DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, BARNALA, PUNJAB.
Complaint Case No: CC/94/2024
Date of Institution: 10.09.2024
Date of Decision: 12.12.2024
Aastha Mangal aged about 25 years daughter of Shavinder Pal son of Dev Raj resident of #521, Moti Nagar, Ward No. 3, Tapa Mandi, Tehsil Tapa, District Barnala-148108 (Punjab).
…Complainant
Versus
1. LIC Divisional Office, Jeevan Parkash Building, Sector 17-B, Chandigarh, Pin Code-40021, India, through its Managing Director/Authorized;
2. LIC Office Barnala, Near Fountain Chownk, 22 Acre Scheme, Barnala, through its Managing Director/Authorized Signatory.
…Opposite Parties
Complaint Under Section 35 of the Consumer Protection Act, 2019.
Present: Sh. Gagandeep Garg Adv counsel for complainant.
Sh. J.R. Garg Adv counsel for opposite parties.
Quorum.-
1. Sh. Ashish Kumar Grover: President
2. Smt. Urmila Kumari: Member
(ORDER BY ASHISH KUMAR GROVER PRESIDENT):
The complainant has filed the present complaint under Section 35 of the Consumer Protection Act 2019 against LIC Divisional Office, Jeevan Parkash Building, Sector 17-B, Chandigarh, Pin Code-40021, India, through its Managing Director/Authorized & others (in short the opposite parties).
2. The facts leading to the present complaint are that on 28.10.2018 complainant purchased one policy named as LIC'S NEW JEEVAN ANAND run by opposite parties and policy number was 302963047 and its commencement date was 28.10.2018 and maturity date of the said policy is 28.10.2038 and according to that complainant was to pay the premium of Rs. 5,287/- per year upto the year 2038 and assured amount will be of Rs. 1,00,000/- and accidental benefits was assured upto sum Rs. 1,00,000/. It is further alleged that thereafter complainant regularly paid the above said premium to opposite parties from 28.10.2018 to till 28.10.2023, but now due to some unavoidable circumstance, complainant unable to pay the same further and wanted to surrender the policy with hope of return the premium amount already paid interest and other benefits till today and met opposite party No. 2's officials but they informed complainant that opposite parties are unable to pay the full already paid premium amount alongwith interest and other benefit and opposite parties will refund the amount it after huge deduction from the premium amount (exact amount not described by officials). It is further alleged that thereafter complainant approached many times to opposite parties personally and telephonically and complainant also approached opposite parties via email and requested for his grievance, but opposite parties never replied to the email and genuine request of complainant and always remained adamant, which is unfair trade practice on opposite parties part and complainant always requested to pay the complete premium amount i.e Rs. 33,048/- already paid by complainant alongwith interest and other benefits after acceptance of surrender of the policy in month of August 2024. It is further alleged that the complainant sent legal notice dated 19.08.2024 through her counsel to which ops replied and denied each and every aspect mentioned in the legal notice and submitted vague reply. The above said act of the opposite parties amounts to deficiency in service and unfair trade practice on the part of opposite parties. Hence, the present complaint is filed for seeking the following reliefs.-
- The opposite parties may be directed to surrender the above mentioned policy and refund the complete premium paid by the complainant i.e. Rs. 33,048/- alongwith interest @18% per annum from the date of deposit till realization.
- To pay Rs. 50,000/- towards mental agony and harassment.
- Further, to pay Rs. 15,000/- as litigation expenses.
3. Upon notice of this complaint, the opposite parties appeared and filed written version by taking preliminary ojections interalia on the grounds that the complainant has no locus-standi and cause of action to file the present complaint. The present complaint is wholly misconceived, groundless and unsustainable in law. Further, the present complaint is in premature and the same is liable to be dismissed on this ground and no requisite documents regarding the surrender value of amount under Policy No. 302963047 were submitted by the complainant till date. The complainant has not come to this Commission with clean hands and he has concealed the true and material facts from this Commission etc.
4. On merits, it admitted to the extent that Aastha Mangal had purchased Insurance Policy No.302963047 dated 28.10.2018 under Plan 815 with mode of Premium payment as Yearly from the opposite parties. It is alleged that the complainant has not submitted the requisite documents for consideration of surrender value of amount under the policy in question and the complainant has paid payment till dated 10/2023 but refund of all the premiums with interest denied only surrender value is allowed due to policyholder seeking premature surrender of the policy which comes out to be Rs. 20,527/-. It is further alleged that the complainant should prove her case of surrender value of amount under the said policy by leading cogent evidence and submitting requisite/relevant documents but till date complainant has not furnished the requisite documents for consideration of the surrender value of amount by the Competent Authority of opposite parties, as such there is no deficiency in service on the part of opposite parties. All other allegations of the complaint are denied and prayed for the dismissal of complaint.
5. Ld. Counsel for complainant has suffered the statement on 21.11.2024 that I do not want to file any rejoinder of version of opposite parties.
6. To prove the case the complainant tendered into evidence affidavit of complainant as Ex.C-1, copy of policy as Ex.C-2 (4 Pages), copy of email as Ex.C-3 (2 Pages), copy of legal notice as Ex.C-4, copy of postal receipts as Ex.C-5 and C-6, copy of reply to legal notice as Ex.C-7, copy of aadhar card as Ex.C-8 and closed the evidence.
7. The opposite parties tendered into evidence copy of surrender value quotation as Ex.OPs-1 and closed the evidence.
8. We have heard the learned counsel for the parties and have gone through the record on the file.
9. Ld. Counsel for the complainant argued that on 28.10.2018 complainant purchased one policy named as LIC'S NEW JEEVAN ANAND run by opposite parties and policy number was 302963047 and its commencement date was 28.10.2018 and maturity date of the said policy is 28.10.2038 and according to that complainant was to pay the premium of Rs. 5,287/- per year upto the year 2038 and assured amount will be of Rs. 1,00,000/- and accidental benefits was assured upto sum Rs. 1,00,000/. It is further argued that the complainant regularly paid the above said premium to opposite parties from 28.10.2018 to till 28.10.2023, but now due to some unavoidable circumstance complainant unable to pay the same further and wanted to surrender the policy with hope of return the premium amount already paid interest and other benefits till today and met opposite party No. 2's officials but they informed the complainant that opposite parties are unable to pay the full already paid premium amount alongwith interest and other benefit and opposite parties will refund the amount it after huge deduction from the premium amount (exact amount not described by officials). It is further argued that thereafter complainant approached many times to opposite and requested to pay the complete premium amount i.e Rs. 33,048/- already paid by complainant alongwith interest and other benefits after acceptance of surrender of the policy in month of August 2024. It is further argued that the complainant sent legal notice dated 19.08.2024 through his counsel to which opposite parties replied and denied each and every aspect mentioned in the legal notice and submitted vague reply.
10. On the other hand, Ld. Counsel for the opposite parties argued that Aastha Mangal had purchased Insurance Policy No. 302963047 dated 28.10.2018 under Plan 815 with mode of Premium payment as Yearly from the opposite parties. It is further argued that the complainant has not submitted the requisite documents for consideration of surrender value of amount under the policy in question and the complainant has paid payment till dated 10/2023 but refund of all the premiums with interest denied only surrender value is allowed due to policyholder seeking premature surrender of the policy which comes out to be Rs. 20,527/-. It is further argued that till date complainant has not furnished the requisite documents for consideration of the surrender value of amount by the Competent Authority of opposite parties.
11. We have gone through the facts and evidence produced by both the parties. The complainant to prove his case has placed on record the copy of policy Ex.C-2 which shows that on 28.10.2018 complainant purchased one policy bearing number 302963047 named as LIC'S NEW JEEVAN ANAND run by opposite parties and its commencement date was 28.10.2018 and maturity date of the said policy is 28.10.2038 and according to that complainant was to pay the premium of Rs. 5,287/- per year upto the year 2038 and assured amount will be of Rs. 1,00,000/- and accidental benefits was assured upto sum Rs. 1,00,000/-. The complainant further placed on record email i.e. Ex.C-3 which was sent by the complainant to the opposite parties regarding surrender value. Further, Ex.C-4 is the legal notice which was sent to the opposite parties and the Ex.C-5 & Ex.C-6 are the postal receipts. The complainant also placed on record the copy of reply of legal notice dated 29.8.2024 Ex.C-7 which was sent by the opposite parties in which the opposite parties stated that in case the policy holder submit request to surrender the policy, LIC shall pay the GSV or SSV whichever is higher as per terms and conditions of the contract.
12. The case of the complainant is that the complainant regularly paid the above said premium to opposite parties from 28.10.2018 to till 28.10.2023, but now due to some unavoidable circumstance complainant unable to pay the same further and wanted to surrender the policy with hope of return the premium amount already paid alongwith interest and other benefits till today. On the other hand, the specific case of the opposite parties is that the complainant has not submitted the requisite documents for consideration of surrender value of amount under the policy in question and the complainant has paid payment till dated 10/2023 but refund of all the premiums with interest denied only surrender value is allowed due to policyholder seeking premature surrender of the policy which comes out to be Rs. 20,527/-. In support of their case the opposite parties have placed on record copy of surrender value quotation as Ex.O.Ps-1 in which the surrender value payable shows as Rs. 20,527/- after deductions. Ld. Counsel for the opposite parties further argued that during the currency of the policy, the insured has enjoyed the protection of the insurance cover for five years from 2018 to 2023 and if the insured had died during this period, the insurer/opposite parties would have had to pay the full assured sum to the nominee under the policy or the legal heir of the insured and such protection will have a cost which must be borne by the insured. Ld. Counsel for the opposite parties further argued that if the insured/complainant was not satisfied, he had the option to return the policy within 15 days of receipt, within the “Free Look Period”.
13. We are of the view that it is quite well known that when life insurance policies are surrendered, pre-mature, and withdrawals are applied for, the money which is paid on account of surrender value is normally less than the aggregated amount paid towards periodical premium and in the present case, the policy was to remain in force for 20 years and the complainant sought the withdrawal only after paying the premium for five years. The complainant has enjoyed the protection of insurance cover for period of about five years. The Hon’ble National Consumer Disputes Redressal Commission, New Delhi in Revision Petition No. 2870 of 2012 against order dated 12.6.2012 in First Appeal No. 37 of 2011 of State Commission, Himachal Pradesh had taken similar view in the said judgment.
14. So, in view of the above mentioned facts and circumstances, we are of the view that the complainant is only entitled to get the surrender value i.e. Rs. 20,527/- (as per Ex.O.Ps-1), but despite the repeated requests of the complainant, the opposite parties have failed to pay the above said amount to the complainant which amounts to deficiency in service and unfair trade practice on the part of opposite parties.
15. In view of the above discussion, the present complaint is partly allowed and the opposite parties are directed to pay the amount of Rs. 20,527/- alongwith interest @ 7% per annum from the date of filing the present complaint till its actual realization to the complainant. The opposite parties are further directed to pay the consolidated amount of Rs. 5,000/- on account of compensation and litigation expenses. Compliance of this order be made within the period of 45 days from the date of the receipt of the copy of this order. Copy of the order be supplied to the parties free of costs. File be consigned to the records after its due compliance.
ANNOUNCED IN THE OPEN COMMISSION:
12th Day of December, 2024
(Ashish Kumar Grover)
President
(Urmila Kumari)
Member
