DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BATHINDA.

CC.No. 217 of 08-05-2012

Decided on 14-08-2012

Rekha Rani, aged about 34 years, wife of Sandeep Garg, resident of H.No.5146, Street No.6, Nai Basti, Cozy Home, Bathinda.

........Complainant

Versus

1. Aviva Life Insurance Company India Pvt. Ltd., The Mall, Bathinda, through its Branch Manager.

2. Aviva Life Insurance Company India Pvt. Ltd., 5^th Floor, JMD Regent Square Gurgaon, Mehrauli Road, Gurgaon.

3. Gurjant Singh, Advisor No.PSBT0006 C/o Aviva Life Insurance Company Ltd. The Mall, Bathinda.

.......Opposite parties

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

QUORUM

Smt. Vikramjit Kaur Soni, President.

Sh. Amarjeet Paul, Member.

Smt. Sukhwinder Kaur, Member.

Present:-

For the Complainant: Sh.Vikas Singla, counsel for complainant.

For Opposite parties: Sh.Sanjay Goyal, counsel for opposite party Nos.1&2.

Opposite party No.3 already deleted.

ORDER

VIKRAMJIT KAUR SONI, PRESIDENT:-

1. The complainant has filed the present complaint 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 the complainant has purchased the Life Insurance Policy, having product name Aviva Young Scholar, he has deposited three annual premium of Rs.50,000/-. The sum assured was Rs.4 lacs and policy term was 10 years. The complainant was assured by the opposite parties that she can withdraw the amount at any stage, after the completion of the period of three years and after depositing three annual premiums of Rs.50,000/-each in case the complainant is in need of money, the total amount deposited by the complainant shall be refunded to her alongwith Market benefits etc. But the opposite parties have never told the complainant regarding deduction of any charges in case the complainant will seek the refund of the amount deposited by her before the completion of the term of the policy i.e. 10 yrs. The complainant had deposited 3 annual premiums of Rs.50,000/- each. She had deposited the first premium on 19.9.2009. The complainant alleged that the officials of the opposite parties have obtained the signature of the complainant on some blank printed papers and proposal form and assured her to supply the Insurance policy within a few days. The complainant issued Insurance Policy No.AYS2682893, having Client ID No.2758979. The complainant due to some personal problem and financial crises could not deposit the amount of second and third premium and in the last week of December, 2011, she approached the opposite party No.1 and requested it to refund the amount alongwith other benefits but the opposite party No.1 allured the complainant by saying that she is required to deposit two more premiums of Rs.50,000/- each with the opposite parties and only after that she will get the refund of the total amount of three premiums i.e. Rs.1,50,000/- alongwith market benefits etc. The complainant bonafidely believing the assurance given by the opposite party No.1 had deposited the amount of Rs.1 lac with the opposite parties vide two receipts dated 3.1.2012 for Rs.50,000/- each and the officials again assured the complainant that the amount of Rs.1,50,000/- will be refunded alongwith market benefits etc. Thereafter, the opposite parties informed the complainant that she can get the refund of the amount after surrender of the policy, after deduction of huge amount from the amount deposited by her with the opposite parties. The complainant further alleged that instead of giving the refund of the amount deposited by her that the opposite parties insisted the complainant to deposit the balance annual premium to get the refund of the total amount or in alternative, to get the refund of the amount after the deduction charges. Hence, the complainant has filed the present complaint for seeking the directions to the opposite parties to refund the amount of Rs.1,50,000/- alongwith market benefits, cost and compensation.

2. The notice was issued to the opposite parties. The opposite party Nos.1 and 2 after appearing before this Forum have filed their joint written statement and have pleaded that as per IRDA Regulations 2002, the policy terms and conditions specifically provides for a Free Look Period of 15 days, during that period the policy owner is entitled to review the policy terms and conditions and request for a cancellation if dissatisfied with the same. The refund of the amount paid as premium cannot be sought as the request for the same is made beyond the free look period of 15 days. The complainant is entitled for surrender value under the said policy on the account of the risk borne by the opposite parties associated with the policy for three years. The complainant having availed a Life Insurance Cover from the opposite parties and enjoyed coverage under the said policy for over a year cannot be permitted at this belated stage to claim refund of the premium paid contrary to the terms and conditions of the policy. The complainant after duly deliberating and understanding the terms and conditions of the 'Aviva Young Scholar' plan has filled up a Proposal Form dated 15.9.2009 bearing No.NUP 12827570. In the Proposal Form, the complainant gave all relevant details and information in the prescribed form for the said policy for which an annual premium amounting to Rs.50,000/- was proposed to be paid on Annual basis and the premium payment term is 3 years and the policy term is 10 years. The complainant has made declaration on the proposal form, on the basis of this declaration and information provided in the Proposal Form, a policy bearing No.AYS2682893 was issued to the complainant having date of commencement of 19.9.2009. The policy documents were dispatched on 23.9.2009 through blue dart courier, AWB bearing No.43598260705 and the same was delivered on 25.9.2009. The company made a pre-verification call to the complainant on 16.9.2009 before the acceptance of the application form. In this call, the complainant was clearly asked about the terms of the policy, whether the features of the policy were properly understood to which the complainant admitted having understood all features and terms and conditions of the said policy. The complainant did not raise any complaints/objections regarding the policy either within the Free Look Period of 15 days or within any reasonable time thereafter. Thus, the contract of the insurance attained finality and the opposite parties have been continuing to provide coverage to the complainant. On 28.12.2011, the opposite parties received a request for reinstatement of the said policy and the same was reinstated accordingly and the present policy is inforced and the fund value i.e. without deduction of charges as on 25.6.2012 is Rs.1,42,452/-. The opposite parties submitted that the complainant is well educated and teacher by profession, no prudent person would sign on any blank proposal form. After the completion of three years, the complainant could surrender the policy. The surrender value would entirely depend on the market fluctuations and fund value. The surrender value is payable according to Art.5 of the terms and conditions of the said policy.

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 undisputed facts between the parties are that the complainant has purchased the Aviva Young Scholar, Life Insurance Policy from the opposite parties, the annual premium is Rs.50,000/- , risk cover Rs.4 lacs and policy term was 10 years. The complainant has to pay minimum three premiums for 3 years i.e. Rs.50,000/- each continuously to get the refund. As per the policy terms and conditions, she can get refund only after the completion of 3 years alongwith market value benefits.

6. The disputed facts between the parties are that the complainant alleged that the opposite parties have taken her signature on some blank proposal form and other blank forms. But the opposite parties submitted that the complainant is well educated person and teacher by profession, no prudent person would sign on any blank proposal form or any other document. The complainant after the completion of the period of three years i.e. after depositing the 3 premiums requested for the withdrawal of her amount. She has deposited the first premium on 19.9.2009 and has deposited the second and third premium in the last week of December, 2011. When she requested for the refund of the amount of Rs.1,50,000/-, the opposite parties informed the complainant that she can get the refund of the amount after surrender of the policy, after the deduction of huge amount from the amount deposited by her with the opposite parties whereas she was assured at the time of issuance of the policy that she can get refund of Rs.1,50,000/- after 3 years with market benefits. The opposite parties submitted that the policy documents were dispatched on 23.9.2009. On notice of Free-Look, the policy holder has a right to reconsider his decision to purchase the policy within 15 days of receipt of the policy document. But she has not availed the free look period. The company made a pre-verification call to the complainant on 16.9.2009 before the acceptance of the application form. As per the policy terms and conditions after the expiry of the Free Look Period, the opposite parties permit surrender of the policy only after completion of 3 years, where surrender value is payable according to the policy terms and conditions. On 28.12.2011, the opposite parties received a request for reinstatement of the said policy and the same was reinstated accordingly. The said policy is inforced and the fund value i.e. without deduction of charges as on 25.6.2012 is Rs.1,42,452/-. The opposite parties submitted that the policy has been sent to the complainant and she has received the policy documents. The surrender value is payable according to Art.5 of the terms and conditions of the said policy.

7. A perusal of Ex.R9 i.e. Aviva Young Scholar, Life Insurance Policy, on page No.6 shows that how the surrender charges will be paid. For policies with premium payment term of 3 years. There is no surrender charge if full 3 year's premium has been paid, if full 3 year's premium has not been paid, the surrender charge is as follows. The surrender value chart is reproduced as under:-

A perusal of Ex.R9 shows that the fund value and the sum deposited will be paid according to the above mentioned table. In the present case, the complainant has admitted that the policy has been supplied to her. The complainant paid three annual premiums of Rs.50,000/- each, in total she had paid an amount of Rs.1,50,000/-. The opposite parties have given the updated fund value of the amount deposited by her to the tune of Rs.1,42,452/-. But according to their own above mentioned table no deductions will be made if full three year's premium has been paid.

8. Therefore, in view of what has been discussed above, this Forum is of considered view that there is deficiency on the part of the opposite parties, hence this complaint is accepted with Rs.3,000/- as cost and compensation as the opposite parties should have paid the amount of Rs.1,50,000/- immediately to the complainant on the receipt of her request for refund of surrender value. The opposite parties during the pendency of the complaint have also not showed any such efforts or deposit the cheque or draft of the surrender value in Forum. Thus, the opposite parties are directed to refund the amount of Rs.1,50,000/- to the complainant alongwith interest @ 9% per annum since filing of this complaint i.e. on 8.5.2012 till realization. The compliance of this order be done within 45 days from the date of receipt of the copy of this order.

9. 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:-

14-08-2012

(Vikramjit Kaur Soni)

President

(Amarjeet Paul)

Member

(Sukhwinder Kaur)

Member