Tamil Nadu

North Chennai

183/2014

Mr.V.Mukundan,S/o.Veeraraghavan - Complainant(s)

Versus

Aviva Life Insurance, Ashirvad Towers,Rep by its M.D. - Opp.Party(s)

M/s.R.Krishnamurthy

23 Mar 2018

ORDER

 

                                                            Complaint presented on:  10.09.2014

                                                                Order pronounced on:  23.03.2018

 

             DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

                     2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

 

               PRESENT: THIRU.K.JAYABALAN, B.Sc., B.L.,       PRESIDENT

                   THIRU. M.UYIRROLI KANNAN B.B.A., B.L.,      MEMBER - I

 

FRIDAY  THE 23^rd   DAY OF MARCH 2018

 

C.C.NO.183/2014

 

 

Mr.V.Mukundan,

S/o. Veeraragavan,

No.G1, Ranganayaki Apts,

No.5, 7^th Street, Ram Nagar,

Nanganallur,

Chennai – 600 061.

                                                                                    ….. Complainant

 

..Vs..

1.Aviva Life Insurance,

Ashirwad Towers,

Rep by it s M.D.,

Plot No. 2, Old No.182,

3^rd Floor, Kodambakkam High Road,

Nungambakkam,

Chennai – 600 034.

 

2. Aviva Life Insurance,

Aviva Towers,Rep by its M.D.,

Sector Road,Opp Golf Course, DLF – Phase V,

Sector 43, Gurgaon – 122 003,

Haryana.

 

.....Opposite Parties

Date of complaint                                 : 16.09.2014

Counsel for Complainant                      : M/s.R.Krishnamoorthy & V.Kamal

Counsel for Opposite Parties                    : Mrs. Eleveera Ravindran, K.Vinod 

 

 

O R D E R

 

BY PRESIDENT THIRU. K.JAYABALAN B.Sc., B.L.,

          This complaint is filed by the complainant  to direct the opposite parties to refund the sum of Rs.2,25,000/- with interest and compensation for mental agony with cost of the complaint u/s 12 of the Consumer Protection Act.1986.

1.THE COMPLAINT IN BRIEF:

          The complainant was the Account holder in the Canara Bank, Nanganallur Branch, Chennai- 600 061 and the said Canara bank has forced the complainant to take a policy from the opposite parties. So, the complainant has taken a policy from the opposite parties through Canara Bank. His policy No. is LLG1186751, Unit Manager code 1102B, Date of commencement 2.1.06, Sum insured is Rs. 26 lakhs, premium amount Rs. 25,000/- quarterly. The complainant has regularly paid a sum of Rs.2,25,000/- policy amount to the opposite parties. The said Canara bank has withdrawn the agent from the opposite parties because of Aviva losing their advance & irresponsibility to the opposite parties’ customers. Immediately, the complainant has dropped to pay the policy amount to the opposite parties. The complainant has written a letter to the opposite parties & requesting the opposite parties to return back the money which he has paid a sum of Rs. 2,25,000/-.

          2. The opposite parties refused to pay Rs. 2,25,000/- to the complainant & also stating that after 5 yrs only, they will return back the amount to the complainant and now 8 years have passed and the opposite parties refusing to pay committed deficiency in service.  Hence the complainant filed this complaint to direct the opposite parties to refund the sum of Rs.2,25,000/- with interest and compensation for mental agony with cost of the complaint.

3. WRITTEN VERSION OF THE  OPPOSITE PARTIES IN BRIEF:

          The complainant submitted proposal form dated 30.08.2015 for issuance of all insurance policy lifelong unit linked policy.  On the basis of the Proposal Form of the complainant was issued a Life Long Policy bearing policy no. LLG1186751 was issued by the opposite parties commencing from 02/01/2006 for a Sum Assured of Rs.26,00,000/- with quarterly premium of Rs.25,000/- for a payment term as lifelong and the date of last payment is 02/1/2053. At the time of issuance of the policy the complainant was provided with the policy documents consisting of the policy Schedule, the ‘Right to Reconsider’ Notice , a copy of the Proposal Form, the First premium Receipt and the Standard Terms and Conditions (ST&C) of the policy. According to the Right to Reconsider Notice the Policyholder can cancel the policy within fifteen days from the date of receipt of the policy documents.

          4. The complainant had paid premium to the tune of Rs.2,25,000/- and from the third year he failed to pay the quarterly premium. The opposite parties brought the lapse on the part of the complainant to his knowledge. The opposite parties submits that as per the terms and conditions of the policy, which is binding  on both the contracting parties the non- payment of premium will lead to lapse of the policy. The policy had lapsed as early as 03.03.2007. It is submitted that owing to non- payment of premium the policy was terminated on 02.04.2008.

          5. The present complaint is liable to be dismissed since full refund of the premium amount as claimed by the complainant is not possible as per the terms and conditions of the subject policy. It is specifically stated that vide letter dated 03.03.2010, the opposite parties has clearly stated all the reasons for the termination and the complainant is well aware of the same and does not attribute any deficiency on the part of the opposite parties. The other averments made in the complaint are denied. Hence the opposite parties prays to dismiss the complaint with costs.

6. POINTS FOR CONSIDERATION:

          1. Whether there is deficiency in service on the part of the opposite parties?

          2. Whether the complainant is entitled to any relief? If so to what extent?

7. POINT NO :1 

          The admitted facts are that  the complainant taken in the plan Life Long – Unit Linked  Ex.A1 policy  from the opposite parties through Canara Bank agreeing to pay a premium amount of Rs.25,000/- per quarter and the  sum assured is Rs.26,00,000/- and the commencement of the policy was on 02.01.2006 and final installments is on 02.01.2053 and the complainant has  paid a sum of Rs.2,25,000/- towards policy amount to the opposite parties regularly and thereafter he did not pay the policy amount.

          8. According to the complainant he had availed the said policy through his Canara Bank, Naganallur Branch and the said Canara Bank withdrawn their agent from the opposite parties and hence the complainant stopped the payment of policy amount to the opposite parties and thereafter the complainant wrote Ex.A2 letter to return the policy amount paid by him and however, the opposite parties gave Ex.A3 reply their inability to refund the policy amount as per the contract and thereafter the complainant issued Ex.A6 notice and the opposite parties gave Ex.A7 reply to his notice and failure to refund the premium amount paid by him is deficiency on the part of the opposite parties and hence he has filed this complaint.

9. The opposite parties would contend that the policy holder is entitled to surrender the policy only after full payment of premium for three years and the complainant has not paid the premium for three years and further the complainant has not surrendered the policy and he stopped  paying the premium after 9^th quarter premium and therefore, the complainant is not entitled  for any benefit as per the illustration annexed at page 3 of Ex.A1 and hence the opposite parties has not committed any deficiency in service.

10. As per illustration at page 3 of Ex.A1 after payment three annual premium (each annual premium one lakh), on surrendering the policy, the policy holder is entitled for the benefit of Rs.1,08,638/-. The policy holder will get this amount after payment of premium for three fully years. In this case, the complainant paid premium for two full years and only one quarter in the third year. Hence the complainant has not paid premium for three full years he will not get any benefit as per the above referred illustration. Further, only on surrendering the policy, the policy holder will get benefit. This complainant has not surrendered his policy and on the other hand he has given up his policy by not paying premium and the same was lapsed and the opposite party also terminated the policy. Hence, the opposite parties failed to accept the request of the complainant and also not refunded the premium paid by the complainant cannot be termed as deficiency and we hold that the opposite parties have not committed any deficiency in service to the complainant.

11. POINT NO:2

Since the Opposite Parties have not committed any Deficiency in Service, the Complainant is not entitled for any relief and the Complaint is liable to be dismissed.

          In the result the Complaint is dismissed. No costs.

          Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 23^rd day of March 2018.

 

MEMBER – I                                                                PRESIDENT

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1 dated 02.01.2006                   Insurance policy

 

Ex.A2 dated NIL                     Mukundan’s representation to Aviva Life

                                                    Insurance

 

Ex.A3 dated 03.03.2010                   Aviva’s reply letter

 

Ex.A4 dated NIL                     Premium receipts

 

Ex.A5 dated 22.04.2010                   Statement from Aviva Life Insurance

 

Ex.A6 dated 01.07.2014                   Legal Notice

 

Ex.A7 dated 31.07.2014                   Reply notice by Aviva Advocates

 

 

 

 

LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTIES :

 

Ex.B1 dated NIL                     Terms and condition of the policy

 

 

MEMBER – I                                                               PRESIDENT