BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, ERNAKULAM.
Dated this the day of 29th day of September 2012 Filed on : 21/01/2012
Present :
Shri. A Rajesh, President.
Shri. Paul Gomez, Member
Smt. C.K. Lekhamma, Member
C.C. No.44/2012
Between
1. Sijumon C.A., S/o. CC Augustine, : Complainant
Res. at Chakkalaparambil house, (By Adv. P.T.Jose,
T & R Cross road, 2nd Floor, KPK Towers,
Thoppumpady P.O., Ernakulam. P.O. Link Road, Broadway
Pin-682 005. Ernakulam-31)
2. Nimmy Sijumon,
W/o. Sijumon C.A,
Res. at Chakkalaparambil house,
T & R Cross road,
Thoppumpady P.O.,
Ernakulam-682 005.
And
1. Aviva Life Insurance Company : Opposite parties
India Ltd., 2nd floor, (By Adv. Nelson J
Swapnil Enclave, Plot No. 7, Manayil, Edathil Building,
CMD Scheme, Market road,
High Court Junction, Kochi-682 035)
Opp. Joy Alukkas Wedding
Centre, Marine Drive,
Ernakulam, Kerala-682 035.
rep. by its Branch Manager.
2. Aviva Life Insurance company
India Ltd., Ashirwad Towers,
Plot No. 2, Old No. 182,
3rd floor, Kodambakkam High Road,
Nungambakkam, Chennai-600 034,
rep. by its Regional Manager.
3. Aviva Life Insurance Company
India Ltd, Head Office: Aviva Tower,
Sector road, Opp. Golf Course,
DLF Phase V, Sector 43,
Guragon-122 003,
rep. by its Chief Executive Office.
O R D E R
A Rajesh, President.
The case of the complainants is as follows:
The complainants are husband and wife. Lured by the assurances and tall claims of the agent of the opposite parties on 28-09-2007 the complainants, son joined a life insurance policy named ‘life saver plus’. The agent of the opposite parties disclosed that the terms of the policy is for 16 years and the sum offered is Rs. 8 lakhs and the annual premium is rupees one lakh payable for 3 years. On 20-08-2008 the 1st complainant requested the 1st opposite party to reduce the premium. On 18-09-2009 the 3rd opposite party intimated that the premium amount is reduced to Rs. 25,000/- from Rs. 1 lakh and the sum assured was reduced to Rs. 2 lakhs. The 1st complainant duly remitted the 2nd and 3rd years premium to the tune of Rs. 25,000/- each. On 12-11-2010 the 3rd opposite party issued a letter to the 1st complainant stating that they are foreclosing the policy. The 3rd opposite party enclosed a cheque to the tune of rupees one lakh towards refund of the initial premium amount against the remitted amount of Rs. 2 lakhs. The 2nd complainant joined in a policy named ‘Aviva Freedom Life advantage’ by paying single annual premium of Rs. 1,50,000/- on 31-03-2011. However as per the policy schedule the premium payment term was shown as 5 years. The complainant raised objection against the policy within the free look period but there was no response on the part of the opposite parties. The 2nd complainant apprehends that the opposite parties may auto foreclose the policy. The complainants are entitled to get refund of the premium amounts of Rs. 2 lakhs and Rs. 1,50,000/- respectively from the opposite parties together with compensation and costs of the proceedings. This complaint hence.
2. Version of the opposite parties is as follows:
2. Two policies were issued to the complainants which commence from 28-09-2007 and 31-03-2011 respectively. The 1st policy was issued in favour of the son of the complainants for an assured sum of Rs. 8 lakhs and after the premium reduction for Rs. 2 lakhs for a premium amounting to rupees One lakh (initially) and Rs.25,000/- (current) payable for a period of 16 years. The 2nd policy was issued to the 2nd complainant for an amount of Rs. 15 lakhs for a premium of Rs. 1,50,000/- payable for a period of 5 years. The opposite parties did not receive any objection against the policies during the free look period. The 1st complainant did not pay the premium in the 1st policy after 36 months and so the opposite parties foreclosed the policy on 29-10-2010 and the secured value of the policy was despatched to the 1st complainant. On 12-01-2011 at the request of the 1st complainant the policy was in-instated with effect from 12-02-2011. The 1st complainant again failed to deposit the regular premium and the policy was foreclosed. Subsequently on 29-10-2011 and a cheque dated 21-12-2011 for Rs. One lakh was despatched to the 1st complainant. The policy issued to the 2nd complainant was a 5 year premium paying term policy. The terms and conditions of the policy one drawn as per the guidelines laid down by the IRDA. The complainants have all the means to submit cancellation request within the statutory limit of 15 days, i.e., free look period. There is no deficiency in service on the part of the opposite parties. The complaint is liable to dismissed.
3. The 1st complainant was examined as PW1 and Exts. A1 to A15 was marked. No oral evidence was adduced by the opposite parties. Exts. B1 to B4 were marked. Heard the learned counsel for the parties.
4. The points that came up for consideration are
i. Whether the 1st complainant is entitled to get refund of the
whole premium amount of Rs. 2 lakhs from the opposite
parties with interest. ?
ii. Whether the 2nd complainant is entitled to get refund of the
premium amount of Rs. 1,50,000/- with interest from the
opposite parties?
iii. Whether the opposite parties are liable to pay
compensation and costs of the proceedings to the
complainants?
5. Point No. i. Admittedly the complainant enjoined his son Hilton Augustine with the policy of the opposite parties named ‘life saver plus’ by remitting Rs. 1 lakh towards premium and the sum assured was Rs. 8 lakhs, evidenced by Exts. A1 and A2. At the request of the complainant the opposite parties reduced the premium amount to Rs. 25,000/- from Rs. 1 lakh and the sum assured was reduced to Rs. Two lakhs from 8 lakhs. The 1st complainant paid the subsequent premiums to the opposite parties, evidenced by Exts. A4 and A5. Thereafter the opposite parties caused Ext. A6 letter to the 1st complainant stating that they are auto foreclosing the policy since the 1st complainant failed to pay the subsequent premium. On 16-02-2011 the 1st complainant paid Rs. 25,000/- to the opposite parties to revive the policy. In the meantime the 2nd complainant joined another policy by name Aviva freedom life advantage by paying the one time premium of Rs. 1,50,000/-. Again on 29-10-2011 the 1st complainant paid the annual premium in the 1st policy for the year 2011 to the tune of Rs. 25,000/-.
6.It is pertinent to note the terms and conditions of the 1st policy was admitted in evidence as Ext. B2 which is too fine print which could not be read with naked eyes. The definite case of the 2nd complainant is that she requested the opposite parties to issue a single premium policy, instead the opposite parties issued a policy in which the premium is payable for 5 years. The above conduct of the opposite parties totally amounts to deficiency in service but also to unfair trade practice which makes the contract void abinitio. The complaint are ripe for remedy. The failure of the opposite party to controvert the same contentions call for explanation not forthcoming. 7. For the reasons substantiated above we allow the complaint in part and direct as follows:
i. The opposite parties shall jointly and severally refund the premium amount of Rs. 2 lakhs to the 1st complainant with interest @ 12% p.a. from the date of each receipt of premium till realization.
ii. The opposite parties shall also jointly and severally refund Rs. 1,50,000/- to the 2nd complainant with interest @12% p.a. from the date of receipt of the amount till realization.
iii. We confine ourselves to this order not to award costs of the proceedings or compensation for ends of justice having substantially found met. If at all the opposite party is aggrieved they are at liberty to proceed further if so advised.
The above said order shall be complied with within a period of one month from the date of receipt of a copy of this order.
Pronounced in the open Forum on this the 29th day of September 2012.
Sd/- A Rajesh, President.
Sd/- Paul Gomez, Member
Sd/- C.K. Lekhamma, Member.
Forwarded/By Order,
Senior Superintendent.
Appendix
Complainant’s exhibits:
Ext. A1 : Copy of policy schedule
A2 : copy of 1st premium receipt
A3 : Copy of renewal premium receipt
dated 12/9/2007
A4 : Copy of “ “ for 28-09-2008
A5 : Copy of “ “ for 28-09-2009
A6 : copy of intimation dt. 12-11-2010
A7 : Copy of Pass book
A8 : Copy of policy account statement
A9 : Copy of a page of account book
A10 : Copy of payment summary
A11 : Copy of letter dt. 12/12/2011
A12 : Copy of payment advance
A13 : Copy of request dt. 21-03-2011
A14 : Copy of schedule
A15 : Copy of 1st premium receipt
dt. 31/03/2011
Opposite party’s exhibits:
Ext. B1 : Copy of brochure
B2 : Copy of standard terms and conditions
B3 : Copy of application form
B4 : Copy of application form
Depositions:
PW1 : Siji mon C.A.
