DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BATHINDA

CC.No.436 of 04-10-2013

Decided on 19-02-2014

Gurmit Kaur aged about 42 years W/o Gurdip Singh R/o Village Bangi Nihal Singh, Tehsil Talwandi Sabo, District Bathinda.

........Complainant

Versus

1.DLF Pramerica Life Insurance Company, 4th Floor, Building No.9, Towers B, Cyber City, DLF City, Phase III, Gurgaon-122002 (Haryana), through its Managing Director.

2.DLF Pramerica Life Insurance Company, Gali Bhaia Fort Wali, 2nd Floor, The Mall Road, Bathinda.

.......Opposite parties

Complaint under Section 12 of the Consumer Protection Act, 1986.

QUORUM

Smt.Vikramjit Kaur Soni, President.

Smt.Sukhwinder Kaur, Member.

Sh.Jarnail Singh, Member.

Present:-

For the Complainant: Sh.Ashok Gupta, counsel for the complainant.

For Opposite parties: Sh.N.K Batta, counsel for the opposite parties.

ORDER

VIKRAMJIT KAUR SONI, PRESIDENT:-

1. The instant complaint has been filed by the complainant under section 12 of the Consumer Protection Act, 1986 as amended upto date (Here-in-after referred to as an 'Act'). Briefly stated the case of the complainant is that the agent Mr.Manmohan Singh of the opposite parties approached her to sell the 'DLF Pramerica Super Wealth Plus-Regular Premium' policy and allured her that she has to make the payment of Rs.20,000/- only once and sum assured is Rs.2 lacs for 20 years. The complainant purchased the policy bearing No.000030202 dated 5.7.2010 and paid the premium of Rs.20,000/- to the opposite parties. The complainant approached the office of the opposite parties at Bathinda for the refund of Rs.20,000/- alongwith suitable interest at the market rate, but they told her that she has to pay more premiums failing which no amount would be paid to her. The complainant returned the original policy to the opposite parties at Bathinda but they did not returned her any amount despite her repeated requests and visits and surrender of the abovesaid policy. The opposite parties have not issued any receipt to the complainant regarding receiving the original documents. At the time of surrender of the abovesaid policy, the officials of the opposite parties obtained the signatures of the complainant on various printed forms and revenue stamps with the assurance that the amount would be returned to her shortly but nothing has been done. Hence the present complaint filed by the complainant to seek the directions of this Forum to the opposite parties to refund the amount of Rs.20,000/- alongwith interest, cost and compensation.

2. The opposite parties after appearing before this Forum have filed their joint written statement and pleaded that after completely understanding the terms and conditions of the insurance policy product 'DLF Pramerica Super Wealth Plus Regular Premium Plan', the complainant has filled the proposal form bearing No.AF000023714 and signed it on dated 3.6.2010. In the said proposal form, the life assured and nominee has given all the relevant details and information in the prescribed form for the sum assured of Rs.2 lacs and proposed for the premium of Rs.20,000/- that is to be paid annually for the period of 20 years. The complainant submitted various documents alongwith the application form which is itself evident that after duly understanding the terms and conditions of the abovesaid policy she opted for the policy in question. The opposite parties issued the policy bearing No.000030202 with the risk commencement date 5.7.2010 and sent the policy documents alongwith schedule, terms and conditions and a welcome letter to the complainant that have been duly received by the complainant. As required under the IRDA, a Free Look Period option provided to the policyholder, in which he can review the terms and conditions of the policy and can cancel the policy by stating the reason for his/her objection within 15 days from the receipt of the policy documents In such cases the insurance company is entitled to deduct the charges like stamp duty etc. and refund the balance premium to the policyholder. The policy contract has been dispatched to the complainant vide Speed Post No.EH036754419IN on dated 7.7.2010 that has duly been delivered to her. The opposite parties made a welcome call to the complainant on dated 10.8.2010 to check the policy documents status but they were unable to speak to her about the same as her phone was switched off. The abovesaid policy has been issued to the complainant in the month of July, 2010 and delivered at her given address. The opposite parties neither received any query nor a complaint during the Free Look Period against the abovesaid policy that means the complainant was satisfied with her policy. The opposite parties further pleaded that after paying the initial premium, the complainant did not pay any further premium due for 5.7.2011, as a result of which her policy lapsed. As per the terms and conditions of the policy, the opposite parties have sent a letter to the complainant on dated 20.8.2013 informing her that her policy has auto surrendered/terminated on dated 6.7.2013 due to the non-receipt of the renewal premium for 5.7.2011 as per the terms and conditions of the policy. The opposite parties have refunded the total surrender value under the policy in question to the tune of Rs.822.33/- to the complainant vide cheque dated 19.8.2013 drawn on HDFC Bank. The opposite parties dispatched the said cheque to the complainant on dated 23.8.2013 through Speed Post No.ED960603949IN, but the same has been delivered back to them with a reason 'Incomplete Address', hence the said cheque is lying with the opposite parties. The opposite parties tried to call the complainant for remitting the said cheque but the contact number remain engaged, therefore she remained non-contactable.

3. The parties have led their evidence in support of their respective pleadings.

4. Arguments heard. The record alongwith written submissions submitted by the parties perused.

5. Admittedly, the complainant has purchased one 'DLF Pramerica Super Wealth Plus-Regular Premium' policy vide policy bearing No.000030202 dated 5.7.2010 for sum assured of Rs.2 lacs and paid the premium of Rs.20,000/- to the opposite parties. The complainant has filled the proposal form bearing No.AF000023714 and signed it on dated 3.6.2010.

6. As per the submission of the complainant the agent Mr.Manmohan Singh conveyed her that she has to make the payment of Rs.20,000/- only once against the sum assured of Rs.2 lacs for 20 years. The complainant requested the officials of the opposite parties at Bathinda for the refund of Rs.20,000/- alongwith suitable interest at the market rate and returned them the original policy, but no amount has been returned to her by the opposite parties despite her various requests and visits and surrender of the abovesaid policy.

7. On the other hand submission of the opposite parties is that they issued the policy bearing No.000030202 with the risk commencement date 5.7.2010 and sent the policy documents alongwith schedule, terms and conditions and a welcome letter to the complainant that have been duly received by her. As per welcome letter, a Free Look Period option has been given to the complainant to review the terms and conditions of her policy and if she was not satisfied with her policy, she can cancel her policy within 15 days from the receipt of the policy documents, but she has not availed that option. The opposite parties made a welcome call to the complainant on dated 10.8.2010 to check the policy documents status but they were unable to speak her about the same as her phone was switched off. The complainant has failed to pay the due premium on dated 5.7.2011, due to this her policy lapsed as per its terms and conditions. The opposite parties have sent a letter to the complainant on dated 20.8.2013 informing her that her policy has auto surrendered/terminated on dated 6.7.2013 due to the non-receipt of the renewal premium for 5.7.2011. The opposite parties have refunded the total surrender value under the policy in question to the tune of Rs.822.33/- to the complainant vide cheque dated 19.8.2013 drawn on HDFC Bank. The opposite parties dispatched the said cheque to the complainant on dated 23.8.2013 through Speed Post No.ED960603949IN, but the same has been delivered back to them with a reason 'Incomplete Address', therefore the said cheque is lying with the opposite parties. The opposite parties tried calling the complainant for remitting the said cheque but the contact number remain engaged, therefore she remained non-contactable.

8. The complainant herself has placed on file the policy document, Ex.C2, which shows that she has duly received the policy schedule alongwith terms and conditions and a welcome letter. The opposite parties have placed on file the Policy Schedule and Terms and Conditions, Ex.OP1/3, as per Condition No.9 'The policy acquires a surrender value on payment of first full year's premium. Any surrender value is payable only after completion of three policy years. The illustrated surrender value is not guaranteed'. The complainant has paid the first premium on dated 5.7.2010 and thereafter after completion of 3 years, requested the opposite parties to surrender her policy but nothing has been paid to her by them till date. The complainant is entitled to get the surrender value. The Surrender Charge are to be deducted as per table referred hereunder:-

Surrender Charge (% of value of regular premium units)

Number of complete years of Premium received

Surrender Charge

0

100 Percent

1

90 Percent

2

50 Percent

Year in which contract surrendered

Surrender Charge

4th

25 Percent

5th

5 Percent

6th Year onwards

Nil

The policy of the complainant has completed 3 years and is in the 4th year. However, the complainant has paid only one premium, thus as per above mentioned table of Surrender Charge, she is entitled for 25% of the premium amount of Rs.20,000/- deposited by her.

9. The opposite parties have submitted that they have sent cheque dated 19.8.2013 to the complainant for Rs.822.33/-, but no copy of the said cheque has been placed on file by them, which falsifies their version. Moreover if for the arguments sake it is believed that the amount of Rs.822.33/- is refundable to the complainant, but the opposite parties have not paid her the said amount and have not produced any calculation regarding the amount of Rs.822.33/- to show that how they have arrived to this amount. The opposite parties have placed on file Ex.OP1/4, a letter written to the complainant, but no postal receipt has been placed on file by them to show that this letter has ever been sent to her by them.

10. Therefore in view of what has been discussed above there is deficiency in service on the part of the opposite parties. Hence this complaint is accepted with Rs.3000/- as cost and compensation against the opposite parties. The opposite parties are directed to refund the amount of Rs.20,000/- after deducting 25% of Rs.20,000/- i.e. Rs.15,000/- to the complainant alongwith interest @ 9% per annum since submission of the original policy with them till 19.2.2014.

11. The compliance of this order be done within 45 days from the date of receipt of the copy of this order.

12. In case of non-compliance the amount of Rs.15,000/- plus interest will further carry interest @ 9% per annum till realization.

13. A copy of this order be sent to the parties concerned free of cost and file be consigned to the record room.

Pronounced in open Forum:-

19-02-2014

(Vikramjit Kaur Soni)

President

(Sukhwinder Kaur)

Member

(Jarnail Singh)

Member