DISTRICT CONSUMER DISPUTES REDRESSAL FORUM,<br /> BATHINDA (PUNJAB)<br /> <br /> CC No. 17 of 11-01-2010<br /> Decided on : 26-07-2010 <br /> <br /> Jai Gopal Goyal, Advocate, aged 42 years, S/o Late Sh. Rattan Lal Goyal Adv. R/o 5095, Gali Old Tehsil, Bathinda.<br /> .... Complainant<br /> Versus<br /> <br /> 1.Bajaj Allianz Life Insurance Company, GE Plaza, Airport Road, Pune.<br /> 2.Harpinder Singh Nagi, Insurance Code 5400003183, the then Branch Manager, Bajaj Allianz Life Insurance Co. Ltd., G T Road, Near Power House Road, Bathinda.<br /> 3.Indusind Bank, Branch Bathinda through its Branch Manager, G T Road, Near Bus Stand, Bathinda. <br /> <br /> ..... Opposite parties<br /> <br /> Complaint under Section 12 of the Consumer Protection<br /> Act, 1986.<br /> <br /> QUORUM <br /> <br /> Ms. Vikramjit Kaur Soni, President<br /> Dr. Phulider Preet, Member <br /> Sh. Amarjeet Paul, Member<br /> <br /> For the Complainant : Sh. Jai Gopal Goyal, complainant in person. <br /> For the Opposite parties : Sh. M.L. Bansal, counsel for <br /> opposite parties No. 1 & 2.<br /> Opposite party No. 3 exparte. <br /> <br /> O R D E R<br /> <br /> VIKRAMJIT KAUR SONI, PRESIDENT<br /> <br /> 1. In brief, the case of the complainant is that he purchased Life Insurance Policy on 24-11-2006 on the inducement made by opposite parties No. 1 & 2. The complainant alleged that the opposite parties did not disclose the nature and contents of the policy schedule and its terms and conditions. The then Branch Manager of opposite party No. 3 got the signatures of the complainant on blank voucher for withdrawal of amount of Rs. 50,000/- out of his saving account, which he has with opposite party No. 3, by saying that there was no need to deposit any amount in future after the two years. The complainant received notice/demand call of opposite parties No. 1 & 2 for payment of renewal premium of the policy and further demand of Rs. 50,000/- as 3rd installment and intimated to the complainant that if he would not pay the 3rd installment, the first two installments shall be forfeited. The complainant alleged that more than 50% of the amount invested was deducted from the premium amount paid by the complainant which amounts to unjust enrichment at the cost of the complainant by wrongly doing policy of life long instead of two years policy as conveyed by the opposite parties to the complainant at the time of taking signatures on the blank application form as well as blank vouchers for withdrawal of amount of Rs. 50,000/- . The complainant has served legal notice cum representation but the opposite parties had not replied. The complainant alleged that the opposite parties have done fraud with him.<br /> 2. The opposite parties No. 1 & 2 filed their written version and pleaded that complainant has not denied the acceptance of the terms and conditions of the policy as they have attached the policy schedule which was sent alongwith the terms and conditions of the policy. A copy of proposal form on the basis of which the policy of insurance was issued, is also placed on file by the opposite parties. As per terms and conditions of the policy if the complainant was not satisfied with any terms and conditions, he had option to return the policy within 15 days of the date of receipt of policy documents. The opposite parties No. 1 & 2 pleaded that no option was ever exercised by the complainant which clearly indicate that he was satisfied with the policy as issued. The complainant has also deposited the renewal premium in 2007 knowing fully well that the policy was a regular premium policy. They further pleaded that New Unitgain policy was issued to the complainant and he had already enjoyed insurance cover for two years including rider benefit. The complainant had himself opted for annual premium plan but he has failed to deposit third premium despite he was apprised for the same and accordingly policy had already lapsed as per condition No. 5(b), according to which 'in the event of failure to make payment of full regular premium falling due during the first three policy years and non-payment of complete amount due even within the grace period, the policy shall automatically and immediately lapse for the insurance cover including the cover under all riders.'<br /> 3. Despite service of notice, none appeared on behalf of opposite party No 3 and as such, exparte proceedings were taken against it.<br /> 4. Parties have led evidence in support of their pleadings. <br /> 5. Arguments heard and written submissions submitted by the parties perused.<br /> 6. The complainant alleged that opposite party No. 3 i.e. Indusind Bank in connivance with opposite parties No. 1 & 2 had induced the complainant to purchase Life Insurance Policy without disclosing the nature and contents of the policy. He alleged that the then Branch Manager had got the signatures of the complainant on blank voucher and withdrawal of Rs. 50,000/- out of the saving account of the complainant deposited with opposite party No. 2. The complainant had paid two years premium only. A perusal of Ex. C-3 shows policy commencement date : 25-11-2006, Frequency of payment : Annual, Due date of premium : 25th November of every year, Date of Maturity : 25-11-2021, Premium : Rs. 50,000/- , Multiplier :8, Sum Assured : Rs. 4.00 Lacs and date of risk 25-11-2006. Further a perusal of Ex. C-4 which is first premium receipt shows Plan : Bajaj Allianz New Unit Gain Riders, Frequency of Payment: Annually, Premium installment : Rs. 50,000/-. These two documents show that complainant was fully aware of the frequency of payment and the premium amount. He cannot deny the fact that he was not aware about the terms and conditions of the policy. The complainant has deposited only two installments. Clauses 12 (a) & 12 (b) of Bajaj Allianz New Unit Gain policy are reproduced are reproduced hereunder :-<br /> 12 . Non Forfeiture :<br /> (a) If any regular Premium is not paid before the expiry of grace period, within three years of inception of the Policy, the Policy shall lapse immediately for all Insurance Covers. The Policy holder will get an opportunity to revive the Policy within a revival period of two years from the due date of last unpaid Premium and its Policy holder does not revive during this period the contract shall terminated. The surrender value, if any, shall be paid at the end of the third year or at the end of the revival period, whichever is later.<br /> (b) If any regular premium is not paid before the expiry of grace period, after three policy years, provided Premium for three full years have been paid, the Policy shall be kept in force for full Sum Assured including Additional Benefits by cancellation of units at the prevailing Unit Price to recover all charges including charge for Insurance Covers. The Policy will be terminated and Fund Value would be paid to the Policy holder as and when Fund Value becomes equal to the amount of one annual premium.”<br /> 7. According to Ex. C-3 the 3rd installment of premium was due on 25-11-2008 against the complainant and as per aforesaid Non Forfeiture clause, the complainant was free to revive his policy within two years from the due date of last unpaid premium but in the present case, the complainant has not revived the policy. He still can avail this opportunity as two years will complete on 25-11-2010. The complainant is demanding Rs. 1.00 Lacs, which he has deposited as two installments of premium, alongwith interest @ 18% P.A. There is no such clause under the policy purchased by the complainant under which direction can be given to the opposite parties to refund the amount of premium already deposited by him. If he wanted relief, he would have claimed the fund value, if any, at the end of third year or at the end of the revival period whichever is later. Under this clause, the complaint is premature as the complainant is entitled to get the fund value after completion of 5 years or at the end of 3rd year of the revival. <br /> 8. In view of the above discussion, this complaint fails and is hereby dismissed leaving the parties to bear their own costs. A copy of this order be sent to the parties concerned free of cost and the file be consigned. <br /> Pronounced :<br /> 26-07-2010 <br /> (Vikramjit Kaur Soni)<br /> President<br /> <br /> <br /> (Dr. Phulinder Preet)<br /> Member <br /> <br /> <br /> (Amarjeet Paul)<br /> Member <br />