his duly sworn affidavit ex.C-1, copy of legal notice dated 28.5.2014 ex.C-2, postal receipts ex.C-3 & ex.C-4, copy of letter dt.14.10.2014 issued by the bank to the complainant ex.C-5,
Opposite parties tendered affidavit of Sh.Jatin Parekh ex.OP1,2/1, copy of proposal form ex.OP1,2/2, copy of letter alongwith policy documents ex.OP1,2/3, copy of proposal form ex.OP1,2/4, copy of letter alongwith policy documents ex.OP1,2/5, copy of letter dt.24.2.2011 ex.OP1,2/6, copy of letter dated 12.5.2012 ex.OP1,2/7.
We have carefully gone through the pleadings of the parties, arguments advanced by the 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.
From the record i.e.pleadings of the parties and the evidence produced on record by both the parties, it is clear that the complainant obtained insurance policy from the opposite party by making payment of premium of Rs.20000/- through cheque No.485801 dated 24.1.2011 drawn on Oriental Bank of Commerce, Sharifpura, Amritsar. Complainant has submitted that opposite party did not issue the insurance policy despite so many requests made by the complainant. Complainant also served legal
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notice dated 28.5.2014 ex.C-2 to the opposite party but the opposite party did not issue the policy. Complainant has requested to the opposite party to refund back the amount to the complainant but the opposite party did not pay any heed to the request of the complainant. Ld.counsel for the complainant submitted that all this shows deficiency of service on the part of the opposite party qua the complainant.
Whereas case of the opposite party is that complainant has availed two insurance policies i.e.policy No.100812088792 dated 9.8.2010 and policy No.110112949674 dated 9.2.2011. Complainant filled in and signed proposal forms ex.OP1,2/2 and OP1,2/4 on the basis of which opposite party issued the aforesaid policies to the complainant which were duly received by the complainant against acknowledgement duly signed by the complainant personally. Complainant requested for cancellation of the policy No.110112949674 within free look period. Resultantly, opposite party cancelled the said policy and refunded the amount of premium vide letter dated 24.22011 ex.OP1,2/5. So, there is no dispute regarding the said policy. Complainant received the second policy bearing No. 100812088792 vide acknowledgement ex.OP1,2/6 under his own signature but he did not apply for cancellation of the policy within free look period nor he ever applied for cancellation of the policy. So, the complainant is not entitled to refund of the premium amount from the opposite party. Ld.counsel for the opposite party further submitted that policy in question obtained by the complainant is Unit Linked Insurance Plan and complainant himself has invested his entire amount of premium in open market in the form of balanced fund i.e. in the form of shares in open market to gain profit i.e. speculative gain as is evident from the proposal form itself ex.OP1,2/2. It has been openly stated that it is a Unit Linked Insurance Plan. So, this
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Forum has no jurisdiction to try and decide this complaint as the complainant does not fall within the definition of Consumer.
From the entire above discussion, we have come to the conclusion that complainant obtained two insurance policies from the opposite party i.e.policy No.100812088792 dated 9.8.2010 and policy No.110112949674 dated 9.2.2011. Complainant received both the policies. However, complainant got one of the policy bearing No. 110112949674 cancelled within free look period and opposite party cancelled the said policy and refunded the premium amount to the complainant vide letter ex.OP1,2/5. With regard to the second policy bearing No.100812088792, complainant received the policy documents from the opposite party vide acknowledgement receipt dated 20.10.2010 ex.OP1,2/6. Complainant never challenged this acknowledgement receipt. Apart from this, to get this policy, complainant filled in and signed proposal form ex.OP1,2/2 on the basis of which opposite party had issued policy to the complainant. In this proposal form, complainant himself has admitted that it is a Unit Linked Plan and he invested the entire amount of premium i.e.100% in balanced fund i.e.he invested the entire amount in the form of shares in open market just to gain profit. It is also clearly written in the proposal form that investment risk in the investment portfolio is borne by the policy holder. So, it stands fully proved on record that complainant obtained this policy to earn speculative gain i.e.for commercial purpose. It has been held by the Hon'ble National Commission in Revision Petition No.658 of 2012 titled as Ram Lal Aggarwalla Vs. Bajaj Allianz Life Insurance Company Limited and others decided on 23.4.2013 that where the investment made by the petitioner/complainant in Unit Linked Insurance Policies to gain profit, it was invested for commercial purposes and therefore, the
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petitioner/complainant is not a consumer of the opposite party. Hon'ble State
Commission, Orisha in First Appeal No.162 of 2010 in case Smt.Abanti Kumari Sahoo Versus Bajaj Allianz Life Insurance Company Limited has held that the money of the petitioner/complainant invested in the share market is no doubt a speculative gain and the speculative investment matter does not come under the Consumer Protection Act.
Similar are the facts of the present case as the complainant has directed the opposite party to invest his entire amount of premium in the share market to gain profit. Investment in the share market is no doubt a speculative gain and the speculative investment matter does not come under the Consumer Protection Act.
Resultantly, we hold that the present complainant is not a consumer of the opposite party, as such, the complaint is not maintainable in this Fora. Therefore, it is ordered that the complaint be returned to the complainant to file the same before the appropriate Court/Forum having proper jurisdiction. Keeping in view the peculiar circumstances of the case, parties are left to bear their own costs. Copies of the orders be furnished to the parties free of costs. File is ordered to be consigned to the record room.
24.7.2015 ( Bhupinder Singh )
President
( Anoop Sharma ) ( Kulwant Kaur Bajwa )
Member Member
