Order-29.

Date-16/06/2015.

Complainant Rupsankar Sengupta by filing this complaint submitted that he took Life Insurance from Birla Sunlife Insurance Company Ltd. in the year 2008 being Policy No. 002151944 and maturity year was 2028 and annual premium was Rs. 11,304/-.But after payment of four annual premium of the said policy, an authority of the Birla Sunlife Insurance Company Ltd. contacted with the complainant and said to the complainant that the complainant’s policy will be stopped very soon and complainant would be getting after deducted 25 percent from the total paid premium amount of the said policy.Then the said company told the complainant that he would be surrendered his present policy being no. 002151944 before the Birla Life Insurance Compaly and complainant would be taken a new policy of the said insurance company of Rs. 20,000/- p.a. and the new policy would be settled the previous policy and the complainant would get back Rs. 97,000/- and may purchase a fresh policy.Being allured by the op’s office, complainant submitted the policy and decided to purchase the other two policies and that was also purchased in the year 2012 and deposited premium through ECS.

But subsequently the settlement amount of the present policy was received by the complainant through ECS but the amount was found of Rs. 25,113/- but not Rs. 97,000/-.But the op did not pay any slip.Thereafter complainant sent several letters and also asked them to release the balance amount, but no fruitful result was achieved by the complainant.thereafter complainant filed an application before Insurance Ombudsman.But Ombudsman Authority did nothing.So, in the above circumstances, being aggrieved by the deduction of the op and for their negligent and deficient manner of service, this complaint is filed.

On the other hand op by filing written statement submitted that entire allegation of the complainant is false and op by its letter dated 22.06.2013 already communicated the official stand of the complainant and complaint is filed only to grab the money after enjoying huge insurance coverage and fact remains that complainant deposited 4 premiums.So, he was aware of the terms and conditions of the policy and complainant himself surrendered the policy and as such the policy was surrendered and the surrender value of Rs. 25,113.75 paisa was paid to the complainant to his Bank account directly which was agreed by the complainant.

Practically officer of the op allured the complainant to surrender the same.Moreover complainant has faith of the insurance company for which he purchased another two policy in the year 2012 after surrendering the said policy.So, there was no deficiency and negligent on the part of the op.Moreover complainant after filing of this policy applied for three papers to the op in Feb. 2012 and policy number was 005373011, another policy no. 005547936 and last policy no. 005817202 to the complainant and same are being continued.So, the entire allegation is false and fabricated for which this complaint should be dismissed.

                                               Decision with reasons

On proper consideration the entire materials on record and further hearing the argument and also relying upon the documents, it is clear that the present policy no. 002151944 was issued on 08.10.2008 and maturity date was 28.10.2008 and only premium was Rs. 11,305.05 paisa.So, considering the policy of the complainant, it is clear that complainant by four premiums that is total Rs. 45216.20paisa.Further it is found that sum assured was Rs. 1,20,000/- after proper calculation it is found that out of 20 years policy term, complainant continued it for 4 years.So, sum assured of Rs. 1,20,000/- is divided by 20 years, then it is clear that per year sum assured was Rs. 6,000/-.Then he is entitled to get sum assured of Rs. 24,000/- and odd.But over that amount certain interest was given and ultimately complainant was paid Rs. 25,113/-.

But fact remains that it is surrendered.So, some deduction must be made.But at the same time it is true that complainant already paid Rs. 45,216.20 paisa, but he has been paid Rs. 25,113/-.But reasons for deduction of Rs. 20,103/- by the Insurance Company have not explained anywhere.But after considering the entire document as produced by the op and terms and conditions of the policy, it is clear that the management charge, policy administration charge and etc. we find that for 4 years Rs. 5,100/- can be deducted by the op, but op in response of that deducted Rs. 20,103/- without any valid reasons.

So, considering that fact we find that after deduction of Rs. 5,103/- as administration and management and other charges for 4 years, op shall have to refund another Rs. 15,000/- to the complainant when it has already been surrendered after 4 years.But no way complainant is entitled to get Rs. 97,000/- on payment of 4 premiums that is total Rs. 45,216.20 paisa claimed by the complainant is apparently absent.But fact remains that the ops’ official are in such a manner deceived many customers only to grab money by surrendering previous policies and this practice is followed by not only the Sunlife, but by Bajaj Life Insurance, Reliance Life Insurance and some other companies and such sort of unfair trade practice are being followed by all private limited insurance companies.

So, in view of the above fact and circumstances and also calculation, we are directing the ops to release another sum of Rs. 15,000/- to the complainant treating the said surrender as finally settled on the basis of the prayer of the complainant.

Accordingly, this complaint succeeds in part.

Hence, it is

                                                        ORDERED

That the complaint be and the same is allowed on contest with cost of Rs. 10,000/- against the ops.

Ops are hereby directed to pay further refund amount of Rs. 15,000/- to the complainant in respect of surrender of the policy being No. 002151944 in addition to already paid Rs. 25,000/- and it must be paid within one month from the date of this order by sending such amount in the account of the complainant by ECS or by issuing a cheque in favour of the complainant and if it is not complied by the op within one month, in that case, after expiry of the said period op shall have to pay penal interest at the rate Rs. 200/- per day till full satisfaction of the decree and if it is collected, it shall be deposited to this Forum.

Even if it is found that op is reluctant to comply the order, in that case penal proceeding u/s 27 of C.P. Act shall be started for which further penalty and find shall be imposed against the ops.