BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KAITHAL.
Complaint Case No.234 of 2019.
Date of institution: 09.08.2019.
Date of decision:15.03.2021.
Ram Sarup son of Man Singh, resident of Village Chandana, Tehsil and Distt. Kaithal.
…Complainant.
Versus
- Birla Sun Life Insurance Co. Ltd. Amartara Building Khurania Complex, Kurukshetra Road, Kaithal through its Branch Manager.
- Birla Sun Life Insurance Co. Ltd., One Indiabulls Centre, Tower-1, 15th and 16th floor Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai-400013 through its Authorized Signatory.
….Respondents.
Before: Sh. D.N.Arora, President.
Smt. Suman Rana, Member.
Present: Sh. Gurdev Singh, Advocate, for the complainant.
Sh. Vikram Tiwari, Advocate for the OPs.
ORDER
D.N.ARORA, PRESIDENT
The complainant has filed the present complaint under Section 12 of Consumer Protection Act, 1986 as after amendment under Section 35 of Consumer Protection Act, 2019 with the averments that the complainant got insured his life with the Ops vide policy No.003868015 dt. 09.03.2010 for the sum of Rs.10,00,000/- and the premium of said policy was settled as Rs.25,000/- annually. It is alleged that the complainant deposited the amount of premium till 19.06.2014 and deposited total amount of Rs.1,25,000/- with the company. Thereafter, the complainant fell ill and due to which, he could not deposit the premium of the remaining installments and on default of payment of the premium, the company has closed the policy of complainant. It is further alleged that the complainant approached the Ops several times to refund the deposited amount but the Ops did not listen the genuine request of complainant. So, it is a clear cut case of deficiency in service on the part of Ops and prayed for acceptance of complaint.
2. Upon notice, the OPs appeared before this Commission and contested the complaint by filing their reply raising preliminary objections with regard to locus-standi; maintainability; cause of action; that the policy bearing No.003868015 dt. 09.03.2010 was issued to the complainant and the same commenced on 09.03.2010; that the policy documents were received by the complainant on 13.03.2010; that the said policy in dispute has been lapsed on 09.03.2015; that since the policy was not reinstated within the period of two years, the policy has moved to a paid up Annuity Mode; that since the complainant has not paid all the due and unpaid premiums by end of the two years, the policy holder/complainant had the choice to either surrender the policy for its surrender value or continue the policy without any additional premiums; that it is further worthwhile to mention here that since the complainant has paid the premiums for more than three years, the policy can be surrendered and whatever amount shall be paid in accordance with the terms and conditions; that there is no deficiency in service on the part of Ops. On merits, the objections raised in the preliminary objections are reiterated and so, prayed for dismissal of complaint.
3. Learned counsel for the complainant tendered into evidence affidavit, Ex.CW1/A and documents Annexure-C1 to Annexure-C11 and thereafter, closed the evidence on behalf of complainant.
4. On the other hand, learned counsel for the Ops tendered into evidence affidavit, Ex.OPW1/A and documents Annexure-Op1 to Op5 and thereafter, closed the evidence on behalf of Ops.
5. We have heard the learned Counsel for both the parties and perused the record carefully.
6. It is an admitted fact that the complainant insured his life with the Ops vide policy No.003868015 dt. 09.03.2010 namely Birla Sun Life Insurance Titanium Plus Plan for the period of 10 years, date of maturity was 09.03.2020 by paying the premium of Rs.25,000/- on annual basis for the sum assured of Rs.10,00,000/-. The complainant got deposited the installments from 09.03.2010 to 09.03.2014 as per Annexure-C7 and total amount was deposited as Rs.1,25,000/-. After that the complainant could not deposit the further installments on the ground that he fell ill. The grievance of the complainant is that he requested the Ops to pay the surrender value alongwith interest but the Ops did not listen the genuine request of complainant.
Now the question arises that whether the complainant is entitled for refund of the surrender value or not?
As per perusal of the terms and conditions of policy, column policy surrender, it is mentioned as under:-
“You may surrender this policy to us at any time for its Surrender Value. This contract, including all insurance, will terminate on the date you surrender your policy and you will not be able to revive your policy thereafter.
During the first five policy years, the Surrender Value is the Policy Fund Value net of surrender charges. After five completed policy years, the Surrender Value is the Policy Fund Value.”
The Ops have admitted in the reply that since the complainant has paid the premiums for continuously five years and the term of policy was 10 years. It is an admitted fact that the complainant has deposited the amount of Rs.1,25,000/- as per Annexure-C7, so, we are of the considered view that in view of the above-said term and condition, the complainant is entitled for refund of current fund value.
7. Thus, as a sequel of above discussion, we allow the complaint partly accordingly and the Ops are directed to pay the current fund value on the amount of Rs.1,25,000/- deposited by the complainant within 45 days from the date of preparation of copy of this order, failing which, the complainant shall be entitled interest @ 9% p.a. on the current fund value calculated by the Ops for the defaulted period. No order as to costs. A copy of said order be sent to the parties free of cost. File be consigned to record-room after due compliance.
Announced in open court:
Dt.:15.03.2021.
(D.N.Arora)
President.
(Suman Rana),
Member.
