Delhi

East Delhi

CC/408/2017

JYOTSNA - Complainant(s)

Versus

L.I.C. - Opp.Party(s)

24 Apr 2019

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM (EAST)

GOVT. OF NCT OF DELHI

CONVENIENT SHOPPING CENTRE, FIRST FLOOR,

SAINI ENCLAVE, DELHI – 110 092

C.C. NO. 408/17

 

Ms. Jyotsna Khanna

W/o Sh. Narinder Khanna

R/o 45/11 East Patel Nagar

New Delhi- 110008

                                                               ….Complainant

Vs.    

LIC of India

18/60, Geeta Colony

Near Bhagat Singh Park

Delhi

                                                         …Opponent

 

Date of Institution: 26.09.2017

Judgement Reserved on: 24.04.2019

Judgement Passed on: 02.05.2019

 

CORUM:

Sh. Sukhdev Singh (President)

Dr. P.N. Tiwari (Member)

Ms. Harpreet Kaur Charya (Member)

 

Order By: Harpreet Kaur Charya (Member)

 

JUDGEMENT

          The present complaint has been filed by Ms. Jyotsna Khanna, complainant against LIC of India, OP under Section 12 of the Consumer Protection Act, 1986.

            Briefly stated the facts of the present complaint are that the complainant purchased Jeevan Akshay Plan 6 (Monthly income), herein after to be referred as ”Policy in dispute” in the month of March, 2017 by paying onetime payment of Rs. 5,00,000/-. It has been stated that she had surrendered her existing policy bearing no. 125543091, which was to mature in 2021, the surrender value of which was 2,78,379/- and paid the balance amount of Rs. 2,23,257/- by cheque drawn on HDFC bank from her personal savings to purchase the policy in dispute as she required monthly income and neither OP issued any cover note nor delivered the policy which they were supposed to deliver within 15 days from the date of receiving of premium amount, thereby depriving the complainant to exercise her option of free look period. Despite several visits and reminders through e-mail of various dates i.e. 19^th May, 2017; 23^rd May, 2017; 25^th May, 2017;             03^rd  June, 2017 and 13 June, 2017, the complainant did not get any positive response. It has been stated that a complaint dated 12.06.2017, 13.06.2017, 14.06.2017 and 16.06.2017 was made with IRDA and the complaint was registered with number 06-17-006594. Chief Regional Manager vide letter dated 23.06.2017 informed the complainant that the original policy bond had been collected and were trying for cooling off action, which was disallowed, as annuity payment had already been escalated and the matter was taken up with Divisional Office. The complainant has further stated that on 22.07.2017, the complainant received a letter from OP stating that the policy in dispute had been cancelled under the cooling off period and the payment had been released through NEFT on 20.07.2017.

            The complainant has stated that the act of OP of not supplying the original policy, depriving the complainant of a right to free look period and cancellation and refund of the premium within the cooling off period amounted to deficiency in services and unfair trade practice.

            It has been prayed that OP may be directed to pay Rs. 80,000/- towards mental harassment; interest @18% per annum on Rs. 5,00,000/-; litigation expenses of Rs. 20,000/- and any interest pendent lite and future till realization @18% per annum.

            Unit account statement for the period from 01.02.2016 to 31.07.2016 as Annexure 1, e-mails exchanged between the complainant and OP from 19.05.2017 to 16.06.2017 as Annexure 2 and complaint record have been annexed as Annexure 3, with the complaint.

            Written Statement was filed on behalf of OP, where they have stated that the complainant had not impleaded, Shri Jagbir Singh, the agent as party, who was authorized by policy holder in form no. 440[1A] to collect the policy bond on behalf of policy holder and the same was handed over to the agent within 5 days i.e. 25.03.2017 from First Premium Receipt date 20.03.2017. It was submitted that the OP had record of e-mails which were either responded or sent to higher authorities for rectification. It was further submitted that the cooling off was done and payment was made by NEFT without any deductions on 20.07.2017 to the policy holder. Rest of the contents of the complaint have been denied, seeking dismissal of the complaint.

            Rejoinder to the WS of OP was filed by the complainant. It was submitted that the OP had not filed the copy of the proposal form that was submitted to the agent and as there is an agreement between the agent and LIC of India governing the duties and obligation of the agent. Rest of the content of the WS have been denied and those of the complaint have been reaffirmed.

            Evidence by way of affidavit was filed by the complainant were she has deposed on oath the contents of her complaint and has relied on the annexures annexed with it.

            Ms. Dipa Sinha, Manager Legal, Delhi, D.O.-1 was examined on behalf of OP who has also reiterated the contents of their reply on oath.

            We have heard on behalf of Ld. Counsel for complainant and Ld. Counsel for OP and have perused the material placed on record. The complainant is aggrieved by non-receipt of the cover note as well as policy bond within stipulated time under IRDA guidelines. It is also the case that the complainant was deprived of opportunity of exercising her option in free look period. As per the reply filed by OP, the first premium was received on 20.03.2017 and the policy bond was handed over to the agent within 5 days from the said date. The complainant has placed on record an email dated 19.05.2017 where she has requested the OP for cancellation of the policy. If we look at Annexure 3 filed by the complainant which states that the policy in dispute had been cancelled under cooling off period and the payment had been released through NEFT on 20.07.2017. Thus, the OP has transferred the amount after a period of almost three months which amounts to deficiency in services further OP has not placed any document in support of their defence where they have stated that the policy document had been handed over to the agent.

Therefore, in the facts and circumstances of the present complaint, we direct OP to pay interest @9% per annum on Rs. 5,00,000/- for a period from 19.05.2017 to 19.07.2017. Further we award compensation of                Rs. 7,500/- on account of mental agony and harassment, inclusive of litigation expenses.

This order be complied within 30 days from the date of receipt of the order else 7,500/- shall carry interest @9% per annum from the date of order till realization.

Copy of the order be supplied to the parties as per rules.

            File be consigned to Record Room.

 

     

 (DR. P.N. TIWARI)                                                                  (HARPREET KAUR CHARYA)

          Member                                                                               Member    

                                       (SUKHDEV SINGH)

                                            President