CONSUMER DISPUTES REDRESSAL FORUM,PALAKKAD
Dated this the 30th day of March, 2016
PRESENT : SMT. SHINY.P.R, PRESIDENT
: SMT. SUMA. K.P, MEMBER
: SRI.V.P.ANANTHA NARAYANAN, MEMBER Date of filing : 15/06/2015
CC /85/2015
Mrs.V.K.Laila,
W/o.K.C.Kunjumoideen,
Karuvanna House, Perimpadari P.O, : Complainant
Mannarkkad, Palakkad District,
Pin-678 582, Kerala,
Represented by Complainant’s husband
Mr.K.C.Kunjumoideen
(By Advs.R.Venu and Sachin Das)
Vs
1 Chief Executive Officer,
Max Newyork Life Insurance Co.Ltd,
90-A Udyog Vihar, Sector 18 : Opposite parties
Gurgaon, Pin 122001, Haryana.
2. The Branch Manager,
Max Newyork Life Insurance Co.Ltd,
Sree Vinayaga Building,
Vellan Street, Nr.Karur Vysya Bank,
Palakkad, Kerala 678 001
3. The Manager,
Max Newyork Life Insurance Company Limited,
5th Floor, West Fort Tower,
West Fort Junction, Thrissur – 680004.
O R D E R
By Smt. Suma. K.P, Member,
The complainant has subscribed to an insurance policy of the opposite party viz Life Maker Premium Investment Plan through their insurance advisor Mrs.Raji Thomas on 28/08/2009 on payment of initial insurance premium of Rs.10,000/-. The opposite party granted insurance coverage as per the insurance policy bearing number 729715599 dtd.31/08/2009. The annual insurance premium for the aforesaid policy is Rs.20,000/- which is to be paid in 2 installments of Rs.10,000/- by 31st August and 28th February till the year 2019. As per the reminder received from the opposite party on 08/02/2010, the complainant has remitted the 2nd installment of premium by cheque for Rs.10,000/- on 17/02/2010, at the office of the opposite party in Palakkad Town. As per the telephonic request from the opposite party, the complainant has remitted a cheque for Rs.10,000/- on 22/09/2010, as 3rd installment at the office of the opposite party in Palakkad Town. The renewal reminder letter dated 30/1/2011 was also sent by the opposite party, along with another letter dated 28/2/2011 regarding their change of location of their Palakkad office from Sudevan Road, Sulthanpet to Sree Vinayaga buildings, Vellan Street, Near Karur Vysya Bank, Palakkad, Kerala 678 001. Since the complainant was busy with some household engagements, she has not remitted the payment that was due on 28/02/2011. After the engagements she had arranged her husband Mr.K.C.Kunjumoideen to draw a DD for Rs.10,000/- in favour of the opposite party (DD No.12908014 dtd.09/06/2011) and came to remit the 4th installment as per the information in the letter dtd.28/02/2011, regarding change of office location of the opposite party No.2. The complainant and her husband found the building as per the location stated in the letter but the security personnel made it clear that the 2nd opposite party has stopped the functioning of the office within one month or so after shifting to the new location. After 28/2/2011, no communication was received from the opposite parties 1 and 2, regarding the plight of the insurance policy of the complainant. On 15/05/2015 the complainant got the address of Thrissur branch of the 1st opposite party and asked the status of the insurance policy of the complainant. The person who answered the call over phone told that the policy was lapsed due to non payment of insurance premium and several bald reasons. Since the opposite party has seized the operation of their Palakkad office, without any information or notice regarding alternate arrangements for the payment of insurance policy and policy servicing till the maturity of the policy till 28/2/2019. The complainant alleges that the 1st and 2nd opposite parties have not even send the lapse information letter, giving a final chance to revive the insurance policy after paying the defaulted premium, which is a mandatory procedure as per the IRDA, it amounts to deficiency of service on the part of the opposite parties. Without following the statutory formalities of the IRDA and the government, opposite parties had tried to cheat huge amounts that was collected as insurance premium.
Hence the complainant had approached before the Forum seeking an order directing the opposite parties to refund the amounts that was collected as premium along with 12% p.a till realization along with Rs.25,000/- (Rupees Twenty Five thousand only) towards mental agony and loss of prospects and to the deficiency of service of the opposite parties along with cost of Rs.8,000/- towards litigation.
Complaint was admitted and the notice was issued to the opposite party for appearance. Inspite of accepting the notice 2nd opposite party remained absent and was set exparte. Complainant filed an application seeking permission to implead 3rd opposite party, the Manager of Thrissur as supplemental 3rd opposite party. Application was allowed notice was issued to 3rd opposite party for appearance 3rd opposite party failed to appear before the forum inspite of accepting the notice. Since the notice to 1st opposite party was not returned complainant had taken steps for substituted service against 1st opposite party. Publication was produced and 1st opposite party was also set exparte.
Complainant filed chief affidavit. Ext.A1-A10 was marked .
Evidence was closed. Matter was heard.
The following issues are to be considered.
1. Whether there is any deficiency in service from the part of opposite
parties?
2. If so, what are the reliefs and cost?
ISSUES 1 & 2
We have perused the documents produced before the Forum. It is alleged in the complaint after 28/2/2011, no communication was received from the opposite parties 1 and 2 regarding the plight of the insurance policy of the complainant. Only on 15th May 2015 when the complainant contacted the Thrissur branch of the 1st opposite party she could understand that the policy was lapsed due to non payment of insurance premium and several other reasons. The complainant submits that since the opposite party has ceased the operations of their Palakkad office without any information or notice regarding alternate arrangement for the payment of insurance policy and policy servicing till the maturity of the policy till 28th February 2019 they were not able to pay the further installments. The 1st and 2nd opposite parties have not even send an information letter regarding the lapse of policy by giving a final chance to revive after paying the defaulted payments which is a mandatory procedure as per the IRDA, the regulator, by registered post A/D. Such acts of the opposite parties amounts to deficiency of service from their part.
It is evident from the Exhibits that the complainant had made payments of Rs.30,000/- towards the insurance premium. Considering the above facts and circumstances of this particular case we are of the view that paid up premium of Rs.30,000/- had to be returned to the complainant. Since there is no other contradictory evidence to disprove the allegation stated in the complaint. More over the opposite parties are all absent and they have been set exparte. In the above circumstances, we direct the opposite parties to refund an amount of Rs.30,000/- (Rupees Thirty thousand only) with 6% interest from 2011 February to 2016 March along with Rs.1,000/- (Rupees One thousand only) as cost of this proceedings to the complainant which was collected towards premium from the period of 28/08/2009 till 22/09/2010. The aforesaid amount shall be paid within one month from the date of receipt of this order failing which complainant is entitled to get 9% interest for the aforesaid amount from the date of order till realization.
Pronounced in the open court on this the 30th day of March, 2016.
Sd/-
Shiny.P.R
President
Sd/- Suma. K.P
Member
Sd/-
V.P.Anantha Narayanan
Member
A P P E N D I X
Exhibits marked on the side of complainant
Ext.A1- Photocopy of the insurance policy dt.31/08/1999
Ext.A2- Photocopy of letter issued by OP1 dtd.01/09/2009
Ext.A3 – The photocopy of reminder letter dtd.08/02/2010
Ext.A4- Photocopy of the receipt obtained from OP2 dtd.17/2/2010
Ext.A5- The Photocopy of the receipt dtd.18/2/2010
Ext.A6- The Photocopy of the receipt dtd.22/9/2010
Ext.A7- The Photocopy of the receipt dtd.28/9/2010
Ext.A8- The Photocopy of the renewal reminder letter dtd.30/1/2011
Ext.A9- The Photocopy of the letter dtd.28/2/2011
Ext.A10- The Photocopy of the Demand Draft dtd.09/6/2011
Exhibits marked on the side of opposite party
Nil
Witness marked on the side of complainant
Nil
Witness examined on the side of opposite parties
Nil
Cost Allowed
Rs.1,000/- as cost.
