BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BANGALORE.
DATED THIS THE 19th DAY OF NOVEMBER 2021
PRESENT
MR. RAVISHANKAR : JUDICIAL MEMBER
MRS. SUNITA CHANNABASAPPA BAGEWADI : MEMBER
APPEAL NO. 1111/2012
M/s Bajaj Allianz Life Insurance Co., Ltd., G.E. Plaza, Airport Road, Yerwada, PUNE 411 006, Rep. by its Authorized Signatory Mr. M. Aravinda, Zonal Legal Manager. (By Sri J.R. Jagadish) | ……Appellant/s |
V/s
1. | Sri Chandrappa Naik, R/o ‘Sri Mandarti Nilaya’, Bettamakki, Thirthahalli, Shimoga. (By Sri C.D. Nataraj) | ..…Respondent/s |
2. | Sri T.L. Sundaresh, S/o Lakshmana Naika, Seebinakere Thirthahalli Town, Thirthahalli. (By Sri H. Abhinandan) | |
3. | Sri M.K. Narayana, Field Office, Bajaj Allianz, M.G. Palace, Now working as Manager, Reliance Gold, M.G. Palace, Gopi Circle, Shimoga. | |
ORDER
MR. RAVISHANKAR, JUDICIAL MEMBER
1. The appellant/Opposite Party No.1 has preferred this appeal being aggrieved by the Order dt.09.03.2012 passed in CC.No.274/2011 on the file of District Consumer Disputes Redressal Commission, Shimoga.
2. The brief facts of the case are as hereunder;
It is the case of the complainant that he made a proposal to obtain the “Unit Gain Plus Gold Size Policy” vide policy bearing No.92902348 commenced from 12.04.2008. After receipt of the first year premium amount of Rs.3 lakhs, they have issued the policy bond. The complainant had not paid the subsequent premiums for which the Opposite Party No.1 had issued a notice for renewal of the policy. After that the complainant wrote a letter to the insurance company to cancel the policy and prayed for refund of the entire premium amount along with interest and stated that the agent of the Opposite Party Company had assured that the risk will be covered even the subsequent premiums were not paid. If one premium was paid and after a lapse of three years this company is going o pay assured amount along with interest. Based on the said assurance, the complainant obtained the policy, hence after knowing that they are demanding for premium every year, he requested them for cancellation of the policy and to refund the amount for which Opposite Party offered to pay an amount of Rs.91,288/- after deducting surrender charges, but, the complainant was not ready to take the surrender value of the policy. Subsequently, the complainant filed a complaint alleged deficiency in service and prayed for refund of the entire premium amount of Rs.3 lakhs along with interest. After trial, the District Commission allowed the complaint by directing the Opposite Parties to refund Rs.3 lakhs to the complainant with interest at 12% p.a. from 12.04.2008, till realization along with compensation and costs.
3. Aggrieved by the said Order, the appellant/ Opposite Party No.1 is in appeal. Heard the arguments.
4. There is no dispute that the complainant had obtained “Unit Gain Plus Gold Size Policy” vide policy bearing No.92902348 from the appellant by paying Rs.3 lakhs yearly premium in the year 2008. Subsequently, the complainant had not paid the premium amount and requested for payment of the entire premium amount along with accrued interest. The reason for request for refund of the amount is that that the complainant was under impression that the policy was issued by paying only a single premium. Even the said fact was also assured by one of the agent who received the proposal from the complainant, but, he came to know only they demanded for payment of premium for subsequent year. Immediately, he requested for refund of the said amount.
5. We noticed that on the proposal form that the complainant is a retired surveyor and by reading all the terms and conditions only he had signed the proposal form and paid the premium. After acceptance of the policy, the complainant cannot say that he had no knowledge about the terms and conditions of the policy. Under these circumstances, he is not entitled get refund of the entire premium amount. Infact 15 days time was provided for cancellation of the policy. During that time, the complainant had not made any efforts to cancel the policy. Apart from that as per the terms and conditions of the policy, the complainant is entitled to get surrender value of the policy. The surrender charges are fixed for 60% of the first year premium paid. Accordingly, the complainant is entitled to get Rs.1,20,000/- after deducting surrender charges. Whereas we noticed here that the Opposite Party has offered for Rs.91,288/- and no explanation was given why they have reduced certain amount even after deducting 60% of premium amount. Accordingly, the Order passed by the District Commission requires to be modified. Hence, the following;
ORDER
The appeal is disposed-off.
The Order passed by the District Commission is hereby set aside and modified as under;
The complaint is allowed. The Opposite Parties are directed to pay the surrender value of Rs.1,20,000/- to the complainant along with interest at 6% p.a. from 21.04.2011, till realization. The other portion of the order remains unaltered.
The amount in deposit shall be transmitted to the District Commission for disbursement of the same to the complainant.
Forward free copies to both parties.
Sd/- Sd/-
MEMBER JUDICIAL MEMBER
KCS*
