BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL FORUM, JALANDHAR.

Complaint No.273 of 2014

Date of Instt. 13.08.2014

Date of Decision :16.09.2015

Bhagat Singh aged about 71 years son of Shiv Singh R/o House No.1234, Rurhaka Kalan, Tehsil Philluar, District Jalandhar.

..........Complainant Versus

1. M/s Birla Sun Life Insurance Company Limited, Registered Office:- One Indiabulls Centre, Tower 1, 15 & 16th floor, Jupiter Mill Compound, 841, Sena Pati Bapat Marg, Elphinstone Road, Mumbai-400013 through its Managing Director.

2. M/s Birla Sun Life Insurance Company Limited, 25, Gobind Mall, Ist FLr, Above Karnataka Bank, GT Road, Jalandhar, through its Manager.

.........Opposite parties.

Complaint Under the Consumer Protection Act.

Before: S. Jaspal Singh Bhatia (President)

Ms. Jyotsna Thatai (Member)

Sh.Parminder Sharma (Member)

Present: Sh.Vikas Gupta Adv., counsel for complainant.

Sh.APS Pathania Adv., counsel for opposite parties.

Order

J.S.Bhatia (President)

1. The complainant has filed the present complaint under the Consumer Protection Act, against the opposite parties on the averments that the complainant is a senior citizen and is aged about 70 years and is resident of above address. The agents of the opposite parties approached the complainant for the sale of single premium policy and has intimated complainant that they have very good insurance plan which involves the single premium around 2 to 3 lacs and sum insured is around 25 to 30 lacs depending upon the age of the insured person. On the representations, assurances, guarantees given by the opposite parties through their agent, complainant agreed to purchase the five insurance polices in the name of his children who are permanently settled abroad and are NRI and details of the policies obtained by complainant is as under:-

2. It is made clear that at the time of sale of the above said policies it was intimated to complainant by the officials/agent of the opposite parties that the policies are single premium policies. On the assurances, guarantees and representation given by officials of opposite party as stated above, complainant agreed to purchase the above said policies under the impression that these are single premium policies. Thereafter policy documents were never delivered to the complainant and in the month of July 2013 complainant when came to Jalandhar visited the Jalandhar office of opposite party and enquired about the status of policies as after the payment of the premium neither intimation nor even the policy documents were received by the complainant. On enquiry, complainant was informed that the policies are regular premium policies and next premium of the policies is due and complainant was highly surprised and shocked that all the policies are wrong and fraudulently done for regular premium policies when complainant has applied for the single premium policy even the policy documents were also not received by him. Complainant immediately contacted the insurance agent and on enquiry and on pressurizing him of dire consequences he admitted his guilt and delivered the policy documents to complainant on 14.8.2013 and immediately complainant filed a complaint with opposite parties at Jalandhar office for the conversion of the regular insurance policy into single premium policy or for the refund of premium amount after cancellation of the insurance policy on 24.7.2013 i.e within free look period but till date no reply has been received by complainant from opposite parties despite the repeated visits and calls. On such like averments, the complainant has prayed for directing the opposite party insurance company either to convert the policies into single premium policies or to refund the amount of the premium paid by him. He has also claimed compensation and litigation expenses.

3. Upon notice, opposite parties appeared and filed a written reply pleading that the complainant himself willing to show to purchase Life Insurance Policies of the opposite parties for their children and for himself approached the advisor of the opposite parties and got the entire information regarding all the plans of the opposite parties in vernacular language and thereafter, after understanding all the terms and conditions of the all the plans, he opted to purchase five insurance policies in which three policies under the plan name as BSLI Bachat Endowment Plan and two policies under the plan name BSLI Vision Plan of the opposite parties. They further pleaded that complainant never applied for cancellation of the policies within free look period. It is further mentioned that the complainant is a well educated person and disclosed his qualification as graduate and further the complainant at the time of filing of said applications forms opted the premium paying terms as per their own wishes and opted in some policies for 20 years and in some policies as 12 or 13 years and further he disclosed his income as Rs.16,20,940 per annum. After receiving the proposal forms and going through the entire contents of the proposal forms, the underwriters of policy, had issued the insurance policies accordingly to the complainant and sent the policy documents alongwith all terms and conditions of the policy to the complainant on the given address and the same were duly received by the complainant and the same are in his possession and this fact was admitted by the complainant also in the complaint and moreover he relied upon the same. No legal notice was ever received by the opposite parties from the complainant's counsel and the complainant has made a false story before the Forum. They denied other material averments of the complainant.

4. In support of his complaint, learned counsel for the complainant has tendered into evidence affidavits Ex.CA and Ex.CB alongwith copies of documents Ex.C1 to Ex.C11 and closed evidence.

5. On the other hand, learned counsel for the opposite parties has tendered copies of documents Ex.OP1 to Ex.OP46 and evidence of opposite parties was closed by order.

6. We have carefully gone through the record and also heard the learned counsels for the parties.

7. The fact that complainant obtained five policies from the opposite party insurance company is not disputed. According to the complainant he had opted for single premium policy but policy documents were never delivered to him and on enquiry he was informed that policies were regular premium policies and not single premium policies. On the other hand, according to the opposite parties that complainant after going through the contents of the proposal form signed the same after fully understanding the terms and conditions of the policies being applied for by him. Further according to the opposite parties, complainant had received the policies documents but never applied for cancellation of the policies within free look period. We have carefully considered the version of both the parties. The complainant served legal notice dated 9.6.2014 Ex.C1 upon the opposite parties before filing the present complaint and opposite party insurance company sent reply dated 25.7.2014 Ex.C10 to counsel for the complainant who had sent legal notice Ex.C1. In its reply to legal notice opposite party insurance company has, inter-alia, mentioned as under:-

"7.That after having looking into the facts of the matter as stated in the captioned legal notice, we as an exception basis, agree to cancel the aforesaid policies being policy Nos.005671171, 005671232, 005727474 & 005750046 and convert them into single premium plans. However the policy No.005750047 can not be converted into single premium plan as for single premium plan policy the minimum entry age is 18 years while the age of the LA in this policy is 6 years. Hence, we can not consider conversion of policy No.005750047 into single premium plan.

8. In order to enable us process your request for cancellation of the caption policies and conversion into a single pay option, kindly submit the below mentioned requirements at any nearest branch of Birla Sun Life Insurance Company Limited within 15 days from the date of receipt of our correspondence and on receipt of the same needful shall be done (Jalandhar).

Original policy document for policy numbers.,

Consent letter alongwith a copy of our communication,

Fresh application form,

Sales illustration duly signed,

Valid address and photo ID proof of the policy owner attested by self and branch head,

Post receipt of the above documents, we will be able to process your client's request for change in policy plan for the said policies".

8. So vide reply Ex.C10 opposite party insurance company offered to cancel the four policies and convert the same into single premium policy. At the time of arguments, counsel for the complainant stated at bar that as per above reply of opposite party insurance company and offer contained in it, it be directed to convert the four policies mentioned in the reply into single premium plan/policies.

9. So in the above circumstances, the present complaint is partly accepted and opposite party insurance company is directed to cancel the policy bearing Nos.005671171, 005671232, 005727474 & 005750046 and convert the same into single premium plan/policies. However, complainant shall approach the nearest branch of the opposite party insurance company for this purpose and surrender the above said original four policies alongwith consent letter etc as mentioned in the reply Ex.C10 and thereafter opposite party insurance company shall positively convert the above said four policies into single premium plan/policies. However, so far, 5th policy is concerned, the complainant shall be entitled to the amount, if any, as per rule and regulations and terms and conditions of the said policy. In the circumstances of the case, there shall be no order as to cost. Copies of the order be sent to the parties free of costs under rules. File be consigned to the record room.

Dated Parminder Sharma Jyotsna Thatai Jaspal Singh Bhatia

16.09.2015 Member Member President