Punjab

Patiala

CC/17/19

Navtej Singh - Complainant(s)

Versus

Birla Sun Life Indurance Co. - Opp.Party(s)

Jepinder Singh Maan

20 Feb 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION

PATIALA.

 

Consumer Complaint No.	:	CC/ 19/ 2017
Date of Institution	:	24.1.2017
Date of Decision	:	20.2.2023

 

Navtej Singh age about 50 years son of Gulzar Singh, resident of D.A.V. School Road, Near Poultry Farm, Sunam, Tehsil Sunam, District Sangrur.

 

 

                                                                   …………...Complainant

                                      Versus

 

1. Birla Sun Life Insurance Co. Ltd., registered office 6^th Floor, Vaman Market, Makhwana Road, Off Andheri Kurla Road, Near Marol Naka, Andheri (East) Mumbai through its MD/Authorized signatory.

 

2. Birla Sun Life Insurance Co. Ltd., Secretary General Governing Body of Insurance Council, Jeevan Seva Annexe, 3^rd Floor (above MTNL) S.V.Road, Santacruz (W) Mumbai, through its Director/Chairman.

 

3. Birla Sun Life Insurance Co. Ltd., SCO No.101,102 & 103, 2^nd  Floor, Batra Building, Sector 17-D, Chandigarh.

 

4. Birla Sun Life Insurance Co. Ltd., SCF-33, Above State Bank of Patiala, First Floor, Leela Bhawan Market, Patiala through its Branch Manager/Authorized signatory.

 

5. Harwinder Kaur agent of Birla Sun Life Insurance Co. Ltd. SCF-33, Above State Bank of Patiala, First Floor, Leela Bhawan Market, Patiala .

                                                                   …………Opposite Parties

 

Complaint under the Consumer Protection Act

 

QUORUM

                                      Hon’ble Mr.S.K.Aggarwal, President

                                      Hon’ble Mr.G.S.Nagi,Member         

 

PRESENT:                   Smt.Kuljit Dhaliwal, counsel for complainant.

                             OPs No.2&3 are dispensed with.

                             Sh.Pankaj Verma, counsel for OPs No.1&4.

                             OP No.5 ex-parte.

                                     

 ORDER                                          

1. The instant complaint is filed by Navtej Singh s/o Gulzar Singh       (hereinafter referred to as the complainant) against Birla Sun Life Insurance Co. Ltd.(hereinafter referred to as the OP/s) under the Consumer Protection Act ( for short the Act).
2. The averments of the complainant are as follows:

That on the assurance given byagent of OP No.4 that money invested will be doubled within 4-5 years, complainant deposited Rs.20,430/- as first installment of the premium amount and OP No.4 issued policy bearing no.001758959 dated 19.6.2008 in the name of complainant. Again he deposited Rs.20430/- with OP No.4 on 19.6.2009 who issued receipt No.13441528 dated 19.6.2009. Complainant again deposited Rs.20430/- with OP No.4 who issued receipt No.22083364 dated 23.6.2010. As such complainant deposited Rs.60,000/- with Op No.4 and he was to get Rs.1,20,000/-. Agent of OP No.4 also got signed several papers from complainants. After expiry of policy period, complainant approached OP No.4 for the refund of the amount as he was in need of money for the marriage of his daughter. But he was shocked to know that the OPs extended the policy for 20 years. Complainant also wrote letter dated 27.12.2012 to the office of OP No.1 regarding the fraud committed by agent of OP No.4 but in vain. Complainant time and again visited office of OP No.4. Then officials of OP No.4 deposited Rs.28,174/- in the account of complainant maintained in Punjab & Sind Bank, Branch Samana. Thereafter complainant wrote letter dated 7.1.2013 to OP No.4 regarding refund of remaining amount alongwith interest but no heed was paid to his request. Complainant approached OP No.3. But again he was shocked to hear that OP No.3 issued new policy No.5788815 dated 22.10.2012 in the name of his wife. Complainant demanded copies of policy from OPs but the same were not supplied. Thereafter complainant issued legal notice dated 13.10.2016 to the OPs through registered post. OPs did not reply the same. Complainant made so many requests to the OPs to pay him the insurance amount alongwith interest but the OPs did not pay any heed. There is thus deficiency in service and also unfair trade practice on the part of the OPs which caused mental agony and harassment to the complainant. Consequently, prayer has been made for acceptance of the complaint.

3. Upon notice, OPs appeared through counsel and filed written statement having raised certain preliminary objections. On merits, it is submitted that after understanding and deliberating on the terms and conditions of BSLI, life assureds had applied for the insurance policies and OPs as per the underwriting norms of the company issued insurance policies to the life assureds. Policy documents were sent at the communication address mentioned in the proposal form of the life assured. OPs also informed about their right of Free Look Cancellation of the policy. The complainant did not approach the OPs during Free Look Period of 15 days. Life assured also submitted a benefit illustration form at the time of submitting the proposal form, from which it is clear that Life Assured very well knew about the policy terms and conditions and the premium payment frequency.  As per regulation 4(1) of the proposal form duly signed by the policy holder, also sent alongwith the policy documents to the complainant, giving the policy holder an opportunity to re-examine the replies/contents made in the proposal form and get the details rectified in case of any  discrepancy. Complainant retained the policy documents and did not raise any objection towards the policy.

Policy bearing No.001758959 was issued by the OPs on the basis of the information provided by the Life Assured in the proposal form. Since the policy was surrendered by the complainant himself, surrender value of Rs.28,174.57/- was paid to the complainant as per terms and conditions of the policy. As far as second policy No.005788815 is concerned, same was issued by the OPs, on the basis of information provided by the complainant wife Paramjit Kaur in the proposal form. Complainant himself requested OPs to transfer an amount of Rs.7300/- to application No.46673065 for policy No.005788815. Under this policy only one premium was paid and the subsequent premiums remained unpaid. Hence this policy lapsed on 19.4.2013 and was terminated on 19.4.2015.Thus OPs are not liable to make any payment to the complainant. There is no deficiency of service on the part of the OPs. After denying all other averments made in the complaint, OPs prayed for the dismissal of the complaint.

4. In support of the complaint, ld. counsel for the complainant furnished Ex.CA affidavit of complainant, Ex.C2 affidavit of Smt.Paramjeet Kaur alongwith documents Exs.C1 to C9 and closed the evidence.
5. Ld. counsel for OPs No.1&4 has tendered in evidence, Ex.OPA affidavit of Ms Kshama Priyadarshini, Sr.Chief Manager-Legal of Aditya Birla Sunlife Insurance Co. alongwith documents Exs.OP1 and OP2, copies of proposal form, Ex.OP3 copy of fund transfer request form, Ex.OP4 and Ex.OP5 copies of policy terms and conditions alongwith transaction details for the period 1.4.2000 to 31.3.2007 and closed the evidence of OPs No.1to4.
6. We have heard the ld. counsel for the parties and have also gone through the record of the case, carefully.
7. The complainant has averred that he invested Rs.20430/- with the OPs on the advice of the agent of the OPs that his money will be doubled in 4-5 years. OPs then issued policy bearing No.001758959 dated 19.6.2008 for the same, which is Ex.C1.Complainant again deposited renewal premium of Rs.20430/- on 19.6.2009 vide receipt, Ex.C3 and on 23.6.2010 vide receipt, Ex.C4. However, when complainant approached OPs for refund of his money so deposited as mentioned above after a period of four years, as he was in need of money due to marriage of his daughter, only an amount of Rs.28,714/- was credited to his account against the promise of double the amount. The bank statement is Ex.C8.
8. Complainant then approached OPs and also wrote representations, Exs.C6 and C7 stating that the amount deposited by him has not been refunded in double and requested for refund of the whole amount alongwith interest. Legal notice Ex.C9 was also sent to the OPs but no fruitful purpose was served.
9. Ld. counsel for OPs No.1&4 has argued that OP is Birla Sun Life Insurance Co. and as such the name itself suggests that the OPs are in the business of insurance only. Complainant had entered into an agreement and signed proposal form No.A 11336789, Ex.OP1, on the basis of which policy No.001758959 was issued to the complainant with the term of 20 years. Policy was governed by other terms and conditions. Policy documents duly sent to the complainant with the Free Look Period of 15 days from the receipt of policy. However, no objection was raised by the complainant and the policy was accepted by him. Thereafter, complainant paid 2^nd and 3^rd installment on his own which showed that he was satisfied with the terms of the policy.
10. Complainant then made a request dated 27.12.2012,Ex.C6 for closure of the policy and refund of the amount, as he was in need of money for the marriage of his daughter. Surrender value of the policy amounting to Rs.28,174.57/- was then paid as per the terms and conditions of the policy, to the complainant and policy was closed.
11. Ld. counsel for the OPs No.1&4 further argued that complainant requested to transfer an amount of Rs.7300/- against proposal form No. A46673065 (Ex.OP2) vide which policy bearing No.005788815 was issued in the name of wife of complainant. Since only one premium was paid against the said policy, hence the policy lapsed on 19.4.2013 and was terminated on 19.4.2015.
12. This argument of the OPs is controverted by the complainant on the ground that he had never signed any proposal form nor requested for issuance of new policy. In fact document, Ex.OP3 was got signed from him for refund of surrender value and blank form filled by OPs afterwards. Moreover, as per arguments of OPs the entire surrender value of the policy no.001758959 amounting to Rs.28174/- was paid to the complainant from where Rs.7300/- came into existence is not explained.
13.  OPs failed to explain as to how a person who had requested for refund of his amount deposited with the OPs as premium and in dire need of money can ask for issuance of another policy. Thus, there is no justification in the argument of OPs No.1&4 that the amount of Rs.7300/- was transferred for issuing a new policy in the name of wife of the complainant. Further policy No.001758959 dated 19.6.2008 against proposal form No.11336789 (Ex.OP1), issued in the name of complainant was duly received by him wherein period of policy has clearly been mentioned as 20 years. The arguments of the complainant that he is an illiterate person is not justified as he, as well his wife had signed the documents in English. Moreover, term 20 years has been clearly written in Alphanumerical and can be read clearly. Thus, we are of the opinion that the said policy was issued as per the agreement duly signed between the complainant and the OPs and there is no deficiency of service on the part of the OPs.
14. However, another policy No.005788815 against proposal form No.46673065 (Ex.OP2) allegedly issued in the name of wife of complainant appears to have been issued without the consent of the complainant. We therefore, partly allow the complaint and direct OPs No.1&4  jointly and severally as under:
    1.  
    2.  
    2. Compliance of the order be made by OPs No.1&4 within 30 days from the date of receipt of certified copy of this order, failing which they would be liable to pay interest @9% per annum on the awarded amount, till realization.
15.           The instant complaint could not be disposed of within stipulated period due to Covid protocol and for want of Quorum from long time.
85109252238716.  
85109252238717.  

                                              G.S.Nagi                           S.K.AGGARWAL

                                              Member                          President