CC No.685.2015

Filed on 13.04.2015

Disposed on.31.05.2017

BEFORE THE III ADDITIONAL BANGALORE URBAN DISTRICT

CONSUMER DISPUTES REDRESSAL FORUM,

BENGALURU– 560 027.

DATED THIS THE 31^st DAY OF MAY 2017

CONSUMER COMPLAINT NO.685/2015

PRESENT:

Sri.  H.S.RAMAKRISHNA B.Sc., LL.B.

        PRESIDENT

             Smt.L.MAMATHA, B.A., (Law), LL.B.

                      MEMBER

                                       V/S

ORDER

BY SRI.H.S.RAMAKRISHNA, PRESIDENT

1. This Complaint was filed by the Complainants on 13.04.2015 U/s 12 of the Consumer Protection Act, 1986 and praying to pass an Order directing the Opposite Party to refund amount of Rs.87,710/- plus interest at 12% p.a., and to pay compensation and other reliefs. 

2. The brief facts of the complaint can be stated as under:-

In the Complaint, the Complainant alleges that the Complainant took a Pension Plus Annuity Unit Linked Policy No.1885499 from the Opposite Party and paid half yearly premium of Rs.12,500/- for 5 years amounting to Rs.1,25,000/-.  The policy matured on 03.11.2013 with a maturity value of Rs.1,31,559/-plus ex-gratia interest of Rs.7,736/- totaling to Rs.1,39,295/-.  The Opposite Party paid only Rs.51,585/- as against Rs.1,30,112/- vide their letter No.1221045 Vo 1 of 9.1.2014 and retained Rs.87,710/- as purchase price for an annuity policy to be issued and also sent to him the annuity policy number 10164464 dt.13.09.2014 after obtaining a Proposal from the Complainant.  This reached the Complainant on 18.09.2014.  In the Annuity Policy and an Annuity of Rs.3,063/- would be paid half yearly to the Complainant for life or to his nominee for 15 years if the Complainant die within 15 years and nothing would be paid thereafter to the nominee.  Accordingly, they have remitted the first annuity for credit to the Complainant account.   In their letter dt.13.09.2014 that if the Complainant was dissatisfied with any of the terms and conditions of the annuity policy for any reason, he could cancel the policy within 30 days of receipt of the document.  It is a condition that in case the present annuity is purchased from maturity proceeds of a pension policy from Aviva or any other insurance company, upon cancellation, the cheque will be prepared in the insurance company’s name from which he would like to buy annuity-vide policy schedule.  Accordingly, as per their advice in their email of 26.09.2014, the Complainant applied for cancellation of the Annuity Policy No.10164464 dt.07.10.2014 with all required documents was delivered by the Complainant representative and was received and read at Opposite Party’s Bangalore Office on 07.10.2014 but returned to him during that the Complainant would get hear from the Head Office.  There was no response from their Head Office.  The Complainant had not been informed why this application is not processed.  The Opposite Party has deliberately avoided answering this point.  As a result of non-processing of this application for cancellation, the Complainant lose the benefit of better facility from another insurance company.  By e-mail of 26.02.2015 the Complainant informed the Opposite Party of his intention to avail annuity from the LIC of India and requested the Opposite Party to issue their cheque in favour of LIC of India.  Even this they have declined stating that the period of 30 days is over vide Opposite Party’s email of 27.02.2015.   This objection is not tenable.  There was no delay on his part in seeking cancellation of the policy.  The Complainant have clearly brought it to the notice of the Opposite Party that the delay was in their Department only as his application for cancellation dt.07.10.2014 was not processed but returned telling that he would hear from their Head Office.  They have failed to answer why this application was not processed.  The Opposite Party’s annuity to that of a bank’s fixed deposit on which interest is paid periodically and on maturity the principal amount is returned to the depositor in full.  The depositor thus becomes the owner of the maturity value.  But in this annuity scheme, only the annuity is paid that too at a low rate and the principal amount which is the purchase price is conveniently swallowed by the insurance company.  This is very stranger, it is a wonder how such a scheme which is not in the least in the interest of the policy holder is allowed to be in force.  Having received a total premium of Rs.1,25,000/- and having disclosed Rs.1,31,559/- and Rs.7,736/- as the maturity value and interest, to pay to the policy holder a meager sum of Rs.51,585/- and retaining a major portion of Rs.87,710/- without bearing any risk, which are 37% and 63% respectively is undoubtedly not a fair trade practice and needs to be paid.  Describe for the following scrapped.  Hence this complaint. 

3. In response to the notice, the Opposite Party put their appearance through his counsel, but fails to file the version.  
4. The Complainant, Sri.K.Sivasubramaniam has been filed his affidavit by way of evidence and closed his side.    Heard the argument of Complainant.  

5.      The points that arise for consideration are:-

1. Whether the Complainant has proves the alleged deficiency in service by the Opposite Party ?
2. If so, to what relief the Complainant is entitled?

6.     Our findings on the above points are:-

                POINT (1):-Affirmative

               POINT (2):-As per the final Order

REASONS

7.  POINT NO.1:- It is the case of the Complainant that  the Complainant took a Pension Plus Annuity Unit Linked Policy No.1885499 from the Opposite Party and paid half yearly premium of Rs.12,500/- for 5 years amounting to Rs.1,25,000/-.   This fact is not been denied or disputed by the Opposite Party.  Further to substantiate this fact, the Complainant in his sworn testimony, reiterated the same and produced the copy of the Payout Letter.  By looking into this document, it is very clear that the Complainant Mr.Krishnachettiar Sivasubramaniam had obtained Pension Plus Unit Linked Policy bearing No.APG1885499, the said policy maturity date of is 03.11.2013, and the maturity value is Rs.1,31,559/- along with interest of Rs.7,736/- and further it is mentioned that 1/3^rd amount of Rs.1,30,112/- will be transferred to the account of the Complainant on 09.01.2014.  As desired, the balance 2/3^rd amount of Rs.87,710/- is directed towards the purchase of your Annuity Plan from Aviva. This evidence of the complainant remains unchallenged.  Therefore, it is proper to accept the contention of the Complainant that the Complainant took a Policy Pension Plus Annuity Unit Payout Letter Policy No.APG1885499.

8.  Further, the Complainant in his sworn testimony, reiterated the same, it clearly stated that the policy has matured on 03.11.2013 and maturity value of Rs.1,31,559/- plus ex-gratia interest of Rs.7,736/-.  The Opposite Party paid only Rs.51,585/- as against Rs.1,30,112/- and retained Rs.87,710/-.  This evidence of the Complainant has not been challenged by the Opposite Party.  Further to substantiate this, the Complainant had produced the Aviva Annuity Plus Policy Bond.  By looking into this document, The Opposite Party had issued this policy in the name of the Complainant on 10.09.2014.  According to this, the Complainant will get an Annuity amount of Rs.3,063/- in the month of September and March every year for the rest of the life of the Complainant, subject to minimum of  15 years and also produced Payout Letter.   As looking into the Payout Letter, it is very clear that out of maturity amount of Rs.1,30,112/-, they have transferred the 1/3^rd amount of Rs.1,30,112/- to the account of the complainant on 09.01.2014 and as desired by the Complainant, the balance 2/3^rd amount Rs.87,710/- is directed towards the purchase of your annuity plan from Aviva and also issued the policy of Aviva Annuity Plus Policy but the complainant has not interested to accept this policy.  For that reason, the Complainant requested for cancellation of the said policy, in support of this, the complainant had produced Request Form for Partial Withdrawal and Free Look Cancellation Payout of Policy.  By looking into this document, it is dt.07.10.2014 and requested the Opposite Party to cancel the Aviva Annuity Maturity Plus Policy.   Even as per the terms and conditions of his policy, it is very clear that in case Policy Holder is not in argue with any terms and conditions, you have the option to cancel the policy within 30 days of receiving the policy document and admittedly received this policy on 13.09.2014 within 30 days i.e., 07.10.2014 i.e., within 1 month he applied for cancellation of the policy so it is the duty of the Opposite Party to process the same and to pay the balance amount of Rs.87,710/- to the complainant, but instead of doing so the opposite Party fails to refund the said amount.  In spite of several requests and demand made by the complainant. This is clear as seen from the mail communication between the complainant and the Opposite Party.  Even the complainant after several communications with the Opposite Party issued Notice on 21.10.2104 till the date of filing of this complaint, thereby it is clear negligence of the Opposite Party and opposite Party ought to have refund a sum of Rs.87,710/- but without refunding retained with the opposite Party this clearly amounts to deficiency of service and unfair trade practice adopted by the Opposite Party. 

9. Further in the complaint, the complainant prays for refund of premium amount of Rs.1,25,000/- and maturity value along with interest of Rs.7,736/- all together Rs.1,39,295/- but the complainant is not entitled for the same.  Since, the Opposite Party have already refunded Rs.51,585/- and now the complainant is only entitled for a sum of Rs.87,710/-.  Hence, the Complainant is entitled for refund amount of Rs.87,710/-. Hence, this point is held in the Affirmative.

10. POINT NO.2:- In the result, for the foregoing reasons, we proceed to pass the following order:

ORDER

The complaint is allowed holding that there is deficiency of service by the Opposite Party.

The Opposite Party is directed to refund a sum of Rs.87,710/- with interest at 12% p.a. from 03.11.2013 till the date of payment.

The Opposite Party is directed to pay a compensation of Rs.25,000/- for causing mental agony to the Complainant. 

The Opposite Party is directed to pay a sum of Rs.5,000/-as cost to the Complainant. 

 Supply free copy of this order to both the parties. 

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Forum on this, 31^st day of May 2017)

            MEMBER                                         PRESIDENT 

LIST OF WITNESSES AND DOCUMENTS

 Witness examined on behalf of the Complainants:

1. Sri.K.Sivasubramaniam, who being the Complainant has filed his affidavit.

 List of documents filed by the Complainants:

1. Pay-out Letter
2. Letter 13.09.2014Aviva Annuity Plus Policy
3. Email correspondences dt.03.03.2015, 10.03.2015, 27.02.2015 17.03.2015
4. Request Form for Partial Withdrawal and Free Look Cancellation Pay-out of Policy
5. Notice dt.21.10.2014

Witness examined on behalf of the Opposite Parties:

                                      -NIL-

  List of documents filed by the Opposite Party:

                              -Nil-

MEMBER                                                                    PRESIDENT