Date of Filling     : 25.04.2014.

                                                                                           Date of Disposal : 01.03.2016.

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, THIRUVALLUR - 1.

PRESENT:  THIRU.  S.  PANDIAN, B.Sc., L.L.M.,           …    PRESIDENT

                   TMT.  S.  SUJATHA, B.Sc.,                         …    MEMBER - I

C.C. No.29/2014

(Tuesday the 1^st day of March 2016)

Mr. R. Umapathy,

S/o. Mr. Ranganathan,

No.14-4, Sri Lakshmi Nagar,

Giri Street, Arikarai,

Maduravoayal,

Chennai - 600 095.                                                                  … Complainant.

                                                          / Versus /

1. ING VYSYA LIFE INSURANCE COMPANY LIMITED,

Rep. by its Chief Operating Officer,

ING Vysya House, 5^th Floor,

No.22, M.G. Road,

Karnataka - 560 001.

2. THE CHIEF OPERATING OFFICER,

ING Vysya Life Insurance Company Limited,

ING Vysya House, 5^th Floor,

No.22, M.G. Road,

Karnataka - 560 001.

3. PYRAMID VISION INDIA,

Corporate Agent for ING Vysya Life Insurance Company Ltd.,

Through its Authorized Signatory,

No.55, II Floor, Poonamallee High Road,

Chennai - 600 107.

4. PNS INSURANCE & FINANCIAL SERVICES LTD.,

Through its Authorized Signatory,

No.55, II Floor, Poonamallee High Road,

Chennai - 600 107.                                                           … Opposite Parties.

This complaint is coming upon before us finally on 03.02.2016, M/s. M. Anbalagan Associates, Counsel for the complainant and Thiru. T.V. Suresh, Counsel for the 1^st and  2^nd opposite parties and 3^rd and 4^th opposite parties set expare  for non appearance and no representation and upon hearing arguments of complainant and the 1^st & 2^nd  opposite parties,  having  perused the documents and evidence of them, this Forum delivered the following,

ORDER

PRONOUNCED BY THIRU. S.  PANDIAN, PRESIDENT

This complaint is filed by the complainant U/S 12 of Consumer Protection Act, 1986 against the 1 to 4 opposite parties for renewal of Life Insurance Policy and for  seeking compensation of Rs.1,50,000/- towards damages suffered by the him and Rs.50,000/- towards mental agony

The brief averments of the complaint is as follows:-

The complainant is a mason and he opted to have a insurance policy cover and availed a life insurance policy issued by 1^st and 2^nd opposite parties in the name of ING VYSYA NEW FULFILLING LIFE ANTICIPATED WHOLE LIFE PLAN on 24.10.2010 by paying the first half yearly premium of Rs.7,500/- vide Receipt No.01734667 and being the Policy Contract No.01865233.  The premium Term is 16 years, the sum assured is Rs.1,39,940/- and the date of the last premium is 24.10.2025.  The premium mode is Semi - Annual and the premium falls due each year on 2Fourth day of October and 2Fourth day of April.

2.       After the first premium, he contacted the customer care of the 1^st and 2^nd opposite parties and asked about making further installment of premium near his residence, he was advised by the customer care executives of 1^st and 2^nd opposite parties to make the payment towards the policy semi – annual premium with the 3^rd and 4^th opposite parties having their office at Nerkundram.  Based on the advice of the customer care executives of the 1^st and 2^nd opposite parties, the complainant had made the subsequent premiums with the 3^rd and 4^th opposite parties.   It is the duty of the 3^rd opposite party to collect the payments made by the customers, one such person is the complainant, and remit the same with the 1^st and 2^nd opposite parties in their concerned account and here in this case it should have been recorded in the account and here in this case it should have been recorded in the account of the complainant maintained by 1^st and 2^nd opposite parties (i.e.)Policy Contract No.01865233. 

3.       The complainant was under the fond hope that the money paid by him had reached the office of the 1^st and 2^nd opposite parties through the 3^rd and 4^th opposite parties and his policy is still in existence.  When he went and enquired with the 3^rd and 4^th opposite parties about the status of the Insurance Policy, they have informed him that the policy is lapsed as there was no subsequent payment after the First Premium payment on 24.10.2010.  He immediately tried to contact the 1^st and 2^nd opposite parties through phone as they are in Bangalore but all his attempts are in vain. 

4.       After this problem, while checking the documents pertaining to his policy No.01865233 issued by the 1^st and 2^nd opposite parties and payment receipts issued by 3^rd and 4^th opposite parties found that the receipts issued by the 3^rd opposite party is not having the policy contract number of the complainant which shows that the 3^rd opposite party had not remitted the money with the 1^st and 2^nd opposite parties for continuing the policy of the complainant and misappropriated the same for their personal gains and also caused wrongful loss by not renewing his Life Insurance Policy which began on 24.10.2010 with the 1^st and 2^nd opposite parties and they further cheated to the same value of Rs.37,500/- as ADD attached to his Life Insurance Policy.

5.       That on 06.02.2014 the complainant sent a legal notice to all the opposite parties and the same was received by the 2^nd opposite party on 10.02.2014 and the notice sent to the 3^rd and 4^th opposite parties and returned un-served with the postal endorsement “NO SUCH COMPANY”.  After the receipt of the notice the 2^nd opposite party neither sent a reply nor to took any initiative to resolve the issue.  Hence, this complaint.

6.     The contention of the written version by the  1^st and 2^nd opposite parties as brief as follows:-

This complaint is not maintainable.The complainant is guilty of suppressing material and pertinent facts relevant for the adjudication of the present complaint apart from filing a vexatious and frivolous complaint.It is nothing but the abuse of the process of law.The present complaint does not fall on the jurisdiction of this Hon’ble Consumer Forum as consumer case are done in summary proceeding and any case of cheating and fraud need an detailed trail.Hence, only Civil and Criminal courts have such jurisdiction.The complainant had availed the life insurance policy from opposite party for his own life and in this regard he had submitted a proposal from dated 8/03/2010 proposing for “ING New Fulfilling Life - Anticipated Whole Life Plan” a life insurance product which is approved by the Insurance Regulatory Development Authority (in short IDRA) a statutory body created by an Act of Parliament.The features of the above mentioned plan were duly explained in detail and only after understanding the same in its entirety, the complainant had opted for the said plan.The premium opted by complainant was Rs.7,500/- to be paid half-yearly, for a premium paying term of 16 years, and sum assured under the said policy was Rs.1,39,940/- for tenure of 52 years.The complainant had nominated his wife Mrs. Meena.U, as nominee under the said policy.

7.  After receipt of initial premiums, the opposite party had issued a policy bearing no.01865233 on 24.04.2010 along with the terms and conditions.  As per Regulation 6(2) of Protection of Policy Holder’s interest) Regulation 2002 issued by the IRDA, the policy holder is at liberty to review the terms and conditions of the policy and has the option to cancel the policy by stating the reason for his/her objection within 15 days of receipt of policy bond (Free Look Period).  In such a case, the Company shall refund the premium received from you for this policy (after deducting the proportionate risk premium for  the period of risk cover and expenses incurred by the company on account of medical examination and on stamp duty charges). 
8.  

10.       In order to prove the case on the side of the complainant, the proof affidavit submitted and Exhibit A1 to A8 were marked as his evidence.  While so, on the side of the 1^st & 2^nd opposite parties, the proof affidavit is filed along with the documents which are marked as Exhibit B1 and B4 as his evidence.

11.     At this juncture, the point for the consideration before this Forum is:

1. Whether there is any deficiency of service on the part of the opposite parties as alleged in the complaint?
2. Whether the complainant is entitled for any relief as prayed for in the complaint?

12.     Written arguments submitted by the 1^st & 2^nd opposite parties.  In addition to that oral arguments adduced on the side of the complainant, and on the side of the  1^st & 2^nd opposite parties.

 13.    Point  No.1:-

First of all, on careful perusal of the proof affidavit of the complainant which reveals the fact that the complainant has taken Life Insurance Policy issued by the 1^st and 2^nd opposite parties in the name ING VYSYA NEW FULFILLING LIFE ANTICIPATED WHOLE LIFE PLAN on 24.10.2010 for the sum assured for Rs.1,39,940/- by  paying the first half yearly premium of Rs.7,500/-.  The original contract number is 01865233 along with the receipt number 01734667 are marked as Ex.A1 series. The term of the policy is 16 years and the premium falls due each year on every 24^th day of October and 24^th day of April.  It is further learnt that after the first premium, the complainant contacted the customer care of the 1^st and 2^nd opposite party about making further instalments near his residence.  He was advised by the customer care executives to make payment towards the policy semi annual premium with the 3^rd and 4^th opposite parties having their office at Nerkundram and therefore the complainant had made subsequent premiums with the 3^rd and the 4^th opposite party vide the receipts numbers are 116, 331, 2202, 2213 & 2223 dated 03.02.2011, 03.05.2011, 14.11.2011 10.07.2012 & 04.12.2012 respectively which are marked as Ex. A2 to A6.

14.     Further, it is stated by the complainant that though it is the duty of the 3^rd opposite party is to collect the payment made by the complainant and remit the same with the 1^st and 2^nd opposite parties in their concerned account but the opposite parties failed to do so and thereby the policy taken by the complainant was lapsed as there was no subsequent payment made after the first premium paid on 24.10.2010 and immediately the complainant contacted the 3^rd & 4^th opposite parties to resolve the issue.  In this regard, they have not come forward to resolve the issue and thereof.    It is learnt that the 3^rd opposite party has not remitted the money with the 1 & 2^nd opposite parties for continuing the policy of the complainant and misappropriated the same for their personal gains.  The complainant had issued legal notice to all the opposite parties and the same was received by the 2^nd opposite party on 10.02.2014.  But the notice against the 3^rd & 4^th opposite parties were returned unserved with the postal endorsement that No such Company.  The legal notices along with returned cover is marked as Ex.A7 series.  The served acknowledgement against the 2^nd opposite party is marked as Ex.A8.  In furtherance, it is narrated by the complainant that the attitude of the 3^rd & 4^th opposite parties had caused financial loss and mental agony to the complainant.

15.     While so, on going through the evidence of the 1^st & 2^nd opposite party, it is learnt that the issuance of the policy Ex.A1 along with the terms and conditions to the complainant is admitted for which Ex.B1 is the Proposal Form given by the complainant and Ex.B2 is the terms and conditions.  At the time of issuance of the policy the complainant never raised any objection to the terms and conditions thereof within 15 days of the receipt of the policy documents and thereby it was presumed that the complainant was satisfied with the terms and conditions so  issued to him and therefore, the complainant is as such is legally stopped from disputing the terms and conditions of legally concluded contract.  It is further mentioned that the renewal premium so called paid by the complainant have not been remitted with the 1^st and 3^rd opposite party and therefore the Life Insurance Policy of the complainant has got lapsed and thereby there is not deficiency of service and unfair trade practice against them not only that prior to the Ex.B3 legal notice issued by the complainant.  The 1^st  & 2^nd  opposite party had filed the Police complaint against the 3^rd opposite party on 28.11.2013 and it so acknowledged by the Sub - Inspector of Police, Nagapattinam Town P. S. is marked as Ex.B4.

16.     At this juncture, from the above rival submissions put forth on either side it is crystal clear that there is no dispute regarding the Ex.A1 Life Insurance Policy issued in favour of the complainant and the receipt dated 24.04.2010.  Further, it is an admitted fact that the ING Life Insurance Policy in Ex.A1 has not been renewed and it has got lapsed due to the non - receipt of the renewed premium with the 1^st   & 2^nd opposite parties.   At this point of time, from Ex.B4 it is admitted that 3^rd & 4^th opposite parties are the corporate agency of  1^st & 2^nd opposite parties as per the corporate agreement dated 09.07.2009 with the 1^st & 2^nd opposite parties for soliciting Life Insurance business for M/s. ING Vysya Life Insurance Company Limited by using their office infrastructure and branch network for serving the customers as well and depositing renewal premium that customers pay for keeping their Life Insurance policies active.  So, in this aspect there is no dispute at all and therefore, there is no wrong with the complainant in paying the renewal premium for the subsequent Half -Yearly period pertaining to his Life Insurance Policy Ex.A1 to the 3^rd & 4^th opposite parties and hence Ex.A2 to Ex.A6 are of acceptable one and having its own relevancy.  

17.     It is further learnt that from Ex.A2 to Ex.A6, the complainant has paid the renewal premium within the time as per the terms and conditions of the 1^st & 2^nd opposite parties which was issued along with policy. At the outset, it needless to say that the complainant has paid the renewal premium in time to the 3^rd & 4^th opposite parties, but they have failed to remit the same with the 1^st & 2^nd opposite parties and from these act of the 3^rd & 4^th opposite parties it is certainly, the vicarious liability falls on the 1^s & 2^nd opposite parties, since the 3^rd & 4^th opposite parties are their corporate agent. Moreover, the filing of Police complaint by 1^st & 2^nd opposite parties, against 3^rd & 4^th opposite parties itself shows the acceptance of the wrongful act of the 3^rd &4^th opposite parties. From these above facts and circumstances, it goes without saying that there is not even a single wrong on the part of the complainant for having the Life Insurance Policy in favour of the complainant got lapsed. It is purely on the wrongful attitude of not remitting the premium paid by the complainant to the 1^st & 2^nd opposite parties in time by the 3^rd & 4^th opposite parties, which leads to lapse of the Life Insurance Policy and  caused mental agony hardship to the complainant after knowing the said fact of lapse of policy.

18.     In the light of the above observations, it is crystal clear that there is no deficiency in service to any extent on the part of the 1^st & 2^nd opposite parties but there is an unfair trade practice of 3^rd & 4^th opposite parties which amounts for deficiency in service and the same has been proved by the complainant with the relevant and consistent evidence which cannot be thrown out easily.  Thus point no.1 is answered.

19.       Point no.2:-

As per the decision arrived in point no.1 the complainant is entitled for renewal of the Life Insurance Policy bearing the no.01865233 from the 1^st & 2^nd opposite parties and for reasonable compensation with cost from 3^rd & 4^th opposite parties.     

20.     In the result, this complaint is allowed in part.  Accordingly, the 1^st  & 2^nd opposite parties are jointly or severally directed to renew the Life insurance Policy having Policy Contract No.01865233 in the name of the complainant as per the terms and conditions of the opposite party’s company by collecting any penal charges if deem fit and issue the valid Life Insurance Policy document to the complainant.  Further the 3^rd & 4^th opposite parties are jointly or severally directed to pay compensation of Rs.20,000/- (Rupees Twenty Thousand only) as a whole with interest of 9% from the date of filing of this complaint (25.04.2014) to till date (01.03.2016) for causing mental agony and hardship due to the deficiency of service on the part of the 3^rd & 4^th opposite parties and to pay Rs.5,000/- towards cost of litigation of this complaint.

The above amounts shall be payable within one month from the date of receipt of the copy of the order, failing which the said amount shall carry interest at the rate of 9.5% till the date of payment.

Dictated by the president to the steno-typist, transcribed and computerized by him, corrected by the President and pronounced by us in the open Forum on this 01^st  March 2016.

Sd/-***                                                                                                            Sd/-***

MEMBER - I                                                                                                  PRESIDENT

List of documents filed by the complainant:-

List of documents filed by the 1^st & 2^nd opposite parties:-

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MEMBER - I                                                                                                  PRESIDENT