BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

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Mrs.Rajinder Kaur r/o H.No.3567, Sector 69, Mohali.

…..Complainant

V E R S U S

[1] Branch Manager, DLF Pramerica Life Insurance Co. Ltd., SCO No.335-336, First Floor, Sector 35-B, Chandigarh.

[2]  The Managing Director and CEO, DLF Pramerica Life Insurance Co. Ltd., 4^th  Floor, Building No.9-B, Cyber City, DLF City Phase-III, Gurgaon-122002.

[3]  Managing Director and CEO, DLF Pramerica Life Insurance Co. Ltd., DLF Centre, Sansad Marg, New Delhi-11001.

                      ……Opposite Parties

CORAM:   SH.P.D.GOEL                    PRESIDENT

         SH.RAJINDER SINGH GILL        MEMBER

DR.(MRS.) MADANJIT KAUR SAHOTA   MEMBER

Argued by: Sh.Narinder Pal Sharma, counsel for complainant

          Sh.Anurag Chopra, Counsel for OPs.

PER RAJINDER SINGH, MEMBER

         Succinctly put, the complainant obtained life insurance policy No.000013966 with date of commencement 24.12.2009 by depositing Rs.25000/- with OP-1 as premium. Thereafter, the complainant received letter dated 24.07.2010 (Ex.C-2) intimating her regarding the lapsing of the policy on account of non-payment of the premium. Due to financial constraints, the complainant could not continue the policy, therefore, she requested the OPs vide registered letter dated 09.08.2010 to cancel the policy and refund Rs.25000/-. The complainant alleged that non-refund of Rs.25000/- after deducting some expenses despite her repeated requests and service of legal notice dated 25.12.2010 (Annexure C-6) amounts to deficiency in service and unfair trade practice on the part of Ops, hence this  complaint.

[2]     OPs filed written statement and took some preliminary objections. On merits, the averments of the complainant made in the complaint were denied. The issuance of the insurance policy on deposit of Rs.25000/- has been admitted. It has been pleaded that Ops are not liable to refund the premium paid under the insurance policy as every premium which is paid under the said policy covers the risk associated with the policy and furthermore the complainant has sought the cancellation of the policy after a period of more than one year. It has further been pleaded that the complainant could have sought the refund of the premium within the free look period of 15 days from the date of receipt of the insurance policy which she failed to do so. Denying all the material allegations of the complainant and pleading that there has been no deficiency in service or unfair trade practice on their part prayer for dismissal of the complaint has been made. 

[3]      Parties led evidence in support of their contentions.

[4]      We have heard the learned counsel for the parties and have also perused the record utmost care and circumspection. 

[5]      The challenge in the present complaint is whether the impugned action of the OPs in declining the request of the Complainant to refund the premium paid under the policy by cancelling the same, is legal and justified. The answer to this is in the affirmative.  

[6]     Undisputedly, after duly deliberating and understanding, all the terms and conditions of the “DLF Pramerica Wealth+” Plan, Complainant filled and signed a Proposal Form dated 07.12.2009, copy of which is at Annexure R-1. A perusal of the same would show that the Complainant offered to pay a premium of Rs.25,000/- for a term of 16 years half yearly, for which the sum assured sought was Rs.5.00 lacs. It was based on the declaration made and information provided in the Proposal Form, a Policy was issued to the Complainant having commencement dated as 24.12.2009.

[7]      The Complainant has not disputed the receipt of standard terms and conditions along with the Policy Schedule and a welcome letter dated 25.4.2009 (Annexure R-2). In the said letter, it was clearly spelt out that in case the Complainant was dissatisfied with the terms and conditions of the policy, she can cancel the same by returning the policy within 15 days of the receipt of the same.      

[8]      There is denial of the fact that the Complainant failed to deposit the premium on time, which otherwise was due on 24.06.2010. Resultantly, the policy in question was lapsed. Exhibit C-2 is the communication of lapsation of the said policy issued by the OPs addressed to the Complainant. It was only after receiving the letter dated Ex.C-2, referred to above, the Complainant vide letter dated 09.08.2010, copy of which is Ex.C-3, sought refund under the said policy by cancellation of the same. The said request of the Complainant was declined by the OPs vide letter dated 26.08.2010 (Annexure R-3), as the cancellation request for the said policy was outside the free-look period of 15 days from the date of receipt of the policy document.

[9]      The Complainant, who was at liberty and obligation to go through the terms and conditions of the policy on receipt of the policy documents, did not raise any complaints/ objections regarding the policy either within the free look period of 15 days or within any reasonable time thereafter. Thus, the contract of insurance attained finality and the OPs have been continuing to provide coverage to the Complainant. After the expiry of the free look period, the policy terms and conditions permits surrender of the policy only after completion of 3 years; where surrender value as payable in accordance with the policy terms and conditions shall be payable on surrender of the policy.

[10]     It is not the case of the Complainant that she did not receive the policy documents, containing the term and conditions of the policy and that she opted for the refund within the free look period of 15 days, which option was duly conveyed to her, vide letter dated 25.12.2009 (Annexure C-1). Admittedly, she opted to cancel the policy and sought refund vide letter dated 09.08.2010 (Ex.C-3), which, we feel, was apparently well beyond the free look period of 15 days, as the policy in question was issued on 24.12.2009.

[11]     Since the cancellation request was clearly outside the free-look period of 15 days from the date of receipt of the policy document, it can legitimately be concluded that the OPs have rightly declined the request of the Complainant to refund the premium paid under the policy in question by cancelling the same. Moreover, Complainant having availed a life insurance cover from the OPs and enjoyed coverage for more than six months, cannot be permitted at this belated stage to claim refund of the premium paid contrary to the terms and conditions of the policy.  

[12]     In view of the above discussion, in our considered opinion, there is no merit, weight or substance in the present complaint and, therefore, the same cannot be accepted in favour of the Complainant and against the OPs. There is neither any deficiency of service, nor indulgence in any unfair trade practice on the part of the OPs. As such, we dismiss the complaint. However, the respective parties shall bear their own costs.

[13]         Certified copies of this order be sent to the parties free of charge.  The file be consigned.