Punjab

StateCommission

A/11/367

Pushpinder Kaur - Complainant(s)

Versus

Aviva Life Insurance - Opp.Party(s)

Surinder Garg

26 Feb 2015

ORDER

                                                               FIRST ADDITIONAL BENCH

 

STATE  CONSUMER  DISPUTES  REDRESSAL  COMMISSION, PUNJAB, SECTOR 37-A, DAKSHIN MARG, CHANDIGARH.

 

First Appeal No.367 of 2011

                                                Date of Institution:  25.02.2011.

                                                Date of Decision:           26.02.2015.

 

Pushpinder Kaur aged about 40 years w/o Kewal Singh son of  Malkit Singh, resident of Shere Punjab Nagar, Duareana Road, Kotkapura, Tehsil and District Faridkot.

                                                     …..Appellant/complainant

Versus

 

1.      Aviva Life Insurance Branch Office Near Bus Stand, Faridkot    through its Branch Manager.

2.      Aviva Life Insurance, 5th Floor, JMD Regent Square, Gurgaon- Mehrauli Road, Gurgaon (Haryana)-122001 through its   Managing Director.

                                                           ….Respondents/opposite parties

             

Appeal against order dated 09.12.2010 passed by the District Consumer Disputes Redressal Forum, Faridkot.

Quorum:-

     Shri J. S. Klar, Presiding Judicial Member.

             Shri H.S. Guram, Member.

Present:-

 

     For the appellant           :     Sh. Surinder Garg, Advocate

For respondents           :     Sh. Sandeep Suri, Advocate.

     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

J. S. KLAR, PRESIDING JUDICIAL MEMBER:-

                   The appellant Pushpinder Kaur (the complainant in the complaint) has filed this appeal against the respondents herein (the opposite parties in the complaint), impugning order dated 09.12.2010 passed by the District Consumer Disputes Redressal Forum Faridkot (in short, “the District Forum”), dismissing the complaint of the complainant now appellant. The instant appeal has been preferred against the same by the complainant.

2.           The complainant Pushpinder Kaur has filed the complaint under Section 12 of the Consumer Protection Act, 1986 (in short "Act") against the OPs on the averments that she and her husband Kewal Singh had joint saving account no.3255 in Bank of Punjab branch office Kotkapura, which was subsequently renumbered as 06481000055609, when this bank was merged in HDFC Bank. That Ruchi, the employee of the Bank of Punjab, who was also the agent of the AVIVA Life Insurance, inveigled the complainant to purchase the insurance policy of AVIVA Life Insurance company. She further assured the complainant that she would have to pay minimum two installments and the insurance benefit of Rs.15,00,000/- would be given to the nominee in case any mis-happening occurred during the subsistence of the policy. The complainant took two policies with yearly installments of Rs.15,000/-, on the assurance of above agent Ruchi, one in the name of complainant and other in the name of her husband Kewal Singh. The complainant paid first premium of Rs.15,000/- to the OPs, as first yearly installment on 26.05.2006. The complainant deposited Rs.60,000/- in four installments with the OPs, vide policy no.NLG1263719. The complainant approached OP no.1 on 15.06.2010 and demanded back the policy amount along with interest. The complainant was intimated that there was no such rule to pay back the policy amount with interest and if she wanted to receive the policy amount, she would have to pay the policy installments up to the year of 2055 for policy no.NLG1263719. The complainant has, thus, filed the complaint against the OPs, praying that the OPs be directed to refund the premium amount of Rs.60,000/- with interest from the date of deposit till its realization and further to pay Rs.30,000/- as compensation for mental harassment besides costs of litigation.
3.           Upon notice, the OPs appeared and filed the written reply and contested the complaint of the complainant on the preliminary objections that it is barred by time. That cause of action arose in May 2006, when complainant signed the proposal form for policy bearing no.NLG1263719.  The complainant firstly made allegation of fraud in June, 2010, much after the period of two years only. The complaint is bad for non-joinder of necessary party, being false and frivolous and is not maintainable. It was further pleaded that under IRDA Regulation 2002, the policy terms and conditions specifically provided the option of free look period of 15 days to review the policy terms and conditions and to request for the cancellation, if dissatisfied therewith. That complicated questions of facts and law are involved in this case, which cannot be decided in summary proceedings by the Consumer Fora. It was further pleaded by the OPs that after duly understanding the terms and conditions of the policy on the basis of the key feature document, complainant, who is a teacher in a Government Senior Secondary Public School Kotkapura filled up the proposal form bearing no.NU1036237 dated 17.05.2006 for a "life long plan", wherein Mr. Kewal Singh has been made the nominee. That on the basis of declaration and information supplied by the complainant in proposal form, the policy bearing no.NLG1263719 was issued to complainant with commencement date as 26.05.2006. The courier receipt and acknowledgement signed by the complainant are Annexure OP-3 and Annexure OP-4. The copies of key feature document along with proposal form are Annexure OP-1 and Annexure OP-2. The complaint was contested even on merits and OPs prayed for dismissal of the complaint.    
4.           The complainant tendered in evidence her affidavit
   Ex.C-1 along with documents Ex.C-2 and Ex.C-3 and closed the evidence. As against it, the OPs tendered in evidence affidavit of Gaurav Malhotra Ex.R-1 along with documents Ex.R-2 to R-4 and  closed their evidence. On conclusion of evidence and arguments, the District Forum Faridkot dismissed the complaint of the complainant by virtue of order dated 09.12.2010 under challenge in this appeal. Dissatisfied with the order of the District Forum, the appellant has preferred this appeal against the same.
5.           We have heard the learned counsel for the parties and have also examined the record of the case. The contention of the appellant/complainant is that the OPs committed deficiency in service for not refunding the amount of Rs.60,000/- paid by her in respect of above policy. It was further maintained by the appellant that she was persuaded to purchase the policy by the agent of OPs fraudulently by making her believe that only minimum two installments thereof would be paid, whereupon her nominee would be paid Rs.15,00,000/- in case of any mishap during the subsistence of the policy. The amount of Rs.60,000/- towards installments has been paid by the complainant and she demanded the return of the policy amount with interest on 15.06.2010 from the OPs.
6.           The insurance policy is virtually a contract between the parties. The parties are bound by the contract of insurance. Ex.R-2 is the proposal form on the record. The complainant is a teacher, as recorded in proposal form Ex.R-2. The standard terms & conditions Ex.R-3 is on the record. The case of the parties is governed by the terms and conditions of the contract of insurance, as embodied therein. Article 7 of Ex.R-3 lays down, if an installment of regular premium is not paid within the period of grace from its due date, as defined in Article 4.1 and the due date is less than 24 months from the commencement date, then the insurance will be deemed to have immediately lapsed without value. If any, additional single premium has been paid, the surrender value of all units held in the unit account in respect of the additional single premium at the date, the insurance lapsed will be paid subject to Article 15.  Article 15 deals with surrender charges thereof. The complainant has not continued the policy and withdrew there from by not paying the premium regularly. The complainant cannot renege on this contract of insurance. The complainant committed default in making the payment of premium amount despite the fact that she is a teacher in the Government Senior Secondary School Kotkapura, as recorded in proposal form Ex.R-2. She herself filled up the proposal form. The premium amount for the first year is Rs.15,000/-, as per policy schedule, vide Ex.C-2. The case of the complainant is not covered under the terms and conditions of the contract of insurance contained in standard terms and conditions Ex.R-6. It is not believable that complainant, who is a teacher and imparting education to the students was misled by the representation of the agent of the OPs. The option of free look period has not been exercised by the complainant in this case for the cancellation of the policy. Consequently, the order of the District Forum Faridkot, dismissing the complainant of the complainant is unassailable. The case of the complainant cannot be compared with the case of Rajinder Kumar, as the facts of the case are different. We find no illegality in the order of District Forum Faridkot calling for any interference therein.
7.           As a result of our above discussions, the appeal filed the complainant now appellant is hereby dismissed by leaving the appellant to have the surrender value charges under the policy in question, if so advised, under the contract of insurance.
8.           Arguments in this appeal were heard on 25.02.2015 and the order was reserved. Now the order be communicated to the parties.          The appeal could not be decided within the statutory period due to heavy pendency of court cases.

 

                                                                          (J. S. KLAR)

                                                         PRESIDING JUDICIAL MEMBER

                       

                                                                         (H.S. GURAM)

                                                                              MEMBER

 

February 26, 2015.                                                             

(MM)

                                        

 

(MM)