Haryana

Karnal

127/14

Sh.Ranjit Singh - Complainant(s)

Versus

ING Life Insurance Company - Opp.Party(s)

Sh. Mahinder Singh

21 Jan 2016

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM KARNAL.  

                                                          Complaint No.127 of 2014

                                                          Date of instt.: 6.5.2014

                                                          Date of decision:21 .01.2016.

 

Ranjit Singh son of Shri Chotte Lal resident of house no.512, Vakilpura Sadar Bazar, Karnal.

 

.                                                                               ……..Complainant.

                                      Vs.

 

1.       Managing Director, ING Life Insurance Vysya House, 5^th Floor NO.22, G.Road, Banglore 560001.

2.       The Branch Manager, ING Life Insurance, Sector 12, Karnal.

.                                                                           ………  Opposite Parties.

                     Complaint u/s 12 of the Consumer

                     Protection Act.

 

Before          Sh.K.C.Sharma……….President.                

                   Sh.Anil Sharma…….Member.

 

Present:-       Sh.Bhagwan Dass  Advocate for the complainant.

                   Sh.Rohit Gupta Advocate for the Opposite Parties

ORDER:

 

                    This complaint has been filed by the complainant u/s 12 of the Consumer Protection Act 1986, on the averments that he   obtained insurance policy No.02519920  from the Opposite Parties,       which commenced  on 28.2.2012.The sum insured under the policy was Rs.1,06,575/-  and the  premium was fixed Rs.6062/- and the same was to become due on 20^th of February and 28^th of August. The policy was for a period of 16 years. He paid Rs.6249.32 on 26.9.2012, vide receipt no.02402442   and second premium of Rs.6249.32 on 30.4.2013. Thereafter, he could not deposit the premium due to financial hardship. Therefore, he requested the Opposite Parties to refund his amount of premiums already paid by him, but the Opposite Parties did not pay any heed to his requests. Ultimately, he got served Opposite Parties with legal notice dated 7.2.2014 for refund of amount of Rs.12498.64 to which the Opposite Parties replied on 20.12.2014 and flatly refused to refund the amount. Such act and conduct on the part of the Opposite Parties  amounted to deficiency in services, due to which he suffered mental agony and pain apart from financial loss.

2.                 Notice of the complaint was given to the Opposite Parties, who appeared and filed written statement disputing the claim of the complainant. It has been submitted that the complainant  voluntarily applied for life insurance policy and in that regard submitted the proposal form dated 31.8.2012.Features of the plan  were  duly explained  in detail and after understanding the same, he opted for the said plan.  The premium opted by him was Rs.6256/-  to be paid  semi yearly for the term of 16 years and the sum assured under the policy was Rs.1,06,575/-. As per regulation 6(2) of  Protection  of policyholder’s  interest Regulation 2002,  he could opt to cancel the  policy within 15 days  after receiving the policy bond (free look period), but he never raised any objection within 15 days on receipt of the policy documents. As per clause 5.3.1.(surrender provisions) of the policy terms and conditions, the policy  holder could surrender  for cash value after three full year’s premiums. However, the complainant approached in the month of February, 2014 and requested for refund of the entire premium amount paid by him.  He was duly informed that he could  surrender the policy  if he had paid three full years premiums subject to deduction as per clause 5.3.1 . Being agitated, he sent legal notice dated 7.2.2014 and the same was duly replied, vide letter dated 20.2.2014.The Opposite Parties had not acted contrary to any term or condition of the insurance policy and as such there was no deficiency in services on their part. The present complaint is false, malicious and abuse of the process of law.

3.                 In evidence of the complainant, his affidavit Ex.C1 and documents Ex.C2 to Ex.C8 have been tendered.

4.                 On the other hand in evidence of the Opposite Parties, affidavit of Chandan Shop, Manager Legal Ex.RW1/A and documents Ex.R1 to Ex.R8 have been tendered.

5.                 We have appraised the evidence on record,  the material circumstances of the case and the arguments advanced by the learned Counsel for the parties.

6.                 There is no dispute  that the complainant obtained the insurance policy from the Opposite Parties, which was to commence on 28.8.2012. Half yearly premium was fixed as Rs.6062/-  and policy was for sixteen years. The complainant paid two premiums only and thereafter he could not pay the premium and requested for refund of the amount of premiums paid by him.  The Opposite Parties refused to return the amount of premiums deposited by him on the ground that insured could surrender the policy  for cash surrender value after payment of three full year’s premium as per clause 5.3.1.(Surrender provisions) of the policy. Copy of the insurance policy is Ex.R1. Clause 5.3.1 of the same is  regarding surrender  provisions. For proper appreciation of the matter, the clause 5.3.1 is reproduced as under:

          “If at least three full years’ Premiums have been paid, this policy may be surrendered for a cash Surrender Value, which shall be determined by the Company from time to time. However, such Cash Surrender Value shall not be lesser than the Guaranteed Cash Surrender Value, which is calculated as 20% of the total Premiums paid excluding extra premiums if any, less 20% of the total Survival Benefits paid.”

7.                     A bare reading of the said clause makes it quite clear that policy may be surrendered by an insured for cash surrender value after payment of full three years premiums. The policy may also be cancelled by an insured within a period of fifteen days of the receipt of the policy documents i.e. during the free look period. Admittedly, the complainant did not cancel the policy within free look period. He even did not deposit the three years full installments of premiums rather sought refund of the amount deposited by him just after payment of two premiums. However, as per clause 5.3.1 , he could not surrender the policy for cash surrender value just after depositing two premiums. 

 

 8.                          From the aforediscussed facts and circumstances,  it is  emphatically  clear that Opposite Parties refused to pay the cash surrender value to the complainant as per terms and conditions of the insurance policy and there was no deficiency in services on their part. The complainant could not get refund of the amount of two premiums deposited by him.   

                    

  9.                    As a sequel to the foregoing discussion, we do not find any merit in the present complaint and as such the same is hereby dismissed. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

 

Announced
dated:21.01.2016

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

            (Anil Sharma ) 

               Member.

 

 

Present:-       Sh.Bhagwan Dass  Advocate for the complainant.

                   Sh.Rohit Gupta Advocate for the Opposite Parties

 

                   Arguments heard. Vide our separate order of the even date, the present complaint has been dismissed. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

 

Announced
dated:21.01.2016

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

            (Anil Sharma ) 

               Member.