ORDER
SH. RAKESH KAPOOR, PRESIDENT
The complainant had purchased a policy from OP1 on 18.11.2010. The policy was for a period of 20 years and the premium was payable on 18th of November each at the rate of Rs 1999.5. it is the case of the complainant that the second installment of the policy was not accepted by the OPs who had cancelled the policy on 10.4.2012 without serving a Show Cause Notice. He has alleged deficiency in service on the part of the OP and has approached this forum for redressal of his grievances.
The OP has contested the complaint and has filed written arguments. Paras 1 to 5 of the facts of the case are reproduced as under:-
1.That the Complainant i.e. Narender Panchal had applied for a Policy Plan namely "Life Time Plus" by filling a Proposal Form No. 42010840. The said plan is insurance policy is a regular savings plan that provides a lump sum and life protection to the Complainant. The Complainant duly filled and signed the Proposal Form for the aforesaid policy, after understanding the policy features and its terms & conditions. The complainant had applied for the policy after accepting all the terms 85 conditions of the applied Policy Plans. The Complainant at the time of filling these Proposal Forms had given declaration regarding understanding of the Policy Benefit Illustration.
2.. That after receiving above stated proposal form and further, believing upon the material facts like Age, Occupation, Health Status, Annual Income, Profession, Family History etc. as provided by the Complainant, OP issued a Policy No. 004512785 on Standard Premium Rates to the Complainant. The OP issued the said policy along with Welcome Kit which includes Free Look Letter, First Premium Receipt, Copy of Proposal Form, Policy Terms 86 Condition and policy certificate in favour of the Complainant, which was duly received by the Complainant and further, the OP also has not received any communication from Complainant with regards to non-receipt of the Welcome Kit and hence assert that the same was duly received by the complainant. The complainant possesses the policy certificate which is annexed with the subject complaint, this shows that he had received the policy documents.
3. That the OP duly adhered with the provisions of Section 6(2) of the Insurance Regulatory and Development Authority (Protection of Policy Holder's Interest) Regulation, 2002, and sent a forwarding letter to the complainant along with the policy documents. It has been clearly mentioned in the aforesaid forwarding letter that, in case if the Policyholder i.e. complainant is not satisfied with the features/the terms & conditions of the policy, then he can withdraw/ return the policy within 15 days of the receipt of the Policy Document i.e. under "Freelook Period" provision. However, in the present case the Complainant, admittedly had not approached the "Company" within the Freelook Period and that failure to request cancellation of Policy within the free look period conditions of the Policy. The OP Company by duly complying with the provisions of Section 4(1) of the Insurance Regulatory and Development Authority (Protection of Policy Holder's Interest) Regulation, 2002, provided a copy of the duly filled and signed proposal form to the Complainant, so that the Complainant can once again check and confirm the information provided under the said Proposal Form.
4. That the said policy was issued for a period of 20 years, wherein the Complainant duly agreed to pay regular annual premium and paid the premium for one full policy year. That, thereafter no premium was deposited under the issued policy. Due to such nonpayment of premium the policy lapsed on 18.11.2011.
5. That the Opposite Party had received Payment of Rs. 20,003/- for reinstatement after the policy lapsed. However, amount of Rs. 20,292/ - was required for second premium. There was shortage of Rs. 289/ - which was required to re-instate the policy, since the requirement was not fulfilled. The OP sent two letters dated 21.12.2011 and 05.01.2012 wherein revival requirements were informed to the Compliant. The Complainant was informed that there was a shortage of Rs 289 in the premium paid to reinstate the policy. The second premium of Rs 20,003/- was refunded to the complainant vide cheque no. 457494 dated 31.03.2012.
We have heard arguments advanced at the bar and have perused the record.
Admittedly, the second installment of premium under the policy had become due on 18.11.2011. The complainant had failed to deposit the premium on the due date as a result of which the policy had lapsed. In order to revive the policy, the complainant was required to pay the premium as well as the revival charges i.e. Rs 20,292/-. The complainant had failed to pay the additional sum of Rs. 289/- . The OP had , therefore, refused to revive the policy and had refunded the amount of Rs. 20,003/- received by it on account of the second installment. We, therefore, see no deficiency in service on the part of the OP in refusing to revive the policy. We see no merits in this complaint. The same is hereby dismissed.
Copy of the order be made available to the parties as per rule. File be consigned to record room.
Announced in open sitting of the Forum on.....................
