Chandigarh

DF-II

CC/805/2016

Amit Kumar - Complainant(s)

Versus

Axis Bank Ltd., - Opp.Party(s)

Navneet Jindal Adv.

24 Jul 2018

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II,   U.T. CHANDIGARH

 

Consumer Complaint  No	:	805 of 2016
Date  of  Institution	:	22.09.2016
Date   of   Decision	:	24.07.2018

 

 

 

 

Amit Kumar s/o Sh.Ashok Kumar, Insp CLI/RTC R/o Police Line, Sector 26, Chandigarh.

             …..Complainant

Versus

1]  Axis Bank Ltd., SCO No.41-42, Madhya Marg, Sector 8-C, Chandigarh 160008 through its Manager/Authorised person/Owner.

2]  Max Life Insurance Co. Ltd., through its Manager/Authorised Person/Owner

    First Address:-

    Axis bank Ltd., SCO No.41-42, Madhya Marg, Sector 8-C, Chandigarh 160008

    Second Address:-

    11^th Floor, DLF Square, Jacaranda Marg, DLF Phase-II, Gurgaon 122002

                          ….. Opposite Parties

BEFORE:  SH.RAJAN DEWAN            PRESIDENT

         SMT.PRITI MALHOTRA        MEMBER

                                SH.RAVINDER SINGH         MEMBER 

 

Argued by: Sh.Navneet Jindal, Adv. for complainant.

 Sh.Sourabh Goel, Adv. for OP No.1.

 Sh.Nitesh Singhi, Adv. for OP No.2.

 

 

PER RAVINDER SINGH, MEMBER

 

 

         The facts in issue are that the complainant having his account with Opposite Party No.1 Bank visited it on 7.1.2013 for getting FDR (Fixed Deposit) of Rs.1.00 lakh.  It is averred that the official of Max Life was also sitting there, who asked the complainant to get an insurance policy, but complainant refused for it and asked the bank official to issued FDR for which he was made to sign on some papers & vouchers.  It is averred that the official of OP Bank asked the complainant that the FDR will come by post at his registered address.  However, later on, it come to the notice of the complainant that the OP Bank instead of issuing FDR of his amount of Rs.1.00 lakh, got issued an insurance policy of Opposite Party No.2 (Ann.C-1 to C-3). The complainant agitated the matter with Opposite Party NO.1, whereupon the official of OP No.1 asked the complainant to pay Rs.20,000/- in lieu of expenditure, Rs.6700/- in lieu of tax already paid and to issue a cancelled cheque, for getting the policy cancelled, which he deposited in cash (Ann.C-4 & C-5), but he was surprised to note that Rs.8865.36 was got deducted from his account in lieu of the same policy (Ann.C-6).  It is submitted that finally on 24.11.2014, the complainant gave a written representation to the employees of Max Life Insurance telling his concern, which they acknowledged, but did nothing. It is also submitted that the  OPs No.1 & 2 has not only misguided the complainant but also sold him the product which was never intended by him.  Hence, this complaint has been filed for claim of Rs.1,35,452/- with interest, compensation etc. alleging deficiency in service and unfair trade practice on the part of Opposite Parties.

 

2]       The Opposite Party No.1 has filed reply and while admitting the factual matrix of the case, stated that the complainant on 7.1.2013 visited the bank for purchasing the insurance policy of OP No.2 and after understanding the terms & conditions of the insurance policy, signed the proposal form and submitted the documents. It is stated that the complainant also signed and submitted the ECS mandate form to the OP bank in favour of OP No.2 Insurance Company authorizing the Bank to deduct a sum of Rs.99,990.94/- annually in the account of complainant. It is also stated that the complainant with his own will and without any pressure had prepared the demand draft of Rs.1 lakh on 7.1.2013 in favour of Opposite Party No.2 towards the consideration amount for the annual premium of the policy and was accordingly issued Max Life Gain Plus 20 participating Plan by Opposite Party No.2.  It is denied that the complainant’s intention was to convert this money into fixed deposit.  It is submitted that no fixed deposit receipt was provided by the OP bank to the complainant.  It is also submitted that the complainant himself has purchased the insurance policy of Opposite Party No.2.  It is stated that on 7.1.2014, the complainant had changed the mode of paying the premium amount from annually to monthly and as such had paid a sum of Rs.20,000/- and Rs.6700/- towards the quarterly premium of the insurance policy.  The complainant also deposited the premium from  Jan., 2014 to March, 2014 and advance premium of April, 2014 was deducted vide ECS request given by him on 7.1.2014.  It is also stated by OP No.1 Bank that bank has no role in the business of insurance or issuance of policy by Max Life Insurance Company. Denying other allegations, the Opposite Party NO.1 has prayed for dismissal of the complaint.         However

 

         Opposite Party No.2 has also filed reply stating the policy in question i.e. Max Life Gain Plus 20 Years 6 Pay Policy was issued in favour of the complainant as proposed by him and delivered at his registered address, which is admitted by him (Ann.R-1 & R-2).  It is stated that the complainant preferred the said policy at his own will and nobody forced him to purchase it.  It is also stated that the entire story of the complainant is cooked up with malafide intention to take undue benefit under the policy.  It is submitted that the complainant himself changed the mode of premium to ECS and had also admitted in his conversation with the OPs that he had received the policy documents in the year 2013.  It is submitted that if the complainant is entitled for any refund or amount, that is subject to terms & conditions of the policy. Denying other allegations of the complainant, the OP No.2 has prayed for dismissal of the complaint. 

 

3]       Complainant also filed replication thereby reiterating the contentions made in the complaint.

 

4]       Parties led evidence in support of their contentions.

 

5]       We have heard the ld.Counsel for the parties and perused the entire record.

 

6]       The complainant has Savings Bank Account in Axis Bank/OP No.1. He visited OP No.1 Bank on 7.1.2013 with intent to put his amount lying in the savings bank account in Fixed Deposit so that he may get some good return over it.  The Bank Official and Representative of Max Life Insurance Company/OP No.2, who was present in the Axis Bank/OP No.1, persuaded him to put his savings in the insurance policies with Max Life Insurance Co. Ltd. for more financial benefits. The complainant allegedly was not convinced with the suggestion and insisted for making Fixed Deposit for his amount.  The complainant signed the documents, which were presented to him by the Bank Clerk of Opposite Party No.1 in good faith. The complainant seems to have signed the documents considering the same to be for the purpose of making Fixed Deposit for his amount.  The OPs No.1 & 2 on the face of record conspired together for the purpose of putting the money of complainant lying in the savings account in the insurance policy with intend to procure more business for Insurance Company.  The motivating factor behind this move definitely is to get more commission offered by such insurance companies to the Agents, who procure new policies. 

 

7]       The contentions raised by Axis Bank/OP No.1 that they have no business or rule in providing insurance policies of Max Life Insurance Company Ltd. in favour of the complainant, is totally false and misleading. From letter dated 15.1.2013 (Annexure C-1) issued by Max Life Insurance/OP No.2, addressed to the complainant Amit Kumar, it is proved that Axis Bank Ltd, Madhya Marg,  Sector 8-C, Chandigarh/OP No.1 was the agent in issuing of this policy No.876492125 in the name of Amit Kumar, complainant. The Opposite Parties were asked to intimate the payment of commission amount regarding the policy in question issued in the name of the complainant, but they intentionally evaded such information and conceal the facts before this Forum. 

 

8]       The complainant is working in Police under strenuous service conditions and undoubtedly under such duress could not understand the mischievous attempts of representative of Max Life Insurance Company as well as Bank Officials of OP No.1.  Any insurance policy issued under such compelling misguided circumstances, is void ab-initio and cannot be forced upon the individual. The complainant on becoming aware of this mischievous act on the part of Bank Officials and Max Life Insurance Company Ltd., immediately took up the matter for cancellation of the policy, but the Opposite Party No.2 without any cogent and logical reasons have not acceded to his request and has not paid back the amount. The OPs have received a total sum of Rs.1,35,452/- from the complainant by misrepresentation and dubious means. The complainant, however, has not received any incentive/benefit in terms of dividend, bonus etc. in turn. 

 

9]       It is astonished to note from letter dated 15.1.2013 of Max Life Insurance Company/Opposite Party NO.2 that the Company in the financial year 2011-2012 became the largest non-bank promoted private life insurer in India with a total revenue of Rs.6,391 Crore, Enterprise profit of Rs.733 Crore, Financially strong and stable : Solvency margine-534% against IRDS mandated 150%, Solvency surplus of Rs.1703 Crore, Paid up Capital of Rs.2127 Crore; National Presence in over 1000 cities across India, over 60 lakh policies sold since inception (Ann.R-2). 

 

10]      The corporate sector like Opposite Party NO.2 come up with such a huge capital assets within a short span of time.  This can only be possible by such unscrupulous procurement of business at the cost of innocent public.  The company have engaged high-techno persons with supervisory & management skills and experience for strengthening of insurance business by hook or crook, even though it may be against the free will of the customer. The role of Axis Bank/Opposite Party NO.1, working as an agent of Max Life Insurance Company/OP No.2 (Ann.R-2), as is proved on record in the present case, is highly condemnable.  The OP Bank has stooped so low to indulge in such unethical and immoral activities of working as Agent of Insurance Company-Opposite Party NO.2. The Official working in the bank are all out to earn extra money by putting its customer in a high risk zone. This Forum has not come across any person/case where any person is financially benefited out of the investment made in such insurance companies/policies. The interest of justice shall be defeated, if such clandestine modus operandi adopted by OPs to procure business by such dubious means, is not admonished.   The Opposite Parties suffers from deficiency in service as well as unfair trade practice on their part.  

 

 

11]      Keeping into consideration the facts & circumstances, as discussed in the preceding paragraphs, the OPs No.1 & 2 are held deficient in rendering proper service to the complainant and also indulged into unfair trade practice.   The complaint as such is allowed. The Opposite Parties No.2/Max Life Insurance is directed to refund an amount of Rs.1,35,452/- to the complainant with interest @9% per annum with effect from 7.1.2013, along with litigation cost of Rs.10,000/-. The Opposite Party NO.1/Axis Bank is directed to pay Rs.50,000/- as compensation to the complainant for causing him mental torture and harassment. 

         This order shall be complied with by OPs No.1 & 2 within a period of 30 days from the date of receipt of certified copy of the order, failing which they shall also be liable to pay additional compensatory cost of Rs.10,000/- each to the complainant apart from the above relief.

         Certified copy of this order be sent to the parties, free of charge. After compliance, file be consigned to record room.

Announced

24^th July, 2018                                          

                                                                                                Sd/-

                                                                   (RAJAN DEWAN)

PRESIDENT

 

Sd/-

 (PRITI MALHOTRA)

MEMBER

 

Sd/-

(RAVINDER SINGH)

MEMBER