Punjab

Faridkot

CC/19/36

Gurjit Kaur - Complainant(s)

Versus

AVIVA Life Insurance Branch Office - Opp.Party(s)

Ashu Mittal

30 Jul 2019

ORDER

   DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, FARIDKOT

 

Complaint No. :      36 of 2019

Date of Institution:  08.02.2019

Date of Decision :   30.07.2019

 

Gurjit Kaur aged about 66 years w/o Kartar Singh r/o Harie Wala, Tehsil and District Faridkot.

...Complainant

Versus

1. Aviva Life Insurance, Branch Office Goniana Road, Hanuman Chowk, Bathinda through its Branch Manager.
2. Aviva Life Insurance, 5^th Floor, JMD Regent Square, Gurgaon-Mehrauli Road, Gurgaon (Haryana)-122001 through its MD.

.....OPs

Complaint under Section 12 of the

Consumer Protection Act, 1986.

 

Quorum: Sh. Ajit Aggarwal, President,

                Smt Param Pal Kaur, Member.

 

Present: Sh Ashu Mittal, Ld Counsel for complainant,

              Sh Harpartap Singh Sandhu, Ld Counsel for OPs.

 

ORDER

 (Ajit Aggarwal, President)

                                                Complainant has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 against OPs seeking directions to OPs to refund the amount of Rs.90,000/- deposited with Ops alongwith interest and for further

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directing OPs to pay Rs.50,000/- as compensation for harassment, inconvenience, mental agony besides litigation expenses.

2                                          Briefly stated, the case of the complainant is that in March,  2007 on persuasion by agent of Insurance Company OP-1 and OP-2, complainant purchased the insurance policy bearing no.WLG15555104 dated 8.05.2007 from OPs. At the time of purchase, complainant was told that she was to pay minimum ten instalments and insurance benefit of Rs.1,00,000/-would be given to nominees in case of any mishappening , otherwise after three years, she would be entitled to withdraw the entire amount of premiums alongwith 12% interest from the date of depositing the instalment till realization. Complainant paid first premium instalment worth Rs.10,000/- to OPs on 8.05.2007 and kept paying Rs.10,000/- every year to OPs till 2015 and in this way deposited Rs.90,000/-with them till 2015. Ops closed their branch office at Faridkot and complainant also lost her policy, but OPs neither sent any message or letter to her nor issued any letter regarding depositing the instalment of policy or about lapse of her policy. Complainant found her insurance policy in December, 2018 and she immediately, approached Ops and requested to refund the amount deposited by her with them on account of insurance premiums alongwith interest, but Ops flatly refused to pay any amount saying her policy has lapsed and there is no rule to pay back the amount deposited and asked her to continue the policy till 2037. It is submitted that at the time of issuance of Policy, OPs did not disclose any terms and conditions  and even at the time of

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purchase of said policy, age of complainant was 55 and now, it is not possible for her to continue the said policy till 2037. Despite repeated requests by complainant, Ops did not refund the amount deposited by her on account of insurance premiums for a long period of 9 years and action of Opposite Parties in not refunding the amount deposited by complainant amounts to deficiency in service and trade mal practice on their part. Complainant has prayed for directing Ops to refund the amount deposited with Ops alongwith interest and for further directing them to pay Rs.50,000/- as compensation for harassment, inconvenience, mental agony besides litigation expenses. Hence, the present complaint.

3                                                  The counsel for complainant was heard with regard to admission of the complaint and vide order dated 12.02.2019, complaint was admitted and notice was ordered to be issued to the opposite party.

4                                             OPs No. 1 and 2 filed written statement taking preliminary objections that complaint is not maintainable in the present form and is liable to be dismissed as complainant has tried to misguide and mislead the Hon’ble Forum and no cause of action arises against answering Ops. Present complaint is filed on the basis of false and frivolous allegations and it is an abuse of process of law and is not maintainable in present form. Complainant has not come to this Forum with clean hands and has concealed the material facts. Moreover, answering OPs floated the insurance scheme as per instructions of IRDA

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and there is no deficiency in service on the part of OPs and complainant is stopped by his own act and conduct to file the present complaint. However, on merits, Ops have denied all the allegations levelled by complainant being wrong and incorrect and asserted that OPs issued the policy in question to complainant only on receipt of proposal form duly signed by complainant. OPs stressed mainly on the point that complainant purchased the policy in question after fully understanding all the terms and conditions related to policy and herself opted to pay Rs.10,000/- as yearly premium for sum assured of Rs.1,00,000/- and when policy was despatched to her, complainant was given 15  days free look period to go through and check all the terms and conditions and during that free look period, but complainant did not raise any objection till 2015 for a continuous period of nine years. OPs averred that policy of complainant terminated on 8.05.2018 and cheque worth Rs.86,613/-towards surrender value was sent to her at her registered address on 18.05.2018 vide speed post but same was returned back due to incomplete address and thus there is no deficiency in service on their part. Ld counsel for OPs brought before the Forum that insured opted a Unit Linked Plan and herself paid regular premium against the policy till 2015 and thereafter she did not pay the requisite premium and therefore, her policy was lapsed due to non payment of requisite premium as per terms and conditions of the policy. Moreover, complainant opted to pay the premium regularly till 2037 and therefore, she is bound to pay the premium regularly for this period. Answering

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OPs are ready to pay the surrender value of the policy in question as per terms and conditions of the policy. All the other allegations levelled by complainant are false and frivolous. It is further averred that complainant is entitled only to obtain surrender value as per terms and conditions of the policy and not the refund for amount deposited. It is reiterated that there is no deficiency in service on the part of OPs No. 1 and 2 and prayed for dismissal of complaint with costs.

5                                                           Parties were given proper opportunities to prove their respective case. Counsel for complainant tendered in evidence affidavit of complainant Ex.C-1 and documents Ex C-2 to C-13 and then, closed his evidence.

6                                                In order to rebut the evidence of the complainant, ld counsel for OPs -1 and 2 tendered in evidence, affidavit of Ratnesh Keshri as Ex R-1/A and documents Ex R-1 to R-3 and then, closed the same on behalf of OP-1 and 2.

7                                                We have heard the ld counsel for complainant as well as OPs and have carefully gone through the evidence and documents placed on record by respective parties.

8                                                From the careful perusal of record, pleadings of the parties and evidence and documents placed on record by respective parties, it is observed that case of the complainant is that on persuasion of agent of Insurance Company, complainant purchased the insurance policy from OPs. At the time of purchase, it was assured that

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insurance benefit of Rs.1,00,000/-would be given to nominees in case of any mishappening, otherwise after three years, she would be entitled to withdraw the entire amount of premiums alongwith 12% interest from the date of depositing the instalment till realization. She paid first premium of Rs.10,000/- on 8.05.2007 and kept paying premiums annually till 2015 and in this way deposited Rs.90,000/-with them. Ops closed their office at Faridkot and complainant also lost her policy, but OPs never informed her regarding depositing the instalment of policy or about its being lapsed. Complainant found her policy in December, 2018 and she approached Ops and requested to the refund the amount of insurance premiums alongwith interest, but Ops refused to pay anything on the ground that there is no rule to pay back the amount deposited and asked her to continue the policy till 2037. At the time of issuance of Policy, OPs did not disclose any terms and conditions  and even at that time, age of complainant was 55 and now, it is not possible for her to continue the said policy till 2037.  Grievance of the complainant is that in spite of repeated requests by complainant, Ops have not refunded Rs.90,000/-deposited by her with OPs on account of insurance premiums for a long period of 9 years, which amounts to deficiency in service and trade mal practice on their part. On the other hand plea taken by OPs is that complainant has herself opted to purchase the said policy after clearly understanding all the terms and conditions of the same and she was not persuaded by anyone to purchase the same. She has violated the terms and conditions of policy and as per rules and regulations of policy

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in question, nothing is payable to her before 2037. As per OPs,  policy of complainant terminated on 8.05.2018 and cheque amounting to Rs.86,613/-towards surrender value was sent to her at her registered address on 18.05.2018 vide speed post but same was returned back due to incomplete address and therefore, there is no deficiency in service on their part. It is admitted that complainant paid regular premiums against the policy from 2007 to 2015 and thereafter she did not pay the requisite premium and therefore, her policy was lapsed. All the other allegations levelled by complainant are sternly denied and averred that complainant is entitled only to obtain surrender value as per terms and conditions of the policy and not for the refund for amount deposited. It is reiterated that there is no deficiency in service on their part and prayed for dismissal of complaint with costs.

9                                             To prove her case, complainant has relied upon documents Ex C-3 to Ex C-13 that are copies of computer generated receipts that clearly reveal the fact that complainant kept depositing Rs.10,000/- annually in respect of premiums against policy in question since 2007 to 2015. Through her affidavit Ex C-1 complainant has reiterated her pleadings. There is no dispute regarding this fact that complainant purchased the said policy from OPs and paid nine premiums worth Rs.10,000/-each continuously for a long period of nine years. Receipt of nine premiums worth Rs.10,000/-each that is total amount of Rs.90,000/- is also admitted by OPs. Stand taken by OPs that they sent cheque amounting to Rs.86,613/-towards surrender value was

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sent to her at her registered address on 18.05.2018 vide speed post, which returned back due to incomplete address, has no legs to stand upon as even during the pendency of complaint and after issuance of notice regarding present complaint, OPs never offered to pay the surrender value to complainant. words for making payment of genuine amount to complainant never lie in the mouth of complainant and even they have not placed on record any document to prove their version that they ever sent cheque for Rs.86,613/- to her at her registered address on 18.05.2018 vide speed post, which received back to them due to incomplete address. It is further observed that when policy document and proposal form can reach the address of complainant then, probability of not reaching the said cheque with complainant seems inappropriate. Documents placed on record by OPs do not support their version and are contradictory to their averments.

10                                  From the above discussion and evidence and documents placed on file by respective parties it is observed that complainant has produced sufficient and cogent evidence to prove her grievance. In the light of documents Ex C-2 to Ex C-13, there remains no doubt to the pleadings of complainant. Moreover, there is no dispute regarding issuance of policy and to the fact that complainant paid regular premiums towards the policy. It is also admitted by OPs that continued the said policy till nine year from 2007 to 2015. The act of OPs in not making payment of premiums amount deposited by complainant with

 

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them for a long period of nine years, amounts to deficiency in service and trade mal practice. Complainant is entitled for refund of surrender value for policy in question. Hence, the present complaint is hereby allowed. OPs are directed to refund the amount of surrender value as on the date of filing the present complaint in respect of her policy in question alongwith interest at the rate of 12% per anum from the date of filing the present complaint till final realization. OPs are further directed to pay Rs.5,000/-to complainant as consolidated compensation for harassment and mental agony suffered by him and litigation expenses. Compliance of this order be made within 30 days of receipt of the copy of the order, failing which, complainant shall be entitled to proceed under Section 25 and 27 of the Consumer Protection Act. Copy of order be given to parties free of cost under rules. File be consigned to record room.

Announced in Open Forum

Dated : 30.07.2019       

 

                   Member                            President

                                     (Param Pal Kaur)            (Ajit Aggarwal)