Haryana

Yamunanagar

CC/743/2013

Rajiv Gupta S/o Sudhir Gupta - Complainant(s)

Versus

Kotak Life Insurance - Opp.Party(s)

Rajiv Gupta

27 Feb 2017

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, YAMUNA NAGAR

 

Complaint No. 743 of2013.

Date of institution: 08.10.2013

Date of decision: 27.02.2017

 

Rajiv Gupta aged about 33 years son of Shri Sudhir Gupta, resident of 677 Gandhi Marg, Jagadhri.

…Complainant.

                                    Versus

 

Kotak Life Insurance, Branch Office Court Road, Yamuna Nagar through its Branch Manager.

                                                                                    

                                                                                                         …Respondent.

 

BEFORE:         SH. ASHOK KUMAR GARG…………….. PRESIDENT.

                          SH. S.C.SHARMA………………………….MEMBER.

 

Present:           Complainant in person.

                         Sh. Nalin Gupta, Advocate for respondent

ORDER

 

1                     The present complaint has been filed under section 12 of the Consumer Protection Act. 1986.

2.                    Brief facts of the present complaint, as alleged by the complainant, are that complainant purchased policy bearing No.01141002 under Kotak Retirement Income Plan in the month of July 2008 from the respondent (hereinafter respondent will be referred as OP Insurance Company) and paid Rs.15,000/-per year for three years and total amounting to Rs.45,000/-. On 05.09.2013, the complainant surrendered the policy and it was assured by the OP that within a period of one week, Fund Value of the policy will be given to the complainant, which comes to Rs.41,055.98/-. On 11.09.2013, an amount of Rs.13,683.96/- was credited by the OP Insurance Company in his account and remaining amount of Rs.27,372.02/- was handed over to the complainant in shape of one cheque bearing No.574620 dated 12.09.2013 in favour of LIC of India” instead in the name of complainant. When the complainant asked about the same from the manager of the Insurance Company, he stated that complainant has to take another policy from the LIC Company. The complainant told him that he is need of money and did not want to take another policy at this time because in case he wants another policy he could not surrender the policy going on with the OP Insurance but the OP refused to make the payment to the complainant. Lastly, prayed for directing the OP Insurance Company to pay an amount of Rs. 27,372.02/- to the complainant alongwith interest and further to pay compensation as well as litigation expenses. Hence, this complaint.

3.                 Upon notice, OP appeared and filed its written statement by taking some preliminary objections such as complaint is not maintainable; no cause of action has arisen in favour of the complainant; complainant has completely failed to establish even a prima facie case of any deficiency in service by the OP and therefore, the complaint deserves  no other fate than an outright dismissal and on merit it has been admitted that complainant had opted for Kotak Retirement Income Plan with cover for the period of 20 years for the basic sum assured of Rs.3,37,850/- and paid Rs.15000/- towards the first premium  receipt. The OP had issued an insurance policy No.01141002 and had also provided a copy of the proposal form and policy document to the complainant and the same was admittedly received by the complainant. The OP is a life insurance company operating under licence from IRDA. IRDA is a statutory body constituted under the IRDA Act Regulations 2002 1999 and has been set up under an act of the parliament to promote and regulate the insurance sector and also to safeguard the interest of the policy holders. Benefits payable appearing at Page No.4 of the policy document read as follows:

Benefits payable

A. Benefits payable on retirement of the life insured:

i. Normal Retirement

ii. Surrender.

The policy holder may opt for surrender at any time after three years from the date of commencement of the policy (and provided at least three year full years premium are paid) or on the life insured attaining the age of 45 year whichever is later, but not before the Normal Retirement date specified in the schedule. In such a case, this benefit will be equal to fund value less the surrender charge (if any) under the Main Account and the Top Up Accounts. Up to 1/3^rd of the benefit can be taken as a lump sum with the balance to be used a life annuity from the company or any other registered Life Insurer. The policy holder must indicate in writing, the manner in which he/she wishes to take the benefit on or before one month before the date of such surrender.”

            It has been further mentioned that Op Insurance Company received a request for surrender of the policy on 05.09.2013 and on receipt of the same, the OP Immediately processed the same as per term and condition of the policy and made the payment of 1/3^rd of the surrender value as on date amounting to Rs. 13683.96 which was credited to the complainant’s Bank account. Further, the OP Insurance Company also instructed the complainant that he needs to avail the remaining 2/3^rd benefits by purchasing an annuity amount of Rs. 27372.02 as per terms and conditions of the policy contract. The list of companies offering annuity balance were also provided to the complainant and the complainant choose LIC of India by making the respective box under part 3 of the surrender form. Lastly, prayed for dismissal of complaint as there was no deficiency in service or unfair trade practice on the part of OP Insurance Company.

4.                     In support of the case, complainant tendered into evidence his affidavit as Annexure CW/A and documents such as photocopy of statement of account of policy No. 01141002 as Annexure C-2, Photo copy of passbook as Annexure C-2, Photo copy of cheque as Annexure C-3 and closed his evidence.

5.                     On the other hand, learned counsel for the OP Insurance Company tendered into evidence affidavit of Shri Shakeel Ahmad, Sr. Manager as Annexure RW/A and documents such as photocopy of proposal form as Annexure R1, photo copy of letter dated 12.07.2008 to complainant as Annexure R2, photocopy of letter dated 03.07.2013 to complainant as Annexure R3, photocopy of surrender Form as Annexure R4 and closed the evidence on behalf of OP Insurance Company.

6.                     We have heard both the parties and have gone through the pleadings as well as documents placed on the file very carefully and minutely.

7.                     It is not disputed that complainant purchased Kotak Retirement Income Plan, in the month of July, 2008 with Automatic Cover Maintenance (ACM) for the period of 20 years for the basic sum insured of Rs.3,37,850/- and paid Rs.45,000/- ( Rs. 15,000/- x3)  for first three premium against the policy in question. It is also not disputed that in pursuance of proposal form, the OP Insurance Company had issued an Insurance Policy bearing No. 01141002. Further it has also been admitted by the OP Insurance Company that, complainant surrendered the policy on 05^th September, 2013 and at the time of surrendering, the policy in question was having surrender value of Rs.41,055.98/- and out of this amount, an amount of Rs.13,683.96/- has been paid to the complainant on 11.09.2013.

8.                     The only version of the complainant is that the remaining amount of Rs. 27,372.02/-( 41,055.98-13,683.96) was not refunded to him by the OP Insurance Company, instead of that OP Insurance Company issued a cheque of Rs. 27,372.02/- in the name of LIC of India and asked the complainant to get the Insurance Policy of the LIC. The complainant refused to accept the proposal of OP Insurance Company but the OP Insurance Company did not listen the genuine request of the complainant and refused to pay the amount of Rs. 27,372.02/- to the complainant which constitutes the deficiency in service and unfair trade practice on the part of the OP Insurance Company.

9.                     On the other hand, learned counsel for the OP argued at length that since the complainant at Clause 3 of the Proposal Form had clearly opted for withdrawal of 2/3^rd amount  through purchase of annuity offer by LIC of India, hence, the cheque of Rs. 27,372.02/- was issued in the name of the LIC. Learned counsel for the OPs further argued that the complainant has invested the money for commercial purpose under the Kotak Retirement Income Plan. Further, learned counsel for the OP draw our attention towards the terms and conditions of the insurance policy under the head surrender and argued that as per this condition, up to 1/3^rd of the benefits can be taken as lump sum with the balance to be used to buy a life annuity from the Company ( in accordance with the annuity choice available at that time) or any other registered Life Insurer. the policyholder must indicate in writing, the manner in which he/she wishes to take the benefit on or before one month before the date of such surrender. Hence, he complainant is not entitled to get any relief and lastly prayed for dismissal of complaint.

10.                   After hearing both the parties, we are of the considered view that there is a deficiency in service and unfair trade practice on the part of the OP Insurance Company. It is not disputed that till date, an amount of Rs. 27,372.02/- is lying with the OP Insurance Company i.e. Kotak Life Insurance as neither the complainant opted a fresh Insurance Policy of LIC of India nor he ever filled up any proposal form or completed other formalities to obtained fresh Insurance Policy proposed by the OP from the LIC of India. Meaning thereby that complainant was not ready to obtain fresh Insurance Policy from the LIC of India.  Moreover, the OP Insurance Company has not placed on file any cogent evidence to prove that OP Insurance Company has invested the balance amount with any registered life insurer as mentioned in the head surrender of the policy in question. The version of the complainant seems to be genuine that he protested the action of the OP Insurance Company  for not investing the remaining amount in another Insurance Policy of LIC as he has filed the present complaint within a period of  27 days from the collecting of remaining amount of Rs.13,683,96/-. The version of the OP Insurance Company that complainant himself opted for withdrawal of 2/3^rd amount through annuity offered by the LIC of India has no weight-age as no such option has been opted by the complainant. Moreover, the proposal form has not been duly proved by filing affidavit of any official of the OP Insurance Company.

11.                   In the circumstances noted above, we are of the considered view that an amount of Rs.27,372.02 has been wrongly withheld by the OP Insurance Company which is still lying with it. Hence, the complainant is entitled to get relief.

12.                   Resultantly, we partly allow the complaint of complainant and direct the OP Insurance Company to refund remaining amount of Rs.27,372/-( if already not paid)  to the complainant along with interest @ 7% per annum from the date i.e. 11.09.2013 when the 1/3^rd amount was paid to the complainant. Further, the OP Insurance Company is also directed to pay Rs.2000/- as litigation expenses. Order be complied within a period of 30 days after preparation of copy of this order failing which complainant shall be entitled to invoke the jurisdiction of this Forum as per law. Copies of this order be supplied to the parties concerned free of costs as per rules. File be consigned to the record room after due compliance.

Pronounced in open court:

Dated: 27.02.2017.

                                                                                          (ASHOK KUMAR GARG)

                                                                                           PRESIDENT

                                                                                           DCDRF Yamuna Nagar

 

 

                                                                                          (S.C.SHARMA)

                                                                                           MEMBER