Andhra Pradesh

Visakhapatnam-II

CC/62/2012

G. Kameswari - Complainant(s)

Versus

Authorised Signatory - Opp.Party(s)

D. Aruna Kumari

31 Dec 2014

ORDER

Reg.of the Complaint:28-02-2012

                                                                                                                                 Date of Order:31-12-2014

BEFORE THE DISTRICT CONSUMERS FORUM-II

AT VISAKHAPATNAM

                   Present:

1.Sri H.ANANDHA RAO, M.A., L.L.B.,

       President

2.Sri C.V.RAO, M.A., B.L.,

                                             Male Member

3.Smt.K.SAROJA, M.A., B.L.,

       Lady Member

                                            

 

WEDNESDAY, THE 31^ST DAY OF DECEMBER, 2014

CONSUMER CASE NO.62/2012

 

BETWEEN:

SMT.G.KAMESWARI W/O J.L.NARASIMHA,

HINDU, AGED 50 YEARS, R/AT D.NO.39-9-111,

60FEET ROAD, MURALINAGAR, VISAKHAPATNAM.

…COMPLAINANT

AND:

1.SHRI RAM LIFE INSURANCE COMPANY LIMITED,

REP. BY ITS MANAGER, DIVISIONAL OFFICE,

VISAKHAPATNAM, D.NO.1-83-27/1, PLOT NO.MIG 53,

SECTOR-5, MVP DOUBLE ROAD, MVP COLONY,

VISAKHAPATNAM-17.

 

2.MANAGER, REGIONAL OFFICE, D.NO.3-6-478,

III FLOOR, ANAND ESTATES, LIBERTY ROAD,

HIMAYAT NAGAR, HYDERABAD-500029.

…OPPOSITE PARTIES

This case coming on 28-11-2014 for final hearing before us in the presence of SMT.D.ARUNA KUMARI, Advocate for the Complainant and SRI A.VENKAESWARA RAO, Advocate for the OPs, and having stood over till this date for    consideration, this Forum made the following.

 

ORDER

(As per the Honourable Member on behalf of the Bench)

 

1.     The Complainant asks the Forum to pass orders in her favour, and to order the Opposite Parties:

a)     to pay Rs.1,00,000/- with 24% interest p.a., till realization,

b)     to pay Rs.10,000/- towards compensation for mental agony to the complainant,

c)     to pay costs of the complaint; and

d)     to grant such other relief or reliefs as the Forum may deem fit and proper in the circumstances of the case.

2.     The Opposite Parties 1 & 2 strongly resisted the claim of the Complainant and asked the forum to dismiss the complaint with exemplary costs.

3.     The case of the Complainant, as can be seen from the complaint, is that the Complainant is the Policy holder of Sri Plus Policy in Shriram Life Insurance Company Limited, Customer I.D. VENK010795021 and she obtained policy No. LN 10800127841 on 02-12-2008 and date of proposal on 10-11-2008, for sum assured for an amount of Rs.7,50,000/- mode of payment and single premium of Rs.1,00,000/- for a period of 15 years, Proposal No.11870800672, accordingly, the complainant paid an amount of Rs.1,00,000/- of single premium and the policy obtained by the complainant through their agent T.Ganga Raju, who assured that the OP company will give interest, high bonuses and other benefits. On 02-12-2008 the policy was accepted along with the commencement of risk from the same date and the complainant also stated that she selected type “SHRI PLUS” option for investment pattern of the funds for her policy and the said policy was in force and the policy bond was issued to the complainant. The Complainant further stated that due to her necessities she wanted to surrender the policy and enquired the OP NO.1 regarding the repayment of surrender value of the policy, to her astonishment, the OP1 informed that she is entitled to receive only Rs.27,410.59ps. The agent of the OPs promised colorful benefits whereas the OP informed that they would not return even the deposited amount with minimum interest and moreover they informed that they would pay less than ¼ amount after surrendering the policy. The OPs misrepresented the customer with false promises and obtained policies for wrongful gain and cheated the customers successfully. The Complainant further stated that the complainant has made several oral requests to the OPs to pay the policy amount deposited by her with reasonable interest i.e., surrender value of the amount. But the OP-1 did not turn up and she was given surrender form for an amount of Rs.24,420-59ps. Hence, the Complainant filed this complaint against the OPs for redresssal.

4.     The Complainant filed an Evidence Affidavit besides Written Arguments to support her Claim.  Exhibits A-1 & A-2 are marked for the Complainant.

5.     On the Other hand, the Opposite Parties 1 & 2 resisted the claim of the Complainant by contending, as can be seen from their written version, that G.Kameswari i.e., Complainant herein has taken a Life Insurance Policy of “Shri Plus” from the OP-Company bearing No.LN 10800127841 for a sum assured amount of RS.7,50,000/- and the premium amount payable is @Rs.1 lakh on every 2^nd day of December ever year for a period of 15 years and that the Policy Holder has nominated her husband as nominee under the above policy to receive the benefits of policy and as per terms and conditions of policy, the complainant herein has paid Rs.1 Lakh towards initial premium on 10-11-2008 along with the proposal form. Thereafter, the complainant herein has not paid the second year premium which fell due on 2^nd December, 2009 thereby the said policy had turned to lapsed condition. The OPs also averred that as per policy terms and conditions, the policy holder may revive the policy within two years from the date of lapse. Even then also, the policy holder has not availed the revival provision and it is vehemently denied that the said policy was taken for a single premium and the Original proposal form and original policy schedule document clinchingly establish that, the said policy was taken for yearly premium. The OPs  and further stated that as per the conditions of the policy, the amount paid by the complainant towards premium, after deducting the premium allocation charges, the balance will be allocated in the units of Fund as selected by the insured. The premium allocation charges will be 60% of the premium paid in the 1^st year and 5% of the premium that will be paid from the 2^nd year onwards and the units will be allotted as per the NAV  as on the date of payment of premium. After completion of the policy period, the value of the total units (i.e., total units X NAV (net asset value) of the each unit) as on the date of settlement will be paid to the insured. Policy can be surrendered after the end of 3 years from the date of commencement of the policy. Cash surrender value payable depends upon the payment of premiums as under.  The OPs further stated that the complainant herein has approached the OPs in the 4^th year from the date of commencement of policy i.e., in the month of May, 2012 and enquired about surrender value of her said policy, the OPs  herein have given a quotation of surrender request as per letter dated 02-05-2012 and informed that the policy holder i.e., the complainant having 2,358.5849 units and  NAV for one unit is Rs.15.4955 as on 02-05-2012 and on calculation the total value of the policy as on that date was Rs.36,547.45/- and as per the terms and conditions of the policy for surrender  75% of value of units holding under the policy will be paid to her and after deducting 25% on the policy value of Rs.36,547.45/- i.e., Rs.9,136.86ps., the complainant was entitled to receive Rs.27,410.59ps. The OPs further stated that the units value will be changed from time to time, the quotation which was given is in the month of May, 2012. Much against the above facts, the complainant has filed the complaint with misleading and false statements.

6.     The Opposite Parties filed an Affidavit by 2^nd Opposite Party and also Written Arguments to buttress their contention.  No Exhibits are marked for the Opposite Parties.

7.     The matter has been heard on behalf of the Complainant as well as the Opposite Parties.

8.     Now, the point to be determined is whether the Complainant is entitled to the reliefs asked for?

9.     After careful perusal of the case record, particularly, Exhibits A1 and A2, this Forum finds that as per the Policy Schedule Shri Plus, specifically put at “11. Surrender Value”, the OPs are within their right to pay Rs.  27,410.59ps as on 02-05-2012, the date on which the complainant submitted her surrender letter . The Proposal form also shows that she voluntarily subscribed for Shri Plus plan only. As such, she is entitled to receive the said amount of Rs.27,410.59ps only. As such, we find no deficiency of service on the part of the OPs 1 and 2. The costs of the complaint also need not be paid. All the same, the complainant is definitely entitled to receive the surrender value of Rs.27,410.59ps along with 9% interest from the date of her letter with surrender value request i.e., 02-05-2012 till the date of realization.

10.    In the result, this Complaint is partly allowed, directing the OPs 1 and 2 to pay an amount of Rs.27,410.59ps (Rupees twenty seven thousand, four hundred and ten and fifty nine paise only) with interest @ 9% p.a., from 02-05-2012 to till the date of actual realization.

Time for compliance, one month from the date of this order. 

 

Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, on this the 31 day of December, 2014.

 

      Sd/-                                                                     Sd/-                                                                               Sd/-

LADY MEMBER                                 PRESIDENT                                                  M.MEMBER

 

APPENDIX OF EVIDENCE

Exhibits Marked for the Complainants:

Exhibits	Date	Description	Remarks
A-1	02-12-2008	Policy Bond	Original
A-2	14-12-2011	Surrender Form	Original

 

Exhibits Marked for the OPs     -nil-

 

       Sd/-                                                                                        Sd/-                                                                              Sd/-

LADY MEMBER                                 PRESIDENT                                                  M.MEMBER