Orissa

Rayagada

CC/417/2015

Ramesh Kumar Jaha - Complainant(s)

Versus

Branch Manager Reliance LIfen insurance Co ltd., - Opp.Party(s)

Self

17 May 2016

ORDER

DISTRICT   CONSUMER  DISPUTES REDRESSAL    FORUM, RAYAGADA

  C.C. Case  No.417/ 2015.

                                                                       

 P R E S E N T .

Sri Pradeep Kumar Dash, LL.B,                             President.

Sri Gadadhara Sahu,B.Sc.,                                     Member.

Sri Ramesh Kumar jatia,At/po Dombasara,ADist.Rayagada,Odisha,765033.

                                                                                                            …….Complainant

                                                            Vrs.

1.         The Branch  Manager, Reliance Life Insurance Company , Rayagada.

2.         Manager, Reliance Life Insurance Co. Ltd.,Corporation Office, Customer Care        Team,9^th & 10^th Floor, Building No.2 R Teach Park,Nirlom Compound, Near to hub   mall, Gurgaon(East) Mumbai-400063.                                                                                                                                                                                                     …..…..Opp.Parties

Counsel for the parties:

For the complainant: In Person

For the O.Ps: Set exparte.

                                                                JUDGMENT

The case of the complainant  has deposited  Rs.50,000/-  first premium, 2^nd  year  53,500/-,3^rd year 50,700/-,4^th year Rs.50,226/- the last premium 5^th year is Rs.50,230/- towards the Policy No. 17949527   and   in stead of getting more interest the complainant received less then the paid amount. The O.ps have made payments on 27.09.2012 Rs.46,750/- ,29.09.2013 Rs.46,750/-, 22.09.2014 Rs.46,750/-  ,and final payment  on 22.09.15 Rs.68,445/- in total the O.ps have paid  Rs.2,08,695/-  to the complainant.  The policy amount paid by the complainant is Rs.2,54,656/-  but the O.ps  have paid less amount of Rs.45,961/-  to the complainant . Hence prayed to direct the O.ps to pay  the balance amount with interest  and cost  of Rs.20,000/-  and  compensation and litigation expenses of Rs.20,000/- to the complainant. Hence, this complaint.

The O.Ps  neither appeared nor   filed written version as such the O.ps were set exparte. In absence of any written version from the O.ps the matter was heard from the complainant and we believed the allegations of the complainant.                                                                                                          FINDINGS

It is the cardinal principle of insurance law that the insurer is in the position of a trustee as it is managing the common fund for and on behalf of the community of policy holders. It has to ensure that nobody is allowed to take undue advantage of the arrangement. That means the management of the insurance business requires care to prevent entry(into group) of people  whose risks are not of the same kind as well as paying claims on losses that are not accidental. The Management of life insurance companies are required to keep this aspect in mind and make all its decisions in  ways that benefit  the community. This applies also to its investments.  That is why successful insurance companies would not be found investing in speculative ventures. The life insurance policy is a contract, in terms of the Indian Contract Act.  A contract is an agreement between two or more parties to do, or not do, so as to create a legally binding relationship. Here in this case the complainant was asked to pay premium of Rs.25,000/- per year  by the agent explaining the benefits contained therein and the entire proposal form was written by the agent in his own hand writing and asked the proposer/complainant to sign on the dotted lines.  The declaration form filled in this case also written by the agent and obtained the signature thereon.  The agent’s responsibility is clearly explained in the IRDA instructions and also U/s 182 and 212 of the Contract Act. Here the agent has failed to discharge the duty as an agent and in order to get his income as commission has falsely represented the rural folks to divert their money. Hence the O.p has clearly violated the norms issued by the IRDA from time to time and as such the O.P is liable to pay the amount paid as premium to the complainant in this case the surrender value below  their amount deposited with the O.p.  The investment is made by the O.ps for the profit and not by the insurer.  Hence the advise given by the agent and  obtaining a form wherein the risk factor is transferred  in favour of the insurer’s is definitely coming under the purview of unfair trade practice.

When a rural folk invest the money with the assurance of the agent in the insurance and when he came to know that the above investment is not yielding any profit even after years and as such the above investment brought by the agent and accepted by the O.P is not with any intention to give any economic protection but with an intention to grab the money of the rural folks. Hence the plea of the O.ps can not be accepted.

In view of the discussion above, it is found to be  an unfair trade  practice made by the agent and O.Ps.  The O.Ps  have introduced the agent to do the unfair deal with the rural folk as seen from the counter and as such the complainant is entitled to get  refund of the entire amount deposited by the complainant  with bonus in the said scheme so as to enable them to invest the same with their choice.

We have gone through the complaint petition and documents available in the record. This forum by relying upon a citation passed by National Commission, New Delhi in the New India Assurance Co. Ltd., Versus M/s Sukhadham India Pvt. Ltd.,2011(1) CPR 191 such as :- “ Insurance Company must settle claim without delay”. In the light of the above decision of law we allow the case.

Hence it is ordered.

                                                                       ORDER

                        In the result the complaint petition is allowed on contest. We ordered  the O.ps to refund the balance amount of Rs.45,961/-  with interest @ 6% per annum   and pay   compensation of Rs.1,000/-  for mental agony and harassment.

                        The O.Ps are directed to make the aforesaid payment within 30 days from the date of receipt of this order failing which the complainant is at liberty to take further proceeding U/s 25 and 27 of the C.P.Act.

            Pronounced in open forum today on this19^th day of July,2016 under the seal and signature of this forum.

                         A copy of this order as per the statutory requirements , be forwarded to the parties    free of charge.

 

 

              Member                                                                            President

Documents relied upon:

 

By the complainant:

1.      Calculation sheet of Payment and Receipt of amount of  Policy No.17949527

2.      Copy of duplicate renewal premium receipt

3.      Copy of duplicate premium collection receipt against lapsed policy

 

By the O.Ps. Nil

 

 

                                                                                         President