Punjab

StateCommission

A/884/2016

Parnam Singh - Complainant(s)

Versus

Exide Life Insurance Co. Ltd. - Opp.Party(s)

In Person

14 Mar 2018

ORDER

                                                                             2^Nd ADDITIONAL BENCH

STATE  CONSUMER  DISPUTES  REDRESSAL COMMISSION, PUNJAB, CHANDIGARH.

First Appeal No.884 of 2016

                                                          Date of Institution: 25.11.2016

                                                          Order Reserved on : 12.03.2018

                                                          Date of Decision:        .03.2018

 

Parnam Singh son of Sardar Lakha Singh, resident of Harsha Chhina, Vichla Killa Tehsil Ajnala, District Amritsar.

                                                                                      Appellant/complainant

Versus

1. Exide Life Insurance Company Limited, SCO-44, Nagpal Towers, Second Floor Ranjit Avenue, Amritsar Through its Manager/Over All Incharge.
2. Managing Director/CEO Exide Life Insurance Company Limited, 3^rd Floor, JP Techno Park, 3/1, Millers Road, Bengaluru 560029.

 

Respondents/opposite parties No.1&2

First Appeal against order dated 30.08.2016 passed by the District Consumer Disputes Redressal Forum,   Amritsar.

Quorum:-

          Shri Gurcharan Singh Saran, Presiding Judicial Member.

          Shri Rajinder Kumar Goyal, Member

Present:-

          For the appellant                    :         Sh.Akhilesh Vyas, Advocate

          For the respondents              :         Sh.Inderjit Singh, Advocate

 

RAJINDER KUMAR GOYAL MEMBER :-

ORDER

                   The appellant/complainant (hereinafter referred to as complainant) has filed the present appeal against the order dated  30.08.2016 passed in Consumer Complaint No.665 of 2015 by District Consumer Disputes Redressal Forum, Amritsar (herein referred as District Forum) vide which the complaint filed by the complainant was allowed and Ops were directed to refund the premium amount of remaining two polices i.e. policy bearing  No.02992869 and 03001531, as per the term and condition No.4.4.2 of the policy in question, after deducting stamp charges, medical charges, if any, and the mortality charges of the missing period, within a period of 30 days from the date of receipt of copy of order, failing which the complainant shall be entitled to interest @9% pa from the date of filing of the complaint until full and final recovery.

2.                Complaint was filed by the appellant/complainant under Consumer Protection Act, 1986 (in short, "the Act") against the OP on the averments that the complainant opted three fixed deposit schemes for his grand-daughters as under:-

          (i) Bearing No.02992869 dated 27.10.2014 for an amount of Rs.75000/- for a period of 15 years.

          (ii) Bearing No.03011531 dated 01.12.2014 for an amount of Rs.125000/- for a period of 15 years.

          (ii) Bearing No.0301447 dated 15.01.2015 for an amount of Rs.1,18,027/- for a period of 15 years.

          The polices in question  received by the complainant were of insurance and not of the fixed deposits. The complainant immediately informed and sent the letter 15.01.2015 for cancelling the said policies within the period of 15 days on receipt of the same. A legal notice dated 24.09.2015 was also sent to the Ops. The reply dated 30.09.2015 of the said notice was received by the complainant wherein policy bearing No. 03010447 was cancelled and accordingly Rs.1,18,027/- was received by the complainant. The other two polices were not cancelled. Hence, the complaint, praying for following reliefs:-

1. Opposite parties be directed to pay the cancellation amount of policy bearing No.029922869 dated 27.10.2014 for an amount of Rs.75,000/- and policy bearing NO.0301531 dated 01.12.2014 for an amount of Rs.1,25,000/- along with interest @18% per annum.
2. To pay compensation of Rs.50,000/- to the complainant on account of causing great harassment, inconvenience, mental pain and agony by the opposite parties.
3. To pay litigation expenses to the tune of Rs.15000/-.

3.                Upon notice, the OPs appeared and filed written reply taking preliminary objections therein inter alia that the present complaint is false, malicious and incorrect; Complainant had availed three Life Insurance Policies from OPs and submitted proposal forms dated 13.10.2014, 31.10.2014 and 21.11.2014 proposing for Exide life Granted Income Insurance Plus Plan which is duly approved by IRDA. The features of the plan were duly explained in detail. The complainant had confirmed these facts in his declaration made in the proposal forms. As per the regulation 6(2) of IRDAI Regulations 2002 the policy holder/proposal is at liberty to review the terms and conditions of the policy and had the option to cancel the policy within 15 days (free lock period) of receipt of policy bond. The said facts were clearly intimated in the welcome letter along with the policy schedule and terms and conditions. The complainant approached the OPs on 15.01.2015 with the cancellation request for policy bearing No.03001531and 03010447. The policy pertaining to 03010447 was within free lock period hence the same was processed by OP and amount of Rs.1,02,914.90 was duly transferred to the complainant’s bank account. Complainant in the month of August 2015 approached the OP and submitted the indemnity bond requesting for issuance of duplicate insurance bond for policy bearing No.02992869 as the same was got lost by him. When the complainant approached the Ops for the first time on 15.01.2015 requesting for cancellation of the supra policies he never raised any concern about the policy bearing No.02992869. the complainant had not approached the OP within 15 days of the receipt of the policy document for policy bearing No.02992869 and 03001531. Hence, the request was rejected as per policy terms and conditions. OP has performed their part of contract by covering the risk of the life of the life insured for a substantial period from the date of commencement of the policy till date. On merits, the facts mentioned in the complaint were denied and prayer for dismissal of the complaint with costs.

4.                Before the District Forum the parties led their respective evidence.

5.                In his bid to prove the case, the complainant tendered into evidence his affidavit Ex.C-1 along with copies of document Ex.C2 to Ex.C8 and closed the same. On the other hand, to rebut the evidence of the complainant, the OP tendered into evidence the proposal form along with documents Ex.OP-1 along with copies of documents Ex.OP2 to Ex.OP11 and closed the evidence on behalf of the opposite party.  

6.                After going through the allegations as alleged in the complaint, written version filed by OPs evidence and documents brought on record the complaint filed by the complainant was allowed as referred above.

7.                Aggrieved with the order passed by the learned District Forum the appellant/complainant has filed the present appeal.

8.                We have heard the learned counsel for the parties and have persued the record carefully.

9.                It was argued by the counsel for the appellant/complainant that prior to 5.01.2015, no policy document was ever received by the appellant and even on 5.01.2015, he was delivered the policy document of policy bearing No.0301447 and 301531 and the documents of remaining policy were never delivered to him. The District Forum ordered to refund the policy amount as per term and condition No. 4.4.2 pertaining to surrender of policy after deducting stamp duty charges, medical charges, if any in addition to mortality charges of the missing period. As per clause 4.4.2 Surrender of policy- If at least one full years premium paid the GSV payable is 20 % of premium paid excluding the service tax & premium for extra mortality rating, if any, and the stamp duty charges and medical charges deduction is not admissible.

10.              Counsel for the respondents/OPs argued that the complainant has not exercised the cancellation of the policy bearing Nos.02992869 and 03001531 within free look period, as such, the cancellation could not be done by the insurance company. The cancellation of one of the three polices No.0301447 was within free look period, as such, the policy was cancelled by the insurance company as per terms and conditions deposited the due in the bank account of the complainant. The said facts regarding free look period were clearly intimated in the welcome letter issued to  the complainant along with the policy schedule/terms and conditions. The contract of life insurance entered between the insurance company and the complainant is a concluded contract if not revoked within the free look period and it was presumed that the complainant was satisfied with terms and conditions so issued to him. Therefore, there was no deficiency in service on the part of the OP-insurance company. He further requested to dismiss the appeal.

11.              We have considered the contentions of the parties the complainant requested for cancellation of the policy vide letter Ex.C-2 for policy No.02992869. The perusal of the letter shows that no date has been mentioned on the said letter when it was written and also when the said policy was received by the complainant. Subsequently vide letter Ex.C-3 dated 15.01.2015 complainant requested for cancellation of all the three policies i.e. 03001531, 033010447 and 02992869. From the above it shows that all the three polices were received by the appellant and denial of the two policies i.e. 02992869 and 03001531 is not justified. There is no evidence to show on record that on which date the above policies were received by the complainant nor the complainant has mentioned it in the above request letters to evident that cancellation request is within the free look period of 15 days. Insurance company found the cancellation request for policy No.03010447 within the free look period and accordingly refunded the premium amount as per terms and conditions of the policy. The other two policies were not within free look period so request for cancellation was not considered as per terms and conditions.

12.              The District Forum vide order dated 30.08.2016 directed the OP to refund the premium amount of the remaining two policies as per terms and conditions No.4.4.2 of policy in question after deducting stamp charges/medical charges if any and mortality charges of the missing period. Whereas there is no provision of deducting stamp charges, medical charges as per clause No.4.4.2-Surrender of Policy which reads as under:-

          If at least one full year’s premium is paid the GSV payable is 20% of premiums paid excluding the service tax and premium for extra mortality rating, if any.       

X                 X                 X                 X                 X                 X                 X

          However, the District Forum while passing the order has directed the OP to refund the premium amount of remaining two policies as per the term and condition No.4.4.2 of the policy in question after deducting stamp charges, medical charges, if any, & the mortality charges of the missing period. Whereas the deduction of stamp charges, medical charges are not appearing in Clause 4.4.2 referred above. As such the order passed by the District Forum requires modification to this effect.

13.              Sequel to the above, we appeal is partly accepted and the order of the District Forum is modified to the extent that Ops are directed to refund the premium of the two polices i.e. 02992869 and 03001531 as per term and condition No.4.4.2 of the policy in question without deducting the stamp charges/medical charges, if any.

14.              The appeal could not be decided within the statutory period due to heavy pendency of the Court cases.

 

                                                                     (Gurcharan Singh Saran)

                                                                   Presiding Judicial Member

 

 

                                                                  

                                                                   (Rajinder Kumar Goyal)

                                                                             Member

March  14,    2018

PK/-