Jammu and Kashmir

Jammu

CC/239/2017

MUKHTIAR BIBI - Complainant(s)

Versus

DHLF BAMBA - Opp.Party(s)

KS CHIB

04 Aug 2018

ORDER

DISTRICT    CONSUMER     DISPUTES   REDRESSAL  FORUM, JAMMU

                (Constituted under J&K Consumer Protection Act,1987)

                                                         

 Case File  No.                  305/DFJ         

 Date of  Institution       27-10-2016

 Date of Decision          04-07-2018

 

Mukhtiar Bibi,

W/o Nek Mohd.

R/O Khara Madana

Tehsil & Distt.Samba.

                                                                                                                                          Complainant

              V/S

1.D.H.F.L.Pramerica Life Insurance Company Ltd.

  Having its register office at 4^th Floor Building,

No.9 Tower B Cyber City,D.L.F.City Phase-III,

Gurgaon 122002 Haryana.

2. D.H.F.L.Pramerica Life Insurance Company Ltd.

  North Block Bahu Plaza,Jammu.

                                                                                                                                          Opposite parties

CORAM

                  Khalil Choudhary              (Distt.& Sessions Judge)   President

                  Ms.Vijay Angral                                                                Member

                  Mr.Ghulam Sarwar Chouhan                                       Member

 

In the matter of: Complaint under section 10 of J&K Consumer

                              Protection Act 1987.

      

Mr.K.S.Chib for complainant,present.

Mr.Shafiq Ahmed Wani,Advocate for OPs,present.

 

                                                                 ORDER.

                       Grievance of complainant, as disclosed in the complaint is that complainant and her husband on the verbal assurance believing the genuineness of policy have agreed for the investment of money, purchased three life insurance policies from the agent of OPs at Jammu and made payment to the agent of Ops for the premium of the policy i.e.Rs.45,000/-against Policy No.000174186,Rs.4999/towards premium for policy No.00016925 and Rs.99,999/towards the premium for policy No. 000186784,but life insurance policy cover has not been handed over to her. Thereafter complainant filed complaint under section 10 of Consumer Protection Act and this Forum has directed OP Company to refund Rs.1,94,988/to complainant. According to complainant, after the period of one year agent of Company has approached her husband to pay the second premium for three insurance policies Rs.1,00,000/-or policy No.000186784,Rs.49999/for policy No.000169252,Rs.45,000/for policy No.000174186 which was deposited by her and receipt has been issued to her on the assurance that bonus and premium deposited shall be returned to her on Diwali in year 2014,but the insurance policies were not handed over to her till he received second premium. Further contention of complainant is that she being an illiterate lady, after receiving insurance policy, she had to authorize person to know about the terms and conditions of the policy she came to know that she had to pay insurance premium of 15 years, she was shocked because the policy was missold by the agent by narrating wrong conditions. Constrained by the act of OP,complainant served legal notice through counsel to OP on,28-04-2015 and notice was duly received by OP and reply to notice was given by OP on,01-06-2015.The complainant has suffered mental shock, agony and monetary loss of Rs.1,94,988/-and Rs.1,94,999/-because of missold of three life insurance policies to her and the OP has indulged in unfair trade practice. That the Honble Forum  had already passed the order for refund of first premium of Rs.1,94,998/-,but amount of second premium was inadvertently could not be mentioned in the complaint and the same has not been reflected in the order dated 31-05-2016 and the complainant has filed application for review for review of judgment dated 31-05-2016,but this Forum has rejected the application for review of order dated 31-05-2016 and the complainant had no other option then to file fresh complaint for the second premium of Rs.1,94,999/-deposited by her with the Ops.In the final analysis, complainant prays for refund of second premium of Rs.1,94,999/-and in addition also prays for litigation charges of Rs.10,000/ .

                  On the other hand,OPs filed written version and resisted the complaint on the ground that the complaint in its present form is bad for nonjoinder of a necessary party as most of the allegations contained in the complaint are against the agent. It is submitted that complainant was sent a welcome letter in all the three policies dared 13-9-2012, 30-09-2012 and 30-11-2012 in which it was clearly mentioned that in case the customer is not satisfied with the terms and conditions of the policies, he/she can return it to the OP within 15 days of the receipt and the premium which was paid will be refunded back to the customer. However, complainant never raised any queries or complaints regarding policies. It is submitted that complainant did not raise any query or question within the free look period, but on the other hand renewal premium was paid by the complainant for the policies respectively. It is submitted that if the complainant was so distressed with the policies then he should not have paid the renewal premiums and rather should have approached OP at once. It is important to mention here that after issuance of policies, the complainant for the first time approached Company through a letter received on,29-10-2014 i.e. after a span of almost two years and complaint regarding the differences in products sold to the complainant. It is submitted that in the earlier complaint No.195/2016 despite providing Vakalatnama,written statement and evidence, engaging Advocate did not appear in the matter and hence exparte order was passed against the OP.The earlier complaint unfortunately could not be heard and decided on merits. It is submitted that complainant signed the proposal form only after going through all the terms and conditions of the policy.

                           Complainant adduced evidence by way of duly sworn evidence affidavit and affidavits of Nek Mohd.and Som Nath, respectively. Complainant has placed on record copy of order passed by this Forum,copies of renewal premium receipts, copy of legal notice and reply to legal notice.

          On the other hand,OPs adduced evidence by way of duly sworn evidence affidavit of Sahil Mahajan Dy.Manager,Legal and duly constituted Attorney of the Ops.

         We have perused case file and heard L/Cs for the parties at length.

                   We have perused case file and heard L/Cs appearing for complainant at length.

                          Briefly stated grievance of complainant, as disclosed in the complaint is that; believing the genuineness of the policy, on verbal assurance of Ops,complainant said to have purchased three Life Insurance Policies and paid the premium of Rs.45,000/-towards policy No.000174186,Rs.49,999/-towards policy No.00016925 and Rs.99,999/-towards policy No.000186794,but life insurance cover has not been handed over to complainant. According to complainant, on completion of one year, agent of OP Company approached complainant for second premium and assured that bonus and premium deposited shall be returned to complainant on the eve of Dewali of year, 2014. Further contention of complainant is that insurance policies were not handed over to her till receipt of second premium, therefore, completely relied upon the statement of agent of OP regarding benefit of policy and acted on the same by paying premium. Complainant also said to have issued demand notice dated, 30-05-2013, but no action taken by OPs.

                  On the other hand, stand of Ops is that complainant was sent a welcome letter in all the three policies dared 13-9-2012, 30-09-2012 and 30-11-2012 in which it was clearly mentioned that in case the customer is not satisfied with the terms and conditions of the policies, he/she can return it to the OPs within 15 days of the receipt and the premium which was paid will be refunded back to the customer. However, complainant never raised any queries or complaints regarding policies within free look period.

                     In order to substantiate her version, complainant has filed her own duly sworn evidence affidavit and affidavits of Nek Mohd.and Som Nath,respectively, which are corroborative of the narration of complainant, therefore, need no reiteration.

               At the same time,OPs also filed evidence affidavit of Sahil Mahajan Dy.Manager,Legal and duly constituted Attorney of the Ops.and deposition of witness is again reiteration of written version of OPs,therefore,need no repetition.

                  It is to be noted that OPs admitted the receipt of  payment of second premium to the tune of Rs.1,94,999,however,OPs took the defence that complainant was sent a welcome letter in all the three policies dated 13-09-2012,30-09-2012 and 30-11-2012 in which it was clearly mentioned that in case the customer is not satisfied with the terms and conditions of the policies, she can return it to the OPs within 15 days of the receipt and the premium which was paid will be refunded back to the customer.

                  It is settled preposition of law that Insurance Policy, falls within the realm of contract, which becomes final and binding, on being offer made by one party, accepted by other and followed by consideration in the shape of premium, which has been done in the case on hand, therefore, it did not lie in the mouth of OPs that after the payment of premium, complainant was supposed to exercise option thereby giving her consent to get benefit flowing from the policy. In our opinion, this act of omission and commission on the part of OPs,amounts to deficiency  in service, besides had colouring of misappropriation of public money, which is not expected from OPs,who is a State agency .OPs have no right to withheld the money of complainant for such long period, without settling down terms and conditions and once the agent of OPs came forward as an authorized person of OPs, in that event OPs are bound by each and every action of its agent and cannot wriggle out of it.

                    After going through the whole case with the evidence on record what reveals here is the case of complainant is genuinely filed with speaking reasons and merit as being consumer as per the purport of section 2(d) of Consumer Protection Act and Ops are the service providers having failed in their statutory duty to provide adequate and effective services. The purport of legislation is well defined and statutorily takes care of consumer rights and cannot legally afford to a situation like the one confronted herewith in a manner where they are deprived of their rights as of consumer. The consumers have to come forth and seek for redressal of his grievance. The case of the complainant is also genuinely filed for seeking determination of his right by this Forum.

                         Therefore in view of the aforesaid discussion and after pursuing the record of the case, complaint filed by the complainant is accordingly allowed and we direct OPs.to refund Rs. 1,94,999/-i.e. the second premiumto complainant. The complainant is also entitled to compensation of Rs.5000/-for causing mental agony and harassment and litigation charges of Rs.5,000.This order shall be complied with by OPs within one month from the date of receipt of this order. Copy of this order be provided to the parties free of charge. Complaint is accordingly disposed of and file be consigned to records after its due compilation.

Order per President                                              Khalil Choudhary

                                                                             (Distt.& Sessions Judge)

                                                                                  President

Announced                                                         District Consumer Forum

04-07-2018                                                                Jammu.

Agreed by                                                               

      

Ms.Vijay Angral          

  Member                                                                                              

 

Mr.Ghulam Sarwar Chauhan

Member