DISTRICT CONSUMER DISPUTES REDRESSAL FORUM PALAKKAD
Dated this the 26th day of April 2013
Present : Smt.Seena H, President
: Smt. Preetha.G. Nair, Member
: Smt. Bhanumathi.A.K, Member Date of filing: 15/01/2013
(C.C.No.17/2013)
Deepthi Vinodh,
16/566, Sankalpam, S.B.Colony,
Kunnathurmedu, Palakkad
Kerala- 678 013 - Complainant
(By Adv.Rajesh.M)
V/s
Branch Manager,
SBI Life Insurance Company Ltd.
N.S.Towers, Ground Floor,
Near Stadium Bus Stand,
Coimbatore Road,
Palakkad – 678 013 - Opposite party
(By Adv.P.Prasad)
O R D E R
By Smt.BHANUMATHI.A.K. MEMBER
Case of the complainant is as follows:
The complainant availed a policy from the opposite party on 28/11/07 paying an amount of Rs.40,000/- as premium. At the time of joining, the agent of the opposite party made the complainant believe that the policy is a single premium policy and at the time of maturity the complainant will get double of the amount deposited. The maturity period of the policy is 5 years. In the plan the complainant is introduced an “UNIT PLUS-11”. The number allotted to the complainant is 24030617504. The policy matured on 27/11/12 when the complainant contacted the opposite party they did not disclose the maturity amount. When the complainant compelled the opposite party it is made known that the complainant is eligible for the maturity amount to only an amount of Rs.25,854/-.
At the time of taking the policy the units provided to the complainant are 767.17 units. At the time of maturity of the policy, the units allotted to the complainant is shown as 628.61 units. The opposite party has no right to cut short the allotted policies without the prior permission of the complainant. Moreover after the period of five years it is made believe the complainant that the policy units will be doubled and if that been so the value comes around Rs.62,000/-. The act of opposite party is deficiency of service on their part.
So the complainant praying an order directing the opposite party to pay an amount of Rs.40,000/- alongwith 12percentage interest for the date of the policy till realization and also to pay an amount of Rs.5,000/- as compensation and cost to the complainant.
Opposite party entered appearance and filed version denying the contention put forward by the complainant. Opposite party carrying on life insurance business as licensed by IRDA. The complainant has opted for “Unit Plus” regular yearly premium policy vide proposed No.246242505 dated 16/11/07 along with an initial proposal deposit of Rs.40,000 for a sum assured of Rs.2,00,000/- and the policy was issued with policy No.24030617504 with date of commencement 28/11/2007. The policy does not offer any double benefit as alleged in the complaint. The policy was a regular yearly premium policy for a term of 5 years. The maturity benefit payable was clearly mentioned in the policy document and if the complainant had any disagreement with the terms and conditions of the policy, she should have opted for Free Look cancellation within the stipulated period, which she has not opted for. It is denied by the opposite party is that opposite party has not sent any communication regarding the payment as renewal of the policy till date. Opposite party has sent lapse intimation letter dated 28/1/09 and lapse intimation cum revival notice dated 28/05/09 to the complainant. The policy matured on 28/11/2012 and the opposite party has sent the maturity claim intimation letter to the complainant on 28/8/12 and a reminder for the same was also sent on 15/10/12. But the opposite party has not still received the necessary documents for processing the maturity payments. The maturity benefit payable is the fund value as on the date of maturity. In this case the maturity amount payable is Rs.26,583/-. The complainant has been enjoying the risk cover under the said policy from the date of its inception and for which the risk premium is being recovered from policy fund by liquidating number of units. There is no deficiency of services on the part of opposite party and opposite party prays for the dismissal of the complaint.
Both parties filed their respective affidavits Ext.A1 to A5 and Ext.B1 to B9 marked.
Heard the parties.
Issues to be considered are
Whether there is any deficiency in service on the part of opposite party ?
If so, what is the relief and cost ?
Issue No.1 & 2
Believing the representations made by the opposite party, the complainant availed a policy from the opposite party on 28/11/07 by paying an amount of Rs.40,000/- The opposite party made the complainant believe that the amount will be doubled at the time of maturity. The opposite party also represented the policy as a single premium. After attaining the maturity period of 5 years on 27/11/12, the complainant contacted the opposite party. At that time opposite party informed that the complainant is eligible only for an amount of Rs.25,854/-.
In Ext.A1 it is seen that the contribution amount received as Rs.40,000/- In Ext.B2 it is written as date of commencement of policy is 28/11/07 and date of maturity is 28/11/12. Ext.A1 show that the number of unit is 767.17. In Ext.A3 the number of units is 628.61. Ext.B3 dated 28/8/2012 and Ext.B4 dated 15/10/12 are the maturity claim intimation letter and maturity claim reminder letter respectively. In both exhibits the amount which is eligible for the complainant is not mentioned. In Ext.B1 clause 12 “I understand and agree to the various charges like risk premium, administration expenses fund management expenses etc. will be recovered by the company by cancellation of units by deduction from the premium on the rates approved by IRDA.
As per clause 7 of IRDA Regulation 2010 the table annexed maximum discontinuance charges for the policies having annualized premiums above Rs.25,000/- is maximum of Rs.6,000/-. The complainant paid Rs.40,000/- to the opposite party. So the complainant is entitled to get the paid amount deducting Rs.6,000/- as per IRDA Regulation. Opposite parties are liable to return the same.
From the above discussions we are of the view that there is deficiency of service on the part of opposite parties.
In the result complaint allowed. Opposite parties are jointly and severally directed to pay an amount of Rs.34,000/-(Rupees Thirty four thousand only) (Rs.40,000 – Rs.6,000) alongwith 12percentage interest from the date of maturity to the date of order and Rs.1,000/- (Rupees One thousand only) as cost of the proceedings.
Order shall be complied within one month from the date of receipt of order, failing which the whole amount shall carry 9percentage interest per annum from the date of order, till realization.
Pronounced in the open court on this the 26th day of April 2013.
Sd/-
Seena H
President
Sd/-
Preetha G Nair
Member
Sd/-
Bhanumathi.A.K.
Member
APPENDIX
Exhibits marked on the side of the complainant
Ext.A1 – Photocopy of 1st Premium receipt dated 28/11/07 issued by opposite party to the complainant
Ext.A2 – Photocopy Policy document dated 28/11/07 issued by oppostie party to the complainant
Ext.A3 –Transaction cum unit statement dated 06/10/12 issued by opposite
party to the complainant
Ext.A4 series – Photocopy of legal notice issued by complainant’s counsel to
opposite party dated 27/11/12 with acknowledgement card and
postal receipt
Ext.A5 – Reply notice dated 8/12/12
Exhibits marked on the side of the opposite party
Ext.B1 –Copy of Proposal Form
Ext.B2 –Copy of Policy document
Ext.B3 –Copy of Maturity claim intimation letter dated 28/8/12
Ext.B4 –Copy of maturity claim intimation letter dated 15/10/12
Ext.B5 –Copy of notice issued by the complainant dtd.30/11/12
Ext.B6 –Reply to notice dtd.8/12/12
Ext.B7 –Copy of lapse intimation letter cum revival notice dt.28/1/09
Ext.B8 –Copy of lapse intimation letter cum revival notice dt.28/5/09
Ext.B9 –Copy of Transaction cum Unit Statement from 28/11/07 to 28/11/12
Cost
Rs.1,000/- allowed as cost of the proceedings.
