IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA
Thursday the 31st day of December, 2015
Filed on 23.07.2015
Present
- Smt. Elizabeth George (President)
- Sri. Antony Xavier (Member)
- Smt. Jasmine D (Member)
in
C.C.No. 230/2015
between
Complainant:- Opposite Party:-
Sri. Reghu. V. Birla Sun Life (BSLI)
Muppally House Insurance Company Ltd.
Chirakkadavom Represented by Branch Manager
Kayamkulam – 690 502 Branch Office, Kayamkulam
Pin – 690 502
O R D E R
SMT. JASMINE D. (MEMBER)
The facts of the complaint in short are as follows:-
The complainant had taken an insurance policy ‘Children’s Dream Plan’ from the opposite party on 28.11.2009. The term of the policy is 15 years. The yearly premium amount for the policy was Rs.7,227/- and the complainant remitted three yearly premiums on time. The total premium paid was Rs.21,681/- but in policy fund value it is reflected as amount less than Rs.8,500/-. The complainant got this information from the branch office at Kayamkulam and they further informed the complainant that lesser fund value will increase in future either he has to surrender or continue the policy after 5 years. After 5 years the opposite party issued a cheque of Rs.6,393/- to the complainant as the surrender value in above said policy. But the complainant submitted the refund cheque of 6,393/- before the branch office and requested for continuing the policy or to return the premium amount paid. But the opposite party sent back the same refund cheque stating that due to nonpayment of premium they terminated the policy and unable to accept the complainant’s request for reinstatement of the policy. The complainant sustained much mental agony and hence filed this complaint seeking a direction against the opposite party to pass an order to reinstate the policy by accepting future premiums or to refund the total premium amount paid along with compensation and costs.
2. Notice was served to the opposite party, but they did not appear before the Forum and the opposite party was proceeded ex-parte.
3. The evidence in this case consists of proof affidavit filed by the complainant and documents Exts.A1 to A4 were marked. Heard the counsel for the complainant.
4. Considering the allegations of the complainant, the Forum has raised the following issues:-
1) Whether there is any deficiency in service and negligence on the part of the
opposite party?
2) Whether the complainant is entitled to get the relief as prayed for?
6. Points 1 and 2:- The case of the complainant is that he had taken Children Dream Plan policy from the opposite party. The mode of paying premium was yearly, and the premium amount is Rs.7,227/-. The complainant remitted 3 consecutive premiums and the total premium amount paid was Rs.21,681/-. Thereafter the complainant has not remitted any premium. On surrender the policy, the opposite party issued a cheque for Rs.6,393/- only. Being aggrieved the complainant filed this complaint seeking a direction against the opposite party to reinstate the policy or to refund the premium amount paid along with compensation and costs. The complainant filed proof affidavit and documents marked as Exts.A1 to A4. Ext.A1 is the policy document, Ext.A2 (a) is the letter dated 3.3.2015, Ext.A2(b) is the refund cheque, Ext.A3 is the Brochure and Ext.A4 series are the premium receipts. As per Ext.A1 policy document it is stated that, “If we do not receive all due and unpaid policy premiums by the end of the two-year period, we will give you the choice to either surrender your policy for its Surrender Value at that time or continue the policy without any additional premiums. Neither policy premiums nor top-up premiums will be accepted by us should you decide to continue the policy.” In the instant case the complainant proceeded to continue the policy. From Ext.A2(a) letter issued by the opposite party, it can be seen that the complainant made a request to reinstate the policy. In Ext.A1 under the head termination of policy, it is stated that the policy will terminate the date on which the opposite party confirm the surrender request. Here the complainant has not made any request to surrender the policy. The document produced would not show that the complainant has not submitted a surrender request before the opposite party instead he submitted a request to reinstate the policy. Even though notice was served to the opposite party, they did not turn up to controvert the plea raised by the complainant. In such circumstance, after hearing the counsel of the complainant and on a perusal of the documents, we are of the opinion that if the complainant wants to continue the policy, he may be given an opportunity to continue the policy after accepting the premium amounts due since the primary grievance of the complainant having been met squarely and adequately we refrain from awarding compensation.
In the result, the complaint is allowed partly. The opposite party is directed to reinstate policy after accepting the premium amount due. The order shall be complied by the opposite party within one month from the date of receipt of this order.
Pronounced in open Forum on this the 31st day of December, 2015.
Sd/- Smt. Jasmine D (Member)
Sd/- Smt. Elizabeth George (President)
Sd/- Sri. Antony Xavier (Member)
Appendix:-
Evidence of the complainant:-
Ext.A1 - Policy document
Ext.A2 (a) - Letter dated 3.3.2015
Ext.A2(b) - Refund cheque
Ext.A3 - Brochure
Ext.A4 series - Premium receipts.
Evidence of the opposite party:- Nil
// True Copy //
By Order
Senior Superintendent
To
Complainant/Opposite party/S.F.
Typed by:- pr/-
Compared by:-
