Before the District Consumer Dispute Redressal Commission [Central], 5th Floor ISBT Building, Kashmere Gate, Delhi
Complaint Case No.216/2019
Shri Yudhisthir Singh Sengar
8B(305)Shanti Vihar, Abhay Khand-III
Indirapuram, Ghaziabad-201010 ...Complainant
Versus
Future General India Life Insurance Co Ltd.
Unit no.102A & 103, Ist Floor, Tewari Tower,
Plot no.8, B-11, Pusa Road, Karol Bagh,
New Delhi-110005 ...Opposite Party
[Case of Sr Citizen & of heart ailment]
Date of filing: 02.08.2019
Order Reserved on: 14.12.2022
Date of Order: 19 .12.2022
Coram: Shri Inder Jeet Singh, President
Shri Vyas Muni Rai, Member
Ms. Shahina, Member -Female
Inder Jeet Singh
ORDER
1. (Introduction to case of parties) : Briefly, as culled out, this complaint is for allegations of deficiency of service and of unfair trade practice that complainant/insured took insurance policy against premium from the OP/insured, however, he surrendered his policy but he was given 1/3rd cash amount. The remaining 2/3rd amount was not given but OP of its own issued letter for 2/3rd and forced the complainant take Annuity Plan imposed by the OP, which was never consented or agreed by the complainant nor there was such criteria. Complainant seeks refund of that 2/3rd amount and has also prayed to discontinue Annuity Plan dated 28.08.2018 besides compensation and cost. OP failed to appear despite service of notice on complaint, it was proceeded ex-parte vide order dated 3.10.2019. However, the complainant filed all documents inclusive of policy and letters issued by OP as annexures to the complaint. This is complaint by Complainant in person.
2.1 (case of complainant ) : On 30.03.2014, the complainant purchased policy no.01203110 against payments of premium, which was acknowledged by the OP in its letter dated 58273985/01203110/DL2 (now Ex.CW1/1 colly.; inclusive of first premium receipt of 30.3.2014 of Rs.75,006/-). At the time of taking the policy, he was working in Qatar National Cement Company (State of Qatar). He suffered three heart attack in Qatar on 14.2.2014, 14.2.2016 and 31.12.2017, thence he resigned the post and came back India permanently (medical reports/discharge sheet are now Exh. CW1/2 colly). The complainant had also paid annual premium from 2015 to 2016 against receipts (now Exh. CW1/5) to OP. The complainant decided and then on 4.5.2018, he surrendered his policy to OP (its acknowledgement by OP is now Exh.CW1/3).
2.2: The complainant received a letter dated 14.5.2018 (now Exh. CW1/4) from OP to the effect that they require some documents to process 1/3 surrender on the policy and for remaining 2/3rd by way of issuing Annuity Plan in lieu of total surrender of policy, but complainant had visited many times in office of OP and requested them for refund of full amount as well as, there does not exist any such formula of not releasing full amount in surrendered policy, however, OP refused to give full surrender amount.
2.3: The complainant was in financial crisis and he accepted as such, for the time being, 1/3rd cash and for 2/3rd for Annuity Plan in lieu of total surrender. However, it was forced on complainant by the OP. That is why the complainant has prayed for refund of Rs.1,72,455.99, being 2/3rd surrendered amount, alongwith interest @ 18%pa, apart from compensation of Rs.1,00,000/- on account of mental agony and physical strain & costs of Rs.20,000/-.
2.4 Since the complaint was filed and prosecuted by the complainant personally, some of facts/figures were not mentioned in the complaint but exist in documents annexed with the complaint, thus care was taken, while writing the case of complainant, to mention them being extended pleadings, so that clear picture is emerged.
3. (Case of OP) : OP was proceeded ex-parte for want of appearance .
4. (Evidence of complainant) : The complainant filed affidavit of evidence along-with documents, which were earlier annexed with the complaint, they have already been referred in paragraph 2 above.
5. ( Submission of Parties) : The complainant had filed written arguments and he was given option for oral submission but he requested that written argument may be considered, however, he became senior citizen and he is also heart patient.
6.1 (Findings) : The contentions of the complainant is considered, keeping in view of the material on record. Although, the OP has not appeared and has not contested the matter but still the complaint was required to prove his case.
6.2: The complainant has narrated facts of his employment and facts of his ill health with medical record (Ex CW1/3). The other record produced and proved is in respect of his obtaining insurance policy from the OP/insurer, payments of annual premiums (Ex CW1/1 colly. and Ex CW1/5 colly.), surrender of policy (Ex.CW1/3). However, he was asked to take cash of 1/3rd and Annuity Plan for remaining 2/3rd (Ex CW1/4) in lieu of full surrender of insurance policy. The majority of such record was issued by OP to the complainant. This clearly establishes the relationship of the complainant and of the OP as of the Insured and the Insurer. The complainant had paid initial annual premium at the time of taking the policy in 2014 and he also made payments of premium from 2015 to 2017 in subsequent three consequent years.
6.3: The complainant has proved insurance policy (being part of Ex C1/1), which defines 'surrender' means complete withdrawal/termination of the entire policy. OP's letter's dated 14.5.2018 (Ex CW1/4) does not specify any term or condition of policy, which stipulates for release of 1/3rd amount and to put 2/3d in annuity plan in case policy is surrendered in situation like of complainant. However, the letter dated 14.5.018 just directs that entire amount cannot be processed for release but without mentioning any covenant. Thus, the complainant's plea is established that he had not opted voluntarily for annuity plan but it was coerced by the OP by way of letter dated 14.5.2018. Moreover, as per policy, when complainant/insured surrendered his policy, it means it was a complete withdrawal and amounts to termination of entire policy, he was entitled for entire refund forthwith accordingly. He had surrendered the policy after initial payment of premium and also three more annual payments of premium.
6.4: Since the complainant was paid 1/3rd amount on the eve of surrender of policy, he is also entitled for refund of this remaining 2/3rd amount, which was not returned by the OP subsequent to said letter dated 14.5.2018. The complainant is entitled for refund of that amount of Rs.1,72,456/- [being balance 2/3rd amount of insurance policy] from OP, since he proved his case and allegations against the OP.
6.5: The complainant has also claimed an amount of Rs.1 lakh towards physical strain and mental agony for suffering at the end of OP. The record speaks itself that complainant was put by OP to its own terms, which caused inconvenience, stress and other sufferings, thus damages of Rs.15,000/- is awarded in favour of complainant and against OP.
6.6: The complainant has claimed interest @ 18%pa, however, there is no supporting material of this rate of interest. However, it is also apparent that the complaint was deprived to have and use of his money, even after his surrender of policy because of health & other constraints, thus interest @ 07% pa from the date of complaint till realization will meet both ends of justice.
6.7: The complainant himself filed & prosecuted the complaint, thus cost is quantified as Rs,4,000/- in his favour against the OP.
6.8: Accordingly, the complaint is allowed in favour of complainant against the OP, while directing the OP to pay Rs.1,87,456/- [i.e. Rs.1,72,456/-being balance 2/3rd amount of insurance policy plus Rs.15,000/- as damages] along-with interest @ 07% pa from the date of complaint till realization of amount, apart from cost of Rs,4000/-. The OP shall pay the amount within 30 days.
7: Announced on this 19th day of December, 2022. Copy of this award be sent/provided to the parties free of cost as per Regulations.
[Vyas Muni Rai] [ Shahina] [Inder Jeet Singh]
