Order-14.
Date-16/11/2016.
This is an application u/s.12 of the C.P. Act, 1986.
Complainant’s case, in brief, is that complainant was agreed to purchase one insurance policy being convinced by O.Ps. that the agreed policy would 5 years term policy and complainant paid Rs.20,000/- towards first premium of the policy. Complainant was in Punjab for job but the said policy was purchased from Kolkata and his residential address was mentioned in the policy at Kolkata. As such complainant could not able to verify the policy documents. After retirement in December -2014 complainant came to know that the policy is for 18 years payment term policy. Thereafter, complainant met with the Branch Manager of O.P.-1 and asked him to cancel the policy. Then O.P.-1 advised him that the policy in question would be 5 years term maturity and the maturity value of Rs.60,000/- plus other benefits can be availed if he open another new policy otherwise he will loose huge amount. Accordingly, complainant paid further Rs.40,000/- for next two years premium for five term maturity and also paid first premium of Rs.20,000/- for the new policy being No.006682445. When complainant came to know that O.ps. have mis-sold both the policies, he repeatedly knocked the doors of the O.ps. but to no good and finding no other way, the complainant filed this case before this Forum for getting relief.
O.ps. appeared by filing W.V. stating inter alia that the complaint of the complainant is frivolous, vexatious and motivated. This O.P. contended that in surrender policy being No.005332229 surrender value to be paid after all deductions at Rs.11,818/- but this O.P. could not accept the request for cancellation as the policy being No.006682445 made as per the signed application and illustration form and this O.P. prayed for dismissal of the complaint.
Decision with Reasons
We have carefully perused the complaint petition, W.V., documents filed by the parties and considered the argument advanced by the parties.
It appears that O.Ps. have convinced the complainant to purchase one insurance policy assuring that the policy term would be for five years and maturity of the said policy would be after five years and being convinced by such assurance complainant paid Rs.20,000/- for each year towards annual premium for three years. The policy was purchased from Kolkata Office of O.Ps. and residential address also mentioned in the policy at Kolkata. After signing the proposal form and other documents complainant went back to his working place in Punjab and the policy document was sent to his Kolkata address. But after retirement on Decedmber-2014, when the complainant back to his Kolkata residence complainant got aware about the policy terms that the policy being No.0055332229 was issued as whole life policy and premium payment term is 18 years. Thereafter, complainant met with Branch Manager of O.P.-1 and requested him to return back his deposited amount and cancel the policy as it was mis-sold to him as at the time of signing the proposal form O.Ps. men told him that the maturity period of the policy was for 5 years but in reality the policy in question is a long term policy. Then the Branch Manager of O.P.-1 again convinced the complainant that he can get back the deposited amount along with other benefits of the 1st policy if he purchase another new one time policy and then he would get both the policy amount at a time and accordingly the complainant further paid Rs.20,000/- to the O.ps. and after some time received the new policy document wherefrom it appears that the new policy was for whole life and premium paying term for five years. Then the complainant repeatedly knocked the doors of the O.Ps. on different dates by sending letters, e-mails and personal visits also with a request to refund his deposited amount but all are in vain.
It reveals from the fact and documents that one Mr. Chandan Pakrashi being the Branch Manager of O.P.-1 collected rs.60,000/- + Rs.20,000/- by way of deceitful manner and mis-sold the policy and mislead a senior citizen i.e. the complainant to increase the fund of the O.P. Insurance Company. Complainant submitted bunch of letters wherefrom it appears that complainant ran from pillars to posts to the O.Ps. but O.Ps. did not entertain the complainant rather harassed for months after months and caused immense mental pain and agony and monetory loss.
In view of the discussions, hereinabove, we are inclined to hold that O.Ps. have mis-sold the two policies to the complainant by adopting unfair trade practice and as such the complainant entitled to get back his deposited amount together with compensation.
In result, the case succeeds.
Hence,
Ordered
That the case be and the same is allowed on contest against O.ps.-1 and 2 with cost of Rs.2,000/-.
O.ps.-1 and 2 are jointly and severally directed to pay Rs.80,000/- as deposited with 15 percent deduction thereof on non standard basis against the two polices to the complainant within one month from the date of this order.
O.ps.-1 and 2 are further directed to pay an amount of Rs.10,000/- to the complainant as compensation for causing harassment, mental pain and agony and for adopting unfair trade practice within aforesaid stipulated period.
Failure to comply with the order will entitle the complainant to put the order into execution u/s.25 read with Section 27 of the C.P. Act and in that case OP shall be liable to pay penal damage at the rate ofRs.5,000/- per month to be paid to this Forum till full and final satisfaction of the decree.
