Chandigarh

DF-I

CC/538/2017

Bhupinder Kaur - Complainant(s)

Versus

Chief Managing Director, M/s Bajaj Allianz Life Insurance Co. Ltd. - Opp.Party(s)

Kuldip S. Chaudhary

17 Oct 2018

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I,

U.T. CHANDIGARH

 

 

                               

Consumer Complaint No.	:	CC/538/2017
Date of Institution	:	21/07/2017
Date of Decision	:	17/10/2018

 

Bhupinder Kaur widow of late Sh. Mahinder Singh, resident of House No.2297, near Hemkunt PBL Schim, Sector-71, Mohali (Punjab); Correspondence Address House No.1617-B, Sector 38-B, Chandigarh.

… Complainant

V E R S U S

1.     Chief Managing Director, M/s Bajaj Allianz Life Insurance Company Limited, GE Plaza, Ground Floor, Airport Road, Yerawada, Pune-411006;

2.     Regional Manager, M/s Bajaj Allianz Life Insurance Company Limited, NAC, Manimajra, Chandigarh.

… Opposite Parties

 

CORAM :	SHRI RATTAN SINGH THAKUR	PRESIDENT
	SHRI SURESH KUMAR SARDANA	MEMBER

                                                                    

ARGUED BY	:	Sh. Kuldeep Singh Chaudhary, Counsel for complainant
	:	Sh. Varun Chawla, Counsel for OPs.

Per Rattan Singh Thakur, President

1.         The long and short of the allegations are, complainant on 27.3.2011 had obtained a single premium policy bearing No.0213974893 from the OP and paid the premium of Rs.50,000/-. The payment was made through cheque for which receipt was issued by the OPs.  It is the case, certificate of insurance was received and it was to mature after nine years. However, on 12.11.2016, the complainant was intimated, due to non-payment of regular premium during the revival period of 2-3 years from due date of last unpaid premium her policy was terminated and cheque of balance amount i.e. Rs.4,868/- was issued against the policy.  It is also the case, thereafter the matter was taken up through emails, but, with no result. It is alleged, OPs had no valid ground to reject or terminate the policy as it was a single premium policy. Hence, the complainant prayed for directing the OPs to refund the amount of Rs.50,000/- alongwith interest, compensation as well as litigation expenses.
2.         OPs contested the consumer complaint, filed their joint reply and, inter alia raised preliminary objections complainant has no cause of action as the membership on the life of the complainant stands foreclosed as per the terms and conditions of the policy and amount of Rs.4,868/- was paid to her vide cheque dated 12.12.2016.  It is also the case, OPs have entered into contract with Vayushree Securities Trading Pvt. Ltd. and there was no privity of contract between the complainant and the OPs; the complaint was bad for mis-joinder and non-joinder of the necessary parties.  It is asserted, as per the conditions of the certificate of insurance, in case of single premium, if the value of the unit falls below 1/10^th of the single premium or became insufficient to meet the charges, membership would be foreclosed and the value of the units would be paid upon such foreclosure. Since such situation had arisen, therefore, the policy was terminated though some wrong recitals were mentioned in the termination letter.  On these lines, the cause is sought to be defended claiming there is neither any deficiency in service nor any unfair trade practice on the part of the OPs. 
3.         Parties led evidence by way of affidavits and documents.
4.         We have heard the learned counsels for the parties and gone through the record of the case.  After scanning the record, our findings are as under:-
5.         Per pleadings of the parties, single premium of Rs.50,000/- was paid to the OPs and as per the complainant, this policy was to mature after 10 years and no other premium was needed to be paid.  These facts are not in dispute before us at all.
6.         We shall refer here to the contents of Annexure C-2/R-2 i.e. the photocopy of the certificate of insurance and the relevant portion thereof is reproduced below :-

                “Membership No.                      02139674893

                Date of commencement           28-Mar-2011

                Date of Risk                            31-Mar-2011

                Basic SA                                  Rs.250000/-

                Premium                                  Rs.50000/-

                Frequency                                Single”

A bare perusal of the above shows, the frequency was single premium and another recital reflects, sum assured was Rs.2,50,000/- and fund opted at inception was ‘Group Equity Index Fund’.  This certificate of insurance does not show that any conditions were part of this certificate to show when single premium, if the value of units falls below 1/10^th or become insufficient to meet the charges, the membership would be foreclosed and value of such units would be paid upon termination.  This Annexure C-2/R-2, which is copy of the policy document does not speak of any such condition though it is separately annexed and does not bear the signature of any authorised person on behalf of the OPs. 

7.         Now we shall switch over to the termination letter (Annexure C-3) and the operative part thereof is reproduced below :-

        “This is to inform you that your Policy No.0213974893 has been terminated due to non payment of regular premium during the revival period of two/three years from the due date of the last unpaid premium.

        In view of the said action of termination, the surrender value as per the terms of the policy is being paid to you.  Please find enclosed cheque bearing No.262018 dated 09/12/2016 drawn on for an amount of Rs.4868.00 being paid as surrender amount.

        The above policy does not bind the Company in any manner whatsoever and no claim or grievance shall be maintainable in regards to the said policy.”

A perusal of the contents of the termination letter shows, policy was terminated due to non-payment of regular premium during the revival period of 2-3 years from the date of last unpaid premium. Therefore, the surrender value by way of cheque of Rs.4,868/- was sent to the complainant.  These contents vide which the policy was terminated do not speak of the terms and conditions when the unit value falls below 10% then membership is to be foreclosed.  The termination was made due to non-payment of regular premium which does not at all apply in the present case as it was a case of single premium payment and no other regular premiums were required to be paid.  While the contents of the termination letter speaks of the fact that the sole ground for the termination of the policy was non payment of regular premium i.e. of revival period of 2-3 years.  This is paradoxical to the contents as referred in the written statement by the OPs.  The basic document vide which the policy was revoked is the termination letter (Annexure C-3). The OPs cannot travel beyond the contents of this document vide which the claim of the complainant was snatched and the amount of Rs.4,868/- only was sought to be paid to the complainant. 

8.         A passing reference was made in the written statement that some wrong recitals were mentioned in the termination letter does not cut any ice for the reason, it was repeatedly referred that due to non-payment of regular premium during the revival period of 2-3 years the policy was terminated.  Under these circumstances, there is no material to make out that the terms and conditions of the certificate of insurance were supplied to the complainant and her option was asked for with regard to its recession or acceptance of the terms and conditions referred to above.  This Forum is not in any way asking the parties to re-enter into a fresh contract particularly so when the termination was done on the ground of non-payment of the premium which reason was out of question as it was a single premium policy.  The cheque of Rs.4,868/- statedly not encashed by the complainant.
9.         From the aforesaid facts and evidence adduced, we are of the opinion, OPs have been lacking off in providing proper services and rather employed unfair trade practice and terminated the policy of the complainant without valid grounds particularly when she happened to be a senior citizen in the year 2011 on the date of policy and a widow. 
10.         In view of the above discussion, the present consumer complaint deserves to succeed and the same is accordingly partly allowed. The OPs are directed as under:-

1. To immediately refund the deposited amount of Rs.50,000/- to the complainant alongwith interest @ 8% per annum w.e.f. 27.3.2011 till realisation.
2. To pay Rs.15,000/- to the complainant as compensation for deficiency in service and mental agony and harassment caused to her;
3. To pay to the complainant Rs.5,000/- as costs of litigation.

11.         This order be complied with by the OPs within thirty days from the date of receipt of its certified copy, failing which, they shall make the payment of the amounts mentioned at Sr.No.(i) & (ii) above, with interest @ 12% per annum from the date of this order, till realization, apart from compliance of direction at Sr.No.(iii) above.
12.         The certified copies of this order be sent to the parties free of charge. The file be consigned.

	Sd/-	Sd/-
17/10/2018	[Suresh Kumar Sardana]	[Rattan Singh Thakur]
hg	Member	President