CONSUMER DISPUTES REDRESSAL FORUM    PALAKKAD

Dated this the 16^th day of  September 2014

PRESENT: SMT.SEENA. H, PRESIDENT

                : SMT. SHINY. P.R, MEMBER

                : SMT.SUMA. K.P, MEMBER                        Date  of filing :  15/05/2014

                                                CC / 69 / 2014

P.Hassainar,

Rtd.Joint Labour Commissioner,

Blue Moon, Parokkode,                                            :        Complainant

Kalladikode P.O, Palakkad Dt. Pin-678 596

(By party in person)

                                                                   Vs

1.  The Authorised Signatory,

     M/s.Max New York Life Insurance Co. Ltd.,

     Operation Centre 90A Sector,

     Udyog Vihar, Gurgaov,Hariyana-122 015

2. The Authorised Signatory,

     M/s.Max New York Life Insurance Co. Ltd.,

     Branch Office, S.B.T.Building,                                      :        Opposite parties

     Koppam, Palakkad

      (By Adv.P.Valsala)

O R D E R

BY SMT. SEENA.H,  PRESIDENT

Complaint in brief:

          Complainant was enrolled into small Assure (UNIT linked non-participating) Policy of M/s.Max Life Insurance Company Limited by Mr.Sudersanan then Sales Manager of Palakkad Branch on 24/11/2009.  He determined the type of policy, Mode of payment, Sum assured and did all paper works in connection with the admission to the fund.  Assured amount Rs.2,00,000/-, Annual Target Premium Rs.20,000/- and date of premium payment 24^th November of every year, with a grace period of 30 days (under section 15 of the Agreement conditions) being Annual Payment.  The first premium of Rs.20,000/- was paid on 24/11/2009 by D.D. obtained from M/s.Vijaya Bank, Karimba Branch from where the complainant draw his monthly pension. The Sales Manager did not explain to the complainant the different aspects of the Policy and Salient features of the fund.

          Complainant could not remit the 2^nd Annual Premium in time.  The company declared his policy as a captioned one and fixed surrender amount at Rs.2,295-39 unilaterally.  Complainant did not give any application to the company to sanction surrender amount, but only enquired about the quantum of surrender amount allowable.  There is no provision in the Policy Agreement as to declaring a policy as captioned one, if the payment of premium was delayed.  Complainant paid the 2^nd installment on 07/03/2011.  There was a delay of 2 months and 14 days in the payment of 2^nd installment.  By the time of remittance of Premium on 07/03/2011, complainant have received three letters from the company stating that the policy has been lapsed and in order to revive the same to remit the amount by return post. 

          As per letter dated 21/07/2013, the company informed him that the fund value of his policy has been reduced substantially due to non –receipt of premium payment since 24^th November, 2012.  The current cash surrender value  of the policy was fixed at Rs.23,983-67ps.  The date of premium payment is 24^th November of every year.  Complainant is entitled to grace period of 30 days to remit the premium from 24/11/2012 being Annual payment.  Complainant remitted the amount on 19/12/2012.  So there is no lapse in payment of Premium amount due on 24/11/2012.  The next date of premium payment is 23/12/2013.  Therefore the company cannot expect any amount during the period from 24/12/2012 to 23/12/2013.  So the contention of the company that no premium payment was received since 24^th November, 2012 and hence the fund value of the policy has been reduced substantially could not be admitted and it is quite contrary to agreement conditions and facts.  Complainant informed the company of the fact in letter dated 30/09/2013 by E-mail.  But no response till date.  Complainant therefore decided to desist from continuing the policy with M/s.Max Life Insurance Company Limited and informed the decision in letter dated 13/12/2013 and requested the company to return the amount deposited with company as on 24^th November, 2013, i.e., Rs.80,000/-.  But the company paid only Rs.20,028-91 ps through cheque being the refund against the devaluation of fund value along with their letter dated 3/1/2014.

          Complainant submitted grievances to Grievances Cell Centre.  But nothing is heard from the above authority till date.  Complainant prays an order to directing opposite party for the refund of balance amount of Rs.59,971-00 with 10% annual interest from the date of enrollment and compensation of Rs.20,000/-.

          Though opposite parties entered appearance neither version nor affidavit was filed on their part.  The evidence adduced by the parties consists of the chief affidavit and Ext.A1 to A9 documents.

Now the Issues for consideration are

1. Whether there is any deficiency in service on the part of opposite parties?
2. If so, what is the relief and cost?

Issues 1 & 2

          That the complainant has availed the policy from opposite parties and premium was paid on the various dates mentioned in the complaint etc                   is born out by Ext.A1 to A9 documents.  As per the terms and conditions of the policy, complainant is also entitled for a grace period of 30 days from the date of payment of Annual target premium. Since opposite parties has not filed any affidavit, there is no evidence contrary to the one adduced by the complainant.  The act of opposite parties amounts to deficiency in service on their part.

          In view of the above discussion we allow the complaint and order the following.  Opposite parties jointly and severally directed to pay complainant an amount of Rs.69,971/-(Rupees Sixty Nine Thousand Nine Hundred and Seventy only) as compensation for the deficiency in service along with Rs.1,000/- (Rupees One thousand only) as cost of the proceeding.

Pronounced in the open court on this the 16^th day of September 2014

        Sd/-

                                                                                    Smt. Seena. H

                                                                       President

        Sd/-

                                                                   Smt. Shiny. P.R

                                                                        Member

        Sd/-

                                                                   Smt. Suma. K.P

                                                                         Member

Exhibits marked on the side of complainant

Ext.A1 - Proposal Form of Max New York Life Insurance Co.Ltd.

Ext.A2 - Continuation of Proposal Form of Max New York Life Insurance Co.Ltd.

Ext.A3 -  Declaration of Proposal Form of Max New York Life Insurance Co.Ltd

Ext.A4 - Letter about Devaluation of fund value to the complainant dtd.21/07/2013

Ext.A5 - Policy details of Max New York Life Insurance Co.Ltd.

Ext.A6 -  Cheque of Vijaya Bank No,682177 Rs.20,000/-

Ext.A7 – Vijaya Bank Transactions

Ext.A8- General Conditions of Policy

Ext.A9- General Conditions of Policy

Exhibits marked on the side of opposite parties

Nil     

Witness examined on the side of complainant

Nil

Witness examined on the side of opposite parties

Nil

Cost allowed

Rs.1000/-(Rupees One Thousand only)