DISTRICT CONSUMER DISPUTES REDRESSAL FORUM (CENTRAL)
ISBT KASHMERE GATE DELHI
CC/19/2017
No. DF/ Central/
Shri Vinod Kumar
S/o Late Hari Chand
R/o R – 32, Top Floor,
West Patel Nagar, New Delhi - 110008
……..COMPLAINANT
VERSUS
H.D.F.C. Standard Life Insurance Co. Ltd.,
Through Br. Manager/Sr. Manager
Office 2/2A, Universal Ins/. Building
Asaf Ali Road, Delhi - 2
…..OPPOSITE PARTY
Quorum : Ms. Rekha Rani, President
Mrs. Manju Bala Sharma
ORDER
Rekha Rani, President
1. Shri Vinod Kumar Gupta (in short the complainant) filed the instant complaint U/s 12 of the Consumer Protection Act 1986, as amended (in short the Act) pleading therein that he had taken Insurance Policy bearing no. 10432882 from HDFC Standard Life Insurance Co. Ltd., (in short the OP) and paid Rs.30,250/- to OP. Policy matured on 13th Dec. 2015. Complainant is not willing to continue the policy but OP is not willing to return the deposit amount of the complainant. Hence the instant complaint seeking direction to OP to return Rs.30,250/- with interest at the rate of 24% from the date of deposit, to pay Rs.20,000/- towards compensation for mental torture and harassment and Rs.5,000/- towards litigation expenses.
2. On receipt of notice of the instant complaint OP appeared and contested the claim vide its reply.
3. Both sides have adduced evidence by way of affidavits. They also filed written arguments.
4. We have heard complainant and Sh. Hitesh Kumar learned counsel for OP.
5. The claim is challenged on the ground that it is barred by limitation and further that policy in question got cancelled due to non-payment of premium. Subject Policy No. 1043288 was issued on 15.12.2005. It is stated that complainant paid first premium of Rs. 10,000/- on time for the year 2005. It is further stated that he approached OP for deposit of premium for the year 2006 & 2007 on 28.03.2007 & 27.12.2007 after lapse of grace period as the second premium was due on 14.12.2006 and grace period of 15 days expired on 29.12.2006. It is further submitted that on cancellation of the policy ‘Value of the units less surrender charges’ was paid by the OP to the complainant which is in conformity with the terms and conditions of the policy.
Relevant terms and conditions of the policy concerning timely payment of premium and cancellation thereof in the event of non-payment of premium are reproduced in the reply of OP. Complainant has not made payment of premium on time. Second premium was due on 14.12.2006 which could be paid within grace period of 15 days by 29.12.2006. Third premium was due on 13.12.2007 and could be paid within the grace period of 15days by 28.12.2007. The complainant himself vide his letter dated 12.01.2017 which is addressed to the OP has stated that he paid second premium late on 28.03.2007. Learned counsel for OP has submitted that since the second premium was due on 14.12.2006 and on 29.12.2006 with grace period of 15 days, deposit of second premium by complainant on 28.03.2007 could not revive the policy which stood lapsed and accordingly cancelled in the year 2006 in terms of the conditions of the policy.
The claim is also submitted to be barred by limitation. It is stated by the OP that since the policy was obtained on 15.12.2005 and lapsed/stood cancelled in the year 2006 the claim could not be entertained now in 2017. Complaint was filed on 20.01.2017.
Complainant has submitted that since his policy was to mature in 2015, the claim is well within limitation.
The subject policy was obtained on 15.12.2005. First premium was paid in time. It is admitted by the complainant that he paid second premium late on 28.03.2007. Second premium was payable on 13.12.2006 and with grace period of 15 days by 28.12.2006. Since the premium was not paid in time, OP cancelled the policy in terms of clause 4(vi) and 5(i) of the policy.
Terms of clauses 4(vi) and 5(i) of the policy are as under:
“4. Premiums
(vi) If, any premium due during the first 3 years from the date of commencement, remains unpaid 15 days after the Due Date we may cancel your Policy as described in Provision 5 of these Provisions.
5. Cancelled, Surrendered and Paid-Up Policies
(i) In the event of the Policy being cancelled as per Provision 4(vi), all benefits will be cancelled. We shall then pay you the value of the Units, after deducting Cancellation Charges as described in the Schedule of Charges in the Policy Schedule. A cancelled Policy will not be re-instated under any circumstances.”
Accordingly, there is substance in the case of OP that since premium was for the year 2006 was admittedly not paid in time the policy stood cancelled in terms of clause 4(vi) and 5(i) of the policy and the said policy could not be revived on belated payment of premium. The claim is therefore barred by limitation. Complaint dismissed. Copy of the same be retained on record. Copy of this order be sent to the parties as statutorily required. File be consigned to record room.
Announced this Day of 2018.
