Punjab

Rupnagar

CC/18/10

Iqbal Singh - Complainant(s)

Versus

Aviva Life Insurance - Opp.Party(s)

01 Aug 2018

ORDER

BEFORE THE DISTT. CONSUMER DISPUTES REDRESSAL FORUM, ROPAR

                                 Consumer Complaint No. :  10 of 19.02.2018

                                 Date of decision                    :     01.08.2018

 

Iqbal Mohammad son of Mehandi Hassan, resident of House No.65, Ward No.3, Ram Bagh, Morinda, Near Ram Bagh Road, District Rupnagar.  

                                                                 ......Complainant

                                             Versus

 1. Aviva Life Insurance Company Ltd. Aviva Tower Sector Road,    Opposite Golf Course, DLF, Phase V, Sector 43, Gurgaon

2. Piare Shah, resident of Village Channanpur, Tehsil & District        Fatehgarh Sahib. 

                                                                          ....Opposite Parties

                                   Complaint under Section 12 of the                                                      Consumer Protection Act, 1986

QUORUM

 

                        SH. KARNAIL SINGH AHHI, PRESIDENT

                        SMT. SHAVINDER KAUR, MEMBER

 

ARGUED BY

 

Sh. Manbir Singh Dhindsa, Adv. counsel for complainant  

Sh. Lachmi Singh Chandel, Adv. counsel for O.P. No.1

          Complaint against OP No.2 stand Dismissed as Withdrawn vide order dated 03.07.2018

 

                                           ORDER

 

              SH. KARNAIL SINGH AHHI, PRESIDENT

 

1.         Complainant has filed the present complaint seeking directions to the opposite parties to refund the policy amount along with interest @ 24% per annum from the date of policy till its realization; to pay Rs.50,000/- as damages on account of mental, physical and monatory harassment; to pay Rs.10,000/- as cost of complaint; any other relief which this Hon'ble court may deems fit be granted to the complainant, in the interest of justice. 

2.    Brief facts made out from the complaint are that the O.P. No.2 introduced the agent of O.P. No.1 and approached the complainant at his house at Morinda and saw him most beneficiary plan to him and says that the complainant have to give only three installments of policy in the shape of FDR and after that he can get double amount of his policy after five years and the complainant shows readiness to purchase the policy only with the condition that he has pay only three installments and get double of its amount after five years and he had given three installments of Rs.10,000/- each to the O.P. at Morinda and he purchased the policy bearing No.LLD2829775 dated 3.12.2009. Thereafter, after passing of five years then the complainant approached the O.Ps then he become shocked when official of the O.Ps. told that the said policy is not three time premium policy rather the same is yearly premium policy and they have also told that the complainant will pay 48 years installments and only after 48 years he can get his amount back. In this way, the O.P.s have mis cheat with the complainant by showing him wrong facts regarding the policy and the OPs have also committed offence because nobody can purchase any policy of 48 years of Rs.10,000/- installment of per year because this very huge amount and long period policy. The complainant has purchased this policy only with the condition that he has to pay only three premium, this way the OP No.2 and his agents/officials misguide the complainant on the other hand when the complainant approached the branch of the OP and requested the OP No.1 to pay the double of the amount as promised by the O.P. then he again shocked then the OP No.1 flatly refused to pay the same and further says that the complainant have to pay 48 installments otherwise policy will be lapsed. Hence, this complaint.    

  3.  On notice, O.P. No.1 appears through counsel and filed written reply taking preliminary objections; that the present complaint is not maintainable as the complainant has attempted to misguide and mislead the Hon'ble Forum; that the complainant has failed to disclose any legal and valid cause of action against the answering O.P.; that the complaint does not qualify the ingredients of a valid complaint, because there is not a single allegation which leads the OP to either deficiency of service or that of any unfair trade practice; that the complainant has no cause of action to file the present complaint; that the intricate questions of law and facts are involved in this case; that the complainant is stopped from filing the present complaint by own acts, conduct, omissions and acquiescence; that the complaint is false, frivolous and vexatious in nature and has been filed in order to cause undue harassment to the answering O.P. On merits, it is stated that answering O.P. is a Life Insurance company registered under the provisions of Insurance Act, 1938 and rules and regulations made there under. The answering O.P. does their work as per the provisions of Insurance law as application within the Indian Territory and follow the entire guidelines issued by the IRDA from time to time strictly. The answering OP deals only in life insurance nothing else. Complainant himself willing to show his interest to purchase Life Insurance Policy of answering O.P. and for this he approached the advisor and the complainant got the entire information regarding all the plans of the answering O.P. after understanding all the terms and conditions of all the plans only thereafter she opted to purchase Aviva Life Long Unit Linked Life Insurance Policy. For this complainant filled the proposal form, the complainant opted to pay Rs.10,000/- per annum as premium against a sum assured of Rs.50,000/-.That soon after policy was dispatched to the complainant and the same was duly received by him. It is further stated that the complainant purchased the policy in the year 2009 and paid the premium for 3 years only and after that he did not pay any renewal premium and due to this the policy of the complainant lapsed as per terms and conditions of the policy. The complainant is very much aware about the status of the policy from the first day and moreover after received the policy from the O.P. but the complainant never raised any hue and cry regarding misspelling of the policy but after such a long period he made false assertions just to get conceal its own fault. As per article 5(a) of the policy after the policy holder has paid regular premium for at least 3 policy years, if the surrender value of units pertaining to regular premium becomes equivalent to the regular premium paid in the first policy year, then the policy shall automatically terminate and we shall send the policyholder a notice of termination and pay the surrender value calculated in accordance with article 5(a).  Rest of the allegations made in the complaint have been denied and prayer has been made dismissal thereof. 

4.    On being called upon to do so, the complainant has tendered his duly sworn affidavit of complainant Ex.C1 along with documents Ex.C2 & Ex.C4 and closed the evidence. The learned counsel for the O.P. No.1 has tendered sworn affidavit of Sh. Ratnesh Keshri, authorized signatory of Aviva Life Insurance Company Limited Ex.OP1/A along with copy of policy documents Ex.OP1/B (containing 33 pages) and closed the evidence  

5.    We have heard the learned counsel for the contesting parties and have gone through the record of the file, carefully.

7.     Complainant counsel Sh. Manbir Singh Dhindsa, argued that Iqbal Mohmmad, purchased one beneficiary plan from the O.P. with the assurance that if the deposited three installments continuously yearly then after five years he will get double of its amount. Accordingly, the policy purchased on 3.12.2009 and deposited Rs.10,000/- yearly. Thereafter, he awaited five years and when requested for payment then OP declared that the plan is of 48 years, if he deposited three years installments then liberty was to surrender and to get the benefits but due to non surrender of the policy it covered by foreclosure. O.P. never informed qua the fact of foreclosure or of surrender value after three years. Learned counsel prayed that O.P. be directed to make payment after five years qua the deposit Rs.30,000/- with interest till recovery as its non payment amounts deficiency in service.

8.    OP counsel Sh. Lachmi Singh Chandel, argued that the story put forth by the complainant is totally false, firstly complainant withdrawn the complaint against O.P. No.2, now he has no right to ask qua the fraud or concealment of true facts. Complainant requested for the plan and OP issued the policy Ex.C2. The terms and condition are incorporated in the policy and it was the liberty for the complainant to deposit three years installments and if he was not satisfied with the plan then to request for payment of surrender value. After deposit of three years, he stopped the payment and never requested for the surrender value. Now the case of the complainant covered through foreclosure and on the basis of foreclosure O.P. considered the policy and as mentioned in the reply in para No.1, the O.P. is ready to pay surrender value of the policy to the tune Rs.10,093/-. Lastly prayed that there is no deficiency in service and complaint is without merit and same be dismissed with cost.

9.    Complainant is resident of Ram Bagh, Morinda and plan was purchased, as per complainant version Piare Shah, OP NO.2 approached at Ropar then complainant purchased the policy with commencement 3.12.2009 and also deposited three years (installments 10,000/-). Now the complainant disputed the plan and got issued notice dated 31.7.2017 to the O.P. During the pendency of the complaint, complainant withdrawn the relief against OP No.2. Now contested by O.P. No.1. So, it is a consumer dispute and complaint is maintainable.

10.  Coming to the real controversy, complainant made request that OP assured for double payment of the amount deposited continuously three years after five years. He deposited three installments i.e. Rs.30,000/-, now claim double of its amount till December 2012. Complainant has placed evidence i.e. affidavit, policy Ex.C2, notice Ex.C4 and along with postal receipts, whereas, to rebut the complainant version OP placed on file Ex.OP1/A & Ex.OP1/B including policy.

11.  Complainant made request for the payment whereas OP1 has taken the plea that if complainant was not satisfied with the plan then the liberty was granted through the policy to receive the benefits by making request of surrender value. During the stipulated period complainant did not surrender the policy and then covered the policy through foreclosure. OP taken the stand of foreclosure and decided that complainant is entitled only for the relief Rs.10,093/-. Meaning thereby, complainant was to avail the remedy of surrender value and to get the benefits. As such, no evidence has come on file by the complainant qua the surrender request. At the same time, OP placed on file proposal form, policy and then in the written reply given detail in para No.1 reply of facts that surrender value of the policy now accrued Rs.10,093/-. During the course of arguments, counsel for the O.P pointed out 5(a), 5(b) of the policy Ex.C2 and its relevant portion is reproduced as under:-

                             Surrender Value & Auto-Foreclosure

                a)    After completion of the first three years, this policy may be surrendered by the policy holder and a surrender value shall be payable provided the Regular Premium due for at least one policy year has been received by Us. The surrender value will be equal to the value of Units pertaining to Regular Premium less the Surrender Charge on Units pertaining to Regular Premium, as mentioned in the Schedule, plus the value of Units pertaining to Top Up Premium, if any.

                  b)  After the Policy holder has paid Regular Premium for at least 3 policy years, if the surrender value of units pertaining to Regular Premium becomes equivalent to the Regular Premium paid in the first Policy Year, then the Policy shall automatically terminate and we shall send the Policyholder a notice of termination and pay the Surrender Value calculated in accordance with Article 5(a)/

                    

                 12. Whereas to rebut this provision, complainant counsel neither cited any law nor any documentary evidence. Section 5 deals with surrender value and auto foreclosure. Section 5(a) speaks if after completion of first three years of the policy, the policy surrendered then OP will pay the surrender value. If after three years deposit of regular premium stopped then it will covered auto foreclosure. The Forum appreciated the arguments, gone through the pleadings and then relied upon the policy Ex.C2, which is the star document. Because complainant filled up the form and purchased the policy, then deposited installments three years and after receipt of policy on deposit of three years installments never requested for payment of surrender value. He automatically stopped the payment. No document has come on the file qua the deposit of three years installments or payment of its double on completion of five years as assured by the OP NO.2, now against OP No.2 complaint stand withdrawn. So the said plea is without merit. But claim of complainant covered through auto foreclosure. Accordingly, complainant is held entitled qua the amount of Rs.10,093/-. OP has taken the decision i.e. in the month of December 2012 or in the beginning of 13 but never conveyed for payment of said amount. Under these circumstances, complainant is also entitled interest upon the said amount.

                 13. In the light of above discussion, the complaint stand allowed partly with the direction to the O.P. No.1 to make the payment of Rs.10093 along with interest @ 7.5% per annum w.e.f 1.2.2013 till recovery. Leaving the parties to bear their own cost. 

               14.   The OP. No.1 is further directed to comply with the said order within the period of 30 days from the date of receipt of certified copy of this order.

15.   The certified copies of this order be supplied to the parties forthwith, free of costs, as permissible under the rules and the file be indexed and consigned to Record Room.

 

                     ANNOUNCED                                                    (KARNAIL SINGH AHHI)

                     Dated.01.08.2018                                     PRESIDENT
 

 

 

                                                          (SHAVINDER KAUR)

                                                                             MEMBER