BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM,
ERNAKULAM.
Date of filing : 19/08/2011
Date of Order : 29/09/2012
Present :-
Shri. A. Rajesh, President.
Shri. Paul Gomez, Member.
Smt. C.K. Lekhamma, Member.
C.C. No. 455/2011
Between
K.J. Arthur, | :: | Complainant |
Kurisinkal House, Nazareth, Kochi – 682 001, Ernakulam. |
| (By Adv. P.M. Joshy, Kiran Law Chambers, Francis Xaviers Church Road, Kaloor, Kochi - 17) |
And
1. Aviva Life Insurance, | :: | Opposite Parties |
Ashirwad Towers, Plot No. 2, Old No. 182, 3rd Floor, Kodambakkam High Road, Nungambakkam, Chennai – 600 034. 2. Aviva Life Insurance Co. India Ltd., 2nd Floor, Prakash Deep, Tolstoy Building, Swapnil Enclave, Opp. Joy Alukkas Wedding Centre, Marine Drive, Ernakulam. |
| (Op.pts. by Adv. Nelson J. Manayil) |
O R D E R
A. Rajesh, President.
1. The case of the complainant is as follows :-
The complainant joined a life insurance policy of the opposite parties and paid the 1st instalment of Rs. 25,000/- on 31-03-2008. As per the scheme of the policy, 3 instalments are to be paid for the like amount. The complainant could not pay the 2nd and 3rd instalments due to financial problem. On third year the complainant approached the 2nd opposite party to get the 1st instalment refunded. The 2nd opposite party directed the complainant to wait till the maturity of the policy. After completion of the maturity period, the complainant approached the opposite parties to get the instalment amount together with its benefits, the opposite parties turned down the request. The complainant is entitled to get refund of Rs. 25,000/- with interest @ 12% p.a. and Rs. 10,000/- towards costs of the proceedings. This complaint hence.
2. The version of the opposite parties :-
The complainant himself had filled out and signed the proposal form based on which a policy was issued. The policy terms and conditions are drawn as per the guidelines laid down by IRDA. Based on the proposal form, a policy was issued to the complainant with effect from 31-03-2008. The policy documents were despatched to the complainant on 19-04-2008. Policy document contained a policy schedule and standard terms and conditions of the policy. The policy holder has a right to reconsider his decision to purchase the policy within 15 days of receipt of the policy. The complainant failed to pay the premium for the term of 2009, because of which the policy status changed to the early lapse on 06-05-2009. The opposite party received the complaint of the complainant on 03-09-2010 and the same was duly replied to on 08-09-2010. At the instance of the complainant, the Insurance Ombudsman directed the opposite parties to pay the claim surrender value thereunder. The surrender value to the tune of Rs. 46/- was despatched to the complainant on 31-03-2011 by cheque. There is no deficiency in service on the part of the opposite parties.
3. Proof affidavit has been filed by the complainant and Exts. A1 to A4 were marked. No oral evidence was adduced by the opposite parties. Exts. B1 to B7 were marked. Heard the counsel for the parties.
4. The only point that arises for consideration is whether the opposite parties are liable to refund Rs. 25,000/- with 12% interest p.a. to the complainant together with costs of the proceedings.
5. The opposite parties contended that the complainant joined the policy fully knowing the terms and conditions of the policy. The opposite parties maintain that they have duly despatched Exts. B1 to B7 to the complainant on receipt of the proposal form. During evidence, the complainant produced Ext. A4 policy document received by him from the opposite parties. Even according to the opposite parties, as per IRDA Rules, the complainant is entitled to take decision to continue with the policy or to reject the same during the free look period. It is pertinent to note that the above legal clause does not find a place in Ext. A4 policy document, which cuts at the very root of the contract of insurance entered into between the complainant and the opposite parties making it void ab-initio.
6. In the above circumstances, we have no hesitation to hold that the complainant is entitled to get refund of the premium amount of Rs. 25,000/- with 12% interest p.a. till realisation from the opposite parties. Ordered accordingly. We are not to know as to how, we could differ from a conclusive finding to the contrary.
The 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.
A P P E N D I X
Complainant's Exhibits :-
Exhibit A1 | :: | Copy of the first premium receipt dt. 31-03-2008 |
“ A2 | :: | Copy of the letter dt. 14-04-2011 |
“ A3 | :: | Copy of the payment advice dt. 13-04-2011 |
“ A4 | :: | Policy document |
Opposite party's Exhibits :-
Exhibit B1 | :: | Copy of the key feature document |
“ B2 | :: | Copy of the proposal form |
“ B3 | :: | Copy of standard terms and conditions |
“ B4 | :: | Copy of the letter dt. 08-09-2010 |
“ B5 | :: | Copy of the letter dt. 22-10-2010 |
“ B6 | :: | Copy of the letter dt. 15-10-2010 |
“ B7 | :: | Copy of the letter dt. 02-02-2011 |
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