PER DR.(MRS) MADANJIT KAUR SAHOTA  MEMBER         Succinctly put, induced by the agents/ representatives of the OPs, the complainant purchased a life insurance policy from them alongwith spouse rider, personal accident rider, waiver of premium rider and the option to participate in Progressive Bonus (OPPB).  He always paid his life insurance premiums well in time alongwith Rs.1,000/- or Rs.2,000/- towards OPPB.  On 31.1.2009 he paid Rs.5,842/- to the OPs as premium through net-banking.  On 31.1.2010 he made payment of Rs.6,842/- through net-banking out of which Rs.4,842/- was towards premium and Rs.2,000/- was for OPPB.  However, vide letter dated 31.1.2010 he came to know that the whole amount was arbitrarily adjusted towards OPPB.  When he contacted the OPs over phone, they assured to resolve the matter. Thereafter, he received receipt dated 19.2.2010 acknowledging the receipt of Rs.6,842/- towards renewal premium but despite that the OPs kept on sending reminders to him for paying the insurance premium and he sent emails dated 11.4.2010 and 18.4.2010. In response he received email dated 26.4.2010 from the OPs denying the receipt of premium.  Thereafter, he sent email dated 27.4.2010 informing that he had already made the payment and requested them to restore the policy, but to no avail.  It has been alleged that the aforesaid acts of the OPs caused him lot of mental and physical harassment.  Hence this complaint.

2.             In their written reply, OPs admitted that the policy in question was issued to the complainant which was subject to certain terms and conditions.  It has been denied that the amount was adjusted arbitrarily.  It has been submitted that the amount was entirely allocated towards OPPB as per the option given by the complainant in his proposal form. It has been pleaded that on receipt of intimation from the complainant that the amount was to be adjusted towards premium as well as OPPB, he was informed to submit written request in the month of March, but the same was not done and as the policy premium could not be adjusted, the policy lapsed due to non premium of policy.  It has been stated that due to oversight the receipt showed renewal premium, however the amount was adjusted only towards OPPB. Denying all the material allegations of the complainant and pleading that there has been no deficiency in service or unfair trade practice on their part prayer for dismissal of the complaint has been made. 

3.             Parties led evidence in support of their contentions.

4.             We have heard the Learned Counsel for the parties and have also perused the record.

5.      The main contention of the complainant is that despite paying  Rs.6,842/- towards renewal premium, the OPs kept on sending reminders to him for paying the insurance premium, the policy in question was lapsed by the OPs.  He made many requests to the OPs to restore the policy as he had already made the payment but to no avail.  In support of his contentions the complainant has placed on record Annexure C-1 which is the copy of the policy according to which he was entitled for insurance for spouse rider, personal accident rider, waiver of premium rider and to participate in progressive bonus (OPPB). Annexure C-2 is the copy of the transaction details sent by email by the OPs and the policy holder statement for the period 27^th March, 2008 to 2009 is placed at Annexure C-3, which shows that Rs.4842/- was paid for insurance premium and Rs.1000/- towards OPPB. Annexure C-4 is the receipt issued by the OPs  which shows that the acknowledgment of Rs.6842/- through netbanking to OPs were received by the OPs, informing the complainant about the successful receipt of payment towards renewal premium on 31.01.2010. Annexure C-5 dated 03.02.2010 is the copy of the letter sent by the OPs through which it was informed to him that amount of Rs.6842/- has been adjusted by the OPs towards OPPB.  Annexure C-6 dated 19.02.2010 is the copy of the payment receipt wherein it was again mentioned by the OPs that Rs.6842/- has been received by them towards payment of renewal premium of the policy in question. Annexure C-7, Annexure C-8 and Annexure C-9 for the period from 26.02.2010 and 08.04.2010 are the copies of the reminders sent by the OPs to the complainant through emails also, informing the complainant for payment of insurance premium, which was acknowledged by the complainant and again an email on 11.04.2010 was sent by the complainant but thereafter many email correspondence took place between the parties and at last the policy of the complainant was lapsed on 26.04.2010 by the OPs, vide email Annexure C-14, on the ground that they have not received the renewal premium of the policy from the complainant.

6.             On the other hand the OPs contended that the policy in question was issued to the complainant which was subject to certain terms and conditions and further contended that due to oversight the receipt issued to the complainant for Rs.6,842/- showed renewal premium, however the amount was adjusted only towards OPPB. Nothing, as evidence, has been placed on record by the OPs.

7.             We have gone through the records very carefully and find that Annexure C-4, which is the receipt issued by the OPs  clearly shows the acknowledgment of Rs.6842/- through netbanking by the OPs and also it has been informed to the complainant about the successful receipt of payment towards renewal premium on 31.01.2010.  Annexure C-6 dated 19.02.2010 is the copy of the payment receipt wherein it was again mentioned by the OPs that Rs.6842/- has been received by them towards payment of renewal premium of the policy in question, but thereafter, issuance of letter Annexure C-5 dated 03.02.2010 by the OPs informing the complainant  that the amount of Rs.6842/- has been adjusted towards OPPB, is totally an unfair trade practice on their part because as per Annexure C-9 the complainant was required to pay Rs.4841.88 towards annual premium of the policy in question but he had paid a total sum of Rs.6842/- to the OPs for which the acknowledgment was also received.  In our view, out of Rs.6842/-, a sum of Rs.4841.88/- was paid by the complainant towards annual premium for the said policy and the remaining amount of Rs.2000/- was towards OPPB but the OPs negligently put the whole amount of Rs.6842/- in the OPPB account and when they realize their mistake, rather correcting themselves, they arbitrarily cancelled/lapsed the policy in question and concocted this false story of non payment of renewal premium by the complainant despite sending the acknowledgement for the same.  In our view,  this act of the OPs surely amounts to deficiency in service and unfair trade practice on their part and for this act of the OPs, they are liable to compensate the complainant and also should restore the policy of the complainant in dispute.

8.             In view of the above discussion, we are of the considered opinion, that the present complaint must succeed and the same is accordingly allowed.  The OPs are severally and jointly directly to restore the policy in question alongwith all the riders as per original terms of the policy and further directed to pay Rs.10,000/- to the complainant for causing him mental and physical harassment by adopting unfair trade practice.  Rs.5500/- as costs of litigation shall also be paid to the complainant by the OPs.  The order shall be complied with by the OPs within 30 days form the date of receipt of copy of this order failing which the OPs would be liable to pay the aforesaid amount alongwith penal interest @15% p.a. since the filing of the present complaint, i.e. 04.05.2010, till the order is fully complied with by the OPs.

              Certified copies of this order be sent to the parties free of charge.  The file be consigned.

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