THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMRITSAR
Consumer Complaint No. 614 of 2014
Date of Institution : 21.11.2014
Date of Decision : 2.09.2015
Sh. Harishankar S/o Nandoo Ram R/o House No. 2768, Gali No.5, Tehsilpura,Amritsar
...Complainant
Vs.
Bharti AXA Life Insurance Co.Limited having its Head office at SCO No. 101, 102 and 103 Batra Building, 2nd Floor, Sector 17-D, Chandigarh through its Managing Director/Director/Authorized Signatory/Manager/Branch Manager/Any other Principal Officer thereof.
Bharti Axa Life Insurance Co.Limited having its branch office at Nagpal Tower II, SCO 44, Level 2, B-Block, Ranjit Avenue, Amritsar through its Managing Director/Director/Authorized Signatory/Manager/Branch Manager/Any other Principal Officer thereof.
....Opp.parties
Complaint under section 12/13 of the Consumer Protection Act, 1986
Present : For the complainant : Sh. Sanjeev Kumar,Advocate
For the opposite parties : Sh Nitin Madan,Advocate
-2-
Quorum : Sh. Bhupinder Singh, President ,Ms. Kulwant Bajwa,Member &
Sh.Anoop Sharma,Member
Order dictated by :-
Bhupinder Singh, President
1. Present complaint has been filed by Harishankar under the provisions of the Consumer Protection Act alleging therein that he was approached by the agent of the opposite party, who persuaded him to purchase the policy. The complainant purchased the policy bearing No. 501-1631032 on 28.12.2013 in the name of his daughter namely Ritu with its maturity date 28.12.2094. Complainant was not interested to continue with the said policy, as such he requested the opposite party for refund of the policy amount alongwith benefits/bonus. The complainant also made written requests to the opposite party vide letters dated 25.6.2014, 1.8.2014 and 26.8.2014 but to no response. Alleging the same to be deficiency in service complaint was filed seeking directions to the opposite parties to refund the amount of premium alongwith interest. Compensation of Rs. 20000/-alongwith litigation expenses were also demanded.
2. On notice, opposite party appeared and filed written version in which it was submitted that proposal form was submitted by the insured before obtaining the insurance policy. As per the request of the complainant and based on the information provided in the proposal form, the insurance policy was issued to the complainant. It was submitted that in case the insured was not satisfied with the insurance product, as per terms and conditions of the policy, the policy holders had an option to cancel the policy within 15 days of receipt of the policy bond. The original policy bond was dispatched to the complainant on 12.1.2014 through Blue Dart Courier vide AWB No. 32757990230 and the same were delivered to the complainant on 25.1.2014. But the complainant failed to approach the opposite party for cancellation of the policy within free look period of 15 days. The complainant moved the application for cancellation of the policy in June 2014 i.e. beyond the free look period of 15 days from the date of receipt of policy, as such the complainant was rightly denied for cancellation of the policy and return of the premium paid. It was further submitted that as per terms and conditions of the policy, complainant was liable to pay annual premium , but he failed to pay the premium after payment of one installment and as such the policy lapsed due to non payment of renewal premium. While denying and controverting other allegations, dismissal of complaint was prayed.
3. Complainant tendered into evidence his affidavit Ex.CW1/A alongwith documents Ex.C-1 to Ex.C-10, affidavit of Sh. Arvind Verma Ex.CW1/B.
4. Opposite parties No.1 & 2 tendered affidavit of Sh. Salil C.Nair, VP & Head Legal Ex.OP1,2/1 alongwith documents Ex.OP1,2/2 to Ex.OP1,2/16.
5. We have carefully gone through the pleadings of the parties, arguments advanced by the ld.counsel for the parties and have appreciated the evidence produced on record by both the parties with the valuable assistance of the ld.counsel for the parties.
6. From the record i.e. pleadings of the parties and the evidence produced on record by both the parties , it is clear that complainant got Insurance policy bearing No.501-1631032 dated 28.12.2013 in the name of her daughter namely Ritu with maturity date 28.12.2094 on payment of premium of Rs. 35000/- . The complainant submitted that representative of the opposite party assured the complainant that at any time if the complainant is not interested to continue with the said policy, he can get the same refunded with all benefits/bonus etc. The complainant was not interested to continue the said policy, as such he requested the opposite party to refund the amount of premium alongwith benefits/bonus etc. But the opposite parties did not pay any heed to the request of the complainant. The complainant also sent letters to the opposite parties i.e. letter dated 1.8.2014 Ex.C-5, letter dated 28.8.2014 Ex.C-6 in this regard and also served legal notice dated 25.9.2014 Ex.C-7. But the opposite party did not pay any heed to the request of the complainant. Ld.counsel for the complainant submitted that all this amounts to deficiency of service on the part of the opposite parties qua the complainant.
7. Whereas the case of the opposite parties is that in order to take the policy in question in the name of his daughter namely Ritu, complainant filled in and signed the proposal form Ex.C-4 in which the main terms and conditions of the policy i.e. period of policy, premium payment term, amount of premium, frequency of payment of premium and the sum assured have been mentioned. The complainant filled in and signed this proposal form as well as declaration that he has understood all the contents of the proposal form. On the basis of this proposal form , opposite party issued policy in the name of Ritu which was duly received by the complainant. If the complainant was not satisfied with the Insurance product, he had an option to get the policy cancelled within free look period of 15 days of receipt of the policy bond. The policy documents were despatched to the complainant on 12.1.2014 through Blue Dart Courier vide AWB No. 32757990230 which were duly delivered to the complainant on 25.1.2014. But the complainant did not opt the free look period cancellation of the policy. Therefore, the complainant was liable to pay the annual premium which was due on 28.12.2014. But the complainant did not pay this premium . As such the policy lapsed on 28.1.2015 after grace period of one month. Ld.counsel for the opposite party submitted that the opposite party was justified in not cancelling the policy and refund of the premium amount to the complainant. He,therefore, submitted that there is no deficiency of service on the part of the opposite party qua the complainant.
8. From the entire above discussion, we have come to the conclusion that complainant got the policy in question dated 28.12.2013 in the name of his daughter Ritu. The said policy bond is Ex.C-2 duly received by the complainant. For getting this policy, the complainant filled in and signed the proposal form Ex.C-4 in which almost all the terms and conditions of the policy have been mentioned and the complainant signed this proposal form alongwith declaration that he has understood all the contents of this proposal form . On the basis of this proposal form, opposite party issued policy dated 31.12.2013 and despatched the same to the complainant through Blue Dart Courier which was received by the complainant on 25.1.2014 as is evident from the policy documents Ex.C-2 duly produced by the complainant himself . If the complainant was not satisfied with the terms and conditions of the policy, he could have got the same cancelled within free look period of 15 days from the date of receipt of the policy documents. But the complainant wrote letter to the opposite party for the first time on 1.8.2014 Ex.C-5 i.e. after a lapse of a period of more than 7 months for cancellation of the policy and refund of the premium amount. The opposite party was justified in not accepting this request of the complainant. The next premium of the policy was due payable on 28.12.2014, but the complainant did not pay the second premium of the policy. As such the policy lapsed on 28.1.2015 after a grace period of one month . The complainant did not make any effort to renew the policy . Therefore, the complainant is not entitled to refund of the premium amount because the opposite party has covered the risk on the life of the complainant/insured during the period, the policy remained in operation i.e.for about one year. It has been held by the Hon'ble National Commission in case LIC of India & Ors Vs. Siba Prasad Dash (Dr.) & Ors. 2009(1) CLT 131 that where the policy has elapsed for non payment of premium , no effort made by the complainant to revive the policy,held that fora cannot direct refund of any premium for the simple reason that risk stood covered for the period for which the premium had been paid. The insured cannot be given advantage of risk coverage and refund of premium. Same view has been taken by the Hon'ble State Commission of UT Chandigarh in case Deep Singh Vs. HDFC Standard Life Insurance Company Ltd.& Anr 2012(2) CLT 541.
9. In view of the above discussion, we hold that there is no deficiency of service on the part of the opposite party. Resultantly we hold that complaint is without merit and the same is hereby dismissed with no order as to costs. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum.
2.9.2015 ( Bhupinder Singh )
President
( Kulwant Kaur Bajwa) (Anoop Sharma)
/R/ Member Member
