Haryana

Ambala

CC/322/2017

Naresh Kumar - Complainant(s)

Versus

M/s Birla Sun Life Insurance - Opp.Party(s)

Ajay Kumar Sahu

13 Jun 2018

ORDER

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AMBALA

 

 

                                                          Complaint case no.        : 322 of 2017

                                                          Date of Institution         : 14.09.2017

                                                          Date of decision   : 13.06.2018

 

 

Naresh Kumar s/o Late Sh. Jyoti Pershad, aged 68 years, resident of H.No.4379/2, Anaj Mandi, Sadar, Ambala Cantt.

       ……. Complainant.

 

Vs.

M/s Birla Sun Life Insurance, Minarwa Complex, Roy Market, Ambala Cantt, through its Manager.

 

 ….….Opposite Party.

 

 

Before:        Sh. D.N. Arora, President.

                   Sh. Pushpender  Kumar, Member.            

                  

 

Present:       Sh. Ajay Kumar Sahu, counsel for complainant.

Sh. Puneet Sirpaul, counsel for Op.

 

 

ORDER:

                   In nutshell, brief facts of the present complaint is that the complainant to purchase a life insurance policy, which was given vide policy No.003931653 on 22.03.2010. Maturity date was 22.03.2040(total term was 30 years). It is pertinent to mention here that no such insurance is booked beyond 50/55 years whereas the complainant was above sixty years and he would live for 30 years after the purchase of policy. The complainant was assured by the agent of OP that the complainant would have to give only three installment and thereafter the maturity amount shall be disburse. He paid the three installment as directed by the agent of OP of Rs.11,955/- each i.e. Rs.35,865/- were paid  thereafter none came to complainant about the outcome of the policy.  The complainant had purchased the life policy and it was never disclosed that the OP-company shall invest the premium amount elsewhere to which there was no such disclosure on the part of OP-life insurance company by the representative of OP.  The OP after the expiry of several years sent a cheque of Rs. 12,332/- to the complainant which is quite meager equal to his depends.  After the receipt of said cheque, it was transpired that the OP has deducted 2/3 of actual amount paid to them which is high handedness of their part. The complainant has not encashed the cheque and lodging his protest vide the present complaint. He served a Regd. AD notice dated 15.05.2017 upon the Ops.  Due to this conduct of the Ops, complainant has suffered harassment mentally and physically and also suffered financial loss. Hence, the present complaint.

2.                Upon notice, OPS appeared through counsel and tendered written statement and stated that policy  purchased by the complainant he was required he was required  to pay premium for 30 years  as the premium paying term  was 30 years and policy  term was 30 years  as is quite evident from the proposal form dated 06.3.2010 but instead the complainant  paid a premium for 3 years  as is clear  from Para no.4 of the complaint  but thereafter  he stopped paying the premium, thereafter, consequently the policy was lapsed  and terminated due to non-payment of premium as per terms and conditions of the policy.  The complainant did not got revived the policy  inspite of numbers of lapsation/re-instatement notices issued by the OP. Since,  it was a unit linked  policy, therefore, surrender value of the policy  amounting to Rs. 12,332.47/- were sent to the complainant  by the OP through  cheque bearing no.883527 dated 27.03.2017. Since the OP has discharged its liability by sending the cheque  of surrender value of the policy  to the complainant as per terms and conditions of the policy documents. Therefore, Op’s not liable to pay any further amount under the said policy to the complainant and prayed for dismissal of the present complaint.

3.               To prove his version complainant tendered his affidavit as Annexure C-A with documents as annexure C-1 to C-26 and close his evidence. On the other hand, Counsel for the OPs tendered two affidavit as Annexure R-A along with Annexure R-1 to R-7 and close his evidence.

4.                We have heard counsel for the parties and carefully gone through the case file.

5.                The complainant has allegedly purchased the life insurance policy and had deposited annual amount of Rs.11,955/- for three years started in the year 2010 upto 2012 but when he came to know from the OP that it is not a life insurance policy rather it is BSLI Dream Endowment Plan(unit Linked Plan). The Op has sent a cheque dated 27.03.2017 of Rs.12,332.47/- i.e surrender value of the policy to the complainant. It was transpired that the Op has deducted 2/3 of actual amount paid to them. It is clear that, it is a BSLI Dream Endowment Plan(Unit Linked Plan) and not life insurance policy as per Annexure C-5, C-6(policy value provisions). It is not disputed that complainant has deposited Rs.35,865/- and the policy in question is in a lapsed condition and as per the policy provisions which is reproduced in the Head note premium discontinued  as under :

Premium Discontinuance:-

 If you are unable to pay the policy premium by the due date, you will

be given a grace period of 30 days, during which time all insurance under this policy will continue.

During the first three policy years:-

If we do not receive the entire policy premium by the end of the grace period, , this policy will be deemed lapsed and all insurance will cease  immediately. You will then have two years from the lapse date to revive your policy.

 Revival:-

To revive your policy, you must pay all due and unpaid policy premiums till date and provide us with evidence of insurability satisfaction to us with respect to the Life Insured. The effective date of the revival is when these requirements are met and approved by us. On the effective date of the revival, the policy fund value as of the lapse date will first  be reduced  by all outstanding policy charges due since  the lapse date and then reinvested  at the then prevailing unit price(s).

The current charge for revival is Rs.100 and we reserve the right to increase this charge at any time, subject to a maximum of Rs.1,000/-.

Non-revival:-

If the policy is not revived by the end of the two-year revival period, we will terminate this contract and pay the surrender value as of the lapse date to you at that  time or at the end of the third  policy  year,  while later. The surrender value as of  the lapse  date  vary based on the performance of the investment and will remain constant  till the time  it is paid to. You cannot make partial withdrawals until the revived or until the end of the third policy year whichever is later. You may however referred surrender your policy after three completed policy period in which case we will immediately pay surrender value as of the lapse date.

After three completed policy years.

You have the right to reduce (subject to a minimum Rs.5000/- or discontinue your Enhanced premium by submitting a written request. Thereafter your policy premiums will be accordingly. If we do not receive the entire premium by the end of the grace period, you have given two years to pay all due and unpaid premiums. During these two years your completion including all insurance, will continue with apply policy charges deducted on monthly processing deduction.

If we do not receive all due and unpaid policy premium by the end of the two-year period, your will have option to either surrender your policy  for its surrender value  at that time or continue  the policy without any future policy premium”.

                    Though the complainant has alleged that fraud has been committed as it was promised that policy of life insurance but they have issued the Unit Linked Plan and when he came to know about the said fraud played with him he stopped the above said payment and prayed for paying the amount Rs.35,865/- with interest but this plea is not maintainable in view of the above term and condition and this Forum cannot interfere with the terms and conditions and complainant himself also relied upon the terms and conditions of the policy i.e. Birla Sun Life Insurance Dream Endowment Plan Annexure C-5 & C-6. It is not disputes OP has sent a cheque of Rs.12,332.47/- i.e. surrender value to the complainant on 27.03.2017. They are duty bound to send the surrender value when the policy was in lapse condition. So, the Op has liable to pay the interest to the complainant from the date when the surrender value is due either after expiry of the period of three years or policy in a lapse condition. Hence, the complainant is entitled the interest @ 12%, when the surrender value accrued under the policy since April 2012 till its realization after deducting the amount Rs.12332.47/- paid by the OP on 27.03.2017. Accordingly, the present complaint is allowed with cost which is assessed Rs. 5,000/- with the direction to the OP to pay the interest @ 12 % per annum from the date when the surrender value accrued under the policy since April 2012 till its realization after deducting the amount Rs.12,332.47/- paid by the OP on 27.03.2017 within thirty days from receipt of copy of the order. Copy of this order be supplied to both the parties free of cost. File be consigned after due compliance.

Announced on : 13.06.2018

 

                    

 

 

 (PUSHPENDER KUMAR)                       (D.N. ARORA)

Member                                        President