Haryana

Ambala

CC/293/2013

JAGIR SINGH - Complainant(s)

Versus

BHARTI AXA LIFE INSURANCE CO. - Opp.Party(s)

G.S ALHUWALIA

15 Jun 2017

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

 

             Complaint Case No.    : 293 of 2013

 Date of Institution       : 12.11.2013

            Date of Decision         : 15.06.2017

 

Jagir Singh, Shop No. 4, Bhagwati Gas Service, Vikas Vihar, Ambala City.                                                                                     

                                                                                                        ……Complainant.

 

                                                                             Versus

1. Bharti AXA Life Insurance Company Limited, Branch Office at Rai Market, Upper Big Bazar, Ambala Cantt.
2. Bharti AXA Life Insurance Company Ltd. IInd floor, SCO No. 208-209, Sector 34-A, Chandigarh 160022 through its authorized signatory.
3. Bharti AXA Insurance Company Limited, registered office Unit 601 and 602 6^th floor, Raheja Titanium, off Western Express Highway, Goregaon (E) Mumbai 400063, through its authorized signatory.  

                                                                                                ……Opposite Parties.

Complaint Under Section 12 of the Consumer Protection Act

BEFORE:       SH. D.N. ARORA,  PRESIDENT.

                        SH. PUSHPENDER KUMAR, MEMBER.

                        MS. ANAMIKA GUPTA, MEMBER.                       

Present:          Sh. G.S. Ahulawalia, Counsel for complainant.

                        Sh. Ankush Gupta, counsel for the OPs.                         

ORDER.

                        In nutshell, brief facts of the complaint are that the complainant purchased a policy of Bharti AXA Life Insurance Company Ltd. bearing policy No. 500-1453744 dated 21-07-2008, maturity dated 21-07-2023 by paying the top up premium. At the time of receiving/accepting the premium of first year by the Op No. 1 at Ambala, it was assured to the complainant that he has to pay only three instalments/premium amount, amounting to Rs. 18,000/- per year and accordingly first instalment of premium amounting to Rs. 18,000/- was paid on 17/21-07-2008, second year premium of Rs. 18,000/- was paid on 21-07-2009 and third and final premium of Rs. 18,000/- was paid on 20-07-2010. The complainant never surrendered his policy nor there any occasion for complainant to surrender his policy.  It is submitted that to utter surprise of the complainant, when he received a letter dated 07-08-2013 and came to know that the OPs without affording any opportunity of hearing and without any prior notice or information to the complainant, deliberately, unlawfully and arbitrarily terminated his policy in question and along with the said letter, the OPs have also mentioned that a cheque of Rs. 28,886.82/- is enclosed herewith as surrender value of the said policy. It is further submitted that he was not interested in surrendering the policy, therefore, the complainant did not accepted the proposal of the OPs to accept the cheque nor the complainant ever got encashed any alleged cheque. It is further submitted that the complainant also got issued a legal notice dated 11-09-2013 calling upon the OPs to continue with the policy and to refund whole amount of premium of Rs. 54,000/- along with equal amount as benefit as assured by OPs and interest at the rate of 18% p.a. As such, the OPs are deficient in services and thus prayed that the OPs may kindly be directed to make the payment of amount of Rs. 54,000/-  along with interest @ 18 % p.a., Rs. 50,000/- as compensation on account of harassment, deficiency in services and Rs. 10,000/- as litigation expenses, to the complainant.

2.                     Upon notice, OPs appeared through counsel and filed reply raising preliminary objections qua non-maintainability of complaint and suppression of material facts. On merits, it is submitted that the complainant himself approached the opposite parties for the issuance of insurance Policy and he submitted his duly filled and signed the proposal form with the OPs and on the basis of proposal form and the declaration made there under, the OPs issued Aspire Life Insurance Policy bearing No. 500-1453744 (Policy) in favour of the complainant. The silent feature of the policy is stated below:

            Commencement date           :           21-07-2008

            Premium Frequency             :           Annual

            Regular Premium amount   :           18,000/-

            Renewal Premium amount  :           36,000/-

Status of Policy                    :           Terminated due to non payment of further                      renewal premium by the complainant.                               

 

The Policy documents were delivered to the complainant along with the policy schedule and “Free Look Option”. As per the “Free Look Option” the complainant has the option to get the policy cancelled in case they are not satisfied with any of the terms & conditions of the policy within 15 days of receipt of the policy documents. But the complainant did not return the same to the opposite parties within 15 days thereby implying that he had agreed to all the information provided in the proposal form and had agreed to the policy terms and conditions mentioned therein. It is further submitted that at the time of obtaining the insurance policy the complainant had himself filled the proposal form and he himself mentioned in the proposal form that the premium payment term is 15 years under the policy and it was clearly stated that the complainant was required to pay annual premium of Rs. 18,000/- for a term period of the policy i.e. 15 years and the same duly confirmed by the complainant by submitting the declaration that he has read and understood the product brochure. As such it was nowhere mentioned either in the proposal form submitted by the complainant and Illustration of benefits supplied to the complainant that he was required to pay the premium for three years only as alleged by the complainant. It is submitted that the premium has to be paid annually for 15 years and the complainant has only paid three annual instalments and failed to pay further renewal premium amount towards the policy and it was not even paid within the grace period of 30 days and hence due to non payment of renewal premium amount towards the policy, the policy got lapsed. The OPs state that repeated reminder calls were made to the complainant for the same but he failed to make the payment of renewal premium under the policy in question. It is further submitted that even after the lapse of two years, the complainant did not reinstate the policy and hence the policy got terminated as on and the OPs paid the surrender amount of Rs. 28,886.82/- in the favour of the complainant vide cheque bearing No. 177061 dated 01-08-2013 and the said cheque has been encashed by the complainant on 14-08-2013, thereby implying that the same were accepted without any demur or protest. The OPs state that the policy has been terminated and surrender amount has been paid to the complainant as per clause No. 4.3, 4.5, 7.5 & 8.  Rest of the averments made by the complainant are wrong and denied.  Hence, the OPs prayed that the present complain may kindly be dismissed with costs.

3.                     To prove his version, counsel for the complainant tendered affidavit Annexure CX alongwith documents as Annexure C-1 to C-12 and closed the evidence on behalf of the complainant. On the other hand, counsel for OPs tendered affidavit of Snehalata as annexure R1 alongwith documents as annexure R-2 and R-6 and closed the evidence on behalf of the OPs.

4.                     We have heard learned counsel for parties and gone through the case file very carefully. It is admitted that the complainant obtained the policy No. 500-1453744 dated 21-07-2008 from the OPs. Counsel for the complainant has contended that it was assured to the complainant at the time of obtaining the policy that he has to pay only three instalments/premium amount, amounting to Rs. 18,000/- per year and accordingly all three instalments were paid by the complainant and never surrendered his policy.  He further argued that the OPs have wrongly terminated his policy vide letter dated 07-08-2013 without any prior notice or information to the complainant and a cheque of Rs. 28,886.82/- as surrender value of the said policy also attached with the said letter. He further argued that the said cheque never got encashed by the complainant.

                        On the other hand counsel for the opposite parties has argued that at the time of obtaining the insurance policy the complainant himself filled the proposal form and he himself mentioned in the proposal form that the premium payment term is 15 years under the policy and it was clearly stated that the complainant was required to pay annual premium of Rs. 18,000/- for a term period of the policy i.e. 15 years and the same duly confirmed by the complainant by submitting the declaration that he has read and understood the product brochure. He further argued that  it was nowhere mentioned either in the proposal form submitted by the complainant and Illustration of benefits supplied to the complainant that he was required to pay the premium for three years only as alleged by the complainant. He further argued that even after the lapse of two years, the complainant did not reinstate the policy and hence the policy got terminated.  He further argued that the OPs paid the surrender amount of Rs. 28,886.82/- in the favour of the complainant vide cheque bearing No. 177061 dated 01-08-2013 and the said cheque has been encashed by the complainant on 14-08-2013 and the said fact has been admitted by the complainant by making separate statement on 15-06-2017.

5.                     After going through the arguments of counsel for the parties as well as in view of the documents placed on the file by the parties, we are of the considered view that the term of the policy in question was 15 years and complainant has to be paid annually for 15 years and the complainant has only paid three annual instalments and failed to pay further renewal premium amount towards the policy and further failed to pay the same within the grace period of 30 days and hence the OPs have rightly terminated the policy in question due to non-payment of renewal premium amount towards the policy as per clause No. 4.5 (b) in which it is stated that “if the due regular premium has been paid for atleast three consecutive policy years from the Policy Date and subsequent Regular Premiums are unpaid. You may reinstate the Policy within two years from the date of first unpaid premium. Such reinstatement can only be made by paying all the unpaid premiums and the appropriate Premium Allocation charge shall be deducted from the above mentioned payment. During the period allowed for reinstatement, the policy shall continue to be in effect by levying applicable policy charges. At the end of the allowed period for reinstatement, if the policy is not reinstated the Policy shall be terminated by paying the Surrender Value. In the event of death during the given period of reinstatement, the benefits payable shall be as per section 3.1, and the policy will cease to exist.

                        Where the Policy Fund Value falls to the level of an amount equal to the sum of the Annual Regular Premium of the Basic Plan and applicable surrender charges or the policy fund value is inadequate for the deduction of the applicable policy charges as per Section 7 whichever is earlier, the Policy shall stand terminated and the surrender value shall be paid”.  In view of the aforesaid clause we have further observed that even after the lapse of two years, the complainant did not reinstate the policy and accordingly, the OPs have rightly paid the surrender value to the complainant.  Further the complainant did not place any document or term and conditions of the policy, which can shows that only three annual insalments are required to pay under the policy in question. Hence, we found that there is no deficiency in service on the part of the OPs. Accordingly, the complainant has failed to prove his case as he is not entitled to get any further relief qua the policy in question and the complaint is dismissed with no order as to costs.  Copies of the order be sent to the parties concerned, free of costs, as per rules. File after due compliance be consigned to record room. 

Announced on: 15.06.2017                                                           

                                                                            Sd/-

                                                             (D.N. ARORA)                                                                                                                       PRESIDENT

 

                                                                                      Sd/-

                                                                   (PUSHPENDER KUMAR)                                                                                                                                                                                               MEMBER

 

                                                                                                  Sd/-

                                                                                    (ANAMIKA GUPTA)

                                                                                              MEMBER