BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM,

ERNAKULAM.

Date of filing : 23/12/2010

Date of Order : 29/03/2012

Present :-

Shri. A. Rajesh, President.

Shri. Paul Gomez, Member.

C.C. No. 674/2010

Between

And

O R D E R

A. Rajesh, President.

1. The facts of the complainant's case are as follows :

Lured by the assurances of the 2^nd opposite party on behalf and behest of the 1^st opposite party, the complainant invested Rs. 25,000/- with the 1^st opposite party on 26-09-2007. The 2^nd opposite party assured the complainant that the 1^st opposite party would invest the amount in share market and there would be an assured payment of 10% dividend or more and at the end of the 3^rd year the invested amount and the accrued dividend would be returned to the complainant. On 13-10-2007, the complainant received a communication from the 1^st opposite party which contains clauses which are against the promises given to the complainant. The complainant immediately sent a registered letter dated 17-10-2007 to the 1^st opposite party to cancel the policy. There was no response and the complainant sent reminders dated 03-11-2007 and 12-01-2008. However, again there was no response. The complainant is entitled to get refund of Rs. 25,000/- with 10% of the assured annual dividend from 26-09-2007 till payment together with Rs. 5,000/- towards costs of the proceedings. This complaint hence.

2. The version of the 1^st opposite party :

The complainant has taken Bajaj Allianz Capital Unit Gain Policy from the 1^st opposite party. The policy was an investment plan as well as life Insurance policy giving life coverage for Rs. 2,50,000/-. The policy holder is to pay at least 3 years regular premium of Rs. 25,000/- each and as per Clause 37 (f) of the terms and conditions of the policy, the surrender charges will be 100% of the value of capital units if at least 3 full years regular premium have not been paid. The complainant has agreed to the said conditions and paid the first premium. The opposite party has not received any letter from the complainant as claimed by him. There is no deficiency in service on the part of the 1^st opposite party. The complainant has raised the grievances before this forum after a lapse of 3 years from the issuance of the policy and so the complaint is barred by limitation. The complainant is not entitled to get any of the reliefs as claimed for.

3. The complainant filed I.A. No. 209/2011 seeking direction against the 1^st opposite party to produce the present address of the 2^nd opposite party. The petition was allowed on 18-04-2011. On 30-05-2011, the 1^st opposite party sought time for production of the address of the 2^nd opposite party that was rejected by this Forum. However the 1^st opposite party furnished the address of the 2^nd opposite party on 02-08-2011, though seemingly belatedly. Anyhow, the notice against the 2^nd opposite party has not been completed. The complainant was examined as PW1 and Exts. A1 to A7 were marked on his side. The witness for the 1^st opposite party was examined as DW1 and Ext. B1 was marked on their side. Heard the learned counsel for the parties.

4. The points that arose for consideration are as follows :-

1. Whether the complaint is barred by limitation?

2. Whether the complainant is entitled to get Rs. 25,000/- with 10% of the assured annual dividend from 26-09-2007 till payment?

3. Whether the 1^st opposite party is liable to pay costs of the proceedings to the complainant?

5. Point No. i. :- Ext. A1 is the first premium receipt dated 26-09-2007 issued by the 1^st opposite party to the complainant which goes to show that the date of risk commencement from 26-09-2007 to 26-09-2027. Moreover on receipt of Ext. A1, the complainant intimated his dissatisfaction regarding the policy by Exts. A2, A4 and A6 letters. But seemingly, the letters fell in deaf years. Since the period of the policy is upto 2027, we are not to entertain the averments of the 1^st opposite party that this complaint is barred by limitation. Rejected hence.

6. Point No. ii. :- According to the complainant, the opposite parties assured the complainant that the amount would be invested in the share market and the assured dividend of 10% would be returned to the complainant after the expiry of 3 years. However, on the contrary, the 1^st opposite party vehemently contended that the complainant has received the terms and conditions of the policy and he is entitled to get refund of the amount only after the payment of premium for the 3 consecutive years in which he failed.

7. Ext. B1 is the proposal form submitted by the complainant and the terms and conditions of the policy. The 1^st opposite party contended that they have duly furnished the terms and conditions of the policy to the complainant. However, nothing is on record to substantiate the same. The complainant can opt in law for the continuance or otherwise of the policy as per Clause 15 in Ext. B1 which reads as follows :

“Free Look Period

Within 15 days of the receipt of this Policy, the policy holder may, if dissatisfied with it for any reason, give the Company a written notice of cancellation along with reasons for the same, and return the Policy Document to the Company, subject to which the Company shall send the Policy holder a refund comprising the first Regular Premium paid less the proportionate risk premium for the period the Life Assured was on cover and the expenses incurred on medical examination and stamp duty charges. The refund paid to the Policy holder will also be reduced by the amount of any reduction in the Regular Premium Fund Value and Top up Premium Fund Value, if any, due to a fall in the Unit Price between the date of allocation and redemption of units (without reference to any premium allocation rate or Charges).”

8. The 1^st opposite party does not have a case that they have got evidence to prove that they had duly despatched or sent Ext. B1 to the complainant to invoke Clause 15 as per law. It is more pertinent to note that the complainant had sent Exts. A2, A4 and A6 letters to the 1^st opposite party highlighting his grievances. Though the 1^st opposite party contended that they have not received any such letters. Exts. A3, A5 and A7 postal receipts go to show that the complainant has duly despatched the above letters in the correct address of the 1^st opposite party which have not been either refused or returned. For the same reason deficiency in service is conspicuous on the part of the 1^st opposite party.

9. In view of the above, the complainant is entitled to get the deposited amount from the 1^st opposite party with interest. The complainant has claimed 10% dividend for the amount from the 1^st opposite party, but no document is before us to show the offer or the acceptance of the same.

10. Point No. iii. :- Considering that this Forum has gone to the extend of allowing a full extend of the relief to the complainant, even which Bank cannot or do not give offer, we are sure that the primary grievances of the complainant has been met squarely, no order as to costs hence.

11. In the result, we partly allow the complaint and direct that the 1^st opposite party shall refund the deposited amount of Rs. 25,000/- to the complainant together with interest at the rate of 12% p.a. from the date of deposit till realisation.

The order shall be complied with, within a period of one month from the date of receipt of a copy of this order.

Pronounced in open Forum on this the 29^th day of March 2012.

Sd/- A. Rajesh, President.

Sd/- Paul Gomez, Member.

Forwarded/By order,

Senior Superintendent.

A P P E N D I X

Complainant's Exhibits :-

Opposite party's Exhibits :-

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