DATE OF FILING : 06.10.2009

BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 27th day of February, 2010

Present:

SRI.LAIJU RAMAKRISHNAN PRESIDENT

SMT.SHEELA JACOB MEMBER

SMT.BINDU SOMAN MEMBER

C.C No.183/2009

Between

Complainant : Reji Mathew,

Advocate,

Puthussery House,

Adimali P.O, Adimali,

Idukki District.

(By Adv: Adarsh.K.George)

And

Opposite Party : The Managing Director,

Bajaj Allianz Life Insurance Company Limited,

GE Plaza, Pune – 411 006.

(By Adv: Babichen.V.George)

O R D E R

SMT.SHEELA JACOB(MEMBER)

The complainant availed a life insurance policy from the opposite party. The policy was taken by the complainant on 4.10.2006. The policy Number is 0027712066 and remitted Rs.10,000/- to the opposite party as premium. In the proposal form the complainant shown the correct name but the opposite party, the complainant's name was incorrectly shown in the policy certificate. Several times, the complainant demanded to correct the name in the policy certificate but no reply was given by the opposite party. So the complainant decided to discontinue the policy. He demanded to repay the amount. On 30.06.2009 the complainant sent a legal notice to the opposite party but no reply was received. Though the complainant was intimated about the fact and demanded to return of the money over the telephone and by registered letter, no reply was given by him. The demand was made for premium amount. Since the amount was not paid the complaint has been filed alleging deficiency in service.
 

2. In the written version filed by the opposite party, the insurance is admitted. The complaint is barred by limitation. The complainant's name was incorrectly shown in the policy certificate, it is a clerical human typing error which can be cured at any point of time by insured or his nominee. The complainant had not informed this fact to the opposite party. Typographical error in the policy document will not in any manner affect the character or benefits of the policy. Non payment of premium is the sole cause for the lapse of policy of the complainant. So the opposite party is not liable to pay any amount as interest or damages to the complainant. As per the terms of the policy contract, the non-payment of premium is the only cause for the lapse of policy of the complainant. Non-correction of spelling mistake in the policy certificate is not a sufficient reason for the non-payment of insurance premium. There was no deficiency in service on the part of the opposite party.
 

3. The point for consideration is whether there was any deficiency in service on the part of the opposite party, and if so, for what relief the complainant is entitled to ?

4. The evidence consists of the oral testimony of PW1 and Exts.P1 to P9 marked on the side of the complainant and the oral testimony of DW1 and Ext.R1 and R2 marked on the side of the opposite party.
 

5. The POINT :- The insurance in question is admitted. The only dispute is that the complainant's name is incorrectly shown in the policy certificate. The complainant was examined as PW1. Ext.P1 is the copy of the proposal form. Ext.P2 is the policy schedule. Ext.P3 is the letter dated 3.09.2007. Ext.P5 is the lawyer notice. Ext.P7 is the copy of the cheque amount Rs.5,000/-. Ext.P8 is the premium receipt Rs.5,000/-. Ext.P9 is the original policy document. PW1 stated that the insurance company violated the terms and conditions of policy. In the cross examination PW1 has stated that he had sent letter and legal notice within one year from the date of policy. The opposite party was examined as DW1. Ext.R1 is the policy conditions. Ext.R2 is the copy of the complaint given by the complainant to IRDA. According to DW1 he stated that non-correction of spelling mistake in the policy document is not a sufficient reason for the non-payment of insurance premiums and he is ready to reinstate and regularise the policy of the complainant if he is ready to pay the defaulted premiums with applicable charges. In the cross examination, DW1 has admitted the typographical error in the policy document. It is a well accepted principle that a contract of insurance is a contract of “utmost good faith” and any suppression of material fact would render the same void. In this case, in Ext.P1 proposal form, the complainant's name is “REJI MATHEW”. But in Ext.P9 original policy certificate, the complainant's name is incorrectly shown as “REJL MATHEW”. Ext.P3 and Ext.P5 are copies of the notice issued by the complainant, wherein the fact has been stated. But no reply was given by the opposite party. So it is evident that the complainant himself has intimated the fact in time. Apparently there is mistake in the name written in the Ext.P9 policy certificate which the complainant cannot be held liable. It has been admitted by PW1. If any mistake has been committed by the opposite party, the opposite party has to compensate the complainant. So the opposite party is liable to repay the premium amount of Rs.10,000/- to the complainant. In the circumstances of the case, the opposite party is liable to pay the cost of this petition which we would fix at Rs.1,000/- and also 12% interest on the insured amount from the date of this petition.
 

In the result, the petition allowed. The opposite party is directed to pay to the complainant an amount of Rs.10,000/- with 12% interest from the date of this petition and Rs.1,000/- as costs of the petition within 30 days of receipt of a copy of this order, failing which the outstanding amount shall carry 12% further interest from the date of default.

Pronounced in the Open Forum on this the 27^th day of February, 2010
 

Sd/-

SMT.SHEELA JACOB(MEMBER)
 

Sd/-

I agree SRI.LAIJU RAMAKRISHNAN(PRESIDENT)
 

Sd/-

I agree SMT.BINDU SOMAN(MEMBER)
 

APPENDIX

Depositions :

On the side of Complainant :

PW1 - Reji Mathew

On the side of Opposite Party :

DW1 - Suresh Mathew

Exhibits:

On the side of Complainant:

Ext.P1 - Photocopy of Proposal Form

Ext.P2 - Photocopy of Policy Schedule

Ext.P3 - Photocopy of complainant's letter dated 3.09.2007 addressed to the Authorised Signatory, Bajaj Allianz Life Insurance Company Limited,

              Salem, Hosthampatty

Ext.P4 - Courier Receipt dated 4.09.2007

Ext.P5 - Copy of lawyer notice dated 30.06.2009 issued by the advocate of the complainant to the opposite party and postal receipt

Ext.P6 - Letter dated 4.09.2009 issued by the Postal Department

Ext.P7 - Photocopy of Cheque dated 3.09.2007 for Rs.5,000/-

Ext.P8 - Premium Receipt dated 21.09.2007 for Rs.5,000/-

Ext.P9 - Original Policy with Conditions

On the side of Opposite Party :

Ext.R1 - Copy of Policy conditions

Ext.R2 - Photocopy of complainant's complaint filed before the IRDA