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

          Complainant by filing this complaint has submitted that he is a policy holder being No.746916964 with effect from 29-11-2009 of the OP/Max Life Insurance Co. Ltd. for a yearly premium of Rs.15,000/- or modal premium of Rs.7,500/- for the sum assured of Rs.1,50,000/- in a “Semi Annual” system of the OP and he paid first premium of Rs.7,500/- through demand draft being no.047684 dated 24-11-2009 drawn on Kotak Mahindra Bank Ltd., Park Street Branch, Apeejay House, 15, Park Street, Kolkata – 700 016 and since then he is paying the premium of the instant policy.

          The specific case of the complainant is that at the time of entering into the agreement, he applied this policy for the shortest term i.e. for 11 years, but when received the copy of the agreement of the said policy from the OP, after the execution of the said agreement on 01-12-2009 he became surprised and also shocked to see that the policy term has been changed from 11 years to 20 years without taking his prior permission or giving him any information of such change and also his signature as appearing on the said document, particularly made at the place of the “coverage term” and also some other portions, were not at all same and similar with his original signature and the said signatures were forged and contrived by some other person.

          Fact remains, to settle down these issues, the complainant attempted to contact with the representative of the OP on various ways but they did not entertain him and refused him on different plea.  On being aggrieved, he sent legal notice to the OP, but to no effect.  Hence, this case.

          The OP appeared but not contested the case by filing W.O.   Ultimately, for its non-appearance before the Ld. Forum to contest, the case is heard ex parte.  

Decision with Reasons

On an indepth study of the complaint and on comparative evaluation of the material documents as filed by the complainant, it is undisputed fact, that the complainant obtained a life insurance policy from the OP and accordingly on 27-11-2009 entered into an agreement with the OP for a sum assured of Rs.1,50,000/- for a yearly premium of Rs.15,000/- or modal premium of Rs.7,500/- in a “Semi-Annual” System with effect from 29-11-2009.  Accordingly, the complainant has deposited first premium of Rs.7,500/- through a demand draft being no.047684 dated 24-11-2009 drawn on the Kotak Mahindra bank Ltd., Park Street Branch, Apeejay House, 15, Park Street, Kolkata – 700 016 and since then he is paying the premium of the instant insurance policy on regular basis as stated by him.

          The main contention of the complainant is that he has applied the said policy only for a shortest term of 11 years, but when he received the said policy from the OP on 01-12-2009, he became surprised and also shocked to see that the policy term has been changed from 11 years to 20 years without taking any prior permission or giving him any information such change and also alleged that his signatures which were appearing on the said document, particularly made at the place of “Coverage Term” and some other portions were not at all same and similar with his original signatures that he used to do on other official and banking documents.  It is alleged by the complainant that such fraud on the part of OP was adopted with the intentions to compel him to make payment of such a huge premium amount for the changed period of the policy while the return sum so assured in the said agreement policy is much lesser.  So, the OP gained unlawful advantages by such void agreement and, therefore, is liable to compensate. 

          We have heard the complainant and perused the documents on record and evidence which support the case of the complainant. 

          On careful consideration of the materials and the evidence led by the complainant, we observed that it is a fact the complainant obtained a policy from the OP/Max Life Insurance Co. Ltd for a sum of Rs.1,50,000/- vide policy no.746916964 with effect from 29-11-2009 for an yearly premium of Rs.15,000/- and/or modal premium of Rs.7,500/- in a semi-annual system.  But the said policy was issued for a term of twenty years instead of 11 years for which the complainant made his grievance against the OP/Insurance Company and alleged that by forging his signature in the proposal form they changed the policy from 11 years to 20 years. 

This is not the first case of its kind that we are dealing with.  In the past also we have dealt with such cases and defence were taken by the OP/Insurance Company who likely refused to cancel the policy or to refund the amount already paid by the insured on the ground of expiry of a “15 days free look period” which is mentioned in the clause of the policy agreement. 

In this case immediately after receiving the copy of the agreement policy, complainant made several attempts to reconcile the issue with the OP since the complainant already paid a sum of Rs.67,500/- as premium before the OP/Insurance Co. and it is alleged if he is compelled to make the payment for the entire changed policy term period, he will suffer huge financial loss and damages as because the insured sum is fixed to be paid by the OP on the expiry of the said policy term period and if the policy is surrendered by the complainant meanwhile a huge amount of surrender charges as mentioned in the clause 3B of the said agreement shall be deducted from the assured sum after deducting other charges as mentioned in the said clause from the sum assured.

          On retrospection from the record it is found that on receiving the legal notice dated 26-12-2012 from the side of the complainant, the OP/Max Life Insurance Co. Ltd. issued a letter dated 04-01-2013 and stated that they are agreeable to change the policy term from 20 years to 11 years and also asked the complainant to send 10 sample signature attested by his bank for investigation of signature forgery as alleged by the complainant.

          So, we are of the view that since, the OP is agreed to change the term of policy from 20 years to 11 years of the complainant and also willing to investigate the signature forgery as alleged by the complainant, invariably, they should be given such opportunity to rectify the error, the term of the policy from 20 years to 11 years without any financial loss to the complainant, failing which the OP should refund the entire premium amount as deposited by the complainant, in default, OP is liable to pay penalty.  But we are not inclined to ask the OP to pay any litigation cost since they agreed to change the terms of policy before filing this case

In the result, the case succeeds.

Hence,

Ordered

That the case be and the same is allowed ex parte against the OP but without any cost. 

The OP treat the term of the policy of the complainant in place of 20 years to 11 years without any financial loss to him or refund the entire deposited premium amount within one month from this order to the complainant with bank interest.

            The OP shall have to comply the above order very strictly within 30 days failing which for each day’s delay and disobedience of Forum’s order OP shall have to pay penalty @Rs.300/- per day till full satisfaction of the decree and, if any, reluctant attitude of the OP is found for complying the Forum’s order in that case penal proceeding u/s.27 of the C.P. Act, 1986 shall be initiated against the OP.