Tripura

West Tripura

CC/11/2015

Sri Biswanath Ghosh. - Complainant(s)

Versus

Birla Sun Life Insurance Company Ltd. & 1 another. - Opp.Party(s)

Mr. B. Deb.

23 Feb 2016

ORDER

DISTRICT CONSUMER DISPUTES REDRESSSAL FORUM
WEST TRIPURA : AGARTALA

    CASE NO:  CC-  11   of   2015

Biswanath Ghosh, 
S/O- Lt. Ananda Mohan Ghosh,
ONGC South Colony,
Badharghat, Agartala,
West Tripura.            ........Complainant.
    
                 ______VERSUS______

         1. Birala Sun Life Insurance Company Ltd.,
One India Bulls Centre,
Tower No.1, Jupiter Mill Compound, 
841, Senapati Bapat Marg, Elphintone Road,,
Mumbai- 400013.
 
Represented by 
the Chief Grievance Redressaal Officer, 
G.P. Corp Tech Park, 5th & 6th Floor, 
Kasar Wadavali, Ghodbunder Road, 
Thane- 400601.

2. AB Insurance Brokers Pvt. Ltd.,
Advisor Code- 002533, 
Birala Sun Life Insurance Company Ltd.,
5th & 6th Floor, G. Corp Tech Park, 
Ghodbundar Road, Near Kasar Wadavali
Police Station, Thane-400601.    .........Opposite Parties. 
            
                    __________PRESENT__________

 SRI A. PAL,
PRESIDENT,
  DISTRICT CONSUMER  DISPUTES REDRESSAL FORUM,
      WEST TRIPURA, AGARTALA. 

SMT. Dr. G. DEBNATH
MEMBER,
  DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, 
  WEST TRIPURA,  AGARTALA.

SHR. B. BHATTACHARYA,
MEMBER,
  DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, 
  WEST TRIPURA,  AGARTALA.

C O U N S E L

For the Complainant        :  Sri Baskar Deb,
                       Smt. Sujata Deb(Gupta),
                       Sri Debdas Bakshi,
                        Advocates.

For the Opposite Parties        : Sri Dip Datta Choudhury,
                      Sri Arghya Kusum Paul,
                      Advocate.

        JUDGMENT  DELIVERED  ON:  23.02.16

J U D G M E N T
         Petitioner, Biswanath Ghosh submitted this complaint to get redress against the act of Birala Sun Life Insurance Company. It is alleged that one Dipti Sinha and 2 others, Harish Chohan and Akash Mishra over telephone convinced him to purchase Birala Sun Life Insurance Policy. They assured him that one time premium of Rs.3 lakhs is to be paid and it will carry many benefits for 20 years. Dipti Sinha and 2 other disclosed their identity that they were broker of AB Insurance Brokers. Being influenced by them he purchased the policy and paid premium Rs.3 lakhs. After receipt of the policy he came to learn that he had to pay premium for 20 years and was shocked by such fraud misrepresentation placed by Dipti Sinha and her associates. Accordingly he made contact with the Birala Sun Life Insurance Company officials and requested Head of Customer Response and Resolution and requested for refunding the amount in the 'Free look period'. But the Insurance company refused to consider his request in respect of cancellation of policy and also refused to pay the amount taken as premium. Being aggrieved and dissatisfied by the act of the Insurance company this petition filed stating that through distance marketing he purchased the policy. So look in period for cancellation of policy was 30 days. So he is entitled to get the premium Rs.3 lakhs with interest 12%. He also claimed Rs.1 Lac for harassment and mental agony.

2.        Opposite party, Branch Manager of Agartala, Birala Sun Life Insurance Company Ltd., appeared, filed written statement denying the claim. He stated that look in period for cancellation or refund of premium is only for 15 days. Petitioner being customer received the policy documents but he did not surrender the policy within the 'free look period' of 15 days. He himself given proposal and also submitted the declaration in the Agartala Branch. Therefore, he is not entitled to get back the amount.
3.        On the basis of assertion denial made by the parties following points cropped up for determination.
        (I) Whether the petitioner approached  the Insurance  company within the 'Free look in  period' and entitled to get back the premium amount of Rs.3 lakhs?
        (II) Whether the petitioner is entitled to get any compensation for deficiency of service?
        
4.        Petitioner produced the Insurance Policy, Letter of request for refund, letter of Customer Service Officer, letter written to Chief Grievance Redress Officer, letter of Smt. Jotsna Rane, letter for withdrawal of the case from Insurance Ombudsman, all are marked Annexure A - F. Petitioner also examined one witness Biswanath Ghosh, complainant.

5.        Opposite party on the other hand produced Attendance Register, Proposal Form along with Joint declaration, self declaration made by the complainant also produced the statement on affidavit of 2 witnesses, one Sanjib Pal, Associates Sales Manager, of Birala Sun Insurance Company Ltd., and another Abhijit Chakraborty, Branch Manager of Birala Sun Life Insurance Company Ltd.

6.        On the basis of the all the evidence on record we shall now determine the above points.

        FINDINGS AND DECISION:
7.        In this instant case only disputed point is the look in period. The Contention of he Insurance company is that the petitioner visited their branch on 13.08.14 and given declaration. On the other hand the contention of the petitioner is that one Dipti Sinha approached him over telephone as AB Insurance Brokers to purchase the policy. Dipti Sinha disclosed her identity as an employee of IRDA. Being influenced by her and her associates, Hari Chohan and Akash Mishra he purchased the policy. According to him the policy also issued under the provision of IRDA guideline on distance marketing of Insurance products. It is admitted fact that policy was purchased from AB Insurance Brokers on 30th June, 2014 and admittedly it was delivered on 19th July, 2014. Complainant received it on 23rd July, 2014. Annexure- A, Insurance policy speaks about the fact. Within one month from the date of receipt of the policy petitioner prayed before the Insurance authority for cancellation. Complaint was made on 13.08.14 after 22 days. But Birala Sun Life Insurance Company rejected the claim on the ground that it was filed after 15 days. As the concern was raised after free look period so the claim for cancellation of policy and refund of insurance premium not entertained. Request for cancellation was rejected by the Birala Sun Life Insurance company, Jyotsna Rane vide letter September, 1st, 2014.   Distance marketing includes every activity of solicity and sale of insurance products through Voice mode, Short Message services, Electronic mode which include E-mail, physical mode which includes direct postal mail and newspaper and Magazine inserts. Any communication other than in person is distance marketing. Respondent insurance company produced the copy of attendance register of the complainant to support that the party visited their office but it is not on the date of purchasing policy but when it made complaint on 13.08.14 as per register. In the proposal form itself signature of the brokers AB Insurance is found. So, it is clear that the insurance policy was purchased through brokers AB Insurance. There is nothing in the written statement or evidence of the opposite party that AB Insurance was not their broker and policy was not purchased through that broker agency. It is not denied that AB Insurance brokers agency had no office at Agartala. Agent name in the joint declaration also written AB Insurance. Sanjib Pal witness of the O.P. stated that on 27.06.14 the proposal form of insurance policy was signed. Joint declaration was signed on 26.06.14 The condition of the insurance was fully informed to the proposer. Nowhere it is asserted that Biswanath Ghosh appeared on 27.06.14 or 26.06.14 in person. Same thing is repeated by Abhijit Ghosh that proposal form was signed and declaration form was signed by the petitioner. From this evidence nothing comes out to support that communication was made by Biswanath Ghosh in person. From the above discussion it is clear that the insurance policy product was purchased by Biswanath Ghosh through distance marketing. It was purchased through electronic mode and policy was received by Mail. After receipt of the policy the petitioner came to learn that the premium of policy is for 20 years and he will have to pay the premium for 20 years period. With utter shock he wanted to cancel the policy within one month and filed the complainant on 13.08.14 within 22 days on 1st September by written communication his request was terminated. The sale of the policy was through distance marketing. So, the complainant had the scope to cancel the policy and get back amount within 30 days. As per terms and condition as the period falls under the 'free look period' under the distance marketing scheme. O.P. Birala Sun Life Insurance Company was duty bound to cancel the policy and refund the amount but it was not done. Therefore, it amounts to deficiency of service. We are of the considered view that petitioner is entitled to get back the premium amount of Rs.3 lakhs from the Birala sun Life Insurance Company. We are also of the considered view that due to deficiency of service of the opposite party petitioner suffered a lot. Petitioner therefore, is entitled to get the amount with interest @ 9 % P.A. from the payment and till the date of refund and also entitled to get the amount of Rs.20,000/- for deficiency of service of the opposite party and Rs.5,000/- for cost of the litigation. In total petitioner is entitled to get Rs.3,25,000/-. Both the points are decided accordingly.

8.        In view of our above findings over the 2 points petition is partly allowed. We direct the O.P, Birala sun Life Insurance company to refund Rs.3 lakhs Insurance premium and pay Rs.25,000/-(Twenty Five Thousand) for deficiency of service and litigation cost. In total they are to pay Rs.3,25,000/-(Three lakhs Twenty Five Thousand) within 2(two) months from today, if not paid it will carry interest @ 9% P.A.           

9.                      Announced.

SRI A. PAL
PRESIDENT,
DISTRICT CONSUMER  DISPUTES 
REDRESSAL FORUM,
WEST TRIPURA,  AGARTALA.

 
SMT. DR. G. DEBNATH,
MEMBER,
 DISTRICT CONSUMER DISPUTES 
REDRESSAL FORUM,  AGARTALA, 
WEST TRIPURA.    SHRI. B. BHATTACHARYA,
MEMBER,
 DISTRICT CONSUMER DISPUTES 
REDRESSAL FORUM,  AGARTALA,
 WEST TRIPURA.