DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BATHINDA

CC.No.29 of 03-01-2014

Decided on 07-07-2014

Jarnail Singh aged about 50 years S/o S.Bachan Singh S/o S.Surmukh Singh R/o VPO Jaid, Tehsil Rampura Phul, District Bathinda.

........Complainant

Versus

1.Aviva Life Insurance Company India Limited, Branch Office, The Mall, Bathinda, through its Manager.

2.Aviva Life Insurance Company India Limited, Aviva Tower, Sector Road, Opp. Golf Course, DLF Phase V, Sector 43, Gurgaon, through its MD.

3.Aviva Life Insurance Company India Limited, Registered Office, 2nd Floor, Parkash Deep Building, 7 Tolstoy Marg, New Delhi, through its MD/Chairman.

.......Opposite parties

Complaint under Section 12 of the Consumer Protection Act, 1986.

QUORUM

Smt.Vikramjit Kaur Soni, President.

Smt.Sukhwinder Kaur, Member.

Sh.Jarnail Singh, Member.

Present:-

For the Complainant: Sh.Vinod Garg, counsel for the complainant.

For Opposite parties: Sh.Varun Gupta, counsel for the opposite parties.

ORDER

VIKRAMJIT KAUR SONI, PRESIDENT:-

1. The instant complaint has been filed by the complainant under section 12 of the Consumer Protection Act, 1986 as amended upto date (Here-in-after referred to as an 'Act'). The brief facts of the complaint are that on the allurement of the officials of the opposite parties, the complainant has purchased two insurance policies for sum assured of Rs.2 lacs each and paid the first premium of Rs.50,000/- each to the opposite parties in the month of June, 2007. At the time of selling of the abovesaid policies, the officials of the opposite parties assured the complainant that they would get doubled the deposited amount within a period of 6 years and he could withdraw the amount at anytime with interest @ 15% per annum and accrued benefits of the policies. The opposite parties obtained the signatures of the complainant on blank printed forms without disclosing him the contents thereof. The opposite parties never supplied any policies or their terms and conditions to the complainant till date. After one year i.e. in the month of June, 2008, the opposite parties called the complainant to deposit another premium of Rs.50,000/- each against both the abovesaid policies, but he showed his inability to pay the further premium of Rs.50,000/- in each policy as he was assured by the opposite parties that these are single premium policies. The opposite parties intimated the complainant that actually they have issued him the policies with annual premium of Rs.50,000/- each with term of 10 years. The complainant requested the opposite parties that he is not in a position to pay the premium of Rs.50,000/- each against both the policies for such a long period to which the opposite parties offered him to deposit the premium of Rs.15,000/- each against both the policies for 5 years more and assured him that in that case he could get double of the amount of Rs.50,000/- and of remaining amount of Rs.15,000/- with interest @ 15% per annum after 5 more years i.e. in the month of June, 2013. Relying upon the assurance of the opposite parties, the complainant paid the premium of Rs.15,000/- each against both the policies for 5 years, in this way he has paid the total premium of Rs.1,25,000/- each against both the policies. The opposite parties intimated the complainant that the policies bearing No.LSP1587531 and LSP1587735 have been allotted to him. The opposite parties did not supply the initial policies with premium of Rs.50,000/- or policies with reduced premium of Rs.15,000/- per annum for 5 years. As no terms and conditions of the abovesaid policies have been sent to the complainant, he could not get the opportunity to reconsider the terms and conditions of the policies in question and exercise his option of seeking the cancellation and get the refund within free look period of 15 days.

After completion of 6 years in the month of June, 2013, the complainant approached the opposite parties to get the refund of the amount of Rs.50,000/- and Rs.75,000/- alongwith return of Rs.50,000/- and interest @ 15% per annum on Rs.75,000/- i.e. Rs.35,000/- against both the policies in question i.e. in total Rs.2,10,000/- each, as assured by them at the time of effecting the insurance policies in the year 2007 and 2008. The opposite parties expressed their inability to make the payment as per their assurance and intimated the complainant that there are 'Unit linked Life Term Policies' with last date of paying premium as June, 2017. The opposite parties also intimated the complainant that the amount deposited by him has fund value of Rs.1,05,000/- each approximately against the actual deposited amount of Rs.1,25,000/- each and further intimated him that he has to deposit the premium of Rs.15,000/- each against both the policies for the period of 10 years, failing which his policies would lapse and no amount would be payable thereafter except the fund value and that too after deductions. The complainant approached the opposite parties to know about the status of the policies in question and requested them to refund the abovesaid amount alongwith its benefits or interest accrued thereon as assured by them, but the opposite parties neither refunded him the amount nor gave him any satisfactory reply. Hence the complainant has filed the present complaint to seek the directions of this Forum to the opposite parties to refund him the amount of Rs.4,20,000/- i.e. Rs.1,25,000/- each with return of Rs.50,000/- each and interest @ 15% per annum from the date of the commencement of the abovesaid policies till the date of its payment i.e. Rs.35,000/- each alongwith cost and compensation or to give him any other additional or alternative relief for which he may be found entitled to.

2. The opposite parties after appearing before this Forum have filed their joint written statement and pleaded that the complainant himself approached their adviser and got the information about all their plans from him and after understanding all the terms and conditions of all the plans, he opted to purchase 'Life Saver Plan' and filled the proposal form bearing Nos.NUP10631013 and NUP10631715 and plan chosen by him was 'Unit Linked Life Insurance Policy'. In the proposal forms the complainant disclosed his qualification +2 and opted term of plan as 10 years, premium paying term as 10 years, annual premium of Rs.50,000/-, sum assured of Rs.2,50,000/-, premium frequency Yearly, type of fund i.e. Unit Linked Fund as Growth Fund 100% and signed the declaration mentioned in the proposal forms to this effect. After receiving the abovesaid proposal forms from the complainant and going through the contents thereof, the underwriters had issued the policies bearing Nos.LSP1587531 and LSP1587735 to the complainant and sent him the policy documents alongwith the entire terms and conditions through Speed Post vide Air Way Bill No.EH0110596731IN on 14.6.2007 and Speed Post vide Air Way Bill No.EH011043395IN on 22.6.2007 on his given address that have been received by him and are in his possession. The complainant has an option to reconsider the policies within Free Look Period option, the policyholder has the right to review the policy terms and conditions and cancel it within a period of 15 days from the date of receipt of its documents. If the policyholder cancel his/her policy, the premium will be refunded after adjusting for adverse movement in the units price less charges incurred on account of the stamp duty and medical expenses but in the present case, the complainant did not do so, from this it is clearly established that he agreed to the same. The insured opted a 'Unit Linked Life Insurance Plan' and the same is entirely different from the 'Traditional Insurance Plan' and is subject to different risk factors. The next renewal premium was due in the year 2008 and complainant got the option to reduce the premium as per the terms and conditions of the policies and accordingly, the opposite parties reduced the premium from Rs.50,000/- per annum to Rs.15,000/- per annum. After availing the option to reduce the premium the complainant paid further 5 renewal premiums against the abovesaid policies to the opposite parties and thereafter he did not pay any premium against the policies in question as such his policies lapsed due to non-payment of the premiums. The complainant paid the premium of Rs.1,25,000/- each against both the abovesaid policies. The complainant can get the value of the policies in question as per their terms and conditions after surrendering them with the opposite parties. The opposite parties relied upon various authorities on different aspects of the matter.

3. The parties have led their evidence in support of their respective pleadings.

4. Arguments heard. The record alongwith written submissions submitted by the parties perused.

5. The submission of the learned counsel of the complainant is that the opposite parties made false assurances to the complainant that he would get double of the deposited amount within a period of 6 years and could withdraw the amount anytime with interest @ 15% per annum and accrued benefits of the policies. The opposite parties never supplied the policies or their terms and conditions to the complainant and have not placed on file the postal receipts, whereby the policies in question were alleged to be sent by the opposite parties. The policies were initially intimated as single premium policies. The complainant has paid the premium of Rs.50,000/- each and Rs.15,000/- each five more times against the abovesaid policies, in this way he has paid the total premium of Rs.1,25,000/- each against both the policies i.e. Rs.2,50,000/-, this fact has been admitted by the opposite parties in their written statement. The fund value mentioned in the account statements is Rs.1,13,386.50/- and Rs.1,14,931.62/- i.e. total Rs.2,28,318.12/- as on 1.5.2014 that may have increased further due to increase in the prices in the share market. The learned counsel of the complainant further submitted that the complainant could not get the opportunity to reconsider the terms and conditions of the policies in question and exercise his option of seeking the cancellation and get the refund within free look period of 15 days as per the rules of IRDA.

6. On the other hand the submission of the opposite parties is that the complainant opted to purchase 'Life Saver Plan' and filled the proposal form Nos.NUP10631013 and NUP10631715. In the proposal forms the complainant disclosed his qualification +2 and opted term of plan as 10 years, premium paying term as 10 years, annual premium of Rs.50,000/-, sum assured of Rs.2,50,000/-, premium frequency Yearly, type of fund i.e. Unit Linked Fund as Growth Fund 100% and signed the declaration mentioned in the proposal forms to this effect. After receiving the abovesaid proposal forms from the complainant and going through the contents thereof, the underwriters had issued the policies bearing No.LSP1587531 and LSP1587735 to the complainant and sent him the policy documents alongwith the entire terms and conditions through Speed Post vide Air Way Bill No.EH0110596731IN on 14.6.2007 and Speed Post vide Air Way Bill No.EH011043395IN on 22.6.2007 on his given address that have been received by him and are in his possession. The policyholder has the right to review the policy terms and conditions and cancel it within the free look period of 15 days from the date of receipt of its documents, but the complainant has not availed the free look period option. In the year 2008 the complainant got the option to reduce the premium as per the terms and conditions of the policies and accordingly, the opposite parties reduced the premium from Rs.50,000/- per annum to Rs.15,000/- per annum. After availing the option to reduce the premium the complainant paid further 5 renewal premiums against the abovesaid policies to the opposite parties and thereafter he did not pay any premium against the policies in question as such his policies lapsed due to non-payment of the premiums. The opposite parties admitted the fact that the complainant has paid the premium of Rs.1,25,000/- each against both the abovesaid policies.

7. The complainant has specifically averred that no terms and conditions of the policies in question have been sent to him and he was deprived from the free look period option. On the other hand the opposite parties have specifically mentioned that the terms and conditions have been sent to the complainant. A perusal of record shows that no postal receipt or dispatch register has been placed on file by the opposite parties to prove their version. However, at the time of purchase the abovesaid policies some terms and conditions have been communicated to the complainant by the opposite parties agreeing to which the complainant got his premium reduced from Rs.50,000/- per annum to Rs.15,000/- per annum, thus this contention of the complainant is not believable.

8. A perusal of record placed on file shows that the complainant has paid the premium of Rs.1,25,000/- in policy bearing No.LSP1587531 as per the account statement dated 4.12.2013 and Rs.1,25,000/- in policy bearing No.LSP1587735 as per the account statement dated 4.12.2013 vide Ex.C2 and Ex.C3 respectively. A further perusal of record placed on file reveals that vide Ex.OP1/20 the fund value in policy bearing No.LSP1587531 on 6.5.2014 was Rs.1,13,386.50/- and vide Ex.OP1/19 the fund value in policy bearing No.LSP1587735 on 1.5.2014 was Rs.1,14,931.62/-, whereas during the pendency of this complaint the opposite parties have placed on file Annexure-OP1, in this the fund value in policy bearing No.LSP1587531 is shown as Rs.1,26,524/- with initial units SV Rs.28,902/-, surrender value as on date Rs.1,16,117/- and in policy bearing No.LSP1587735 is shown as Rs.1,28,453/- with initial units SV Rs.28,400/- and surrender value as on date Rs.1,18,227/-, in this document it has been shown that 'Please find below: Pol # LSP1587531:Rs.1,15,791/- approx; Pol # LSP1587735: Rs.1,17,893/- approx'.

9. Admittedly, the complainant has paid the premium of Rs.1,25,000/- each in both the policies bearing No.LSP1587531 and LSP1587735, in total he has paid the premium of Rs.2,50,000/-. Out of the premium of Rs.1,25,000/- each, Rs.50,000/- in each policy has been paid as first premium and thereafter the premium has been reduced from Rs.50,000/- to Rs.15,000/- on the request of the complainant and he has paid the premium of Rs.15,000/- each in both the policies in question for 5 years, in this way he has paid the premiums for 6 years, thus he is entitled for the fund value on the surrender of his policies. Moreover the account statements placed on file by the opposite parties shows that the fund value in policy bearing No.LSP1587531 is Rs.1,15,791/- approximately and in policy bearing No.LSP1587735 is Rs.1,17,893/- approximately, this calculation has been given by the opposite parties on 7.7.2014 i.e. at the time of final arguments, which shows that at present on 7.7.2014 the fund value in both the policies is Rs.2,33,684/-.

10. The complainant has filed the present complaint on 3.1.2014 and opposite parties was well aware of the fact that the dispute has arisen in the policies in question, but the opposite parties have never offered him the fund/surrender value, which amounts to deficiency in service on their part.

11. Therefore in view of what has been discussed above this complaint is accepted with Rs.5000/- as cost and compensation against the opposite parties. The opposite parties are directed to refund the amount of Rs.2,33,684/- as surrender value in both the policies to the complainant.

12. The compliance of this order be done within 45 days from the date of receipt of the copy of this order.

13. In case of non-compliance within the stipulated period, the interest @ 9% per annum will yield on the amount of Rs.2,33,684/- till realization.

14. A copy of this order be sent to the parties concerned free of cost and file be consigned to the record room.

Pronounced in open Forum:-

07-07-2014

(Vikramjit Kaur Soni)

President

(Sukhwinder Kaur)

Member

(Jarnail Singh)

Member