Tamil Nadu

South Chennai

CC/309/2018

Mr Chakravarthy T M - Complainant(s)

Versus

MPN Capital Services Pvt. Ltd Rep by MD & Another - Opp.Party(s)

M/s E Nandakumar

20 Feb 2020

ORDER

                                                                                 Date of filing  : 07.08.2018

                                                                                   Date of Order : 20.02.2020

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP.  : MEMBER

 

C.C. No.309/2018

DATED THIS THURSDAY THE 20^TH DAY OF FEBRUARY 2020

                                 

Mr. T.M. Chakravarthy,

S/o. Mr. T.M. Kasthurirangan,

Plot No.12, 1^st Street,

Bharathi Nagar,

Thirumullaivoyal,

Chennai – 600 062.                                                        .. Complainant.                                                     

                                                                                                ..Versus..

1. The Managing Director,

MPN Capital Services Pvt. Ltd.,

No.23, United India Colony,

Kodambakkam,

Chennai – 600 024.

 

2. The Managing Director,

Exide – Life Insurance Company Limited,

No.96, Prince Kushal Towers,

Ground Floor,

Anna Salai,

Chennai – 600 002.                                                 ..  Opposite parties.

 

Counsel for the complainant  :  M/s. R. Nandakumar & another

Opposite parties 1 & 2           :  Ex-parte

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties 1 & 2 under section 12 of the Consumer Protection Act, 1986 prays the 2^nd opposite party to refund a sum of Rs.32,500/- deducted from the Bank Account of the complainant without proper ECS mandate for the alleged premium amount for the policies and prays the opposite parties 1 & 2 to pay a sum of Rs.1,00,000/- towards compensation for mental agony, pain, sufferings, stress, strain, tension and turmoil caused to the complainant, to pay a sum of Rs.3,000/- towards legal notice each with cost to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that in the 1^st week of July 2017, he had received solicitation calls from the agents of the 1^st opposite party canvassing for the Life Insurance Policy to be issued by the 2^nd opposite party.  The complainant submits that after the marriage of his elder daughter, he was in slight financial crunch and the enticing calls made by the agents of the 1^st opposite party was interested to avail loan based on the life insurance policy similar to LIC policy loan.  The complainant has sent his photo, ID-proof details, blank signed cheque leaf copy through Whats app to the opposite parties.   The complainant submits that the 1^st opposite party assured that after disbursal of the loan amount to the complainant bank account he will get the signature in the documents.  The complainant submits that he was shocked that Rs.12,500/- was deducted from his bank account through ECS by the 2^nd opposite party without the consent and knowledge of the complainant.   The complainant submits that while he enquired with an agent of the 1^st opposite party he was totally mislead and made to pay further sum of Rs.20,000/- for the disbursement of loan amount of Rs.2,00,000/- to the complainant, he also transferred Rs.20,000/- to the 2^nd opposite party.  

2.     The complainant states that the 1^st opposite party being an agent of the 2^nd opposite party has committed the following fraud with regards to both policies viz No.03601540 & 03630201 respectively which reads as follows:- 

The complainant states that in Policy No.03601540 the following fraud has been committed:

1. The Proposal Form number as MB 633029 was not filled /signed by the complainant, which is mandatory for any Insurance Contract.
2. The photo & signature annexed in the stated Proposal Form is manipulated by the agent of the 1^st opposite party.
3. The complainant has not submitted any physical documents like Photo, ID-Proof and cancelled cheque which is mandatory for ECS mandate.
4. The answer to the question number 67 in the Proposal Form – with amply convey the modus of manipulation done by the agent of the 1^st opposite party, as the complainant is employed at Heavy Vehicle Factory as Manager- which is similar establishment to army.

The complainant states that the Policy No.03630201 the following fraud has been committed

1. The Proposal Form number as MB 643107 was not filled /signed by the complainant, which is mandatory for any Insurance Contract.
2. The photo & signature annexed in the stated Proposal Form is manipulated by the agent of the 1^st opposite party.
3. The complainant has not submitted any physical documents like Photo, ID-proof and cancelled cheque- which is mandatory for ECS mandate.
4. The answer to the question number 16,67 in the Proposal Form – will amply convey the modus of manipulation done by the agent of the 1^st opposite party, as the complainant is employed at Heavy Vehicle Factory as Manager- which is similar establishment to army”.

3.     The complainant submits that his signature in the Proposal Form differs shows that the 1^st opposite party fraudulently affixed his signature in the proposal forms.   The complainant submits that by accepting the proposal forms manipulated by the agent of the 1^st opposite party, the 2^nd opposite party had issued the alleged policies which lack the basic needs of an insurance contract and by comparing the signatures of both the proposal forms as narrated above the 2^nd opposite party will be able to appreciate the reason for the complainant’ request for the cancellation of the alleged two policies and refund of the cheated amounts  by the agents of the 1^st opposite party.  The complainant states that the 2^nd opposite party have connived with the 1^st opposite party in selling the policy and without collecting the basic / necessary documents pertaining to the alleged insurance policies, verifying the documents before issuance of the policy, jointly committed fraud upon an innocent person / the complainant is luring to buy the useless insurance policies.  The complainant submits that he issued legal notice dated:22.05.2018 to the opposite parties 1 & 2 for which, the 2^nd opposite party replied with untenable allegations dated:09.06.2018.   The act of the opposite parties 1 & 2 caused great mental agony and deficiency in service to the complainant.   Hence, the complaint is filed.

4.     In spite of receipt of notice, the opposite parties 1 & 2 have not appeared before this Forum and hence, the opposite parties 1 & 2 were set ex-parte.

5.     Though the opposite parties 1 & 2 were remained Ex-parte, this Forum is to dispose of this compliant fully on merits with available materials evidences before this Forum. 

6.     In such circumstances, in order to prove the allegations made in the complaint, the proof affidavit is filed by the complainant as his evidence and also documents Ex.A1 to Ex.A9 are marked.  

7.      The points for consideration is:-

1. Whether the complainant is entitled to get refund of a sum of Rs.32,500/- deducted from the bank account of the complainant without proper ECS mandate for the premium amount of the policies as prayed for?
2. Whether the complainant is entitled to a sum of rs.1,00,000/- towards compensation for deficiency in service, mental agony and turmoil with cost as prayed for?

8.     On point:-

The opposite parties 1 & 2 after receipt of the notice has not entered appearance before this Forum and remained ex-parte.   The complainant has filed his proof affidavit and written argument.  Heard his Counsel also.   Perused the records namely; the complaint, proof affidavit and documents of the complainant.   The complainant pleaded and contended that during the 1^st week of July 2017, he had received a phone call from the agents of the 1^st opposite party canvassing for the Life Insurance Policy to be issued by the 2^nd opposite party.   Further the contention of the complainant is that he was in financial crunch and therefore interested to avail loan based on the life insurance policy similar to LIC policy loan. The complainant has submitted all the details pertaining to take policy through Whats app to the opposite parties.   The opposite parties issued two policies on 14.07.2017 & 31.08.2017 viz Policy Nos.03601540 & No.03630201 respectively as per Ex.A3 & Ex.A4.   Further the complainant pleaded and contended that the 1^st opposite party assured orally that after disbursal of the loan amount to the complainant bank account, he will get the signature in the documents.

9.     Further the complainant contended that he was shocked that Rs.12,500/- was deducted from his bank account through ECS by the 2^nd opposite party without the consent and knowledge of the complainant.   On a careful perusal of Ex.A2, cancellation letter sent by the complainant to the 2^nd opposite party demanded for refund of premium amount of Rs.12,500/- debited from the complainant’s account on 07.03.2018 and on a careful perusal of Ex.A3 (S) receipt issued by the 2^nd opposite party proves that the 2^nd opposite party received Rs.12,500/- against the policy No.03601540.   Further the contention of the complainant is that while he enquired with an agent of the 1^st opposite party he was totally mislead and made to pay further sum of Rs.20,000/- for the disbursement of loan amount of Rs.2,00,000/- to the complainant. The complainant also transferred Rs.20,000/- to the 2^nd opposite party.  On a careful perusal of Ex.A4(S) receipt issued by the 2^nd opposite party proves that the 2^nd opposite party received Rs.20,000/- as premium amount for the policy bearing number 03630201. 

10.    Further the contention of the complainant is that the 1^st opposite party being an agent of the 2^nd opposite party has committed the following fraud with regards to both policies viz. No.03601540 & 03630201 respectively which reads as follows:- 

“The complainant further contended that in Policy No.03601540 the following fraud has been committed:

5. The Proposal Form number as MB 633029 was not filled /signed by the complainant, which is mandatory for any Insurance Contract.
6. The photo & signature annexed in the stated Proposal Form is manipulated by the agent of the 1^st opposite party.
7. The complainant has not submitted any physical documents like Photo, ID-Proof and cancelled cheque which is mandatory for ECS mandate.
8. The answer to the question number 67 in the Proposal Form – with amply convey the modus of manipulation done by the agent of the 1^st opposite party, as the complainant is employed at Heavy Vehicle Factory as Manager- which is similar establishment to army.

9. The complainant further contended that the Policy No.03630201 the following fraud has been committed

5. The Proposal Form number as MB 643107 was not filled /signed by the complainant, which is mandatory for any Insurance Contract.
6. The photo & signature annexed in the stated Proposal Form is manipulated by the agent of the 1^st opposite party.
7. The complainant has not submitted any physical documents like Photo, ID-proof and cancelled cheque- which is mandatory for ECS mandate.
8. The answer to the question number 16,67 in the Proposal Form – will amply convey the modus of manipulation done by the agent of the 1^st opposite party, as the complainant is employed at Heavy Vehicle Factory as Manager- which is similar establishment to army”.

But on a careful perusal of Proposal Form MB 633029

Under Section VI- Details of family history, habits, build, occupation, hobbies and travel of the life to be assured

67. Are you employed in the armed, Para military, Police Forces or any other    similar establishment?

­­­­__ Yes  _­X_ No

In the Proposal Form

16. Occupation: __ Salaried-Govt/PSU  ­ X­­­­_ Salaried-other ­­­ ____Self Employed Professional               __  Agriculturist / Farmer   __ Part time business     ___ Retired   ___ Landlord ___Student(Current Std.)________  others (Specify)_______________________

67. Are you employed in the armed, Para military, Police Forces or any other    similar establishment?

      __­­­_ Yes  _­X_ No

Section 45 – Policy shall not be called in question on the ground of mis-statement after three years

Provisions regarding policy not being called into question in terms of Section 45 of the Insurance Act, 1938, as amended from time to time.  The extant provisions in this regard areas follows:

01.  No  Policy of Life Insurance shall be called in quesiont on any ground whatsoever after expiry of 3 years from

1. the date of issuance of policy or
2. the date of commencement of risk or
3. the date of revival of policy or
4. the dare of rider to the policy whichever is later.

02. On the ground of fraud, a policy of Life Insurance may be called in question within 3 years from

5. the date of issuance of policy or
6. the date of commencement of risk or
7. the date of revival of policy or
8. the date of rider to the policy whichever is later.

For this, the insurer should communicate in writing to the insured or legal representative or nominee or assignees of insured, as applicable, mentioning the ground and materials on which such decision is based.

03. Fraud means any of the following acts committed by insured or by his agent, with the intent to deceive the insurer or to induce the insurer to issue a life insurance policy:

11.    Further the contention of the complainant is that his signature in the Proposal Forms Ex.A3(S) & Ex.A4(S) differs shows that the 1^st opposite party fraudulently affixed his signature in the proposal forms.  It is also apparent that the signature differs from the signature of the complainant in the proposal form.   Further the contention of the complainant is that both the opposite parties 1 & 2 without verifying the documents issued the policy, amounts to jointly committed deficiency in service. Therefore, the complainant’s request for the cancellation of alleged two policies and refund of the premium amount.  Further the contention of the complainant is that the opposite parties 1 & 2 are jointly and severally liable to compensate the complainant for mental agony and pain suffered.  Further the contention of the complainant is that he issued legal notice dated:22.05.2018 as per Ex.A8 to the opposite parties 1 & 2 for which, the 2^nd opposite party sent reply as per Ex.A9 with untenable allegations as cancellation of policy should be done within Free Look Period.  But it is clear that the opposite parties 1 & 2 fraudulently created the signature of the complainant for the alleged policy.   Therefore, the opposite parties 1 & 2 have committed deficiency of service and unfair trade practice.  Considering the facts and circumstances of the case, this Forum is of the considered view that the opposite parties 1 & 2 shall jointly and severally are liable to refund the premium amount of Rs.32,500/- by cancelling the policies and to pay a compensation of Rs.10,000/- towards mental agony and deficiency in service with cost of Rs.10,000/- to the complainant.

In the result, this complaint is allowed in part.   The opposite parties 1 & 2 are jointly and severally liable to refund the premium amount of Rs.32,500/- (Rupees Thirty two thousand and five hundred only) and to pay a sum of Rs.10,000/- (Rupees Ten thousand only) towards compensation for mental agony, deficiency in service etc with cost of Rs.10,000/- (Rupees Ten thousand only) to the complainant.

The above amounts shall be payablewithin six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 20^th day of February 2020. 

 

MEMBER                                                                                PRESIDENT

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1	12.03.2018	Copy of letter the complainant to 2nd opposite party for stopping ECS mandate
Ex.A2	12.03.2018	Copy of complaint letter given to the 2nd opposite party regarding the fraud committed by the 1st opposite party
Ex.A3	02.08.2017	Copy of policy document of the 2nd opposite party having Policy No.03601540
Ex.A4	08.09.2017	Copy of policy document of the 2nd opposite party having Policy No.03630201
Ex.A5	22.05.2018	Copy of legal notice issued by the complainant to the opposite parties 1 & 2
Ex.A6	25.05.2018	Copy of acknowledgement card of the legal notice served upon the 1st opposite party
Ex.A7	25.05.2018	Copy of acknowledgement card of the legal notice served upon the 2nd opposite party
Ex.A8	19.06.2018	Copy of reply notice of the 2nd opposite party
Ex.A9	09.06.2018	Copy of rejoinder notice to the 2nd opposite party with postal receipts

 

 

MEMBER                                                                                                                                                                                                  PRESIDENT