Order No.                 .

This is an application u/s.12 of the C.P. Act, 1986.

          Complainant by filing this complaint has submitted that he purchased a Life Insurance Policy from OP being policy No.11271912 on December, 2007 subject to payment of half yearly premium of Rs.10,000/- on December, 2007 and on June, 2008 respectively.  But subsequently, it was found that the said policy was not beneficial and extremely depreciating stopped paying the premium of the said policy.  But on 08-03-2011 one Shri Asis Saha of the OP approached the complainant and assured that a payment of another revival premium amounting to Rs.12,000/- would revive the policy and the return thereon would be beneficial to the complainant and the return on the said policy would be due on March, 2012 and complainant on good faith, with hope and entrusting the brand value of ‘Reliance’ parted with an amount of Rs.12,000/- towards payment of another revival premium against the said policy vide cheque no.439180 dated 08-03-2011 of United Bank of India, Dunlop Bridge Branch and Asis Saha acknowledged the payment of the premium vide receipt No.5674201 dated 08-03-2011 against the said policy and the above cheque was encashed by the OPs on 12-03-2011.  On 12-07-2012 complainant received a call from the OPs and was informed that a part payment against the said policy amounting to Rs.5,803/- is to be credited in the complainant’s bank account and sought the details of the bank account for due credit of the amount and as per the instruction of the OP, the complainant furnished all the detail.  Subsequently, on 13-07-2012 approached the OPs for surrender of the said policy and payment of the return and the OPs on 13-07-2012 informed the complainant to his shock and surprise that the amount of Rs.12,000/- paid towards the revival of the said policy has been utilized for buying a new policy.  But the complainant immediately enquired about the issue to know the facts in detail in the Shyambazar Branch of the OP and was informed that a new policy has been purchased with the amount of Rs.12,000/- which was paid by the complainant on 08-03-2011 and on or about 19-07-2012 the complainant received an amount of Rs.5,803/- duly credited into the bank account and immediately complainant wrote a letter dated 23-07-2012 stating all the facts addressed to The Manager, Shyambazar Branch of the OPs with a plea to address the issue, enquire into the matter and refund of Rs.32,000/- the principal amount paid as premium along with the reasonable return but in spite of receiving the letter neither refund the sum nor given any reply and practically they have not rendered proper service for which the complainant has filed this complaint.  Though OP again and again stated the matter outside court subsequently no relief has been granted in the above circumstances complainant has prayed for redressal.

          Fact remains OP was served with notice which was duly received by them thereafter written objection was filed by the OP they have denied all the allegation and submitted the complainant misrepresented and distorted the case of deficiency in service and insurance policy was issued in favour of the complainant and duly submitted by the complainant for which there is no cause of action and said Asis Saha was not the authorized age not of the OP and all other allegations was denied by the OP.  further it is submitted that OP duly replied vide letter dated 20-12-2012 and informed the complainant that the surrender amount had been transferred to the Bank account of the complainant on 19-07-2012 and that cancellation of policy no.18702768 would be processed only subject to submission of documents as per procedure which the complainant failed to comply and is trying to take undue advantage by making false and concocted allegations and second policy opened by the OP as per his own volition and none alluring him and so everything is false and fabricated.

Decision with Reasons

Considering the entire facts of the complainant and written version it is undisputed fact that complainant deposited two premiums of Rs.10,000/- each and another premium of Rs.12,000/- for renewal of the said policy being No. 11271912 and no doubt the complainant deposited Rs.32,000/- as premium.  But truth is that Asis Shah is agent of Reliance Insurance.  He proceeded the same on behalf of the complainant and admittedly the said amount of Rs.32,000/- was realized by the OP Insurance Company and no doubt complainant was deceived when another policy is found and fact remains truth in reality is that in such a manner most of the agent are floated by the company for collecting premium and for opening one after another policies and in this regard present Reliance Company is a pioneer in West Bengal and in similar manner for last 8 to 10 years Aviva Life Insurance  has adopted that policy and deceived the customer such a manner but ultimately the business of the Aviva Life Insurance is going to be closed for adopting such unfair practice now the Reliance is in the field who has cheated thousands of people in such a manner by floating such dishonest agents so called agents of the OP insurance company.  This complaint is not only complaint before this Forum but such a complaint is filed in West Bengal in all the Forums in numbers.  Poor customers have been deprived by the agent of the insurance companies like OP and in this case no doubt OP’s agent Asis Shah has been deceived the complainant and some time it is impossible to note about the details of the papers which are collected by the agents only by collecting the signatures and sometimes if the signatures are not sufficient they also by placing similar signature filled such application Form for opening separate policy.  In the present case no doubt complainant has been deceived by the agent of the OP insurance company and it is provision of law that the act of the agent shall be the act of the principal that is the present OP Insurance Company.  Truth is that the Reliance Company cannot run any business in West Bengal without floating tout like agents because people are not willing to go to such office but those office are filled by dishonest people who are always alluring people in different ways even a reasonable people shall be hallucinated by their appearance and their long talks about their assurance to get relief but truth is that any person who has opened the Reliance Policy shall not have to get any benefit after maturity and it would be found that the maturity would be below the total premium paid and this is the poor picture of the insurance policy of the Reliance.  After fall of market of Aviva, Reliance is running such business and their future is like Aviva Life Insurance.  Most interesting factor is that Ld. Lawyer for the OP tried to convince that as per policy condition the amount has been returned but in this regard we are directing the insurance company to go to the IRDA Regulations of 2010 and 2012 by which IRDA has already directed all the insurance company who have got license from IRDA to run business to refund the entire amount of premium who have deposited premiums or whose policy is cancelled or whose policy is found lapsed after deducting 5% or 10% as service charge and in the present case practically complainant deposited the 1^st premium on December, 2007, 2^nd premium on July, 2008 and 3^rd premium on 08-03-2011 for the purpose of reviving the previous policy No. 11271912 and, in fact, in this case it is proved complainant never tried to open another policy but it is the misdeeds of OPs and entire Reliance Offices are running such mal-practices in so many manner and those who are aware of market economy and who are aware of the consumer economy they shall have to realize how their business is running.  Practically, the insurance company is being run on the basis of collecting the premium from the customers if customer does not pay premium does not purchase policy in that case that insurance company shall have to close their trade for lack of fund and their employer shall have to go to their house without any remuneration so all private insurance companies have adopted a market economy by placing such dishonest agents to collect premium anyhow from the public at large but they have their no capacity to open policy in their cold chamber surrounded by glass walls but their god and goddess are nothing but their cheater agent and they are practically deceiving the public at large and this complaint is deceived by the OP3 the agent of the OPs1 and 2.  Fact remains complainant deposited Rs.32,000/- and he does not want to proceed with the policy and also pray for cancellation of the policy i.e. 2^nd policy and first policy also and it is settled principle of law if the policy is not continued in that case it shall be treated as lapsed and cancelled and in that case the insurance company cannot grab that money which is deposited as premium because complainant for the purpose of covering the risk he deposited it but his risk factor is not covered as it is cancelled or lapsed so, there is no other alternative as per IRDA Regulation but to refund premium as deposited by the depositor insured after deducting 5 to 10% of the same but no other amount can be deducted on any circumstances.  It is to be mentioned in this regard that at the time of opening the policy, the policy amount as paid as premium is not investment for any profit but for security of his life when any insured cancelled his policy and he does not continue to insure his life risk then the amount shall be refunded as per IRDA Regulations of 2010 and 2012 and it is mandatory and present insurance company is registered as insurance company being registered as per IRDA rule and so shall return the amount even if anyone does not file any such complaint before the Forum.  But OPs1 and 2 are liable to refund the entire deposited premium amount of Rs.32,000/- after deducting Rs.3,200/- as 10% as service charge after to the complainant deducting already paid amount and also compensation of Rs.5,000/- for harassing such a way by their dishonest agent and the so called dishonest officers of the OPs. 

In the result, the case succeeds.

Hence,

Ordered

That the case be and the same is allowed on contest against the OP with a cost of Rs.5,000/- (Rupees Five thousand only).

          OPs are hereby directed to pay Rs.32,000/- (Rupees Thirty two thousand only) after deducting 10% of the said deducting the same as service charge and to pay a sum of Rs.5,000/-(Rupees Five thousand only) as compensation for harassing the complainant and OP3 shall have to pay a sum of Rs.10,000/-(Rupees Ten thousand only) for deceiving the complainant in such a manner.

          OPs are further directed to pay the same to the complainant along with litigation cost within one month from the date of this order failing which for non-compliance of the Forum’s order penal action shall be started against them and for that reason further penalty and fine may be imposed.