PRESENT:      Complainant in person.

Sh.Arun Dogra, Adv. for OP-2.

OP-1 Exparte.

                              ---

PER LAKSHMAN SHARMA, PRESIDENT

          Smt.Chander Kanta Dhawan has filed this complaint under section 12 of the Consumer Protection Act, 1986 praying therein that OPs be directed  to refund a sum of Rs.7919/- along with interest.

2.        The admitted facts of the case are that the complainant obtained pension plus unit linked policy for a sum of Rs.1 lac. She filled the proposal form. On the basis of the said proposal form, the Pension Plus Unit Linked Policy No.APG 2161855 dated 21.09.2008 was issued to her. The said policy was sent to her on 14.09.2008 along with the terms and conditions.  The complainant was given an option to reconsider the policy. She was given right to cancel the policy within the free look period of 15 days in case she was not in agreement with the terms and conditions of the policy. The complainant opted to cancel the insurance policy. So a sum of Rs.92081/- was refunded to her on 01.10.2008.

          The case of the complainant is that at time of filling up the proposal form, she was told that in case, she opted to cancel the policy within 15 days of its issuance, only a sum of Rs.200/- will be deducted and the remaining amount be paid to her.      According to the complainant, the deduction of Rs.7919/- instead of Rs.200/-, amounts to deficiency in service. In these circumstances, the present complaint was filed seeking the reliefs mentioned above.

3.        In the reply filed by OP-2, it has been admitted that the complainant has right to reconsider the terms and conditions of the insurance policy and has right to opt for cancellation of the policy in case she was in disagreement with the terms and conditions of the insurance policy. It was also made clear to the complainant that in case she opted to cancel the policy, the premium will be refunded to her after adjusting for adverse movement in unit prices less charges incurred on account of stamp duty and medical expenses, if any.  The case of OPs is that a sum of Rs.92081/- was refunded to the complainant. The break up of the said amount is as under:-

“Rs.92,081/- = Rs.8,224 (Fund Value) + Rs.10,000/- (Unallocated Premium) + Rs.57/- (Adjusted charges)- Rs.200/- (Stamp Duty).”

          According to OP, the amount of Rs.92,081/- has been rightly refunded as per IRDA rules and regulations and terms and conditions of the insurance policy. In these circumstances, there is no deficiency in service on their part and the complaint deserves dismissal.

4.        We have heard the complainant in person and learned counsel for the OP No.2 and have gone through the entire record including documents, Annexures, affidavits etc. 

5.        In the letter under the heading “Right to Reconsider”  (Annexure ‘A’), it has been mentioned as under:-

“Dear Mrs.

Your application for life insurance with Aviva Life Insurance has been accepted

You have 15 days from the date of receipt in which to reconsider your application.

Do you understand what your policy will do for you?

Before you signed the proposal you would have received a key features document and in case you chose to use our complimentary Financial Health Check Service, you would have received personalized details of how the plan will work for you. If there is anything, which is still unclear, please contact our Customer Help Line on 18000-180-2266/0124-2709046 or your financial planning adviser.

If you do not agree with any of the terms and conditions of the policy what should you do?

Aviva Life Insurance will repay you the Fund Value on the date of cancellation plus the un-allocated premium(if any) plus any charge deducted by cancellation of units, after deducting a proportionate risk charges till the date of cancellation and expenses incurred on your medical examination and stamp duty. In case the allocation rate under this policy is more than 100% then Aviva will also deduct the amount of extra allocation.

If you wish to proceed with the policy, what should you do?

Ignore this notice.”

6.        From the letter mentioned above, it is apparent that the  amount of Rs.92,081/- has been refunded to the complainant after adjusting for adverse movement in unit prices less charges incurred on account of stamp duty and medical expenses, if any.   Face value of Rs.90,000/- on the date of its refund was Rs.82,224/-. In addition to this, the complainant was given Rs.10000/- on account of unallocated premium and  Rs.57/- on account of adjusted charges whereas a sum of Rs.200/- has been deducted being the price of the stamp duty. Thus a total a sum of Rs.92,081/- was sent to the complainant.

7.        To our mind, the amount of Rs.7919/- has been rightly deducted as per the terms and conditions of the insurance policy and as per the rules and regulations of IRDA.

8.        Thus, the complainant has failed to make out a case of deficiency in service on the part of OPs.  Hence, this complaint is dismissed with no order as to costs. The parties are left to bear their own costs.

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

Announced                                        

22.01.2010