Haryana

Ambala

CC/97/2011

RAVINDER SINGH - Complainant(s)

Versus

AVIVA LIFE INSS. - Opp.Party(s)

B.S.GARG

21 Oct 2016

ORDER

         BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

 

             Complaint Case No.    : 97 of 2011

Date of Institution       : 18.03.2011

            Date of Decision         : 21.10.2016

 

Ravinder Singh S/o Sardar Dalip Singh R/o 6/83, Baldev Nagar, Ambala City.                                                                                               

                                                                                                                                             ……Complainant.

                                                                            Versus

1.         Aviva Life Insurance co. India Ltd. Aviva Tower, Sector Road Opp. Gold Course, DLF-Phase-V Sector-43, Gurgaon.

2.         Aviva Life Insurance Co. India Ltd. Regd. Office 2^nd Fllor, Parkash Deep Building, Tolstoy Marg, New Delhi-110001.

3.         Aviva Life Insurance Co. India ltd. through its Branch Manager, Ist Floor, Kedar Nath Building, Nichloson Road, Ambala Cantt.

                                                                                                ……Opposite Party.

Complaint Under Section 12 of the Consumer Protection Act

BEFORE:       SH. D.N. ARORA,  PRESIDENT.

                        SH. PUSHPENDER KUMAR, MEMBER.                       

Present:          Sh. B.S. Garg, Adv. counsel for complainant.

                        Ops exparte vide order dated 19.09.2016.

ORDER.

                        In nutshell, brief facts of the complaint are that complainant took Aviva Life Insurance Policy in the year 2008 from Op No.3 vide policy No.ELP1873544.  It has been alleged that at the time of taking policy, it was assured by Op No.3 as well as agent Sh. Rajnish Sharma that the policy is for three years plus and after the commencement, the complainant was given option to withdraw his whole amount  with  interest. Accordingly, the complainant deposited a sum of Rs.25,000/- yearly commencing from 19.02.2008 and its maturity date was stated to be three years with the option to continue the same for another three years and so on and upto 15 years.  In this way, complainant deposited three installments  and thus a sum of Rs.75,000/- deposited with the respondent. After receiving the policy, complainant made a complaint to the Ops on toll free number that the policy in question is not the same which was assured to the complainant by the Ops.  So, complainant visited the office of Op No.3 and asked them to release his money as he requires money for his business and ailment but the Op linger on the matter on one pretext or the other.  Complainant has contended that now Op are ready to return only Rs.32,000/- and they will  not pay Rs.75,000 /-  or interest.  Thus the complainant has prayed that the act of the Op amounts to  deficiency in service and fraud and thereby complainant suffered a lot of pain & sufferings. Hence, the present complaint.

2.                     Upon notice, Ops appeared through counsel and tendered reply to the complaint raising preliminary objections qua non-maintainability of complaint. On merits, it has been submitted that  as per the proposal form, the product demanded by the complainant was ‘Easy Life Plus’ plan with an annual premium of Rs.25,000/- per annum for a policy term of 15 years and the sum assured sought was Rs.2,50,000/-.  Furthermore, all policy features like the policy tenure, premium payment tenure etc. have been extracted from the proposal form and has been effected in the policy, which was also mentioned on the policy schedule provided to the complainant  alongwith the policy.  Further it is submitted that if the complainant was not satisfied with the terms & conditions under the said policy, he could have got the same cancelled within the free-look period of 15 days from the date of delivery of the said policy.  It has been denied that the OP vide letter dated 31.01.2011 declined the request of the complainant as the all policy features like the policy tenure being 15 years, premium payment amount etc. have been extracted from the proposal form and have been effected in the policy as per the Proposal Form which was also mentioned on the policy schedule provided to the complainant alongwith the policy.  If the complainant was not satisfied with the terms & conditions under the said policy, he could have got the same cancelled within the free-look period of 15 days from the date of delivery of the said policy to him.  Further it has been denied that the complainant shall not be entitled to surrender value paid under the said policy which shall be calculated as per the terms & conditions  of Article 10 of the said policy.  It has been submitted that the complainant is not entitled to refund of the premiums amounting to Rs.75,000/- under the said policy as the refund of the premiums under the said policy can only be made if the issued policy is cancelled. However, the complainant has already paid the premiums for three terms and the said policy cannot be cancelled at this later stage when he has already availed the benefit for three years.  Furthermore, it is submitted that under the surrender clause the complainant will not be entitled to refund of the premiums paid under said policy. It has been urged that the policy terms & conditions are drawn as per the guidelines laid down by the IRDA and before issuance to the general public, each policy format is approved by the IRDA to ensure that the same is in line with the guidelines for protection of interest of policyholders.  As such, a prayer for dismissal of complaint with cost has been made.

3.                     To prove his version, complainant tendered affidavit of complainant as Annexure CW1/A  alongwith documents as Annexures C1 to C-6 and closed the evidence whereas on the other hand, counsel for Ops  tendered affidavit Anenxures RX alongwith documents as Annexures R-1  to R-5 and closed evidence. It is pertinent to mention here that  when the case was fixed for arguments, OP did not appear on 19.09.2016 in-spite of waiting sufficient time. As such,  they were proceeded against exparte vide order dated 19.09.2016.

4.                     We have heard learned counsel for complainant and gone through the case file very carefully. The grievance of complainant is that he deposited Rs.75,000/- with the Op under the policy in question but at the time of withdrawal of the policy OP, paid  him a sum of Rs.29,689/- which were taken by him under protest while  the fund value of  the policy on the date of termination i.e. 26.02.2013 was Rs.67753/-.  

                        On the other hand, counsel for complainant argued that as per terms & conditions of the policy ‘Easy Life Plus’,  they have paid a sum of Rs.29,689/- to the complainant after deducting Rs.33877/- as Surrender Penalty out of Rs.67,753/- Fund Value. Counsel for OP argued that complainant has not paid premium since 19.02.2011 and the date of expiry of renewal period was 19.02.2013, so, the OP considered  to terminate the policy and refund the cash value (surrender value). 

5.                     After hearing learned counsel for the parties and going through the recover very minutely.  At the very outset, it is not disputed that a sum of Rs.75,000/- has been deposited by complainant with the OP under policy ‘Easy Life Plan’  vide Annexures C-1, C-5 & C-6. Counsel for complainant drawn our attention towards  document Annexure R-3 Standard Terms & conditions of  the policy Article 10 Surrender Value:-

“10.1  Subject to Article 13, with effect from the commencement of the fourth policy year, the policy holder is entitled to receive a surrender value upon the termination of this policy for any reason (other than death or Accidental Permanent Total Disability of the insured not excluded under Article 9 above), provided that Regular Premiums have been paid for at least two full policy years.  

10.2    The surrender value is equal to the value of all initial units at the date of surrender less the Surrender Charge on initial units as specified in the Schedule Plus the value of all Accumulation units at the date of surrender less the surrender charge on accumulation units as specified in the schedule”.

                        Counsel for complainant during the course of arguments has placed on record document ‘Termination of Policy’ dated 26.02.2013  wherein ‘Total Premium paid till date i.e. 26.02.2013 has been shown as Rs.75,000/- and fund value as on date of termination as Rs.67753/- but the surrender penalty (including taxes) have been charged as Rs.33877/- and  Surrender  Amount of Rs.29,689/- has been shown in view of the above letter which has been received by the complainant under protest vide letter dated  11.03.2013 during the pendency of the case.

6.                     In view of the above discussion, we have come to the conclusion that  the Op has wrongly deducted Rs.33877/- as Surrender Penalty (including taxes) from the fund value of Rs.67753/- which is not justified and is tantamount to unfair trade practice on the part of the Ops. Accordingly, we allow the present complaint and direct the Ops to comply with the following directions within thirty days from the date of receipt of copy of the order:-

(i)        To pay a sum of Rs.33,877/- to the complainant alongwith interest @ 9% per annum from 27.02.2013 till actual realization of the amount.

(ii)       Also to pay a sum of Rs.2000/- on account of harassment, mental & physical agony and cost of litigation.

                        Copies of the order be sent to the parties concerned, as per rules.  File be consigned to the record room after due compliance.

 

ANNOUNCED ON:  21.10.2016                                                        Sd/-

                                                                                                   (D.N. ARORA)

                                 PRESIDENT                

 

                                                                                                                Sd/-

                    (PUSHPENDER KUMAR)

                                                                                                            MEMBER