Chandigarh

DF-II

CC/198/2020

Mohan Singh Pabla - Complainant(s)

Versus

ICICI Prudential Life Insurance Co. Ltd. - Opp.Party(s)

In Person

03 Nov 2021

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II,

U.T. CHANDIGARH

 

Consumer Complaint  No	:	198 of 2020
Date  of  Institution	:	19.03.2020
Date   of   Decision	:	03.11.2021

 

 

 

 

 

Mohan Singh Pabla s/o Late Sh.Dharam Singh Pabla, R/o H.No.4058, Sector 46-D, Chandigarh

             …..Complainant

 

Versus

 

1]  ICICI Prudential Life Insurance Company Ltd., Unit No.1A ^ 2A, Raheja Tipko Plaza, Rani Sati Marg, Malad (East), Mumbai 400097 through its Managing Director.

 

2]  ICICI Prulife Towers 1089 Appasheb Marathe Marg, Prabha Devi, Mumbai 400025 through its Managing Director (Regd. Office)

 

3]  ICICI Prudential Life Insurance Company Limited, 134-136, Madhya Marg, Sector 8, Chandigarh through its Branch Manager.    

 

     ….. Opposite Party

 

 

BEFORE:  SH.RAJAN DEWAN              PRESIDENT

         SMT.PRITI MALHOTRA             MEMBER

         SH.B.M.SHARMA                      MEMBER

 

 

Argued By: Complainant in person

Sh.Gaurav Bhardwaj, Adv. for OPs

 

PER PRITI MALHOTRA, MEMBER

         Concisely put, the complainant, on being allured to get good returns, purchased ICICI Prudential Life Stage Assure Policies bearing No.11474513 & 11413517 on 8.3.2009 & 22.3.2009 respectively (Ann.C-1 & C-2) and paid regular premiums thereof for 5 years.  It is stated that the complainant visited OPs for surrender of the policies after completion of 10 years period, whereupon he came to know that the OPs have illegally deducted an amount of Rs.3,04,264.14 from the policy amounts towards premium allocation charges, charges for insurance cover and other charges.  The complainant was shocked to know fund value of Rs.1,21,599.29 against his invested amount of Rs.1,50,000/- for policy No.1141351 (Ann.C-2) and Rs.6,50,696/- against invested amount of Rs.5 lacs for policy No.11474513/- (Ann.C-1) whereas he was assured minimum appreciation @12% on the invested amount. It is also stated that the complainant was also entitled for an amount of Rs.1,30,00/- as GMA (Guaranteed Maturity Addition) in respect of both the policies after 10 years policy period, but the OPs did not even pay that. The legal notice sent to OPs in this regard did not yield any result. Hence, this complaint.

 

2]       The OPs have filed reply and while admitting the factual matrix of the case, stated that the complainant has paid the premium only for 5 years though the premium payment terms opted by him was 15 years under both the policies, thus the company had to continue to deduct the charges from the 5 years premium paid by him until the policy was surrendered for covering his life and to maintain the fund. It is stated that the fund growth or depreciation is purely based on the performance of the fund in the market and the risk involved in the ULIP policies was clearly explained in the proposal and also in the terms & conditions of the policy.  It is pleaded that the complainant received the due amounts against the policies in question as on the date of surrender.  Also stated that the policy has not matured but has been surrendered by the complainant, therefore, he cannot take the benefit of Maturity Benefit under the Policy.  Denying other allegations, prayed for dismissal of the complaint.

 

3]       Rejoinder has also been filed by complainant controverting the assertions made by OPs in the reply.

 

4]       Parties led evidence in support of their contentions.

 

5]       We have heard the complainant in person, ld.Counsel for the OPs and have also perused the entire record including written arguments.

 

6]       The complainant as admitted in the complainant has paid total premium of Rs.5 lacs against Policy No.11474513 and Rs.1,50,000/- against Policy No.11413517 (Ann.C-1 & C-2) regularly for five years.  The complainant also admitted that the policies remained active for 10 years and thereafter both policies were encashed by him whereupon he was admittedly paid an amount of Rs.6,05,696/- for Policy No.11474513 and Rs.1,21,599/- for Policy No.11413517 (Ann.C-1 &  C-2) by the OPs.

 

7]       The prayer of the complainant in the present complaint is for grant of Guaranteed Maturity Benefit after completing 10 policy years, which has not been paid by the OPs.

 

8]       The plea of the OPs is that the amount as became due on the date of surrender has righty been paid to the complainant and that the deductions so made were as per policy terms & conditions. It is stated that the complainant is not entitled to GMA (Guaranteed Maturity Benefit) under the policy as the policy was encashed before maturity.

 

9]       In our opinion, the plea of OPs about non-payment of Guaranteed Maturity Benefit to complainant is bereft of merit.  Per Ann.C-4 (Part of Policy Document) shows Key Features, wherein it has specifically been mentioned that “First Year Premium Will be Used to provide a Guaranteed Maturity Addition (GMA) if at least 5 years premiums will be paid”  It is also mentioned that “Paid-up : For policies where at least 5 years premium has been paid”. 

         It is admitted case of the parties that the complainant paid regular premiums for 5 years for both the policies, therefore, the complainant is fully entitled to get Guaranteed Maturity benefit (GMA) under both the policies and by denying such benefit, the OPs rendered deficient services.

10]      Taking into consideration the above facts & circumstances of the case and discussion, the deficiency in service on the part of OPs is proved.  Therefore, the present complaint is allowed against the Opposite Parties with direction to pay an amount of Rs.1,30,000/- towards GMA (Guaranteed Maturity Benefit) to the complainant along with interest @10% p.a. from the due date i.e. 10.10.2019, when partial payment has been made to complainant, till its complete payment.  The OPs are also directed to pay a compository amount of Rs.25,000/- to the complainants towards compensation for causing mental agony, harassment and thrusting avoidable litigation.

         This order shall be complied with by the Opposite Parties within a period of 30 days from the date of receipt of certified copy of this order, failing which it shall also be liable to pay additional compensatory cost of Rs.10000/- to the complainant apart from the above relief.

         Certified copy of this order be sent to the parties, free of charge. After compliance, file be consigned to record room.

Announced

03^rd Nov., 2021                                                                                                                                                              sd/-

(RAJAN DEWAN)

PRESIDENT

 

 

Sd/-

 (PRITI MALHOTRA)

MEMBER

 

 

Sd/-

(B.M.SHARMA)

MEMBER