BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

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Jagdeep Singh Bhasin son of late Sh.Avtar Singh, resident of Flat No.5133/1, Modern Housing Complex, Manimajra, Chandigarh.

…..Complainant

                                V E R S U S

1]     M/s Aviva Life Insurance Company, Sector 9, Chandigarh, through its Branch Manager.

2]     M/s Aviva Life Insurance Company, Aviva Tower, Sector Road, Opposite Golf Course, DLF, Phase V, Sector 43, Gurgaon, through Branch Manager/Principal Officer.

                                        ……Opposite Parties

CORAM:   SH.P.D.GOEL                                PRESIDENT

                SH.RAJINDER SINGH GILL               MEMBER

                DR.(MRS).MADANJIT KAUR SAHOTA   MEMBER

Argued by:        Sh.V.K.Diwan, Counsel for Complainant.

                        None for OPs.

PER  RAJINDER  SINGH  GILL,  MEMBER

                In short, the facts of the case are that the complainant, on being allured by the promises made by the representatives of OPs, purchased a Unit Linked Insurance Policy (Annexure C-1) by paying premium of Rs.20,000/- having three year’s of lock-in period. He paid regular premium for 3 years, thereby depositing Rs.60,000/-.  According to the complainant, when he visited the OPs, after completion of three years of the policy, for exit, he was told that only an amount of Rs.7000/- was payable on the said policy as surrendered value.  Aggrieved by the said deficient act of OPs, complainant sent many representations to OPs (Ann.C-4A to C-4D), which were replied in a vague and evasive manner being contrary to norms laid down by the competent authority (Ann.C-5A to C-5D).  It is averred that the complainant has suffered mental tension, agony, physical harassment and financial loss to the above deficient act of the OPs.  Hence, this complaint has been filed.   

2]             OPs filed the joint reply. While admitting the factual matrix of the case, they pleaded that the complainant signed the proposal form, declaration made therein after understanding its terms & conditions and also about the implications of the policy.  It is also pleaded that in case the complainant was not satisfied with the policy, he could have applied for cancellation of the same within the Free Look-in Period of 15 days from the receipt of the policy under “Right to Reconsider’, but no such request was made.  However, the complainant, after paying three annual premiums of the policy, asked for surrender value, which was duly informed to him, but he did not surrender the same.  Denying all the allegations made in the complaint, the OPs have prayed for dismissal of the complaint.               

3]             Parties led evidence in support of their contentions.

4]             We have heard the ld.Counsel for the complainant and have also perused the record. 

5]             The case of the complainant is that he purchased a Unit Linked Policy i.e. Life Long Unit Linked Fund by paying Rs.20,000/- towards first premium. He had paid a total sum of Rs.60,000/- towards premium of said plan for regular three years.

6]             The grouse of the complainant is that when he approached the OPs to enquire about the value of his insurance plan, he was told that he will be entitled for a sum of Rs.7000/- only against the total payment of Rs.60,000/- paid by him towards the premium of said policy. 

7]             Admittedly, the complainant has not returned the policy document to the Opposite Parties within 15 days from the date of receipt of the policy, as stipulated in the policy, under Right to Reconsider, which states that “you have the right to review the policy terms and conditions and cancel your policy within a period of 15 days from the date of receipt of the policy document.  If you cancel your policy, the premium you have paid will be refunded after adjusting for adverse movement in unit prices less charges incurred on account of stamp duty and medical expenses, if any. However, as the complainant himself had not returned the policy document within the above stipulated period of 15 days, therefore, now he cannot seek the cancellation of the policy purchased by him alleging false allurement on the part of OPs.

8]             As far as the terms & conditions of the insurance policy are concerned, the complainant has himself singed the proposal form (Annexure R-1).  Once the complainant is signatory to the proposal form (Annexure R-1) and has also received the insurance policy & other documents, he cannot, at this later stage, wriggle out from those terms & conditions, which he had already accepted    and now say that he was not aware about it.

9]             So far as the imposing of surrender charges are concerned, in our opinion, the same are justified and applicable, as per terms & conditions of the policy (Annexure C-1), placed on record by the complainant himself.

10]           Reliance has been placed on the decision of Hon’ble National Commission in case of Life Insurance Corporation of India Vs. Anil P. Tadkalkar, 1(1996) CPJ 159 (NC), wherein it has been held that:-

“Moreover, we have not been able to understand how the Complainant can claim refund of all the premia paid by him during the period of the policies remained alive and the LIC had covered the risk.  If during this period the Complainant had died (an even which did not occur) the insurer i.e. LIC would have had to pay the full amount due under the policies even though only some fraction of the premia would have been realized by that time by the insurer. Hence on cancelling the policies the Complainant is only entitled to the surrender values of the two policies. It is immaterial what circumstances prompted him to cancel the policies.”

11]           In view of the above discussion, we are of the opinion that the complaint deserves to be partly allowed. The same is accordingly allowed partly. The OPs are directed to pay the value of the balance units of the complainant, promptly on his making such request, after deducting necessary charges/surrender charges, if any applicable, at that time, as per terms & conditions of the policy. However, there is no order as to compensation and litigation costs. 

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