Before the District Consumer Disputes Redressal Commission, Rohtak.
Complaint No. : 568
Instituted on : 29.09.2022
Decided on : 29.07.2024
Rajender son of Manphool(aged-38 years) R/o Amrit Colony Rohtak Near Shiv Mandir-124001 Mobile No. 08570831363.
………..Complainant.
Vs.
1. Kotak Mahindra Life Insurance Company Limited Subhash Road 1st Floor, No. 5 Scheme NO. 19 Opposite All India Radio Rohtak Haryana.
2. Kotak Mahindra Life Insurance Company Limited Registered Officer 8th Floor, Plot #C-12, G Block, BKC Bandra (E) Mumbai-400051.
……….Opposite parties.
COMPLAINT U/S 35 OF CONSUMER PROTECTION ACT,2019.
BEFORE: SH.NAGENDER SINGH KADIAN, PRESIDENT.
DR. TRIPTI PANNU, MEMBER.
DR.VIJENDER SINGH, MEMBER
Present: Sh. Mannu Malik, Adv. for the complainant.
Sh. Gulshan Chawla, Adv. for the opposite parties.
ORDER
NAGENDER SINGH KADIAN PRESIDENT:
Brief facts of the case as per the complainant are that he had purchased an insurance policy bearing No.09437013 from the opposite party no. 1 for a sum of Rs.299000/- and paid the premium of Rs.37666/- to the opposite party No.1. At the time of selling the said policy the opposite parties assured the complainant that after depositing one installment, the insurance company will pay the entire amount to the tune of Rs.299000/- to the complainant at the time of maturity of policy, but the complainant was astonished to see the policy schedule in which it was clearly mentioned that the term of the policy was 20 years and is money back policy. After receiving the said policy, the complainant approached the office of the opposite parties for cancellation of policy or to refund the deposited amount , but the opposite parties did not cancel the policy and lastly refused to refund the above said policy amount. The installment period of the said policy is twice a year, and the complainant paid the three installments totaling to Rs.56499/- with the opposite parties.The opposite parties concealed the terms and policy schedules from the complainant deliberately at the time of selling the policy to the complainant. Therefore, there is deficiency in service on the part of the opposite parties. Hence, this complaint and it is prayed that the opposite parties may kindly be directed to refund the total amount of Rs.56499/-with interest @24% from the date of deposit and to pay the compensation of Rs.100000/- for mental and physical harassment and Rs.50000/- as litigation expenses to the complainant.
2. After registration of complaint, notices were issued to the opposite parties. Opposite parties appeared and filed their written statement submitting therein that complainant had submitted the proposal form along with customer declaration form via online mode for issuance of said policy. It is further submitted that the complainant had voluntarily opted for the policy terms of 20 years and premium payment terms of 10 years. The complainant paid initial subscription payment and half yearly premium payment for the year 2021 and next half yearly premium payment was due on 24.06.2021. The complainant failed to make premium payment due on 24.06.2021 and hence, subject policy was lapsed as per terms and conditions of the subject policy. After receiving the policy, the complainant never approached the opposite parties within free look period for cancellation of policy or to refund the policy amount. Therefore, there is no deficiency in service on the part of the opposite parties and dismissal of complaint with heavy costs is prayed for.
3. Ld. counsel for complainant in his evidence has tendered affidavit Ex. CW1/A and documents Ex.C1 to Ex.C6 and closed the evidence on 24.1.2023. On the other hand, ld. Counsel for the opposite parties has tendered affidavit Ex.RW1/A and documents Ex.R1 to Ex.R5 and the evidence of the opposite parties has been closed by court order on dated 31.10.2023.
4. We have heard learned counsel for the parties and have gone through material aspects of the case very carefully.
5. The main contention of the complainant is that opposite parties have wrongly and illegally issued the insurance policy to the complainant. At the time of issuance of policy, the opposite parties assured the complainant that after depositing the one installment of the policy, the insurance company will pay the whole amount of Rs.299000/- to the complainant but after receiving the policy he came to know that the term of the policy was 20 years and the instalment period was twice a years. Complainant requested the opposite parties to cancel the policy but the same was refused by the opposite parties. On the other hand, contention of opposite parties is that complainant did not apply for cancellation of policy within free look period. Hence he is not entitled for any amount. We have perused the documents placed on record by both the parties. In the present case date of commencement of policy is 24.12.2019. As per letter Ex.C1 the free look period is mentioned of 15 days from the date of receipt of the policy. As per application Ex.C2 dated 03.01.2020 which is duly stamped and signed by the opposite party on the same day i.e. 03.01.2020, the complainant has submitted that he had received the policy on 30.12.2019 and he requested to cancel the policy as he was unable to pay the policy amount. Meaning thereby, complainant had applied for cancellation of policy within free look period i.e. 15 days from the date of receiving the policy. Even the cancellation request has been made within 10 days from the proposal of policy. Hence the plea taken by the opposite parties that complainant did not approach the opposite party within free look period is illegal and amounts to deficiency in service. As such opposite parties are liable to refund the amount of premium after deducting the 15% amount from the total premium paid by the complainant on account of proportionate risk premium, medical charges and stamp duty as mentioned in the terms and conditions of the policy under ‘Free Look Provision’. As per receipts Ex.C5 & Ex.C6 complainant had paid an amount of Rs.37700/- on 24.12.2019 and 18797/- on 25.01.2021 i.e. total Rs.56797/-. As such he is entitled for the amount of Rs.48277/-(Rs.56797/- less 15%).
6. In view of the facts and circumstances of the case we hereby allow the complaint and direct the opposite parties to refund the amount of Rs.48277/-(Rupees forty eight thousand two hundred and seventy seven only) alongwith interest @ 9% p.a. from the date of filing the present complaint i.e.29.09.2022 till its realization and also to pay a sum of Rs.5000/-(Rupees five thousand only) on account of deficiency in service and Rs.5000/-(Rupees five thousand only) as litigation expenses to the to the complainant within one month from the date of decision.
7. Copy of this order be supplied to both the parties free of costs. File be consigned to the record room after due compliance.
Announced in open court:
29.07.2024.
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Nagender Singh Kadian, President
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Tripti Pannu, Member.
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Vijender Singh, Member
