Before the District Consumer Disputes Redressal Forum, Amritsar.

Complaint Case No.359/14

Date of institution : 7.7.2014

Date of decision : 1.7.2015

Jagtar Singh aged 50 years s/o S.Saudagar Singh r/o Guru Amar Dass Colony, G.T.Road, Naraingarh, Chheharta, Amritsar.

..............Complainant

Versus

Bharti AXA Life Insurance Company Limited having their branch at Ranjit Avenue, Amritsar through its Branch Manager/Principal Officer, Amritsar.

...............Opposite party

Complaint under section 11 & 12 of the Consumer Protection Act

Present : For the complainant : Sh.Vikram Puri, Adv.

For the opposite party : Sh.S.K.Vyas, Adv.

QUORUM : Sh.Bhupinder Singh, President, Sh.Anoop Sharma, Member, Ms.Kulwant Kaur Bajwa, Member

Order Dictated by :

Sh.Bhupinder Singh, President

1 Present complaint has been filed by Sh.Jagtar Singh under the provisions of Consumer Protection Act alleging therein that he is having saving bank account with Punjab National Bank, Partap Bazar, Chheharta having saving bank account No.2898000105043838. In the month of April 2012, he went to the bank for obtaining FDR and one representative of the opposite party come in contact with the complainant and allured him to obtain single premium policy. On the assurance of the representative of the opposite party, the complainant made his mind to obtain policy and paid

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Rs.30000/- for obtaining single premium policy. The complainant received one policy bearing No.5008580408. The complainant further alleges that without his consent, the opposite party effected the policy with premium payment of 15 years with policy terms of 30 years instead of single premium policy under Bharti AXA Life Monthly Income Plan covering death benefit for Rs.549490/-. The complainant after coming to know about the wrong policy issued to him, he contacted the opposite party with a request either to convert the annual premium policy into single premium policy as agreed with them and hand over the same to him or to refund the amount of Rs.30000/- to him but the opposite party did not pay any heed to the request of the complainant. While alleging deficiency of service, the complainant has filed the present complaint seeking directions to the opposite party either to issue fresh policy with single premium or to refund the amount deposited by the complainant with interest at the rate of 18% p.a.from the date of issuing of policy till payment. He also demanded compensation of Rs.30000/- alongwith litigation expenses of Rs.5000/-.

2 On notice, opposite party appeared and filed written version in

which it was submitted that the policy was issued strictly as per the proposal form submitted by the complainant and after having understood each and every term and conditions of the insurance policy by the complainant. It is further submitted that as admitted by the complainant himself as the complainant failed to pay premium for subsequent years as per terms and conditions of the policy, the insurance policy has lapsed due to non payment of premium and nothing is payable to the complainant at this stage as per policy terms and conditions. It was further submitted that as admitted by the complainant, he had received the policy documents and as such, as per terms and conditions of the insurance policy, he was given free look

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period to get the policy cancelled within 15 days from the receipt of the policy document in case he was not satisfied with its terms and conditions. But inspite of the due knowledge as alleged by the complainant, he failed to approach within the said free look period for cancellation of the policy. It was further submitted that the opposite party never received any complaint from the complainant for cancellation of the policy since the issuance of the policy or any request to convert the policy to single premium policy nor there is any provision to convert the policy to any other insurance plan later on after issuance of the insurance product. Since the complainant failed to pay any premium except for one premium paid by him on the commencement of the policy, therefore, the amount paid by the complainant has been forfeited and the policy has lapsed as per policy terms and conditions of the policy and nothing is payable to the complainant at this stage. While denying and controverting other allegations, the opposite party has prayed for dismissal of complaint

3 Complainant tendered into evidence his duly sworn affidavit ex.C-1, copy of welcome letter ex.C-2, copy of policy detail ex.C-3.

4 Opposite party tendered into evidence copy of benefit illustration ex.OP1, copy of proposal form ex.OP2, copy of letter ex.OP3, copy of premium receipt ex.OP4, copy of policy specifications ex.OP5, copy of ID proof ex.OP6, copy of policy bond ex.OP7.

5 We have carefully gone through the pleadings of the parties, arguments advanced by counsel for the opposite party and have appreciated the evidence produced on record by both the parties with their valuable assistance.

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 has

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saving bank account with Punjab National Bank, Partap Bazar Branch, Chheharta. Complainant wanted to invest some amount in FDR. However, the representative of the opposite came into contact of the complainant. Complainant further alleges that he allured the complainant that if the complainant paid Rs.30000/- for single premium policy, he would earn better profit. Resultantly, complainant paid Rs.30000/- to that representative of the opposite party. However, the complainant received the policy bearing No.5008580408 from the opposite party and the complainant came to know that term of the policy is 30 years and premium payment term is 15 years covering death benefit for Rs.5,49,490/-. Complainant approached the opposite party with a request to convert annual premium policy into single premium policy or to refund the amount of Rs.30000/- but the opposite party refused to 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 party qua the complainant.

7 Whereas the case of the opposite party is that in order to obtain insurance policy from the opposite party, complainant filled in and signed the proposal form ex.OP2. Not only this, complainant also signed declaration attached with the proposal form ex.OP2 in which complainant himself admitted that he has received, read and fully understood the product brochure and benefit illustration and declared that he fully understood the contents mentioned therein. In the proposal form, term of the policy was mentioned as 30 years and premium payment term is 15 years and the amount of premium is Rs.30000/-, premium payment mode was annual. On the basis of the said proposal form, opposite party issued policy to the complainant which was duly received by the complainant. If the complainant was not satisfied with the terms and conditions of the insurance

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policy, he could opt for cancellation of the policy and refund of the amount within free look period of 15 days from the date of receipt of the policy documents, but the complainant did not exercise that option. So, opposite party was justified in not accepting the request of the complainant. Ld.counsel for the opposite party submitted that there is no deficiency of service on the part of the opposite party qua the complainant.

From the entire above discussion, we have come to the conclusion that in order to obtain insurance policy, the complainant filled in and signed proposal form ex.OP2 on 16.4.2012. He also signed declaration to the effect that he has received, read and fully understood the product brochure and benefit illustration and declared that he fully understood the contents mentioned therein. On the basis of the said proposal form ex.OP2, insurance policy bearing No. 5008580408 was issued by the opposite party and also policy documents were sent to the complainant vide welcome letter ex.OP3. Complainant never lodged any complaint with the opposite party nor he made any request to the opposite party to convert the policy into single premium policy nor the complainant could produce any evidence that there is any provision to convert the policy in question to any other insurance policy plan or single premium policy. It is admitted case of the complainant that he received the policy but he did not apply for cancellation of the policy or refund of premium amount within free look period of 15 days from the date of receipt of the policy documents despite the fact that in their letter ex.C-2, opposite party had categorically told the complainant that he could withdraw the policy within free look period of 15 days from the date of receipt of policy and in that case, the complainant was required to send original policy documents alongwith request letter to the opposite party but the complainant never applied for cancellation of the policy within

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free look period of 15 days from the date of receipt of policy documents nor the complainant could produce any document to prove that he applied for cancellation of the policy and refund of the premium amount within free look period i.e.within 15 days from the date of receipt of policy documents. So, the opposite party was justified in not accepting the request of the complainant for converting the policy in question into single premium policy as there is no provision to convert the policy to any other insurance plan or to refund the premium amount.

8 Consequently, we hold that there is no merit in the present complaint and same is hereby dismissed. Parties are left to bear their own costs. Copies of the orders be furnished to the parties free of costs. File is ordered to be consigned to the record room.

1.7.2015 ( Bhupinder Singh )

President

(Anoop Sharma ) ( Kulwant Kaur Bajwa )

Member Member