Haryana

Gurgaon

cc/534/2009

Mahavir Singh - Complainant(s)

Versus

Aviva Life Insurance - Opp.Party(s)

13 Jun 2016

ORDER

                                       DISTRICT   CONSUMER   DISPUTES   REDRESSAL FORUM, GURGAON-122001

                                                                                                                Consumer Complaint No: 534 of 2009                                                                                                                            Date of Institution: 17.06.2009                                                                                                                                                        Date of Decision:  13.06.2016

Mahavir Singh s/o Sardar Singh, R/o Rangarh Pana, Village & P.O.Dichaukalan, Najafgarh, New Delhi-110043.

                                                                                                ….Complainant.

                                                Versus

Aviva Life Insurance Aviva Tower, Sector Road, Opp. Golf Course, DLF Phase-43, Gurgaon, Haryana.

                                                                                              ..Opposite party

                                                                                               

Complaint under Sections 12 & 14 of Consumer Protection Act,1986                                                                 

 

BEFORE:     SHRI SUBHASH GOYAL, PRESIDENT

SMT JYOTI SIWACH, MEMBER

                  

Present:        Shri Satpal Yadav, Adv for the complainant.

                    OP exparte.

 

ORDER       SUBHASH GOYAL, PRESIDENT.

The case of the complainant, in brief, is that   the complainant’s son namely Jitender Kumar had taken a policy of Aviva Life Insurance vide Policy No. LSP1515301 on 29.03.2007 with sum assured Rs.3,24,000/-. Insured Jitender Kumar died on 09.11.2008 in Vishakapatnam in road accident.  The complainant was the nominee of his son and was entitled to get all the death benefits of his son’s policy. The complainant submitted the claim with the opposite party along with required documents but of no use. The complainant also sent legal notice but no action was taken by the OP in this matter. Thus, there was deficiency in service on the part of the opposite party. The complainant prayed that the opposite party be directed to pay all the benefits permissible under the policy and compensation of Rs. 1 Lac.

2                 OP in its written reply has alleged that as per article 2 of the Standard Terms and Conditions of the Policy in case the renewal premium is not paid within the period of grace from its due date than the policy will lapse with all risk cover ceasing immediately and no death benefit will be payable except the Fund Value is payable as on the date of notification of claim. The company has already paid Fund Value amounting to Rs.15,164/- vide Cheque bearing No.090121 dated 30.01.2009 under the Policy to the complainant. The cheque has already been encashed by the complainant. The Apex Court in the matter of Life Insurance Corporation of India Vs Mani Ram AIR 2005 SC 3349 has held that lapse of policy during grace period will disentitle beneficiary from recovering insurance amount. In the instant case, the policy under question is in lapse condition. Therefore, no claim is payable under the said policy as the policy holder paid the premium of policy from 29th March 2007 to 3rd July, 2008 and thereafter the policy holder did not pay any renewal premium towards the policy. The policy holder was sent a renewal premium notice on 8th August, 2008. The policy holder also did not pay any renewal premium amount within the grace period as mentioned in the Standard Terms and Conditions. It has also been alleged that this Forum has no jurisdiction to try the present complaint.

3                 We have heard the learned counsel for the complainant  and have perused the record available on file.

4                 Therefore, from the facts and circumstances of the case, evidence on the file and the arguments advanced by the parties, it emerges that the complainant has filed the present complaint against the OPs alleging deficiency in service on their part on the ground that son of the complainant namely Jitender Kumar had taken had taken Aviva Life Insurance vide Policy No.LSP1515301 on 29.03.2007 with sum assured Rs.3,24,000/- and the son of the complainant died on 09.11.2008 in roadside accident and the complainant is nominee in the said policy of his son. The complainant approached the OP for reimbursement of the assured amount but in vain and as such there was deficiency in service on the part of the opposite party.

5                 However, as per the contention of the opposite party in the written reply who were proceeded exparte  later on, this Forum has no jurisdiction as the proposal form was signed at Vishakapatnam and as per article 2 of the Standard Terms and Conditions of the Policy, if the renewal premium was not paid within the grace period from due date of premium than policy would lapse  and all risks would cease immediately and death benefits will be payable except fund value on the date of lodging of the claim. It has also been contended that as per law laid down by the Hon’ble Supreme Court in case LIC of India Vs Mani Ram AIR 2005 SC 3349, the lapse of policy during grace period will disentitle beneficiary from recovering insurance amount. In the present case the policy had lapsed and as such no claim is liable to be paid by the OP. It has also been mentioned that fund value of Rs.15,164/-  vide cheque No.090121 dated 30.01.2009 has already been paid in accordance with the terms and conditions of the policy and the said cheque has already been  got encashed but the said factum has not been mentioned in the complaint. As per the contention mentioned in the written statement the assured was holding Life Saver Plus Unit Linked Insurance Policy w.e.f. 29.03.2007 and the premium was liable to be paid monthly . The policy holder paid premium from 29.03.2007 to 03.07.2008 and thereafter renewal premium amount was not paid despite the notice of renewal dated 08.08.2008 even during the grace period and as such the policy lapsed on account of nonpayment of pending dues. However, after filing of written reply the OP was proceeded exparte vide order dated 20.11.2013.

6                 Therefore, after going through the facts and circumstances of the case and the evidence placed on file it is evident that there is no dispute that Jitender son of complainant had obtained life insurance policy w.e.f. 29.03.2007 with sum assured Rs.3,24,000/- and the name of the nominee has been mentioned as Mahabir Singh and premium frequency was monthly. As per the admission on behalf of OP the premium was paid up to 03.07.2008. OP sent letter for deposit of renewal premium but nothing was done. As per evidence on record insured Jitender died in a roadside accident on 09.11.2008 and in this regard case u/s 304-A IPC, P.S. Visakhapatnam City, was registered. Therefore, from the evidence on record it is evident that at the time of death  of insured Jitender i.e. on  09.11.2008 the policy had expired on account of nonpayment of monthly premium i.e. approximately four months prior to the death of assured. The assured has not taken any step during his life time to get the policy renewed and as such when the assured Jitender died the policy was in lapsed condition and as such on the date of death of assured Jitender there was no contract of insurance between the insured and insurer and thus, on account of lapse of insured policy and in view of law laid down by the Hon’ble Apex Court in the case referred above the death benefits are not available to the nominee. However, keeping in view the nature of the policy the fund value amounting to Rs.15,164/- has already been reimbursed by the OP vide cheque no.090121 dated 30.01.2009 and the same has been got encahsed by the nominee and thus, there was no deficiency in service on the part of the opposite party and as such, the present complaint has no merit and hence it is dismissed. . The parties be communicated of the order accordingly and the file be consigned to the records after due compliance.

 

Announced                                                                                                                      (Subhash Goyal)

13.06.2016                                                                                                                            President,

                                                                                                                                   District Consumer Disputes

                                                                                                                                      Redressal Forum, Gurgaon

 

(Jyoti Siwach)       

Member