Punjab

Ludhiana

CC/19/223

Harvinder Singh - Complainant(s)

Versus

Bajaj Allianz & Gen Ins.co.Ltd - Opp.Party(s)

Amrit Pal Singh Adv.

09 Jun 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, LUDHIANA.

                                                Complaint No:223 dated 13.05.2019.                                                        Date of decision: 09.06.2023.

Harvinder Singh Dhindsa S/o. Sh. Gurdial Singh, resident of VPO Moran, Tehsil Phillaur, District Jalandhar.                                                                                                                                                                   .…Complainant

                                                Versus

1. Bajaj Allianz Life Insurance Co. Ltd., 6^th Floor, SCO 10-11, Above ICICI Bank Ltd., Feroz Gandhi Market, Ludhiana, Punjab, through its Branch Manager.
2. Bajaj Allianz Life Insurance Co. Ltd., GE Plaza, Airport Road, Yerawada, Pune, Maharashtra-411006 through its Managing Director.
3. Jaswinder Singh S/o. Sadhu Singh, Insurance Advisor of Bajaj Allianz Life Insurance Co. Ltd., resident of VPO Mansuran, Ludhiana.

....Opposite parties 

Complaint Under Section 12,13 of the Consumer Protection Act.

QUORUM:

SH. SANJEEV BATRA, PRESIDENT

SH. JASWINDER SINGH, MEMBER

MS. MONIKA BHAGAT, MEMBER

 

COUNSEL FOR THE PARTIES:

For complainant            :         Sh. Amrit Pal Singh, Advocate.

For OP1 and OP2          :         Sh. Gaurav Anand, Advocate.

For OP3                         :         Complaint not admitted vide order dated

23.05.2019.

ORDER

PER SANJEEV BATRA, PRESIDENT

1.                Briefly stated, the facts of the complaint are that the complainant is a NRI and settled abroad and working there since long. He used to come to India occasionally. The complainant stated that opposite party used to come to his residence when he came to India and allured him that he has got very good investment ideas as he has been working with reputed company i.e. opposite party No.1 and 2. On the assurance of opposite party No.3, the complainant agreed to purchase life insurance policy No.0158298814 for a sum assured of Rs.50,00,000/- on regular annual premium payment of Rs.10,00,000/- from opposite party No.1 and 2 on 17.04.2010. Thereafter, the complainant was residing at Canada so he deposited renewal premium amount in the saving bank account No.01902010034150 of opposite party No.3 on 04.07.2011 by direct transfer of Rs.10,00,000/- and also deposited Rs.3,00,000/- on 31.03.2012 and Rs.7,00,000/- on 04.04.2012 as payment of second and third renewal annual premium of Rs.10,00,000/- of insurance policy to opposite party No.3 for depositing the same with opposite party No.1 and 2. The complainant further stated that instead of depositing the renewal premium of said insurance policy, opposite party No.3 has got issued fresh insurance policies No.02266315507 and 0263619232 from opposite party No.1 and 2. When the complainant came to India in the year 2018 and asked about investment details made through opposite party No.3 then he started making excuses for one pretext or the other. The complainant went to office of opposite party No.1 and enquired about status of his policy then he shocked to know that opposite party No.3 has got issued another two insurance policies without his consent. The complainant asked the officials of opposite party No.1 to refund the invested amount and completed all the formalities for surrender of all three insurance policies. On 27.03.2018, opposite party No.1 and 2 released amount of Rs.26,76,056.49 of insurance policy No.0226631507 and on 09.04.2018 the amount of Rs.9,13,946/- of insurance policy No.0263619232 also refunded. The complainant further stated that even though he completed all the formalities for surrender of insurance policy No.0158298814 on 09.04.2018 with opposite party No.1 but till date the payment of this policy has not been refunded. The complainant visited office of opposite party No.1 number of times with request to release the amount of insurance policy No.0158298814 but to no effect. In the month of March 2019, when the complainant again came to India and visited the office of opposite party No.1, it was revealed that the surrender value amount/payment of Rs.7,85,133/- of said insurance policy No.0158298814 has already been paid to him. The complainant further stated that he shocked to hear such facts from the official of opposite party No.1 as he has not received the amount of Rs.7,85,133/- nor any amount was credited in his bank account nor any check or draft being sent to his address. The complainant got issued a legal notice dated 16.04.2019 upon the opposite parties through his counsel but to no effect. Hence this complaint whereby the complainant prayed for issuing direction to opposite parties to pay the insurance surrender value amount of Rs.7,85,133/- with interest @12% along with compensation of Rs.1,00,000/- and litigation expenses.

2.                The complaint against opposite party No.3 not admitted vide order dated 23.05.2019.

3.                Upon notice, opposite party No.1 and 2 filed their joint written statement by taking preliminary objections that the complaint is not maintainable; the complainant has suppressed the material facts; lack of cause of action etc.  The opposite parties stated that they had already made payment against the policy of the complainant and now nothing is due. The complainant has attempted to misguide and mislead this Commission. Moreover, intricate questions of law and facts are involved in this case and the parties have to lead evidence by examining the witnesses and the said witnesses are to be cross examined by the other party. The procedure under the Act is summary in nature. The opposite parties further stated that they float the insurance schemes for the public in general after prior approval of the Insurance Regulatory & Development Authority (IRDA) and all the terms and conditions of the respective insurance policies are set by the IRDA constituted under the IRDA Act, 1999 and Insurance Act, 1938.

                   On merits, opposite party No.1 and 2 reiterated the crux of averments made in the preliminary objections. The opposite parties submitted that the complainant himself approached their advisor to invest the money with them and he purchased the policy after getting entire information about the policy’s terms and conditions. The complainant submitted his proposal for issuing fresh policies and the policies were issued accordingly by the opposite parties. The opposite parties further submitted that they had already released the payment to the complainant through NEFT in his account at the time of surrender request and nothing is pending on their part. The opposite parties have denied that there is any deficiency of service and have also prayed for dismissal of the complaint.

4.                The complainant filed replication to the written statement of opposite party No.1 and 2 reiterating the facts mentioned in the complaint and controverting those made in the written statement.

5.                In support of his claim, the complainant tendered his affidavit Ex. CA in which he reiterated the allegations and the claim of compensation as stated in the complaint. The complainant also tendered documents Ex. C1 to Ex. C7 as the policy documents i.e. copies of premium receipts and proposal form qua the policies in question, Ex. C8 to Ex. C10 are the copies of surrender value acknowledgement letters of policies, Ex. C11 is the copy of bank statement of OBC Bank, Ex. C12 to Ex. C17 are copies of SBI Bank money transfer applications, Ex. C18 is the copy of bank account statement of Jasbir Singh, Ex. C19 to Ex. C25 are the copies of passport and immigration entries, Ex. C26 is the copy of legal notice dated 16.04.2019, Ex. C27 are copies of postal receipts, Ex.C28 is the copy of power of attorney executed by the complainant and closed the evidence. 

6.                On the other hand, counsel for opposite party No.1 and 2 tendered affidavit Ex. RA of Sh.Varinder Sharma, Authorized Signatory along with documents Ex. R1 is the copy of policy details summary, Ex.R2 to Ex.R5 are the copies of statement of account of Harvinder Singh, Ex.R6 to Ex.R9 are the copies of form ‘J’, Ex.R10 is the copy of driving license of complainant, Ex.R11 is the copy of demand draft of Rs.10 lac, Ex.R12 is the copy of financial supplementary statement, Ex.R13 to Ex.R18 are the copies of policies documents in the name of complainant, Ex.R19 is the copy of passbook of the bank of complainant, Ex.R20 and Ex.R21 are the copies of Aadhaar Card and Pan Card of the complainant, Ex.R22 is the copy of customer consent letter and closed the evidence.

7.                We have heard the arguments of the counsel for the parties and also gone through the complaint, affidavit and annexed documents and written replies along with affidavit and documents produced on record by both the parties.     

8.                The complainant, resident of Canada, on 17.04.2010 became subscriber of a Life insurance policy, purchased Bajaj Allianz Century Plus III bearing policy No.0158298814 having a assured sum of Rs.50 lacs and premium of Rs.10 lacs was to be paid annually. The date of commencement of the policy was 28.03.2010 and the maturity date was 28.03.2020. The policy documents are Ex.C1, Ex.C2 and Ex.C4. Ex.C3 is the first premium payment receipt of Rs.10 lac. In the year 2011, the complainant sent the total amount of Rs.10lac to OP3 for renewing the policy but instead of paying the renewal fee, the said amount was diverted to purchase two other policies bearing No.0226631507 and 0263619232 as reflected in documents Ex.C9 and Ex.C10. In the year 2018, when the complainant came back to India and came to know about the modus operandi of OP3 whereby his renewal premium was invested in some other policies. Left with no other option, the complainant requested for surrender of all the three policies. Out of which, the surrender value of subsequent two policies were directly credited to the account of the complainant but surrender value of original policy was not paid to the complainant. In March 2019, the complainant again came back to India and visited the office of OPs but to no avail. The complainant served a legal notice on 16.04.2019 Ex.C26 upon the OP1 and OP2 but the same was not replied by them. During the proceedings of this complaint, OP1 and OP2 in their written statement as well as in affidavit Ex.RA of Mr.Varinder Sharma, authorized signatory of OPs, did not deny the factum of issuance of policies, receipt of premiums, payment of surrender value of other policies but with regard to the payment of surrender of the original policy, it was submitted by the OP1 and OP2 that they have already released the payment to the complainant through NEFT in the account as submitted at the time of their surrender request and there is nothing due towards the OPs. In support of their contentions, Op1 and Op2 have also relied upon document Ex.R1 and Ex.R2 which shows the withdrawal of foreclose amount of Rs.7,09,157/- on 30.03.2015 in favour of the complainant but the OP1 and OP2 failed to provide the details and particulars of the account where the surrender value of Rs.7,09,157.63P has been allegedly transferred by them at the request of the complainant. The bank detail of the same was already with their bank and even letter Ex.C8 confirmed the receipt of request for direct credit under the original policy. The complainant has discharged his initial onus regarding submission of request for surrender of the original policy and it was shifted upon the OP1 and OP2 to show that whether the payment was made to the complainant or not but they have failed to discharge their onus of payment to the complainant and as such, there is a deficiency in service on their part and their act and conduct also amounts to unfair trade practice. In these circumstances, the complainant is entitled for the surrender value of Rs.7,85,133/- in respect of the original policy No.0158298814 along with interest @8% per annum from the date of complaint i.e. 13.05.2019 till the date of actual realization along with composite cost of Rs.20,000/-.

9.                As a result of above discussion, the complaint is allowed with an order that OP1 and OP2 shall be jointly and severally liable to pay the surrender value of Rs. Rs.7,85,133/- in respect of the original policy No.0158298814 along with interest @8% per annum from the date of complaint i.e. 13.05.2019  till the date of actual realization. The OP1 and OP2 shall further pay a composite compensation of Rs.20,000/- (Rupees Twenty Thousand only) to the complainant. Compliance of order be made within 30 days from the date of receipt of copy of the order. Copies of order be supplied to parties free of costs as per rules. File be indexed and consigned to record room.

10.              Due to huge pendency of cases, the complaint could not be decided within statutory period.

 

(Monika Bhagat)          (Jaswinder Singh)                      (Sanjeev Batra)                          Member                            Member                                       President         

 

Announced in Open Commission.

Dated:09.06.2023.

Gurpreet Sharma