BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, VELLORE DISTRICT AT VELLORE. PRESENT: THIRU. A. SAMPATH, B.A., B.L., PRESIDENT TMT. G. MALARVIZHI, B.E. MEMBER – I THIRU. K. DHAYALAMURTHI,B.SC. MEMBER – II CC. 13 / 2008 MONDAY THE 21ST DAY OF MARCH 2011. K. Renganathan, S/o. Sri Keerthivasan, 790, 8th Cross Street, Dr. Radhakrishna Nagar, Gandhi Nagar, Vellore – 632 006. … Complainant. - Vs – 1. M/s. Bajaj Allianz Life Insurance Company Limited, Rep. by its Manager, 54-1, Adjacent Bharathi Super Market, Hasthampatty, Salem 636 007. 2. M/s. Bajaj Allianz Life Insurance Company Limited, Rep. by its Manager, C.E. Plaza, Airport Road, Pune 411 006. … Opposite parties. . . . . This petition coming on for final hearing before us on 15.3.11, in the presence of Thiru. M.R.Ramanan, Advocate for the complainant and Thiru. M. Sampath Kumar, Advocate for the opposite parties, and having stood over for consideration till this day, the Forum made the following: O R D E R Pronounced by Thiru. A. Sampath, President of the District Consumer Disputes Redressal Forum, Vellore District. 1. The brief facts of the case of the complainant is as follows: The Insurance Advisor being the Agent of the opposite parties approached the complainant at Vellore-6, canvassed and advised the complainant to get himself insured by Life Insurance Policy. The Proposal Form No.0024896202 for Life Insurance duly signed by the complainant was received by the said Advisor Agent of opposite party No.1 together with cheque No.703691 dt. 27.7.06 for Rs.1/- lakh drawn on ICICI Bank Limited, Vellore Branch with a promise to send the Insurance Policy to be effective from the date of proposal. The opposite party also realized the cheque amount on 2.8.06 as per bank statement. The medical certificate was also obtained by the said Advisor / Agent. The complainant had been expecting the Insurance Policy to be delivered to him. Though the opposite parties realize the cheque amount the Insurance Policy was not delivered to him. The complainant received the letter dt.14.11.06 from the Salem Office of Opposite parties asking for Income Tax returns of the complainant for the 2 financial years 2004-2005 and 2005-2006 along with proof of income. The complainant sent the documents called for under cover of his letter dt. 27.11.06 through RPAD which has been duly acknowledged by the 1st opposite party office. Since he did not received any intimation or the policy, the complainant sent the letter dt.12.4.07 calling for the policy for which the opposite parties did not respond. The complainant was therefore constrained to issue the legal notice dt. 1.7.07 through his Advocate to the 2nd opposite party registered office, calling upon them to refund the amount since the Insurance Policy was not issued to the complainant. A copy of this legal notice dt. 1.7.07 was also sent to the Insurance Regulatory & Development Authority, Hyderabad. There was no response from the opposite parties though the legal notice was served. The 1st opposite party has now without assigning any reason sent the cheque dt. 12.7.07 with the letter dt. 13.7.07 for Rs.one lakh only by post received by the complainant on 3.8.07. The complainant received the cheque under protest and sent the letter dt. 6.10.07, claiming interest and damages and cost. The complainant had been put to mental agony and financial loss by the unfair trade practice adopted by the opposite parties. Therefore the complainant prays this Forum for directing the opposite parties to pay Rs.12,000/- towards interest for financial loss of use of the amount and to pay Rs.10000/- towards mental agony suffered by the complainant with cost. 2. The averment in the counter filed the by opposite parties are as follows: The opposite party denies all allegations made in the petition except those are specifically admitted herein and puts the complainant to the strict proof of the same. It is admitted that the complainant K. Regnanathan approached the opposite party through M/s. Team Life Care Company Limited, Salem for his life insurance coverage and submitted a proposal form No.0024896292 along with cheque dt. 27.7.06 for Rs.1,00,000/-. The said proposal could not be converted into policy on account of complainant non submission of pre-requisite material documents say income proof, full medical report, blood test report, ECG and allied and incidental report to insurance policy in spite repeated request. It is false that the insurance adviser obtained medical certificate. As the required documents were not submitted by the complainant, his life insurance proposal could not be converted into policy. After submission of the life proposal by the complainant, these opposite parties had been waited and expected several months for submission of those requisite documents from the complainant and keep the proposal in abeyance. It is true that the complainant submitted income tax returns for 2004-05 and 2005-06. Except the said income tax return no other documents were submitted as required by the opposite party which is not sufficient to issue huge life insurance coverage to the complainant as demanded by him. The life insurance cover would be issued on the basis of the health conditions and capacity to pay the premium of the complainant and would also involved very high risk factor hence it necessitates careful scrutiny. Without proper medical report and supporting lab test reports the insurance policy could not be issued on mere payment of the premium as alleged by the complainant. Due to non co-operation of the complainant, the opposite party could not be in position to issue policy to the complainant. Therefore no cross negligent of service on the part of the opposite party. 3. On 12.4.2007 the complainant sent a letter as if he was sent the all the required documents inspite of that the opposite party neglected to issue policy so he wanted refund of premium of Rs.1,00,000/- and followed by the legal notice dt. 1.7.07 to the 2nd opposite party with same allegation. Even after the issue of the letter dated 124.07 the opposite party perused the complainant to fulfill the required document to issue policy. In spite of that the complainant chosen to issue the legal notice hence the opposite party no other option to settle the issue. Immediately on receipt of the legal notice the opposite party without any delay send the deposited amount of Rs.1,00,000/- by way of cheque dt.12.7.07 for Rs.1,00,000/- drawn on UTI Bank, Salem along with the covering letter expressing their concern about non issue of policy for want of requirement to the complainant. The complainant accepted the cheque without any protest and also encashed the same, after wards he cannot claim any interest for the deposited amount. Immediately on receipt of notice the opposite party returned the deposited amount of Rs.1,00,000/- hence it cannot be said that the payment was made belatedly. In fact the opposite party incurred certain amount by way of administrative charges to scrutiny the complainant’s life proposal to issue life coverage. There is no express or implied agreement between the parties to pay any interest for such refund of the deposited amount. Hence there is no question of payment of interest to the complainant. On account of non receipt of the required reports and documents on the part of the complainant the opposite party not in a position to issue the policy. Therefore the opposite parties are not liable to pay any interest, damages for mental agony and for cost to the complainant. The complaint is bad for non-joinder of necessary parties. The complainant is not the consumer as per the definition of the C.P. act and hence the complaint is not maintainable before this Forum. For the reasons stated above the petition is devoid of merits, lacks bonafide and deserves to be dismissed with costs. 4. Now the points for consideration are: a) Whether there is any deficiency in service, on the part of the opposite parties? b) Whether the complainant is entitled to the reliefs asked for?. 5. Ex.A1 to Ex.A9 were marked on the side of the complainant and no documents were marked on the side of the opposite parties. Proof affidavit of the complainant and Proof affidavit of the opposite parties have been filed. No oral evidence let in by either side. 6. POINT NO. a) It is admitted facts of the parties that the agent of opposite parties approached the complainant at Vellore-6 canvassed and advised the complainant to get himself insured by the Life Insurance policy. Accordingly, the proposal form No.0024896202 for life insurance duly singed by the complainant was received by the opposite party-1 together with cheque No.703691 dt. 27.7.06 for Rs.1,00,000/- drawn on ICICI Bank Limited, Vellore branch with a promise to send the Insurance policy to be effected from the date of proposal. The 1st opposite party also realized the cheque amount on 2.8.06 as per bank statement Ex.A1. But, the opposite parties did not delivered insurance policy to the complainant. Since the complainant did not receive any intimation or the policy, he sent a letter Ex.A3, dt. 12.4.07 calling for the policy but the opposite party did not respond. Thereafter, the complainant issued a legal notice Ex.A6, dt. 1.7.07 to the 2nd opposite party calling upon them to refund the amount, since the insurance policy was not issued to the complainant. Then, the 1st opposite party has sent a cheque dt. 12.7.07 with the letter Ex.A7 dt.13.7.07 for Rs.1,00,000/- to the complainant. The complainant received the said cheque under protest and sent a letter Ex.A8, dt. 6.10.07, claiming interest, damages, and cost. 7. The complainant contented that after receipt of legal notice only, the 1st opposite party without assigning any reason sent a cheque dt. 12.7.07 with a letter Ex.A7, dt.13.7.07 for Rs.1,00,000/- to the complainant. The complainant received the cheque under protest and sent a letter Ex.A8, dt. 6.10.07, claiming interest and damage for delayed payment. The complainant has lost the benefit of the use of the amount which the opposite parties used in their business from 2.8.2006 till 12.7.07. The complainant had been put to mental agony and financial loss. Hence the opposite parties have committed deficiency in service. 8. The opposite parties contented that the insurance proposal could not be converted into policy on account of complainant non submission of pre-requisite material documents i.e. income proof, full medical report, blood test report, ECG and allied and incidental report to insurance policy in spite of repeated request. Except the income tax returns no other documents were submitted as required by the opposite party which is not sufficient to issue huge life insurance coverage to the complainant as demanded by him. Therefore, due to non cooperation of the complainant the opposite party could not be in position to issue policy to the complainant. On receipt of legal notice Ex.A6, dt. 1.7.07 the opposite parties without any delay send the deposited amount of Rs.1,00,000/- by way of cheque dt. 12.7.07 along with covering letter Ex.A7, expressing their concern about non issue of policy for want of requirement to the complainant. 9. It is admitted case of the parties that the complainant submitted a Insurance proposal form No.0024896202 along with cheque dt. 27.7.06 for Rs.1,00,000/- to the 1st opposite party M/s. Bajaj Allianz Life Insurance Company Limited and the 1st opposite party is also realized the said cheque amount on 2.8.06. According to the opposite parties that the said proposal could not be converted into policy on account of complainant non submission of pre-requisite materials documents say income proof, full medical report, blood test report, ECG and allied and incidental report to insurance policy in spite of repeated request. The contention of the complainant that the complainant received a letter dt. 14.11.06 from the 1st opposite party asking for income tax returns of the complainant for two financial years 2004-05 and 2005 -06 along with proof of income. Accordingly, the complainant sent the said income tax returns to the 1st opposite party. From the perusal of letter Ex.A2, dt. 27.11.06 sent to the 1st opposite party it is mentioned that with reference of 1st opposite party’s letter dt.14.11.06, the complainant enclosing the Xerox copies of income tax returns for last two financial year 2004-05 and 2005-06 with proof of his income. The opposite parties stated in their counter and proof affidavit that except the said income tax returns no other documents were submitted as required by the opposite parties. But there is no documents on the side of the opposite parties to prove that inspite of repeated requests the complainant could not submitted materials documents. 10. From the perusal of letter Ex.A3, dt.12.4.07, sent by the complainant to the opposite parties, it is mentioned that inspite of his effecting payment of premium and furnishing all the requirements particulars, the complainant was not yet received policy and receipt even after a lapse of nine months period, and take instantaneous action by sending the policy along with receipt immediately. In its letter, it is further mentioned that if no reply is received within 10 days from the date of receipt of this letter, the complainant take legal action for recovery of the amount of Rs.1,00,000/- along with 12% interest till the date of receipt of the amount from 3.8.06. After receipt of the said letter, the 1st opposite party did not sent any reply to the complainant. Thereafter the complainant has sent a legal notice Ex.A6, dt. 1.7.07 to the opposite parties calling upon them to refund the amount since the insurance policy was not issued to the complainant. The opposite parties did not send any reply to the complainant. But, the 1st opposite party sent a letter Ex.A7, dt. 13.7.07 along with the cheque dt. 12.7.07 for Rs.1,00,000/-. The complainant received the cheque under protest on 3.8.07 and sent a letter Ex.A8, dt. 6.10.07 to the opposite parties claiming interest and damages and cost. From the perusal of Ex.A7, dt.13.7.07, it is mentioned that the opposite parties are returning the complainant’s deposit as they have not able to get the requirements under the policy, they will be reconsider fresh proposal if received along with the requirements. Therefore, it is clear that the 1st opposite party has without assigning any reason sent the cheque dt. 12.7.07 with the letter Ex.A7, dt. 13.7.07. 11. The learned counsel for the opposite parties argued that on receipt of the legal notice Ex.A6, the opposite parties without any delay sent the deposited amount of Rs.1,00,000/- by way of Cheqe dt. 12.7.07 with the covering letter express their concern about non issue of policy for want of requirements to the complainant. Hence it cannot be said that the payment was made belatedly and there is no express or implied agreement between the parties to pay any interest for such refund of the deposited amount. In this connection the learned counsel for the opposite parties relied upon the following Judgement of Hon’ble Supreme Court of India. (2007) 1 MLJ 195 (SC) National Insurance Company Ltd., Vs Nipha Exports Pvt Ltd., Wherein the Honble Supreme Court of India is held that, Consumer Protection Act (68 of 1986), (1) (d) 23, - National Commission Insurance Company to pay 6% as damages for delay in claim amount – said order challenged by Insurance Company. No complaint by respondent that discharge voucher obtained from him fraudulently, or by exercise of undue influence or by misrepresentation or the like – Respondent’s claim finally settled by letter dated 8.4.1994 – Payment made on 8.6.1994 and accepted by respondent without any qualifications – No delay in payment of claim, amount warranting award of interest – Important date to consider is the date on which the quantum of compensation to be paid and to whom, is finally decided – Not the date on which correspondence ensued between parties – National Commission’s view , hence, erroneous – National Commission’s order, set aside. 12. The Learned counsel for the complainant argued that after realized the cheque amount on 2.8.06 and received the income tax returns of the complainant for two financial years 2004-05 and 2005-06 along with proof of income, the opposite parties did not delivered the insurance policy to the complainant. Even after receipt of the letter Ex.A3, dt. 12.4.07 the opposite parties did not take any efforts to deliver the policy or return the said cheque amount to the complainant. Then the complainant has sent a legal notice Ex.A6, dt. 1.7.07 to the opposite parties calling upon the refund of the amount since the insurance policy was not issued to the complainant, there was no reply from the opposite parties. After receipt of the legal notice only the 1st opposite party sent a letter Ex.A7, dt. 13.7.07 along with the cheque dt.12.7.07 for Rs.1,00,000/- and the complainant received the cheque under protest 3.8.07. Therefore the said payment was made belatedly more than 11 months. Therefore the ruling cited by the learned counsel for the opposite parties is not applicable to the facts and circumstances of this case. 13. It is admitted facts of the parties that the above said cheque amount was realized on 2.8.06 and x-copies of income tax returns of the complainant for the two financial years 2004-05 and 2005-06 along with proof of income tax received by the opposite parties on 27.11.06, since the complainant did not received any intimation or the policy the complainant sent a letter Ex.A3, dt. 12.4.07 to the opposite parties stated that inspite of his effecting payment of premium and furnishing all the requirement particulars the complainant was not yet received policy and receipt even after a lapse of nine month period, and no reply within 10 days from the date of receipt of this letter, the complainant take legal action for recovery of the amount of Rs.1,00,000/- along with 12% interest till the date of receipt of the amount from 3.8.06. Even after receipt of this said letter the opposite parties did not sent any reply to the complainant. Only after receipt of legal notice Ex.A6, dt. 1.7.07 the 1st opposite party without assigning any reason sent a letter Ex.A7, dt. 13.7.07 along with the cheque dt. 12.7.07 for Rs.1,00,000/- to the complainant. The complainant received the said cheque under protest on 3.8.07 and sent a letter Ex.A8, dt. 6.10.07 to the opposite parties claiming interest and damages for delayed payment. There is no documents on the side of the opposite parties to prove that the Insurance proposal could not be converted into policy on account of non submission of pre-requisite material documents i.e. income proof, full medical report, blood test report, ECG and allied and incidental report to insurance policy in spite of repeated request. Therefore it is clear that after realized the cheque amount for premium on 2.8.06 and received the income tax returns of the complainant for the two financial years 2004-05 and 2005-06 with proof of his income on 27.11.06, the opposite parties did not delivered the insurance policy to the complainant. Even after receipt of the letter Ex.A3, dt. 12.4.07, the opposite parties did not send reply letter only after receipt of legal notice Ex.A7, dt. 1.7.07, the 1st opposite party without assigning any reason sent a cheque for Rs.1,00,000/- dt.12.7.07 along with a letter dt.13.7.07 to the complainant. The opposite parties have made belated payment to the complainant. Further, the complainant has lost the benefit of the use of the amount which the opposite parties used in their business from 2.8.06 to till 13.7.07. The ruling cited by the learned counsel for the opposite parties is not applicable to the facts and circumstances of this case. 14. Hence, taking into account with regard to the contention of the complaint and the counter, as well as proof affidavit of the both the parties, and from the documents Ex.A1 to Ex.A9, we have come to the conclusion that the attitude of the opposite party herein, would have certainly committed deficiency in service. In such circumstances, we have come to the conclusion that the complainant herein has clearly proved the deficiency in service on the part of the opposite parties herein. Hence we answer this point (a) is accordingly. 15. POINT NO. (b): In view of our findings on point No.(a), the opposite parties are jointly and severally directed to pay an interest of 9% p.a. for the policy amount of Rs.1,00,000/- from 3.8.2006 to 13.7.2007 to the complainant and also to pay a sum of Rs.2,000/- towards compensation for the mental agony and financial loss. Hence this point (b) is also accordingly. 16. In the result, this complaint is partly allowed. The opposite parties are jointly and severally directed to pay an interest of 9% p.a. for Rs.1,00,000/- from 3.8.2006 to 13.7.2007 to the complainant. They are also directed to pay a sum of Rs.2000/- (Rupees two thousand only) as compensation for mental agony and financial loss. and also to pay a sum of Rs.1000/- (Rupees one thousand only) towards the cost of this complaint. The opposite parties are also hereby directed to pay the above said amounts within one month from the date of receipt of copy of this order, failing which, the complainant is also entitled to interest on the above said sum @ 9% p.a. from the date of default till the date of payment. Dictated to the Steno-typist and transcribed by her, corrected and pronounced by the President, in Open Forum, this the 21st day of March 2011. MEMBER-I MEMBER-II PRESIDENT. List of Documents: Complainant’s Exhibits : Ex.A1- 2.8.06 – X-copy of Statement of Account from ICICI Bank, Vellore. Ex.A2- 27.11.06 – X-copy of letter sent by the complainant to the 1st opposite party. Ex.A3- 12.4.07 - X-copy of letter issued by the complainant to the opposite parties. Ex.A4- -- - X-copy of Postal Ack. from the 1st opposite party. Ex.A5- -- - X-copy of Postal Ack. from the 2nd opposite party. Ex.A6- 1.7.07 - X-copy of legal notice issued by the 1st opposite party. Ex.A7- 13.7.07 - X-copy of letter received from the 1st opposite party with cheque Dt. 12.7.07 for Rupees one lakh. Ex.A8- 6.10.07 - X-copy of letter from the complainant to the 1st opposite party. Ex.A9- -- - X-copy of Postal Ack. Opposite parties Exhibits: .. Nil .. MEMBER-I MEMBER-II PRESIDENT.
| | [ Hon'ble Tmt G.Malarvizhi, B.E] MEMBER[ Hon'ble Thiru A.Sampath, B.A., B.L] PRESIDENT[ Hon'ble Tr K.Dhayalamurthy, Bsc] MEMBER | |
