Haryana

Karnal

406/2012

Ramesh Chander S/o Chhater Singh - Complainant(s)

Versus

Kotak Mahindra Life Insurance Company - Opp.Party(s)

Sh.Sudhakar Mittal

21 Oct 2015

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM KARNAL.  

                                                          Complaint No.406 of 2012                                                                                               Date of instt.: 27.8.2012

                                                          Date of decision:24 .12.2015

 

Ramesh Chander son of late Sh.Chhater Singh r/o V &PO Unispur, P.O.Bairsal tehsil  Nilokheri district Karnal.

                                                                ……..Complainant.

                   Vs.

Kotak Mahindra Life Insurance Co. Ltd. through its Manager, SCO , Sector- 12, U.E.Karnal.

                                                                  …..Opposite Party.

 

                     Complaint u/s 12 of the Consumer

                     Protection Act.

 

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

                   Sh.Anil Sharma…….Member.

 

Present:-        Sh.Sudhakar Mittal  Advocate for the complainant.

                   Sh.Vineet Rathore  Advocate for Opposite party

                  

ORDER:

 

                        This complaint has been filed by the complainant u/s 12 of the Consumer Protection Act 1986, on the averments that his father Chhater Singh  had obtained insurance policy No. 675561 from Opposite party for insured sum of Rs.1.00 lakh and paid the installments regularly. His father expired on 6.11.201. On that date no premium amount against the policy was due towards him. After the death of his father, he being nominee, filed  claim for insured sum of Rs.one lakh alongwith bonus amount, but the Opposite  Party  released only an amount of Rs.94696/- and wrongly deducted the premium amount of Rs.5304/- .He represented  the Opposite Party for payment of illegally deducted amount of Rs.5304/- and bonus under the policy, but the Opposite  party paid no heed to his requests which amounted to deficiency in service and unfair trade practice on the part of the Opposite Party.

 

2.                 Notice of the complaint was given to the Opposite Party, who put into appearance and filed written statement controverting the claim of the complainant. It has been admitted that father of the complainant had obtained insurance policy from the Opposite  party and had paid premiums from 19.6.2007 to 19.6.2011. It has been pleaded that life assured had paid half year’s premium on 19.6.2011 whereas entire annual premium was payable on that date. The life assured expired on 6.11.2011, therefore, in view of clause 2 of the insurance policy, regarding payment of premiums, the amount of Rs.5304/- was deducted as the balance

amount of premium due and the remaining insured amount was paid to the complainant. Bonus was payable under the policy, only when the value in accumulation  account had exceeded guaranteed benefit i.e. Rs.one lakh, but the value of the accumulation account was Rs.25767.22 on the date of death of the life assured, therefore, no bonus was payable. The other allegations made in the complaint have not been admitted.

3.                 In evidence of the complainant, his affidavit Ex.CW1/A and documents Ex.C1  and Ex.C2 have been tendered.

4.                 On the other hand, in evidence of the Opposite  Party,  affidavit of Preeti Sawant, Chief Manager (Legal) Ex.OW1/A and documents Ex.O1 and Ex.O2 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.                 It is admitted that the life assured had obtained insurance policy from Opposite  party for a sum of Rs.one lakh and had paid premiums from 19.6.2007 to 19.6.2011  and he expired on 6.11.2011.The amount of Rs.94696.50 was paid to the complainant after deducting  an amount of Rs.5304/- as the part of the annual premium  due at the time of the death of the life assured. The complainant claimed that the amount of Rs.5304/- was wrongly deducted and the bonus accrued on the policy was not paid by the Opposite party , though he was entitled to the same. On the other hand, the Opposite party has asserted that the premium of entire annual amount of Rs.10608/- was due on 19.6.2011, but the life assured had opted for half yearly premium payment frequency and had paid an amount of Rs.5304/- only, therefore, the balance amount of due premium of Rs.5304/- was deducted. It has further been claimed that  bonus was not payable as the value in accumulation account was less than Rs. one lakh on the date of death of the life assured.

 

7.                 The copy of the insurance policy has been produced by the Opposite party  as Ex.O1. The clause 2 of the terms and conditions of the policy is regarding payment  of premiums. According to the said clause an annual premium is due in advance on the anniversary of the date of the commencement of the policy. However,  with the consent of the company, the premium can be paid by half yearly or quarterly installments. The said clause further provides that if death occurs when the premiums are not paid upto date and death claim is admitted, the claim will be settled after deducting the balance year’s premium for cases where the premium is not paid annually in advance.  As per the policy, premiums were payable from 19.6.2007 to 19.12.2018 and half yearly premium including extra premium was fixed Rs.5304/- .Life assured had opted for half yearly mode of premium payment  as is evident from the copy of the insurance policy.  As per the case of the Opposite Party, life assured had deposited half yearly installment of Rs.5304/- on 19.6.2011 and the balance amount of year’s premium of Rs.5304/- was due at the time of his death. The complainant has not rebutted this allegation and evidence of the Opposite Party and  has led no evidence to prove that total year’s premium was deposited by the life assured and no amount of premium was due towards him at the time of his death. Therefore, in view of these facts and circumstances, deduction of amount of balance year’s premium of Rs.5304/- was justified as per terms and conditions of the insurance policy.

8.                 So far as payment of bonus on the policy is concerned, as per terms of the policy, bonus addition is made in accumulation account in excess of the guaranteed benefit. Guaranteed benefit is equal to the basic sum assured which was  Rs.one lakh in the present case. Admittedly, the last premium was to be paid on 19.6.2018 but the life assured had died on 6.11.2011.  Therefore, the value in the accumulation account was less than Rs.one lakh on the date of death of the life assured and as per condition of the policy, insurance company was not liable to pay any bonus to the complainant.

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

 

Announced
dated:24.12.2015                                                                      

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

(Anil Sharma ).

  Member.
Present:-        Sh.Sudhakar Mittal  Advocate for the complainant.

                   Sh.Vineet Rathore  Advocate for Opposite party

                  

                   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:24.12.2015                                                                       

                                                                    (K.C.Sharma)

                                                                   President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

(Anil Sharma ) 

   Member.

.