This is an application u/s.12 of the C.P. Act, 1986.

          Complainant by filing this complaint has submitted that he intended to purchase one policy of the OP in which there was Medical Insurance coverage and being assured by the OP’s agent and officers he filed an application together with required documents and a cheque of Rs.30,000/-.  But on receipt of the policy document being no.005551892 and also other papers he was astonished and forthwith prayed for cancellation of the policy within freelook period and prayed for refund of the amount.  As he revoked the proposed agreement which never materialize into contract thereafter, complainant prayed for refund of the same but OP did not refund the same as yet for which complainant has prayed for refund of the same and along with interest and also for harassment. 

          It is further submitted though the complainant revoked the said policy within freelook period but even then letters for renewal of premium is being sent regularly, it indicates that OP has no desire to hand over the said amount with interest for which they are harassing the complainant.

          On the other hand OP by filing written version has submitted that complainant paid a premium for Rs.30,000/- along with proposal form on 21-04-2012.  Thereafter, policy bond was issued on 23-04-2012 and soon after that it was delivered to the complainant but complainant within freelook period returned it revoking the said complaint and for cancellation of the policy and same was received by the OP on 22-05-2012.  But the cancellation was rejected and the same was informed to the complainant.  Subsequently, complainant further wrote a letter then that was considered and request of the complainant for cancellation was accepted and complainant was reported that same will be refunded after deducting levy and charges etc and asked the complainant to file some documents.  But subsequent to that complainant sent a letter on 05-07-2012 mentioning that the requisite documents were called as per administrative in accordance with the terms of IRDA Act but complainant cannot comply it and for which that was not matured but OP is always ready to refund the same as per law and prayed for dismissal of this case.

Decision with Reasons

After hearing the Ld. Lawyers of both the parties and also considering the written version it is undisputed fact that the policy has been cancelled by the OP as it was made during the freelook period and as because complainant deposited Rs.30,000/- and OP is willing to refund it for which they required such documents such as 1) Original Policy Document, 2) Cancellation cheque (Pre-Printed name), 3) Bank Statement (in case cheque is not preprinted/Account less than 6 months old), 4) Free Look Cancellation Form, 5) Copy of letter dated 28-06-2012 but considering the argument it is found that except cancelled cheque complainant did not submit the other documents and for which OP has not complied it.  After considering the entire case it is clear OP had their no intention to refund it for which they are sending premium renewal notice even in this month also and that is the practice of the Private Insurance Company how to keep the money of the insured person whose insurance policy is cancelled but this policy should not be continued in future and truth is that complainant is entitled to get back Rs.30,000/- because complainant already prayed for that but not refunded and it is the practice of Private Insurance in all respects and practically the Sunrise, Cholamandalam and other private insurance company have adopted such procedure which is unfair trade practice in all respects.

          Considering all the above facts and materials we find that there is no necessity to receive other documents but OP shall have to refund Rs.30,000/- with effect from 21-04-2012 along with simple bank interest @6% till full payment of the same and OP shall have to hand over the said cheque to the complainant before this Forum and complainant shall have to hand over original policy document and copy of letter dated 28-06-2012 and on the date of such transaction before this Forum as per order of this Forum said policy shall be treated as cancelled and OP shall have to comply this order without harassing the complainant and showing respect in respect of the order of this Forum otherwise OP shall be penalized for further ill motive.

In the result, the case succeeds.

Hence,

Ordered

That the case be and the same is allowed on contest with a cost of Rs.1,000/-(Rupees One thousand only).

OP is directed to hand over and pay a sum of Rs.30,000/- (Rupees Thirty thousand only) along with 6% p.a. (six per cent per annum) interest over the same with effect from 21-04-2012 till full satisfaction of the same and that must be paid within 15 (fifteen) days from the date of this order and at the time of handing over the cheque complainant shall have to hand over the original policy document, copy of the letter dated 28-06-2012 when cancelled cheque (preprinted name) had already been handed over.

          OPs are directed to comply this order within 15 days from the date of this order.

          OPs are directed to comply entire order along with spirit of the order as agreed in the body of the judgement and if OP fails to comply that order within the stipulated period in that case for each day’s delay OP shall have to pay penal damages @Rs.250/- per day till full implementation of this order and if it is collected same shall be deposited to this Forum by the OP.

          Even after it is found that OP is reluctant to comply that order in that case penal action shall be started for which they shall be imposed further fees and penalty.