J U D G E M E N T

The case of the complainant in a nutshell is as follows:

            In this complaint Sri Jagadish Chandra Roy Pratihar, aged 68 years of Bhatchala, Mansatala, Burdwan has purchased one Secure Savings Plan Policy being no. 501-1891222 from Branch Manager, bharti Axa LIC Ltd., Burdwan - OP-1 who subsequently sent the policy booklet to the complainant. As per policy, premium receipt sum assured Rs. 1,74,772=00, policy terms 20 years, issue date March 21, 2014, policy date

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March 21, 2014, premium received Rs. 15004.76, payment mode Annual and next premium due date March 21, 2015. In this case Managing Director & CEO, Bharti Axa LIC Ltd. has been impleaded as OP-2. In the terms & conditions of the policy document there was a provision of free look period and subsequently the complainant returned back the said policy document vide his letter dated 08.4.2014 requesting the OP-2 to cancel the policy for his personal cause under free look provision and refund the premium amount which they have received. Thereafter the OP-2 vide their letter dated 18.4.2014 sent back the policy document to the complainant/policy holder as they are unable to process the request for cancellation of the policy on the plea that the same is not in accordance with the relevant rules.  The complainant against requested the OP-2 vide his letter dated 29.4.2014 with a copy to Bardhaman District Consumer Protection and Welfare Centre (BDCP & WC) to refund the money received premium through OP-1. But it is regretted that the OP-2 refused to receive the letter for which the complainant had to send directly to OP-2 by post. BDCP & WC vide their letter no. 139, dated 19.6.2014 stating the above fact requested the Ops to take necessary step to refund the premium amount and also stated the matter of refusal of receiving the letter by OP-1. The OP-2 vide their letter dated 08.7.2014 informed the complainant that the matter is being attended by Mr. Tanveer Shaikh, Senior Executive of Grievance Redressal Cell and shall respond within 14 days of receipt of complaint. On the same date i.e. on 08.7.2014 in another letter the Grievance Cell informed the complainant forwarding a copy to BDCP & WC that they have accepted the request to cancel the policy under the free look provision and advised to submit the original policy document through branch office or to OP-2 and after receiving the same they will process the cancellation. But considering the refusal to accept the letter and non-cooperative tendency on the part of the OP-1, the complainant sent the documents directly by BDCP & WC vide their letter no. 141, dated 09.7.2014 to the OP-2 instead of submitting the policy document to the OP-1.  Having no response from the Ops, BDCP & WC again requested the OP, especially Mr. Tanveer Shaikh to attend the matter urgently through a FAX message on 30.7.2014 and forwarded copy by post for confirmation. But getting no response BDCP & WC vide their letter no. 145A, dated 22.9.2014 served notice to the Ops before filing case for their negligence in settlement of the dispute that has been cropped up for their delay in the matter. Since then a month already elapsed, but the Ops have not yet refunded the premium amount which

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they have committed in their letter dated 08.7.2014 and inspite of repeated request the Ops did not bother and care to attend the grievance of the complainant in refunding the money. Due to aforesaid deficiency in service and unfair trade practice on the part of the Ops the complainant has suffered harassment, mental agony and financial loss and have been compelled to file the instant case with a prayer for refund of premium amount to the tune of Rs. 15005=00, towards cost of harassment Rs. 5,000=00 towards expenditures for litigation with other Rs. 2,500=00 and interest @12% on the whole amount till date of payment.

            Complainant has submitted documents like Xerox copy of first premium receipt, free look period condition; correspondences with the OP-1&2, FAX message of BDCP&WC dated 30.7.2014.

The Ops did not turn up before this ld. Forum inspite of valid service. The S/R returned back after service of notice upon the OP-1 for appearing before this ld. Forum.  In respect of notice for appearing before this ld. Forum upon the OP-2 it is found from the postal track report that the notice was duly served. Therefore we took up complaint for hearing ex parte against the Ops. 

The case of the complainant is that he purchased one insurance policy from the OP-1 and received the policy booklet after depositing the first premium amount. Thereafter he returned the policy document to the OP-2 within the free look period for cancellation of the policy due to his personal reason and requested to refund the premium amount which he has already paid. But the OP-2 through their letter intimated the complainant that they are unable to process the request for cancellation of the policy on the plea that the same is not in accordance with the relevant rules. Thereafter the complainant again sent a letter to the OP-1 with a copy to the BDCP&WC but the OP-1 refused to receive the said letter for which he sent the letter directly to the OP-2. The OP-2 through their letter informed the complainant that the matter is being attended by Senior Executive of Grievance Redressal Cell and shall respond within 14 days from the date of receipt of complaint and on the same date through another letter the Grievance Cell informed the complainant that they have accepted the request to cancel the policy under the free look provision and advised to submit the original policy document for processing the cancellation. Though the policy document was sent directly by the BDCP&WC on 09.7.2014 and again a FAX message was sent to the Ops on 30.7.2014but they kept themselves mum over the matter. Thereafter on 22.9.2014 the BDCP&WC served notice to the Ops before filing case for

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their negligence and unfair trade practice but they did not bother to reply. Finding no other alternative the complainant filed the complaint 12.12.2014 with a prayer for refund of the premium amount along with interest, compensation and litigation cost.

Upon careful perusal of the documents it is very much clear that the complainant took the policy on 21.3.2014 and thereafter hr received the policy document from the Ops. On 08.4.2014. He returned the policy document to the OP-2 for cancellation of the said policy as per provision of ‘free look period’ i.e. within 15 days from the date of receipt of the policy document. In his letter the complainant the complainant has categorically mentioned that ‘I will not be able to continue and maintain the Policy due to high premium and long term’. In reply the OP-2 vide their letter dated 18.4.2014 mentioned that ‘Payout Request Form mentions reason for free look cancellation as “fund Requirement”, which is not in accordance with relevant Sections of the Regulations and policy bond’. As per policy document the point no. 12 Free Look Period as follows:-

‘If the policyholder disagrees with any of the terms and conditions of the Policy then there is an option to return the original Policy along with a letter stating reason/s for the objection within 15 days of receipt of the Policy (“the free look period”). The Policy will accordingly be cancelled and the Policyholder will be refunded an amount equal to the Premium paid subject to a deduction of a proportionate risk premium for the period on cover, the expenses incurred by the Company on medical examination (if any) and stamp duty charges. All rights of the Policyholder under this Policy shall stand extinguished immediately on the cancellation of the Policy under the free look option’.

So, in our view the complainant has rightly decided to cancel the policy within the stipulated period of time of free look period which is very within the terms and conditions of the policy. On the other hand, the Ops have arbitrarily and willfully rejected his application without any cogent and valid ground by just showing the cause as “Fund Requirement”.  Moreover, in view of letter dated 19.4.2014 of the complainant the Grievance Redressal Cell of the Ops have informed vide their letter dated 08.7.2014 that “we have examined the matter and have accepted your request to cancel the captioned Policy under the freelook provisions. To enable us to process the cancellation, we request you to submit your original policy document and your consent letter at the nearest branch or send it to below mentioned address, within 30 days from the date of receipt of this letter”. On the next date i.e. on 09.7.2014 the complainant sent the policy document through BDCP&WC and again sent a FAX message to the OP-2 on 30.7.2014, but the Ops have neither refund the premium

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amount nor sent a reply from their end.  Therefore, in our view when the  Grievance Redressal Cell of the Ops have accepted the request of the complainant to cancel the policy after receipt of the Policy Document, so they cannot sit idle after receipt of the policy document and harass the policyholder, which tantamount to deficiency in service and unfair trade practice. In our view the Ops have done a gross negligence by not refunding the premium amount to about a sixty-eight years old person and dragged him to a court of law for his genuine claim. Accordingly, it is

O r d e r e d

that the petition of complaint filed by the complainant is allowed ex parte against the Ops. The Ops are hereby directed to pay the premium amount Rs. 15,005=00 to the complainant within 45 days from the date of passing of this order. The Ops are further directed to pay Rs. 5,000=00 as cost due to harassment and Rs. 2,000=00 as litigation cost to the complainant within 45 days from the date of passing of this order. The Ops are also directed to deposit Rs. 10,000=00 by way of demand draft in the name of ‘Consumer Legal Aid Account’ of this Ld. Forum within 45 days from the date of passing of this order. In case, the Ops fail to deposit the amount to the Fund within the prescribed period, then they will be liable to pay interest @ 9% p.a., till realization.  In default, the complainant shall be at liberty to put the entire order into execution as per provision of law.

                                      (Asoke Kumar Mandal)        

             Dictated and corrected by me.                                                         President      

                                                                                                                   DCDRF, Burdwan

                    (Durga Sankar Das)

                           Member

                   DCDRF, Burdwan

                                                      (Silpi Majumder)                                     (Durga Sankar Das)

                                                          Member                                                      Member

                                                     DCDRF, Burdwan                                          DCDRF, Burdwan