Service Manager,

    Customers Care Reliance Life Insurance Company Ltd.,

    Midas Wing, Sahara Plaza,

    Andheri – Kurla Road,

    Andheri (E), Mumbai – 400059.

                                                                  … Opposite parties

              This complaint coming up before us for final hearing on                      11-04-11 in the presence of complainant and of Sri G.Sai Krishna Srinivas, advocate for opposite parties, upon perusing the material on record, hearing both sides and having stood over till this day for consideration, this Forum made the following: 

O R D E R

Per Sri M.V.L.Radha Krishna Murthy, Member:

                This complaint is filed under section 12 of the Consumer Protection Act, 1986 by the complainant praying to direct opposite parties 1 and 2 to pay Rs.7595/- short amount under policy No.10101349, Rs.7781/- short amount under policy No.10101341 with interest at 12% p.a. on the above amounts from 24-12-04 till payment, Rs.1100/- towards expenses spend for postal service and Rs.1603/- towards medical charges. 

The averments of complaint in brief are as follows:

                The complainant obtained two policies in the name of his grand sons viz. Roshan Jameer and Shaik Suleman by paying Rs.5000/- on 29-12-04.  The premium for the policies is Rs.5000/- for six months.  The opposite parties issued policies commencing from     24-02-05.  Subsequently on 18-08-05, he returned the two original policies to 1^st opposite party and requested to pay the amounts thereof.  But his request was not considered and he was asked to continue the policies for one more year to surrender them.   Hence, he paid two more premiums under the said policies. In all he has paid Rs.15000/- under each policy and addressed letters to return his amounts under both the policies on 18-09-06, 25-11-06, 22-02-07, 25-06-10, 26-10-07, 09-01-08 and on 14-04-08.  But no reply is received from opposite parties 1 and 2.   Finally on 04-08-08, the 1^st opposite party took original policies from him and issued a cheque dt.08-08-08 for Rs.7408/-for policy No.10101349 and another cheque dt.09-08-08 for Rs.7781/- for policy No.10101341 with a covering letter dt.11-08-08.  Thus the opposite parties have kept his policy amounts till 08-08-08 without paying them immediately. Therefore, he addressed opposite parties 1 and 2 to pay Rs.7405/- under policy No.10101349 Rs.7781/- under policy No.10101341 as the opposite parties have kept the amounts with them for the period of 3 years 7 months and 10 days.  The complainant continued to address letters to pay the remaining amounts with interest at 9% and thus he spent Rs.900/- for correspondence and due to mental agony he fell ill and spent Rs.1603/- towards medical expenses during March and April, 2009.  Hence, the complaint.   

The 1^st opposite party filed written statement and the same was adopted by 2^nd opposite party, which is brief is as follows:

                The contents of complaint are all false, frivolous and vexatious in nature, as such the complaint is neither tenable in law nor on facts.  The complainant had applied for three reliance life market return plans.  The premium payable in all the policies was Rs.5000/- half yearly payable for a period of 5 years and the sum assured amount is Rs.1,10,000/- under each policy.  As per clause 10 of Policy Document “insured can avail option of surrendering the policy with refunds of premium paid based on the term of policy”.  Following is the  extract of terms and conditions of policy availed by the complainant:

“Surrenders

For your regular premium policy, your policy attains surrender value after you have paid one year’s premium.  The surrender value will be as follows:

                It is pertinent to mention that in the present case since the complainant has paid the premium towards his three life insurance policies as follows:

10101341 – Three half yearly premium amounting to Rs.5000/- each.  Total premium paid Rs.15000/-.  So, the premium was less than for 2 years and hence the respondents have refunded 50%.  The same was done as per the terms and conditions of policy documents.

10106149 – Three half yearly premium amounting to Rs.5000/- each.  Total premium paid Rs.15000/-.  So the premium paid was less than for 2 years and hence the respondents have rightly refunded 50%.  The same was done as per the terms and conditions of the policy documents.

10106193 – Four half yearly premium amounting to Rs.5000/- each.  Total premium paid Rs.20,000/-.  So, the premium paid was for 2 years and hence the respondents have rightly refunded 80%.  The same was done as per the terms and conditions of the policy documents.”

                Thus the opposite parties have refunded the surrender value as per the terms and conditions of policy.  Therefore, there is no deficiency of service on the part of opposite parties.  Hence, the complaint may be dismissed with costs.

                The complainant filed affidavit in support of his complaint reiterating the same.  The opposite parties have filed memo to treat the written statement as affidavit.

                On behalf of complainant Ex.A1 to A42 are marked. On behalf of opposite parties Ex.B1 was marked.

Now the points for consideration are

1. Whether there is any deficiency of service on the part of opposite parties?
2. To what relief the complainant is entitled to?

POINT No.1

                The sum and substance of case of complainant is that he has obtained two policies from opposite parties in the name of his minor grand sons and paid Rs.15000/- in all under each policy and when he requested to return the amount, the opposite parties have kept his amount till 11-08-08 without the refunding the same in time and that therefore, the opposite parties are liable to pay interest and the amounts claimed by the complainant.

                The case of opposite parties is that they have refunded the amounts under the policy in question to the complainant as per the terms and conditions of policy and that therefore, there is no deficiency of service on the part of opposite parties.

                The complainant obtained three policies from opposite parties i.e., (1) 10101341, (2) 10101349 and (3) 10106193 in the name of his minor grand sons.  The premium of amount payable under each policy is Rs.5000/-.  Under policy 10106193 he has paid in all Rs.20,000/- and that opposite parties have issued cheque for Rs.15848/- under it and this was not questioned by the complainant or claimed any amount by the complainant in this complaint. 

                The amounts and interest claimed in this complaint by the complainant is only with regard to policy No.10101341 and 10106149.  Under both these policies, the complainant has paid in all Rs.15,000/- under each policy and requested the opposite parties to refund the amount. The opposite parties have refunded an amount of Rs.7781/- under policy No.10101341 under a cheque dt.09-08-08 (Ex.A23) and also refunded an amount of Rs.7495/- under policy No.10101349 through a cheque dt.08-08-08 (Ex.A24) under a covering letter dt.11-08-08 (Ex.A25).  The said refund of amounts were made during August, 2008. The complainant after making payment of Rs.15000/- under each policy has addressed a letter vide Ex.A14 on 18-09-06 to refund the amounts under the above said two policies in question.  Subsequently, he continued to address letters requesting refund of amounts under Ex.A15 to A20 till 14-04-08.  Subsequent to letter dt.14-04-08 vide Ex.A20, the opposite parties have taken surrender letters from the complainant under Ex.21 and A22 on 04-08-08 and issued cheques under A23 and A24 along with a covering letter        dt.11-08-08 under Ex.A25.  Thus it clearly shows that the opposite parties have not given any reply to the complainant from 18-09-06 till 04-08-08 and have not chosen to refund the amount till 11-08-08 and kept the amount payable under the above said two policies with them till 11-08-08.  Therefore, it clearly shows that there is deficiency of service on the part of opposite parties, even though they have refunded the amounts due under above said two policies as per terms and conditions of clause 10 of policy as alleged by them.

                 As seen from Ex.B1 under column 10 surrenders, the surrender value of the premiums paid for one year is 50% and the surrender value for the premiums paid for two years is 80%.  Since the complainant has paid the premiums for 1½ years, the opposite parties have refunded the surrender value of policy at 50% at per the condition 10 of terms and conditions of policy.  Even though the opposite parties have refunded the surrender value of the policies as per terms and conditions of policy they have refunded the same after a long lapse of nearly two years. Therefore, as already observed there is deficiency of service on the part of opposite parties in refunding surrender value of two policies in question.  Therefore, the opposite parties are liable to pay interest on the said amounts till the payment made by them.  Due to delayed payment of surrender value of policies, the complainant suffered mental agony and that therefore, the opposite parties are also liable for compensation of mental agony suffered by complainant.  Accordingly this issue is answered.

POINT No.2

                The complainant claimed short amount of Rs.7781/- and Rs.7595/- together with interest at 12% p.a. and also Rs.1100/- toward postal charges and Rs.1603/- for his ailment due to the mental agony suffered by him.  The amounts claimed by the complainant are imaginary and too high and the medical expenses claimed by the complainant cannot be fastened for his mental agony.  Therefore, if interest is awarded at 9% p.a. on the surrender value from 01-01-07 till 11-08-08 and awarding Rs.2000/- towards the compensation for the mental agony suffered by the complainant and Rs.1000/- towards costs would meet the ends of justice    

                In the result, the complaint is allowed in part in terms as indicated below:

1. The opposite parties 1 and 2 are hereby directed to pay interest at 9% p.a. from 01-01-07 till 11-08-08 on Rs.7781/- under policy No.10101341 and also to pay interest at 9% p.a. from  01-01-07 till 11-08-08 on Rs.7405/- under policy No.10101349 to the complainant. 
2. The opposite parties 1 and 2 are further directed to pay an amount of Rs.2000/- towards compensation for mental agony suffered by complainant and Rs.1000/- towards costs to the complainant.          
3. The above orders shall be complied within a period of six weeks from the date of receipt of copy of this order, failing which the amounts ordered above shall also carry interest at 9% p.a. till the date of realization.

Typed to my dictation by the Junior Steno, corrected by us and pronounced in the open Forum, this the 25^th day of April, 2011.

            Sd/-XXX                      Sd/-XXX                            Sd/-XXX

          MEMBER                               MEMBER                            PRESIDENT

APPENDIX OF EVIDENCE

                                        DOCUMENTS MARKED

For Complainant:

For Opposite Parties:                                                                         

                                                                               PRESIDENT