DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

U.T. CHANDIGARH

Maninder Puri, age 44 years, D/o S.Inderjit Singh Jolly, H.No.1217, Phase 10, Mohali.

                                                                                    ---Complainant

V E R S U S

[1]     M/s Aviva Life Insurance Co. Ltd., Regd. Office 2^nd Floor, Prakash Deep Building 7, Tolls Toy Marg, New Delhi, through Seema Malhotra, complaints Redressal team.

[2]     Sh. Chirag Jain, Director Operations, M/s Aviva Life Insurance Co. Ltd., Aviva Life Insurance, Aviva Tower, Gurgaon – 12003.Sector Road, Opposite Gold Course, DLF, Phase-5,

[3]     M/s Aviva Life Insurance Co. Ltd., Branch Office: SCO No. 180-82, Sector 9, Chandigarh.

---Opposite Parties

BEFORE:            MRS.MADHU MUTNEJA                   PRESIDING MEMBER

                        SH.JASWINDER SINGH SIDHU            MEMBER

Argued By:      Sh. B.S. Jolly, Adv. for the Complainant.

Sh. Sandeep Suri, Adv. for the OPs.

PER JASWINDER SINGH SIDHU, MEMBER

1.             Complainant has filed the present complaint against the Opposite Parties (hereinafter referred to as OP for short), on the grounds that the complainant purchased one Life Saver Plus Policy No. LSP-1541281 by paying a premium of Rs.1 Lac on 31.3.2007. The same is annexed as Annexue C-1. It is also averred in the complaint that a minimum sum of Rs.15,000/- of premium was to be paid annually for the subsequent minimum three years. The complainant was assured by the agent that she will get good returns on her investments. However, later on, the complainant came to know about the fact of payment of Rs.1 Lac as premium annually. The complainant has averred in the complaint that due to financial constraints, she was unable to pay the premium and requested the OPs for the refund of Rs.1 Lac paid as first premium along with interest, the request to which the OPs failed to respond. The complainant claims that she approached the OPs many a times at their New Delhi and Gurgaon Office. The copy of the letter sent to the OPs is annexed as Annexure C-2. The complainant further states that one Seema Malhotra conveyed to her that she is not entitled to any refund because the policy has lapsed due to the non payment of second as well as third premium. The complainant thereafter, made a written request on 8.1.2010 to OPs No.1 and 2 for the refund of Rs.1 Lac along with interest. The copies of the letters and receipts are attached as Annexures C-3, C-4 and C-5 respectively. The complainant alleging deficiency in service as well as unfair trade practice on the part of OPs has prayed for the following reliefs:-

(a) Seeking direction to OPs to refund Rs.1 Lac along with interest @18% per annum since 18.3.2008;

(b)  Compensation to the tune of Rs.1 Lac on account of mental agony and harassment;

(c) And Rs.21,000/- as costs of litigation.

2.              On notice, OPs have filed their joint version/ written statement and have contested the claim of the complainant by raising preliminary objections to the present complaint stating that the averments of the present complaint are mere conjectures and surmises and the same cannot be pressed against the OPs as they are clearly an afterthought. OPs have strongly objected that there is no deficiency in service on their part and hence, there is no case made out against them. OPs pray for the dismissal of the present complaint with exemplary costs.

                On merits, OPs have stated the brief policy details on page 6 of the reply wherein the date of proposal form is mentioned as 19.3.2007, the date of commencement of policy is 31.3.2007, the sum assured is Rs.7,50,000/-, premium amount is Rs.1 Lac, premium frequency is Annual and the name of nominee is mentioned as ‘G.S. Puri’. The premium amount paid against the policy till date is Rs.1 Lac only.

                OPs have also annexed two letters dated 8.1.2010 written to OP No.2 and OP No.3 respectively through which the complainant had requested the refund of Rs.1 Lac paid as first premium saying that the complainant was in dire need of money. Through the same letter, the complainant has also mentioned that due to financial constraints, she was unable to continue with the aforesaid policy. The OPs has stated that while subscribing for the said policy, the complainant was well aware of all the facts as mentioned in the terms and conditions of the policy. It is also mentioned that the proposal form was filled up by the complainant and the policy was issued as per the disclosures of the proposal form.                       The OPs have stood their ground that it was incumbent upon the complainant to continue to pay the scheduled premium as per the policy requirements and as such, the failure on the part of the complainant in not doing so, is in no manner a deficiency in service on their part nor it amounts to any unfair trade practice. Furthermore, the complainant has herself annexed letter dated 2.7.2010 as Annexure Z through which the OPs have intimated the refund on account of the lapsed policy of the complainant and mentioned that Rs.22,863/- is being sent through an account payee cheque No.15570 dated 22.6.2010 drawn on Axis Bank. OPs claim that they have dispensed with all their obligations in a proper manner and hence, no case is made out against them. OPs pray for the dismissal of the present complaint with heavy costs.

3.              Parties led their respective evidences.

4.              Having gone through the entire complaint, version of the OP, the evidence of the parties and with the able assistance of the ld. Counsel for the parties, we have come to the following conclusions:-

(i) It has come to light that the present complaint is based on the insurance policy No.LSP1541281 purchased by the complainant on 31.3.2007 by paying a premium of Rs.1 Lac. A copy of the said policy is annexed as Exhibit C-1. The said policy actually belongs to the Ludhiana Branch of the OPs. The complainant at the time of purchase of the policy was also resident of Ludhiana. The address mentioned in the policy is as follows:-

                                “D/o Sh. Inderjit Singh Jolly,

                                House No.BVIII-685 (Old 466)

                                Brown Road, Nawa Mohalla,

                                Ludhiana-141004.”            

The said policy was raised from the Gurgaon Office of the OPs and bears signatures of OP No.2. Whereas the complainant sent the request for the refund of the first premium amount through her letters dated 8.1.2010 wherein her present address is mentioned as “No.1217, Phase X, Mohali – 160062”. The OPs have not taken any objection to the territorial jurisdiction of this Forum to try and adjudicate upon the present complaint. However, the OPs have taken the technical plea that as it was the inability of the complainant in paying the installment amounts on due dates, hence, the lapse of the policy was on account of the default of payment.

(ii) We feel, the complainant has made out the present complaint on the ground of having written two letters and the refusal of the OPs to entertain the refund of the premium amount as demanded by her. Hence, the cause of action according to the complainant arose when the OPs refused to refund the complete amount of Rs.1 Lac paid as first premium along with interest. 

(iii) The OPs have cited the Standard Terms and Conditions of the Policy as mentioned on Page 6 of Annexure X, wherein Clause 2 dealing with “Payment of regular premium, Grace Period and Reinstatement”, ciearly speaks about the right and the liabilities that accrue if the subscriber fails to pay regular premium. While going through this clause, we find that the complainant is not entitled to the complete value of the premium paid. However, after the lapse of three consecutive policy years, the complainant is only entitled to the surrender value and that too, attracts mortality charge and rider charge and the same were to be deducted from the surrender value. Furthermore, under clause 5 at Page 8 of Annexure X under the title “Surrender Value”, it is clearly mentioned that from the commencement of the fourth policy year, the policy will acquire a surrender value if regular premium due for the first policy year has been received and the surrender value will be equal to the value of initial units at the unit price applicable on the date of exemption, after deducting the surrender charge on initial units as specified in the schedule.

(iv) Though it is established through the letter dated 2.7.2010 of the OPs that OPs have paid the surrender value amounting to Rs.22,863/-, the complainant has not disclosed this fact in the present complaint and even if we believe that the said amount was paid after the institution of the present complaint, which is true, but the complainant has not come forward even to contest the amount paid to her by bringing any calculations on record  so that the calculations by which the OPs have reached the figures of Rs.22,863/- could be challenged.

(v) The complainant has also not come forward with any revelation about either the acceptance or refusal or conditional acceptance of the refunded amount of Rs.22,863/- sent by the OPs.

5.              In the light of above observations, we do not find any merit in the present complaint as the complainant has failed to prove her case convincingly. Hence, we dismiss the present complaint with out costs. However, the parties are left to bear their own costs of litigation.

7.                 Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

18^th November 2011.                                                                   

Sd/-

(MADHU MUTNEJA)

PRESIDING MEMBER

Sd/-

 (JASWINDER SINGH SIDHU)