BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MYSORE-570023

CONSUMER COMPLAINT NO.665/2015

DATED ON THIS THE 12^th September 2016

      Present:  1) Sri. H.M.Shivakumara Swamy

B.A., LLB., - PRESIDENT   

    2) Smt. M.V.Bharathi                    

                                   B.Sc., LLB., -  MEMBER

                     3) Sri. Devakumar.M.C.                  

                                                          B.E., LLB.,    - MEMBER

Sri Devakumar.M.C.

Member

1.     The complainant has filed the complaint against the opposite parties, alleging the deficiency in not refunding the insurance amount and seeking a direction to pay Rs.2,18,893.67 along with interest and compensation for mental agony with such other reliefs.
2.     The complainant submits that, she took a savings assurance policy from opposite party on 08.04.2005 and paid premium of Rs.1,00,00/- per year for a term of 10 years, total amounting to Rs.1,00,000/- and felt happy that she would be getting bonus amount on her investment.  The complainant shocked over the intimation letter of opposite party, stating the final maturity amount payable was Rs.1,26,592/- only.  She sought clarifications from opposite parties, who inturn clarified that the complainant would get the amount as per the letter of intimation and there was no mistake.  Hence, she rejected the payment and insisted for a sum of Rs.2,18,893.67.  On failure to pay the said amount, the aggrieved complainant filed the complaint seeking reliefs.
3.     The opposite party submits that, the policy was issued on the basis of information furnished in the proposal form.  It admits the issuance of the insurance policy and payment of premium for a term of 10 years.  It submits the complainant had an opportunity to return the policy in case the policy holder not satisfied with the policy conditions.  The policy clearly provides the details relating maturity value, term of the policy and bonus payable etc., Nothing is concealed from the complainant.  As per policy terms and conditions, the complainant’s policy benefits calculated and offered to make the payment.  Hence, there is no deficiency and unfair trade practice by it and prays for dismissal of the complaint.
4.     Both parties lead their evidence by filing affidavit and placed documents.  Written arguments filed and heard the oral submissions by both parties.  Perusing the material, posted for orders.
5.     The points arose for our consideration are:-

1. Whether the complainant establishes the non-payment of amount as claimed, by opposite parties in respect of the insurance policy on its maturity, and with other reliefs sought?
2.  What order?

6.    Our findings on the aforesaid points are as follows:

Point No.1 :- Partly in the affirmative.

Point No.2 :- As per final order for the following

:: R E A S O N S ::

7.    Point No.1:- The complainant invested a sum of Rs.1,00,000/- for a period of 10 years on HDFC Life Insurance Policy purchased from opposite parties, with a hope of good returns.  The opposite parties offered a sum of Rs.1,26,592/- as maturity value, which is very low than expected.  Hence, the approached the opposite parties to verify for mistakes in calculations, if any, but the opposite parties replied that there was no mistakes in calculations.  The aggrieved complainant expected a return of her investment along with minimum interest at 10% apart from the bonus accrued, all put together a sum of Rs.2,18,893.67.  But, the opposite parties offered a maturity benefit of Rs.1,26,592/- only.  Hence, the complaint and sought for the reliefs.
8.    The opposite parties contended that, the policy issued to the complainant, clearly reflects on the premium amount, and duration of the policy, etc.,  The policy was issued on the particulars furnished to it.  The complainant had an option to cancel the policy, within 15 days free took in period.  But, the complainant kept quite until maturity of the policy.
9.    The policy documents issued to the complainant, clearly states the sum assured on its maturity.  Accordingly, the maturity benefits has been offered to complainant and hence, contended that, there is no deficiency on their part and prayed for dismissal of the complaint.
10. The policy document under schedule of benefits clearly indicates that the sum assured payable on maturity of the policy at Rs.83,010/- as on 08.04.2015.  Hence, the complainant had the option of rejecting the policy within 15 days free look period of issuance of the policy.  But, the complainant did not opted for cancellation of the policy.  The complainant raised her objections only on maturity of the policy and calculated the interest at her whims and fancy, which is not acceptable.
11. However, the opposite parties offered maturity benefit of the policy at Rs.1,26,592/- including other benefits apart from sum assured, i.e., an excess of Rs.43,582/- (i.e. 1,26,592/- - 83,010/-) to the complainant.  Further, since the maturity amount is still remained with the opposite parties, it is just to refund the same with interest at 12% p.a. from the date of maturity of the policy until payment.  Accordingly, the point No.1 is answered partly in the affirmative.   
12. Point No.2:- In view of the above observations, the opposite parties are hereby directed to pay Rs.1,26,592/- with interest amount at 12% p.a. from the date of maturity of the policy i.e. from 08.04.2015.  Hence, the following

:: O R D E R ::

1. The complaint is allowed in part.
2. The opposite parties are hereby jointly and severally directed to pay Rs.1,26,592/- along with interest at 12% p.a. from the date of maturity of the policy (i.e. from 08.04.2015) to the complainant, within 45 days of this order.  On failure to comply, the opposite parties shall pay penalty of Rs.50/- per day until payment.
3. The opposite parties jointly and severally shall pay Rs.3,000/- towards compensation and cost of the proceedings to the complainant, within 45 days of this order.  In default to pay interest at 12% p.a. on Rs.3,000/- until payment made.
4. In case of default to comply this order, the opposite parties shall undergo imprisonment and also liable for fine under section 27 of the C.P.Act, 1986.
5. Give the copies of this order to the parties, as per Rules.

(Dictated to the Stenographer transcribed, typed by her, transcript corrected by us and then pronounced in open court on this the 12^th September 2016)