BEFORE THE III ADDITIONAL BANGALORE URBAN
DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,
BENGALURU – 560 027.
DATED THIS THE 27th DAY OF JULY, 2022
CONSUMER COMPLAINT NO.467/2017
PRESENT:
SRI.RAJU K.S,
SMT.REKHA SAYANNAVAR,:MEMBER
Veerabhadraiah Veereshbabu,
S/o Veerabhadraiah Nandundappa,
Aged about 45 years,
R/at No.9, B.T.S.Depost Road,
BEML 5th Stage, R.R.Nagara,
Bangalore-560 098. ……COMPLAINANT
(Rep by S.S.Associates, adv)
V/s
Aviva Life Insurance Company India Limited,
Represented by its Managing Director,
Registered office situated at 2nd Floor,
Prakashdeep Building,
7 Tolstoy Marg,
New Delhi-110001.…..OPPOSITE PARTY-1
Aviva Life Insurance Company India Limited,
Represented by Branch Manager,
Branch Office situated at No.144,
-
M.G.Road,
Bengaluru-01. …..OPPOSITE PARTY-2
(Opposite party Rep by Sri.H.N.K., Adv)
//JUDGEMENT//
BY SRI.SHIVARAMA K, PRESIDENT
The complainant has filed this complaint u/s 12 of the Consumer Protection Act-1986 seeking for a direction to the opposite parties to pay a sum of Rs.1,21,128/- with interest at the rate of 18% p.a. from the date of complaint till payment in the form of compensation for the negligent act of the opposite parties and a sum of Rs.20,000/- towards deficiency of service and mental agony suffered and a sum of Rs.2,000/- towards cost of the legal notice and Rs.5,000/- towards cost of the complaint.
2. It is not in dispute that the complainant had submitted proposal form on 31.07.2006 to obtain insurance policy and as per the assurance of the opposite parties the complainant had purchased Aviva Life Insurance policy No.WTG1303351 and the opposite parties allotted consumer ID No.599554 and the commencing of the policy was from 03.08.2006 and the last payment of premium was till 03.08.2055. Further regular premium amount was Rs.12,000/- for half year and a sum assured was Rs.4,08,000/-Further, it is not in dispute that the complainant had surrendered the policy and the opposite parties agreed to refund the entire premium amount of Rs.61,800/- and had sent email to that effect on 17.10.2019. It is also not in dispute that on 22.01.2017 the opposite parties agreed to refund only Rs.11,268/- out of Rs.61,800/-. Further, it is not in dispute that the complainant had issued notice to the opposite parties on 14.02.2017 and it was served on 17.02.2017 and 15.02.2017 respectively and on 28.02.2017 the first opposite party had replied to the notice. Further, it is not in dispute that in total the complainant had paid premium of Rs.61,800/- to the opposite parties.
3. It is the further case of the complainant that even though legal notice been issued, opposite parties did not comply the claim of the complainant as per the terms and conditions of the policy. Further at the time of purchase of the policy, the opposite parties assured that the entire premium paid by the complainant will be refunded in case of termination whatsoever reason or cancelled at any point of time. Hence, the complaint came to be filed.
4. It is the further case of the opposite parties that the Product-Life Long Policy is Long Term Risk cover policy and the policy does not acquire surrender value within 3 years of commencement. Further, the opposite parties had explained the surrender terms and conditions and had handed over the application form along with standard terms and conditions and key features of the opposite parties insurance policy while submitting the proposal form. Further, the complainant had paid the premium amount from August 2006 till 18th August 2008 and after that the complainant failed to pay the renewal premium amount towards the policy which was due and as well it was not paid within the grace period of 30 days and hence due to non-payment of renewal premium amount towards the policy, the subject policy got converted into “Early Surrender” as per the terms and conditions of the policy and the policy was terminated. Hence, in view of the termination of the policy, the opposite parties had refunded the amount of Rs.11,268/- vide cheque as per the terms and conditions of the policy. However, the complainant refused to take the said cheque and it was returned to the opposite parties. Hence, the opposite parties had acted as per the terms and conditions of the policy and there is no deficiency of service on the part of the opposite parties. Hence, it is sought to dismiss the complaint.
5. To prove the case, the complainant (PW1) has filed affidavit in the form of his evidence in chief and got marked EX.P1 to P7 documents. The Senior Manager of opposite party (RW1) has filed affidavit in the form of his evidence in chief.
6. Both the parties have filed written arguments.
7. Heard the arguments.
8. The points that would arise for consideration are as under:
i) Whether the complainant proves deficiency of service on the part of the opposite parties ?
ii) Whether the complainant is entitled for the
compensation as sought ?
iii) What order ?
9. Our findings on the aforesaid points are as follows:
Point No.1 : In affirmative
Point No.2 : Partly in affirmative
Point No.3 : As per the final order for the following;
REASONS
10. POINT NO.1:- PW1 & RW1 have reiterated the fact stated in their respective pleadings, in the affidavits filed in the form of their evidence in chief. EX.P1 is the policy schedule issued by opposite parties. EX.P2 is the 1st premium receipt. EX.P3 is the letter sent by the opposite parties along with policy schedule to the complainant. EX.P4 is the policy account statement, in which it is stated that in total the complainant had paid a sum of Rs.61,800/- as premium in different dates. EX.P5 is the copy of the notice sent to the opposite parties. EX.P6 is the reply given by the opposite party no.1.
11. It is contended by the learned counsel for the opposite parties that the complainant had failed to pay the renewal premium amount towards the policy which was due and as well it was not paid within grace period of 30 days and hence due to non-payment of renewal premium amount towards the policy, the subject policy got converted into “Early Surrender” as per the terms and conditions of the policy and the policy was terminated. Hence, opposite parties had refunded the amount of Rs.11,268/- as per the terms and conditions of the policy. On perusal of the Standard Terms and Conditions of the policy produced by the learned counsel for the opposite parties, it appears in Article 14. Surrender Value that “subject to Article 17, with effect from the commencement of the fourth policy year the policyholder is entitled to receive a surrender value upon termination of the policy. Further, Article 7.2.4 contemplates that if the policyholder wishes to surrender the policy any time after the completion of the third policy year then a surrender value as per Article-14, if any, shall become payable. Further article-17.1 contemplates that it is a condition precedent to the Company’s liability to make payment of any benefits. In the case on hand, admittedly, the complainant has paid premium in 6 times from 3rd August-2006 to 18.08.2008. Hence, the complainant has claimed to surrender the policy after the completion of the 3rd policy year. Further, the opposite parties are entitled for surrender charge on accumulation Units pertaining to regular premiums as contemplated in EX.P1 policy schedule.
12. It is the contention of the learned counsel for the complainant that the last premium was paid on 18.08.2008 and the complainant approached opposite parties in several times to surrender the aforesaid policy in the year 2010-11 and in the month of January 2017 the opposite parties accepted the surrender of the policy. In support of the contention of the learned counsel for the opposite parties with regard to the conditions of the policy and the policy got converted into “Early Surrender”, the opposite parties did not produce any documents. Further in the Early policy schedule produced by the complainant also it is not at all stated anywhere with regard to the said aspect. Therefore without any document with regard to the contention taken by the opposite parties, the contention of the counsel for the opposite parties cannot be accepted.
13. Admittedly, vide EX.P7 email sent by the opposite parties on 17.10.2019 the opposite parties agreed to refund the total amount paid of Rs.61,800/-. Hence, we feel the opposite parties have failed to discharge their duties in refunding the premium paid as assured at the time of accepting the policy. Further, there is no dispute that the policy has been cancelled. Accordingly, we answer point No.1 in affirmative.
14.POINT No.2:- The complainant claimed a sum of Rs.1,21,128/-. We feel the complainant is entitled for a sum of Rs.61,800/- as offered by the opposite parties as per EX.P7 with interest at the rate of 9% p.a. from the date of acceptance of the surrender of the policy in the Month of January-2017. The opposite parties had intimated the complainant about the statement details vide EX.P4 as on 22.01.2017. In the said statement, it is stated that the complainant is entitled for Rs.11,268/- instead of Rs.61,800/-. Since, after acceptance of the surrender value, the opposite parties did not pay the said amount, the complainant is entitled for interest at the rate of 9% p.a. from 01.02.2017 till realization. Further, the complainant claimed a sum of Rs.20,000/- towards deficiency of service and mental agony. Definitely, the opposite parties made the complainant to run from pillar to pillar to get the claim, even then the opposite parties did not reimburse the amount. Hence, under this head the complainant is entitled for a sum of Rs.20,000/-. Further, the complainant is entitled for a sum of Rs.10,000/- towards litigation cost. Accordingly, we answer this point partly in affirmative.
15. POINT NO.3:- In view of the discussion made above, we proceed to pass the following;
-
The complaint is allowed in part.
The opposite parties are directed to pay a sum of Rs.61,800/- to the complainant along with interest at the rate of 9% p.a. from 01.02.2017 till realization.
Further the opposite parties are directed to pay a sum of Rs.20,000/- towards mental agony caused and Rs.10,000/- towards litigation cost.
The opposite parties shall comply the order within 30 days. In case, the opposite parties fail to comply the order within the said period, the above said amount of Rs.30,000/- carries interest at the rate of 9% p.a. from the date of payment till realization.
Supply free copy of this order to both the parties and return extra copies of the pleading and evidence to the parties.
(Dictated to the Stenographer, typed by her, the transcript corrected, revised and then pronounced in the open Commission on 27th day of July, 2022)
- REKHA SAYANNAVAR) (RAJU K.S) (SHIVARAMA, K)
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//ANNEXURE//
Witness examined for the complainants side:
Sri.Veeresh Babu, the complainant has filed his affidavit.
Documents marked for the complainant side:
1. The policy schedule issued by Aviva Insurance Company bearing policy No.WTG 1303351 in complainant name for the period from 03.08.2006.
2. The 1st premium receipt dt.03.08.2006.
3. The letter dated nil sent by Aviva to the complainant along with the policy schedule.
4. The policy account statement.
5. The copy of the legal notice got issued by the complainant to the opposite parties, postal receipts and postal acknowledgements.
6. Reply notice dt.28.02.2017 sent by the insurance company.
7.The computer generated e-mail correspondence date.17.10.2019 made by the opposite parties to the complainant.
Witness examined for the opposite party side:
Sri.Ratnesh Keshri, Senior Manager of opposite party has filed his affidavit.
Documents marked for the Opposite Party side:
1. Terms and conditions of the policy.
- REKHA SAYANNAVAR) (RAJU K.S) (SHIVARAMA, K)
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