By Sri.  A. S. Subhagan,  Member:

          This is  a complaint filed under section 12 of the Consumer Protection Act 1986.

          2. Facts of  the  complaint in brief:-  The Complainant is a  marginal  farmer who is a health insurance  policy holder as per policy number  P/181324/01/2017/000958 since 28.11.2013 from  Opposite Parties including  insurance coverage to his family members.  The 1^st  Opposite Party  sent a  renewal notice  dated 29.08.2017  to the Complainant and demanded to remit  an amount of Rs.9,228/-  within  29.11.2017 as the premium amount for the year 2017-18 and  on subsequent month,  again sent a letter regarding the payment of renewal amount.  Considering  the letter issued  by the Opposite Party No.1,  the Complainant  entrusted a cheque dated  24.11.2017 for Rs.9,228/-  on 23.11.2017 of the  Catholic Syrian Bank,  Sulthan Bathery Branch with the  1^st Opposite Party  and  the Complainant went  to Karnataka for his ginger cultivation.  On 18.01.2018,  The Complainant received a postal  cover from the 1^st  Opposite Party,  enclosing the   cheque submitted to the  1^st  Opposite Party  by  the Complainant.  But no information regarding  the  return of the cheque was intimated by the Opposite  Party.   On the very next day,  on enquiry,  it was informed that the premium was enhanced  to Rs.13,010/-  and due to the difference  in the cheque amount it was returned  to the Complainant.    The Complainant expressed his willingness  to pay the enhanced  premium for renewal,  but the 1^st  Opposite Party was not ready to accept the amount and also told the Complainant that due to the non-renewal of policy on 29.11.2017,  the policy was lapsed and not entitled for the benefits and renewal of policy.  The Complainant is eligible  for renewal of policy and remitted the demanded premium with 1^st  Opposite Party  even before the renewal  date.   The Opposite Parties had not  informed the enhancement of  premium to Rs.13,010/-  at any point of time the cheque was returned to the Complainant and the act of the Opposite Parties are  highly negligent and a part of their  unfair trade practice.  Due to the act of the Opposite Parties,  the Complainant has suffered huge amount of financial loss and mental agony  and the Opposite Parties are liable to redress the same.  Hence this complaint with the following prayers.

1.  To direct the Opposite Parties to renew the health insurance Policy of the Complainant bearing No.P/181324/01/2017/000958  from 29.11.2017 onwards.
2. To direct the Opposite Party to pay  Rs.50,000/-   as compensation against the negligence and unfair trade practice of Opposite Parties.
3. To  direct the Opposite Parties to pay an amount of Rs.10,000/-   as cost of this proceedings.
4. To grand  any other reliefs that this Commission deems fit  to grant.

3. Commission registered the complaint and notices were issued to the Opposite

Parties for appearance.  The Opposite Parties  appeared before the Commission and filed version.

          4. Contents of version in brief:-  The Complainant had taken a Family Health Optima Insurance Policy from the Opposite Party covering himself,  his wife and two children for a sum insured of Rs.3,00,000/- for the period from 28.11.2013  to 27.11.2014 vide policy No.P/181315/01/2014/002739 and the same has been further renewed up to  28.11.2016.  Thereafter,  the Complainant converted the policy from Family Health Optima Insurance  Policy to Medi Classic Individual Health Insurance Policy for himself only from 30.11.2016  to 29.11.2017.  He continued the Previous Family Health Optima Insurance Policy for his wife and two children  from 30.11.2016  to 29.11.2017.  Before expiry of the  last year policy in Family Health Optima,   the Opposite  Parties sent the renewal notice to the Complainant on 29.08.2017  and the same was received  by the Complainant in  time.  But the Complainant did not renew the policy within the grace period as per the terms and conditions of the policy.  As per  condition No.9  (renewal) of the policy,  a grace period  of 30 days from the date of expiry of the policy is available for  renewal.  The Complainant’s previous Family Health Optima Policy are expired  on 29.11.2017 and as per the terms and conditions of the policy it had to be renewed  within the grace period of  30 days  ie,  29.12.2017.  But the Complainant did not renew the policy  before 29.12.2017.  On 14.01.2018,  that is,  after expiry of one and a half months,  the Complainant entrusted  an envelope at the reception of the branch office.  On checking,  it was revealed that the envelope contained a cheque  which  did  not bear any date and  amount.  Since it was an inchoate Document (ie, without completing  material particulars such as date, amount and name of the payee),  the Opposite  Parties could not accept the same but it was returned to the Complainant on the very next day through registered post.  Moreover,  the Complainant had submitted such an inchoate  document after the grace period of renewal and so the Opposite Party could not issue the policy.   If  the Complainant had produced the cheque with amount and date within the stipulated time,  the Opposite Party would issue the policy.  According to the Opposite Parties all other allegations in  the complaint are false cooked up stories and  hence denied.  There is no deficiency in service or unfair trade practice on the part of the Opposite Parties and therefore,  the Complainant is not entitled to any compensation or costs of the proceedings.  The claim for compensation is unfounded  baseless and is only a figment  of Complainant’s  imagination to take illegal gains for himself.  No mental agony of whatsoever  nature has been caused as the bill has been settled by the Opposite Parties in time.  Hence the Opposite Parties pray to dismiss  the Complaint and to allow cost and compensation to the Opposite Parties and render justice.

          5. Chief affidavit was filed by the Complainant,  Exts.A1 to A3 were marked from his side and he was examined as PW1. Chief affidavit was also filed for the Opposite  Parties by  Balu. M,  Senior Executive-Legal,  Exts. B1 to B3 were marked from his side and he was examined as OPW1.

          6. On the basis of the complaint,  version, documents  marked from both the sides of the Complainant and the Opposite Parties,  Affidavits filed and  the oral evidences adduced by both the Parties,   the following  points  are raised by the Commission for consideration.

1.  Whether there has been any  deficiency in service  from the part of the Opposite Parties..?
2. If so,  whether the Complainant is entitled to get compensation?
3. If so,  whether the Complainant is entitled  to get cost of the complaint?
4. If so,  whether there is any need to renew the policy in question?

7. Point No.1:-  It is the admitted  fact that the  Complainant had a  Medi

Classic Individual Health Insurance Policy  from 30.11.2016  to 29.11.2017  and a Family Health Optima Insurance Policy for his wife and two children from 30.11.2016  to 29.11.2017.  The allegation of the Complainant is that on the basis of the renewal notice dated  29.08.2017 and the subsequent notice sent by the  1^st  Opposite Party,  the Complainant  entrusted a cheque dated 24.11.2017  for  Rs.9,228  as noted  and demanded in the Ext.A1 notice,  on 23.11.2017  of the Catholic Syrian Bank for renewal of the Health Insurance Policy of the  Complainant bearing No.P/181324/01/2017/000958  from  29.11.2017 onwards.  But  on 18.01.2018,  the Complainant received a postal cover from the  1^st  Opposite Party enclosing  the cheque submitted to the Opposite Party by the Complainant,  without any information as to the return of the cheque and  on enquiry the  Complainant was  informed by the Opposite Party that the  premium was enhanced and due to the difference in the cheque amount it was returned to the Complainant.  Though the Complainant expressed his willingness to pay the enhanced  premium for renewal,  the 1^st  Opposite Party was not ready to accept the amount and told that due to non renewal  of the policy on 29.11.2017,  the policy was lapsed and not entitled for the benefits and renewal of the policy.  According to the Complainant  he had remitted the premium amount demanded  by the Opposite Party  even before  the renewal  date.  The 1^st  Opposite Party had not informed the enhancement of the premium to Rs.13,010/-  at any point of time.  On the other hand the contention of the Opposite Party  is that though the renewal notice was received by   the Complainant he did not renew the policy within the grace period of 30 days as per the terms and conditions of the policy before 29.12.2017.  On the contrary,  on 14.01.2018,   that is after expiry of  one and a half months,  the Complainant entrusted an envelope at the reception of the  branch office and while checking it,  it was revealed that the envelope contained a cheque which  did  not bear any date and  amount.    Since it was an inchoate document  without  completing  material particulars such as date,  amount  and  name  of the payee,  the Opposite Party could not accept the same and as such it was returned  to the Complainant through registered post .  Moreover that  inchoate document was submitted  by the Complainant  after the grace period of renewal of the policy and so the Opposite Party could not renew the policy.  Commission  scrutinized the  evidences in detail.  The Opposite Party has admitted that they had received a  cheque and returned it to the Complainant.  The cheque in issue was produced before the Commission  by the Complainant and marked as Ext.A3.  On going through the cheque it is revealed that  it  bears a date (24.11.2017),  the name of the payee and the signature of the drawer.  In oral examination of PW1,  he has stated that “policy lapse  Bb-Xn\v tijw Rm³ Hcp blank cheque I¼-\n¡v  Ab-¡p-I-bmWv sNbvX-sX¶pw ]d-ªm icn-b-Ô.  Ext.A3 cheque bears the date 24.11.2017  which is much  before the last date for renewal of the policy.  The  office of the Insurance Company  is a Corporate office.  In a corporate office like insurance company,  it is the usual practice and official formality that all letter,  thappals,  documents or other valuables such as cheques,  drafts etc  are to be registered in office records, entering its receipt in the office.  It is also a needed formality or procedure to forward any documents to any office or policy holders with a covering letter regarding the acceptance or  return of cheque or documents showing the reasons for the rejection or return of the  same.  Here, the Opposite Parties  have not followed such needed procedures and formalities.  The Complainant was not informed  of the reason for the return of the chque by the Opposite Parties  at the time of return of the cheque.   If the Opposite Parties had entered or  registered the cheque in their inward register with the particulars in detail and produced it before the  Commission it  would substantiate  their  contention that the cheque did not bear any date  signature and name of payee.  Moreover, in one place of the version the Opposite Party contents that the cheque did not  bear any date and signature and but in another place contents that the cheque  did not bear any date,  signature and name of the payee.  So the contentions of the Opposite Parties that (1)   The cheque  was submitted by the Complainant after the grace period of the renewal of the policy and  (2)  the cheque did not bear any date,  signature ,  name of payee etc  could not be believed.  Moreover it is unbelievable  that an  ordinary common man like the Complainant having Health Insurance Policies for himself and the members of his family shall entrust a cheque in a corporate office like insurance company without bearing date,  signature  and name of the payee etc.  Under these circumstances,  considering all the evidences adduced before us we are  of the  view that  it was the duty of the Opposite  parties   to either renew the policy or to return the cheque with a covering letter narrating the reason for the rejection or return of it to the Complainant.  Here,  the Opposite Party has not  acted in good faith to do so.  This  is deficiency in service/unfair trade practice from the part of the Opposite Parties.  So point  No.1 is proved  against the Opposite Parties.  All other matters are immaterial for consideration.

8. Point No.2:-  As point No.1 is proved against the Opposite Parties,  they are liable to pay compensation to the Complainant.

9. Point No.3:- As point No.1 and 2 are proved  against the  Opposite Parties they are liable to pay cost of the complaint.

10. Point No.4:-  As  the renewal  of the policy  is related  to before  29.12.2017 there  is no need  of a  direction to the Opposite Parties for  renewal of the policy as the

matter has become infructuous. 

In the result the Complaint is partly allowed and the Opposite Parties are    ordered to:-

1. Pay a compensation of Rs.30,000/- (Rupees Thirty thousand only) to the Complainant and
2. Pay cost of the Complaint of Rs.8,000/- (Rupees Eight thousand only)  to the Complainant.

The above amounts shall be paid jointly and severally by the Opposite

Parties within one month from the date of this order failing which the  amount will

carry interest  @ 8% per annum from the date of this order.

          Dictated to the Confidential Assistant, transcribed by him and corrected by me and pronounced in the Open Commission on this the 20^th day of  September 2022.

          Date of filing:03.02.2018.

                                                                   PRESIDENT (I/C) :  Sd/-

                                                                   MEMBER             :   Sd/-

APPENDIX.

Witness for the complainant:

PW1.                    Mathews.                        Complainant.

Witness for the Opposite Parties:

OPW1.                 Balu. M.                          Assistant Manager.

Exhibits for the complainant:

A1.       Copy of Renewal Notice.       dt:29.08.2017.

A2.       Copy of Letter.                     

A3.       Cheque No.604333                dt:24.11.2017.                                    

Exhibits for the Opposite Parties:

B1.       Copy of Family Health Optima Insurance Policy- Schedule.

B2.       Copy of Mediclassic Insurance  Policy (Individual) – Schedule.

B3.       Copy of Policy Schedule.