Chandigarh

DF-II

CC/215/2015

Vinod Kumar - Complainant(s)

Versus

Manager ICICI Prudential Life Insurance Company Ltd. - Opp.Party(s)

Sh. Vivek Bhatia Adv.

29 Jan 2016

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Consumer Complaint  No	:	215 of 2015
Date  of  Institution	:	29.04.2015
Date   of   Decision	:	29.01.2016

 

 

 

 

 

Vinod Kumar Bhatia s/o Sh.L.R.Bhatia, Resident of 188, NFL Enclave, Sector 48-A, Chandigarh.

 

             …..Complainant

Versus

 

1]  Manager, ICICI Prudential Life Insurance Company Ltd., SCO 134-136, First Floor, Sector 8-C, Chandigarh.

 

2]  Vice President Customer Care ICICI Prudential Life Insurance Company Ltd., 1089, Appasaheb Marg, Prabhatdevi, Mumbai

 

….. Opposite Parties

 

BEFORE:  SH.RAJAN DEWAN                 PRESIDENT

         SH.JASWINDER SINGH SIDHU       MEMBER

         MRS.PRITI MALHOTRA             MEMBER

 

 

For complainant(s)      :     Complainant in person.

 

For Opposite Party(s)   :     Sh.Gaurav Bhardwaj, Advocate

 

 

PER PRITI MALHOTRA, MEMBER

 

 

          As per the case, the complainant had purchased Policy No.00133948 on 25.4.2002 with maturity date as 25.4.2007 having sum assured of Rs.50,000/-, from Opposite Party Company   (Ann.C-1).  It is averred that the said policy was matured on 25.4.2007 with maturity amount of Rs.59,384/-.  After having discussion with OPs, the complainant took decision to postpone the policy till 25.4.2014.  It is averred that about 1½ months before the maturity date 25.4.2014, the complainant approached the OPs for conveying him the annuity quotation for the maturity value of the policy, but to the surprise of the complainant, it was informed that the policy is not traceable. However, after lot of persuasion, the OPs informed that Rs.44,249/- interest is being reflected in the computer under this policy as on date i.e. 27.5.2014 (Ann.C-III).  That it was brought to the notice of OPs that the principle amount to be considered on 25.4.2007 is Rs.59,384/- and not Rs.50,000/- resulting sum as Rs.103633/- on 25.4.2014 instead of Rs.94,249/- calculated by the OPs.  It is pleaded that the complainant informed the Opposite Parties to receive annuity pay outs from other insurance company through Open Market Option, but nothing has been received from the OPs even after the passage of more than one year.  Hence, this complaint.

 

2]       The Opposite Parties have filed joint reply and while admitting the factual matrix of the case have stated that the policy in question was issued to the complainant on 5.5.2002 and the same was matured on 25.4.2007, which was intimated to the complainant vide Annuity Quotations Annexure R-2. The OPs received application on 22.1.2008 from the complainant for postponement of the original vesting date to 25.4.2014.  The OPs acted accordingly and sent confirmation letter Annexure R-3 to the complainant.   It is averred that before vesting of the policy on 25.4.2014 the OPs sent annuity quotation form on 16.4.2014. Thereafter OPs sent annuity quotation vide Annexure R-4, which had the maturity amount of Rs.94,249/- where due to some technical error the system calculated incorrect interest amount of Rs.44,249/-  As such the OPs immediately sent revised annuity quotation Annexure R-5 with manually calculated interest amount @3.5% (Rs.19095.28Ps)and  maturity amount of Rs.78,479.28/-. It is averred that actual price can be different every time based on the performance of the funds and prevailing annuity rates, so rates of quotation are subject to change. Further averred that incorrect amount was mentioned due to inadvertent mistake which has now been rectified by the Opposite Party company and the complainant was informed about the complete situation.  Further averred that annuity is paid by any insurance company out of the common pool of funds belonging to all policyholders and insurance company has the right to check any adversity in the same. Pleading no deficiency in service and denying rest of the allegations, it is prayed that the complaint be dismissed.

 

3]       Parties led evidence in support of their contentions.

 

4]       We have heard the complainant in person, ld.Counsel for the OPs and have also perused the record.

 

5]       Complainant in person submitted that he purchased Policy No.00133948, dated 25.4.2002 for period of 5 years with maturity date 25.4.2007 with a sum assured of Rs.50,000/- from Opposite Party No.1. On 10.3.2007, he was informed by the OPs that the said policy is attaining the maturity value of Rs.59,384/- as on 25.4.2007.  Thereafter, the complainant after discussion with the OPs took decision to postpone the policy till 25.4.2014.  About 1½ month before the maturity date on 25.4.2014, he approached the OPs for conveying him the annuity quotation for maturity value of his policy, but surprised to found that his policy was not traceable on computer record.  Upon the request of Opposite Party No.1, he wrote letter dated 11.3.2014 (Ann.C-2) in this regard to solve the above issue.  After lot of efforts and persuasions, he was informed by the OPs vide letter dated 27.5.2014 (Ann.C-3) about the interest of Rs.44,249/- with total maturity amount of Rs.94,249/- whereupon the complainant brought to the notice of the Opposite Parties on the same day that the principal amount be considered as Rs.59,384/- instead of Rs.50,000/- and thus is entitled to Rs.1,03,633/- instead of Rs.94,249/- as on 25.4.2014. The complainant also opted to receive annuity pay-outs from the other insurance companies through open market option, but did not receive anything and therefore, filed the present complaint with the prayer for directions to the OPs for payment of Rs.1,03,633/- till 25.4.2014 with interest @18% p.a. and compensation of Rs.1.00 lacs for harassment and Rs.25,000/- for litigation costs.

 

6]       Counsel for the Opposite Parties while denying the version of the complainant took preliminary objection that this Forum has no jurisdiction to entertain the present complaint as the complainant has failed to demonstrate deficiency in service on the part of the OPs and the complainant being bound by the terms & conditions of the policy is not entitled to any relief.  The Counsel for the OPs further claimed that after the maturity of the policy on 25.4.2007, OPs received an application from the complainant on 22.1.2008 for the postponement of the original vesting date to 25.4.2014 to which they duly complied and sent a confirmation letter dated 24.1.2008 to the complainant.  It is further submitted that the complainant sent the annuity quotation forms on 16.4.2014 before the vesting of the policy on 25.4.2014.  Thereafter, Opposite Party NO.1 sent the annuity quotation on 27.5.2014 (Ann.R-4) having maturity amount of Rs.94,249/- where due to some technical error, the system calculated incorrect interest amount of Rs.44,249/-.  Thereafter, the Opposite Party Company sent revised annuity quotation on 4.6.2014 (Ann.R-5) with manually calculated interest amount at the rate of 3.5% i.e. Rs.19095.28 and maturity amount of Rs.78,479.28 and the same was informed to the complainant. Counsel for the Opposite Parties submitted that the OPs had rectified their mistake and denied any deficiency in service and therefore, prayed for the dismissal of the complaint. 

 

7]       After going through the submissions of the complainant and the Opposite Parties along with evidence on record annexed documents, it is admitted fact that the complainant purchased the policy No.00133948, dated 25.4.2002 for period of 5 years with maturity date 25.4.2007 with a sum assured of Rs.50,000/- from Opposite Party No.1, which attained the maturity value of Rs.59,384/- on 25.4.2007. Thereafter, the complainant opted for the postponement of the policy till 25.4.2014.  There is nothing on record that before the completion of the extended date of maturity i.e. 25.4.2014, the OPs send to the complainant any annuity quotations of the maturity value to exercise his option. On the contrary, it is the complainant who moved letter dated 11.3.2014 asking for the generation of the Annuity Quotation to be provided to him.  The Opposite Parties in their reply have admitted that the complainant has sent annuity quotation confirmation on 16.4.2014 whereupon the OPs sent annuity quotation to the complainant on 27.5.2014 showing the maturity of Rs.94,249/- i.e. after more than one month of the maturity date quoted as 25.4.2014. The OPs have further admitted that due to technical error, the system calculated incorrect interest amount of Rs.44,249/- and by correcting their mistake, they sent the revised annuity quotation on 4.6.2014 (Ann.R-5) with manually calculated interest amount at the rate of 3.5% which amounted to Rs.19095.28 and informed the same to the complainant. 

 

8]       Record reveals that one more letter following letter dated 4.6.2014 (Ann.R-5) was issued by the OPs to the complainant i.e.  Annexure R-6, letter dated 1.10.2014 issued by the Opposite Parties to the complainant shows the applicable compounded interest @4% yearly from 25.4.2007 to 1.10.2014, which is apparently in conflict with its earlier version Ann.R-5, letter dated 4.6.2014 wherein they mentioned the rate of interest as 3.5% compounded yearly.  The contradictions created by the OPs themselves shows malafide of the OPs.  Earlier also they wrongly calculated the interest on the amount of Rs.50,000/- instead of Rs.59,384/-, the said mistake was rectified in subsequent letters issued to the complainant.

 

9]       The above contradictions created by the OPs themselves are sufficient to hold that the Opposite Parties rendered deficient services towards complainant, who is struggling for his rightful due, which OPs till date failed to pay. The record is clear to prove that the OPs till date had not paid even a single penny to the complainant for no-fault of him and this happened only due to the negligent act of the OPs in calculating the amount not only wrongly but arbitrarily too.

 

10]      From the above discussion, we hold that the OPs render deficient services towards the complainant, which caused mental harassment to the complainant with further burden of filing the present complaint. 

 

11]     In view of the above observations, the deficiency in service on the part of the Opposite Parties is proved. Therefore, the complaint stands allowed against Opposite Parties.  The Opposite Parties are jointly & severally directed as under:-

a]  To make payment, after calculating the applicable interest, as per the terms & conditions of the policy in question, upon the total amount of Rs.59,389/- from 25.4.2007 till 25.4.2014, and further pay interest at the rate of 9% per annum from the date of maturity i.e. 25.4.2014 till payment.

 

b]  To pay an amount of Rs.10,000/- to the complainant towards compensation for causing him mental & physical harassment;

 

c]  To pay litigation expenses to the tune of Rs.5000/-

 

         This order shall be complied with by the Opposite parties within a period of 30 days from the date of receipt of its copy, failing which they shall be liable to pay interest @18% per annum, on the amount mentioned at sub-para [b] above from the date of filing this complaint till its realization, apart from complying with the directions as at sub-para [a] & [c] above.

         The certified copy of this order be sent to the parties free of charge, after which the file be consigned.

Announced

29^th January, 2016                                                                                                                                                         Sd/-  

 (RAJAN DEWAN)

PRESIDENT

 

 

Sd/-  

(JASWINDER SINGH SIDHU)

MEMBER

 

 

Sd/-  

 (PRITI MALHOTRA)

MEMBER

Om                                                                                                                       

 

 

DISTRICT FORUM – II

CONSUMER COMPLAINT NO.215 OF 2016

PRESENT:   None   Dated the 29th day of January, 2016

O R D E R                        Vide our detailed order of even date, recorded separately, the complaint has been allowed against Opposite Parties.                    After compliance, file be consigned to record room.

 

(Priti Malhotra)	(Rajan Dewan)	(Jaswinder Singh Sidhu)
Member	President	Member