DISTRICT CONSUMER DISPUTES REDRESSSAL FORUM

WEST TRIPURA : AGARTALA

 

 

CASE NO:  CC – 122  of   2017 

 

Sri Mriganka Sekhar Datta,

S/O- Sri Mrinal Kanti Datta,

West Side of PHQ, A.K. Road,

Agartala, West Tripura- 799001. .…..…......Complainant.

 

 

          -VERSUS-

 

 

1. The Max Life Insurance Co. Ltd.,

Having Registered Office at

Max House, 3rd Floor, 

1 Dr. Jha Marg, Okhla,

New Delhi- 110020,

Represented by-

Managing Director & CEO,

Mr. Rajesh Sud,

C/O- Max Life Insurance Co. Ltd.,

11th Floor, DLF Square, 

Jacaranda Marg, DLF Phase- II,

Gurgaon- 122002.  

 

2. The Axis Bank Ltd.,

A.D. Nagar Branch,

Represented by its- 

Branch Manager, 

The Axis Bank Ltd.,

A.D. Nagar Branch, 

Bordowali, Near BOC,

P.O. A.D. Nagar, 

West Tripura- 799003. ..............Opposite Parties.

 

 

 

__________PRESENT__________

 

 

 SRI A. PAL,

PRESIDENT,

  DISTRICT CONSUMER 

 DISPUTES REDRESSAL FORUM,

      WEST TRIPURA, AGARTALA. 

 

SMT. DR. G. DEBNATH

MEMBER,

  DISTRICT CONSUMER 

DISPUTES REDRESSAL FORUM, 

  WEST TRIPURA,  AGARTALA.

 

SRI U. DAS

MEMBER,

  DISTRICT CONSUMER 

DISPUTES REDRESSAL FORUM, 

  WEST TRIPURA,  AGARTALA.

 

 

 

C o u n s e l

 

For the Complainant : Sri Sovan Mahajan,

  Miss Bubli Sur,

  Advocates.

      

For the O.P. No. 1 : Sri Amritlal Saha,

  Sri Kajal Nandi,

  Sri Dayanand Singh,

  Advocates.

 

For the O.P. No.2. : Smt. Pushpita Chakraborty,

  Advocate.   

  

 

 

JUDGMENT   DELIVERED   ON:  20.09.2018.

 

 

J U D G M E N T

This case arises on the petition filed by one Mriganka Sekhar Datta U/S 12 of the Consumer Protection Act. Petitioner's case in short is that he purchased one Max Life Insurance Family Policy on 15th September, 2013.  Premium Rs.54,184.11/-. Mode of collection of premium was through direct debit from Axis Bank Account of the complainant. Axis Bank proposed  the complainant to insure himself along with his family  members under the policy  of Max-Life Insurance, Corporate partners of the Axis Bank. Complainant on good faith purchased the policy through Axis Bank and this is the policy copy. First premium was paid and next due date of 2nd premium was on 02.09.2014. Policy was linked with the Bank Account of the complainant of the Axis Bank and Insurance Company assured collection through the Bank Account. Complainant had to go to Kolkata on July, 2014 for treatment of his son and on January, 2015 his father was seriously ill. Complainant had not sufficient minimum balance required for payment of premium  on November, 2014. But the Bank authority or Insurance company never informed about the insufficient balance in the account. On query of the complainant Axis Bank advised the complainant to arrange the premium amount in his account and by short time same with be deducted along with some late fees. The balance amount in the account of the complainant was Rs.70,385/- on 31.03.15. Sufficient balance was available in the Bank Account of the petitioner on 28.10.14 when the Insurance company could collect the amount from the Bank Account. Insurance company for no reason demanded huge fine from the  petitioner though sufficient balance was available. As the insurance premium was not paid so arbitrarily the policy was terminated. As a result for this deficiency of service petitioner suffered. Therefore, he prayed for compensation amounting to Rs.2 Lac and also Rs.70,000/- for harassment total he claimed Rs.3 Lac. 

 

2. O.P. No.2 had filed written statement and stated that unnecessarily they are made party in this case and they have nothing to do in respect of payment of premium. 

 

3. Written objection also filed by Max Life Insurance company. It is stated that complaint is time barred. Complainant never approached the O.P. during the 'Free Look Period' for termination of the policy. First initial premium was paid. On 10.09.14 ECS was produced by the petitioner for the payment of next premium. But the ECS was bounced. Letter was sent on 05.10.14 informing that Rs.53,472/- is to be paid for reinstatement of the policy. Lapse intimation was sent on 28.10.14. ECS was again bounced on 09.03.15. Complainant made his grievance on 06.06.15. Revival period for the policy lapsed was on March, 2015. So, it can not be revived as per terms and conditions. There is no deficiency of service by Max Life Insurance company and the case is liable to be rejected.

 

4. Petitioner produced Insurance Policy documents, Axis Bank Pass Book, Emails, sent in different times. Petitioner also produced Statement on affidavit of Mriganka Sekhar Datta. 

 

5. O.P. on the other hand produced the 4 nos. of letter issued in favour of the complainant by mail, also produced statement on affidavit of one witness Aanchal Yadav, working as Manager of Max Life Insurance Company.

 

6. Petitioner was cross examined by the O.P. O.P. on the other hand produced the statement on affidavit of one witness Uttam Pal from Axis Bank and Anchal Jadav of Max Life Insurance Company but they did not appear to face cross examination.

 

7. On the basis of all these evidence we shall now determine the following points:-

(I) Whether the O.P. Max Life Insurance Company failed to collect the Insurance premium from the Axis Bank Account of the petitioner in due time and unnecessarily terminated the policy of the petitioner?

(II) Whether there was deficiency of service by the O.Ps and petitioner is entitled to get compensation as claimed?

 

On the basis of evidences we shall now determine the points.

 

Findings and decision:

9. O.P. No.1, Max Life Insurance company submitted written argument. It is argued that company allowed 30 days time grace period for payment of premium. As per clause '8'  if the premium not paid within the revival period the policy shall be terminated. Accordingly the policy was terminated.

 

10. We have gone through the policy certificate. Policy year means 12 months. In Lapse and Revival of Policy Clause of the policy it is written that if premium not paid for 3 consecutive years then the policy shall lapsed. To revive the policy, policy holder can made request to the company. But request holder is to make request within 6 months from the due date of the payment of premium. It is to be treated as revival period. All overdue premium together with interest on the premium as determined is to be paid. However, revival of the lapsed policy is at the absolute discretion of the company. Policy will be terminated immediately as per clause 8. Policy shall also terminated at the end of policy term. 

 

11. We have gone through the Email given by the company Max Life Insurance company. First information was given on 26th September, 2014 about the dishonor of ECS. On 29th October again information given about the failure of ECS. On 25th March mail sent for ensuring sufficient balance in the account. No letter for termination was actually sent. All this are caution that policy might be lapsed.

 

12. But the O.P. Insurance company in the written statement stated that policy terminated from March, 2015. So the company was not in a position to extend period on the request of the complainant. But as per terms and condition as enshrined in clause '8' and '9' policy can not be terminated within 3 years. Policy was purchased in the year 15th September, 2013. So till 15th September, 2016 policy can not be terminated. But it was terminated on 15th March 2015 as admitted by the opposite party . This is not as per terms and condition. Policy repudiation information was not also given. Only it was cautioned that policy might be terminated.

 

13. Petitioner applied for revival of the policy. But that was not considered. Several emails was sent to the O.P. Max Life Insurance company. He sent email to the company about serious illness of his son. Bank authority assured him to maintain the balance on January, 2015 and accordingly he maintained  it. 

 

14. From the policy documents and other evidence as produced before us it is clear that termination of policy was improper. The company should have given chance to the petitioner for revival of the policy. It was stated that on March, 2015 revival period was over. Last premium was paid from the Axis Bank account on 02.09.13 as shown in the Pass Book produced. 

 

 

15. We have gone through the Pass Book and found that on Rs.55,984/- was available on 28.10.14 as the account was linked  for payment of insurance to Max Life Insurance company. So the premium amount Rs.54,556/- could have been collected. On 19.11.14 Rs.59,984/- was available in the Axis Bank of the petitioner. That time also the premium could have been collected as per contract. But it was not done. This was the deficiency of service by the O.P. Max Life Insurance Company. Petitioner therefore, is entitled to get compensation. Axis Bank, O.P. No.2 has no deficiency of service as nothing found to show that they suppressed the actual amount shown in the account and did not  give information to the Max Life Insurance company about insufficient balance after the due dates. The Max Life Insurance company did not take care but use ECS after due date. 6 months was the policy revival period. Within that time the company could take  information from the Axis Bank. It was not  done. Policy was terminated within 3 years and revival chance was not given. This is deficiency of service. It is not due to Axis Bank but Max Life Insurance company petitioner suffered. Points are decided accordingly. 

 

16. We direct the O.P. Max Life Insurance company  to revive the policy on receipt of all premiums with interest over the same and also pay compensation amounting to Rs.60,000/- to the petitioner for his sufferings Rs.10,000/- as litigation. In total Max Life Insurance Company should pay total Rs.70,000/- to the petitioner and give chance for revival of the policy. Petitioner is to pay the amount of premium of the lapsed policy which is to be revived on receipt of the premium amount with interest. Direction is to followed within 2 months, if not, the compensation amount and litigation cost will carry interest @ 9% P.A.   

      

 

Announced.

 

 

 

 

 

SRI A. PAL

PRESIDENT,

DISTRICT CONSUMER  DISPUTES 

REDRESSAL FORUM,

WEST TRIPURA,  AGARTALA.

 

 

 

 

SMT. DR. G. DEBNATH,

MEMBER,

 DISTRICT CONSUMER DISPUTES 

REDRESSAL FORUM, 

WEST TRIPURA, AGARTALA

 

SRI  U. DAS

MEMBER,

 DISTRICT CONSUMER DISPUTES 

REDRESSAL FORUM, 

WEST TRIPURA, AGARTALA