DISTRICT CONSUMER DISPUTES REDRESSAL FORUM,

PATIALA.

                                      Consumer Complaint No.12 of 14.1.2016

                                      Decided on:             23.4.2018

Pushpinder Pal Kaur w/o Sh.Swaran Singh R/o H.No.121, Street No.18-F, Guru Nanak Nagar, Patiala.

                                                                   …………...Complainant

                                      Versus

1. Bharti Axa Life Insurance Co. Ltd., Unit 601,602, 6^th Floor, Raheja Titanium, Opp. Western Express Highway, Goregon, East Mumbai-400063, through its M.D.
2. The Manager, Bharti Axa Life Insurance Co. Ltd., SCO 3266/1, 2^nd Floor, Sheranwala Gate, Opp. PSPCL, The Mall, Patiala.

                                                                   …………Opposite Parties

                                      Complaint under Section 12 of the

                                      Consumer Protection Act, 1986.

QUORUM

                                      Smt. Neena Sandhu, President

                                      Smt. Neelam Gupta, Member                              

ARGUED BY:

                                       Sh.N.S.Sarwara,Advocate, counsel for complainant.

                                      Sh.Pankaj Verma, Advocate, counsel for

                                          Opposite parties No.1&2.                               

 ORDER

                                        SMT.NEENA SANDHU, PRESIDENT

Smt. Pushpinder Pal Kaur, complainant has filed this complaint under Section 12 of the Consumer Protection Act,1986 ( hereinafter referred to as the Act) against the Opposite Parties (hereinafter referred to as the O.Ps.) .          

2.       The brief facts of the complaint are that the complainant purchased insurance policy ( Elite Advantage Plan) (Yearly Mode) bearing No.5013371033 on 30.6.2015 from the OP No.2 and paid premium of Rs.50,000/-( Rs.52,000/- with tax). It was assured to the complainant that the original policy documents would be sent to her very soon and after receipt of the same 15 days free look period would be provided for her final consent. It is stated that till today the alleged policy had not been received by the complainant .She moved 2-3 written complaints  to the OP in this regard but to no effect. On contacting OP no.2, it transpired that the policy had been dispatched to the complainant through Blue Dart Express Ltd., courier service. On enquiring from the said courier service, it was disclosed that as per record of the courier service, the alleged policy had already been delivered to the complainant. After going through the delivery detail, complainant became astonished that her signature on the delivery details have been forged from which it cleared that the OPs with the connivance of the officials of the courier service had played fraud with the complainant. Nothing has been done by the OPs in the matter. The complainant also got served a legal notice dated 9.12.2015 upon the OPs requesting them to cancel the policy and to refund the amount of Rs.52,000/- but of no avail. The act and conduct of the OPs amounted to deficiency of service on their part, which caused mental agony and physical harassment to the complainant. Hence this complaint with the prayer for giving directions to the OPs to  cancel the aforesaid policy and to refund the amount of Rs.52,000/- alongwith interest @18% per annum from the date of policy till its actual payment; to pay Rs.30,000/- as compensation for causing mental agony and physical harassment to the complainant; to pay Rs.5,000/-as cost of litigation expenses and also to grant any other relief which this Forum may deem fit.

3.       On being put to notice, the OPs appeared through their counsel and filed the written version taking preliminary objections that the complaint is false, frivolous, vexatious and abuse of the process of law; no cause of action has  arisen against the OPs; the complaint is bad for non joinder of Blue Dart Express Limited, against whom the complainant leveled allegations; that this Hon’ble Forum has no jurisdiction to entertain the present complaint; that the complainant has alleged forgery and fraud, which can only be decided by a civil/criminal court and is liable to be dismissed. On merits, it is stated that the policyholder  had submitted a duly filled up and signed customer declaration form alongwith proposal for insurance. After receipt of duly filled proposal form alongwith other requisite documents and the amount of first year premium deposit, issued the policy in question. The complainant had also submitted a benefit illustration after fully understanding the terms and conditions of the policy. It is stated that in accordance with Clause 6(2) of the Insurance Regulatory and Development Authority (Protection of Policy Holder’s Interests) Regulations, 2002, every policy document sent by it is accompanied by a forwarding letter which cleary mentions that in case policyholder is not satisfied with the features of the terms and conditions of the policy, he can withdraw/return the policy within 15 days i.e. under the “Free Look Period” provision. It is stated that in the present case a copy of proposal form alongwith policy documents were duly dispatched and delivered vide Blue Dart AWB No.33361276535, to the complainant but the complainant did not return the same to the OPs during the free-look period. It is stated that the complainant raised certain concerns with respect of her policy, which were addressed vide letter dated 21^st October,2015. It is stated that the policy is governed by the terms and conditions of the policy document. There is no deficiency of service on the part of the OPs. After denying all other averments made in the complaint, it was prayed to dismiss the complaint.

4.       On being called to do so, the ld. counsel for the complainant has tendered in evidence Ex.CA affidavit of the complainant alongwith documents Exs.C1 to C6 and closed the evidence of the complainant.

          The ld. counsel for the OPs has tendered in evidence Ex.OPA affidavit of Smt. Sunita Yadav, Associate Manager, Legal Bharti AXA LIC, alongwith documents Exs.OP1 to OP5 and closed the evidence of the OPs.

5.       We have heard the ld. counsel for the parties and have also gone through the record of the case, carefully.

6.       The plea of the complainant is that she has not received the policy documents and the signatures on the delivery details are forged one. She brought this fact into the knowledge of the OPs and requested them for cancellation the policy and also to refund the amount of Rs.52,000/- deposited by her as premium. The stand of the OPs is that in the complaint the complainant had leveled all the allegations against the Blue Dart Courier Company but has not impleaded it as a party, therefore, the present complaint is liable to be dismissed on the ground of mis joinder or non joinder of the party. Even otherwise, the complaint is liable to be dismissed on merits also because after paying the first installment of premium the complainant stopped paying the rest of the installments and as per terms and conditions of the policy, complainant is not entitled to get any amount.

7.       It may be stated here that in order to prove that someone has forged the signatures of the complainant on the delivery detail, no cogent document has been placed on record by her .Thus, in the absence of any documentary evidence, the plea of the complainant, in this regard is not tenable. However, it is not out of place to mention here that all the insurance companies are governed by the Insurance Regulatory And Development Authority. The said authority issued notification dated 16.2.2013, i.e. (Linked Insurance Products) Regulations, 2013. In para No. 1 (c) of the said notification, it is mentioned that these regulations shall be applicable to all the linked insurance products offered by the life insurance companies. Further in para no.1(d) it is mentioned that unless otherwise provided by these regulations, nothing in these regulations shall deem to invalidate the linked insurance policies entered prior to these regulations coming into force. Under regulation no.13, i.e. Obligation of an insurer upon discontinuance of a policy before lock-in period, the insurer is under obligation to pay the surrender value to the insured for the discontinued insurance policy before the lock-in period as per regulation No.13(vi)  of the said notification, which reads as under:

13(vi) To ensure that the charges levied on the date of discontinuance (as a percentage of one annualized premium or a percentage of single premium) do not exceed the limits specified below:-

1. For Annual Premiums

AP-Annualized Premium

FV- Fund Value

b.     Provided that where a policy is discontinued, only discontented charge and fund management charge, which shall not exceed 50 bps per annum on discontinuance fund/policy account value, as applicable, may be levied by the insurer and no other charges by whatsoever name shall be levied.

c.      Provided that no discontinuance charges shall be imposed on top-ups premiums.

8.       From the copy of proposal form Ex.OP1, it is evident that the complainant had opted to purchase a unit linked policy . It is admitted by the OPs that they have issued a insurance policy   ‘Bharti Axa Life Elite Advantage Plan’  on 30.6.2015, in favour of the complainant, for the sum assured of Rs.4,00,510/- having annual premium of Rs.51,999/-to be paid  for seven years. Admittedly, the complainant had paid only one installment of premium of Rs.52,000/- vide deposit receipt dated 30.6.2015,Ex.C1 and thereafter, she stopped paying rest of the installments. As such the policy was discontinued due to non payment of the premium amount. As per term No.13(vi) of the notification as referred to above, the insurer on discontinuation of the policy is under obligation to pay to the insured, the surrender value. Consequently, the OPs are held liable to pay to the complainant the surrender value  to the tune of Rs.46,000/-( Rs.52000/- - Rs.6000/-)

as provided in the above quoted table.

9.       In view of the aforesaid discussion, we dispose of the complaint with a direction to the OPs to pay the surrender value of Rs.46,000/-to the complainant within a period of 30 days from the date of the receipt of the certified copy of this order, failing which they shall be liable to pay interest @7% per annum on the said amount, from the date of filing of the instant complaint i.e. 14.1.2016 till its realization. The Parties are left to bear their own costs. Certified copies of this order be sent to the parties free of cost under the Rules. Thereafter, file be indexed and consigned to the Record Room.

ANNOUNCED

DATED:23.4.2018

                                                                   NEENA SANDHU

                                                                       PRESIDENT

                                                                   NEELAM GUPTA

                                                                         MEMBER