DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II U.T. CHANDIGARH [Complaint Case No:240 of 2011] Date of Institution :30.05.2011 Date of Decision :30.03.2012 -------------------------------------- Sh. Roop Chand Arora son of Sh. Jisukh Ram resident of House No.1912, Phase V, Mohali – 160059. ….Complainant. (VERSUS) [1] M/s Kotak Mahindra, Old Mutual Life Insurance Limited, 9th Floor, Godrej Colliseum, Behind Everard Nagar, Sion (East), Mumbai – 400 022 through its Chief Operating Officer. [2] Chief Operating Officer, Kotak Mahindra, Old Mutual Life Insurance Limited, Central Processing Centre, 8th Floor, Godrej Colliseum, Behind Everard Nagar, Sion (East), Mumbai – 400 022. [3] Senior Sales Manager, kotak Mahindra, Old Mutual Life Insurance Limited, S.C.O. No.5, Top Floor, Sector 34-C, Chandigarh – 160034. ---Opposite Parties. BEFORE: SHRI LAKSHMAN SHARMA PRESIDENT MRS. MADHU MUTNEJA MEMBER SHRI JASWINDER SINGH SIDHU MEMBER Argued By: Sh. Roop Chand Arora, complainant in person. Sh. Gaurav Bhardwaj, Advocate for the OPs. PER LAKSHMAN SHARMA, PRESIDENT [1] Sh. Roop Chand Arora has filed this complaint under section 12 of the Consumer Protection Act, 1986 praying therein that OPs be directed:- i) To revoke the impugned order dated 20.05.2010 (Annexure C-12) whereby the policy in question was terminated and benefits were withdrawn; ii) To implement the written commitment (Annexure C-5) and pay the committed amount after the stated period in the written commitment; iii) To pay a sum of Rs.50,000/- as compensation for physical harassment and mental agony; iv) To pay a sum of Rs.20,000/- as costs of litigation and miscellaneous expenses. [2] In brief, the case of the complainant is that he took a Policy No.01467695 under the Plan known as ‘Kotak Smart Advantage (107L043V01)’ on 12.01.2009 through Sh. Vikram Sharma, Sales Manager of OP No.3. It was assured to the complainant that he shall be paid an assured return of 10% per annum besides a bonus of 2.25% per annum on the amounts of premiums paid by him. The complainant paid the initial premium of Rs.31,000/- vide cheque No.570402 dated 12.01.2009. The Policy document was received by him on 31.01.2009 from OP No.2 vide letter dated 21.01.2009. After going through the terms and conditions of the policy, the complainant claims that the verbal commitments made by Sh. Vikram Sharma have not been incorporated in the terms of the Policy. The complainant while exercising his option to terminate the policy requested the OPs for cancellation of the said policy on 04.02.2009 i.e. within the Freelook period. He also returned the Policy Documents to OP No.3. It is averred that neither the OPs cancelled the policy nor they refunded the premium paid by the complainant. Rather OP No.3 offered a fresh written commitment (Annexure C-5) to the complainant, as per which, he could withdrew the following amounts after specific intervals and only 2% deduction of the first premium is to be made. It was further committed that the complainant could surrender the policy and draw all his money:- A-----------------Rs.1,72,271/- (After 3 years) B-----------------Rs.2,32,612/- (After 5 years) C-----------------Rs.4,73,575/- (After 8 years) The complainant accepted the aforementioned written commitment (Annexure C-5) and withdrew its option dated 04.02.2009 of cancellation of the policy within the freelook period (Annexure C-4). Subsequently, the complainant paid the second annual premium of Rs.31,000/- vide Cheque No.570409 dated 13.01.2010 but he did not receive any acknowledgement receipt as against its payment. When nothing was received, he sent notice dated 22.12.2009 followed by letters dated 27.04.2010 and 08.05.2010 (Annexures C-9 to C-11). Consequently, the Premium Certificate was issued by the Manager-Client Service Desk of OPs No.1 and 2 vide his letter dated 20.05.2010. However, the complainant was shocked to know that while issuing the Premium Certificate, the said Manager-Client Service Desk has also terminated the Policy in question and have withdrawn all benefits thereunder. According to the complainant, he had not violated any terms and conditions of the Policy (Annexure C-3) and the order dated 20.05.2010 has been passed in an arbitrary and unilateral manner by the OPs. The complainant wrote various representations (Annexures C-14 to C-20) to the OPs as well as the Insurance Ombudsman Chandigarh but to no effect. It is averred that after the so called termination of the policy, OPs sent a demand notice dated 22.12.2010 to the complainant whereby the third annual premium was sought to be deposited by the OPs. The complainant also deposited the third annual premium vide receipt dated 10.01.2011 (Annexure C-22). According to the complainant, termination of the policy in question without there being any violation on his part amounts to deficiency in service and unfair trade practice. So, the present complaint has been filed by the complainant seeking the reliefs mentioned above. [3] Notice was served upon the OPs who appeared on 08.09.2011 and time was granted to the OPs to file their written statement along with the evidence. Thereafter, despite six opportunities granted to the OPs, they failed to file any written statement or the evidence by way of affidavit. Therefore, their defence was struck-ff by the Forum vide its order dated 06.03.2012 as it was held that the OPs were not interested to contest their case seriously. [4] We have heard the learned counsel for the parties and have perused the record. [5] Admittedly, Policy No.01467695 under the Plan known as ‘Kotak Smart Advantage (107L043V01)’ (Annexure C-1) was issued to the complainant by the OPs. Annexure C-2 is the copy of Schedule under the said policy as per which, the date of commencement was 20.01.2009 and the date of maturity was 20.01.2029. The term of the policy was 20 years and it was Unit Linked Endowment Assurance Plan. Admittedly, also the complainant paid all the three premiums as against the said policy. The case of the complainant is that the Manager-Client Service Desk has arbitrarily and illegally without assigning any reasons terminated the Policy in question vide his orders dated 20.5.2010 and all the benefits have been withdrawn by the OPs. Annexure C-12 is letter dated 20.05.2010 vide which the OPs terminated the said policy. The relevant contents of this letter read as under: - “This is in reference to your letter received by us on May 17, 2010 regarding your Kotak Smart Advantage Plan Policy number 01467695. I understand that from your letter that you are not in receipt of renewal premium receipt or a premium certificate for the premium payment you made in January 2010. Whilst I regret the inconvenience caused to you, I am enclosing herewith the copy of premium receipt and a premium-paid certificate for your reference. Further, you mention that upon your letter sent to us in April 2009 there has not been any action taken or a resolution provided. We have gone through our records and find that in April 2009 our sales team constantly followed up with you on your complaint and post meeting, re-explained the policy features and benefits and also received from you a letter stating your satisfaction towards their explanation in withdrawal of your complaint. I tried contacting your phone numbers earlier today to explain the above however could not get through to you. I trust your concerns have been addressed and the above policy stands terminated and benefits withdrawn”. [6] In the above letter, not even a single reason has been furnished by the OPs for terminating the policy in question and withdrawing all the benefits thereunder. The contents of this letter show malice on the part of OPs. Admittedly, there is no violation of any term or condition of the insurance policy in question on the part of OPs. However, the deficiency in service on the part of OPs is writ large. OPs issued premium receipt and a premium-paid certificate to the complainant in May 2010 when the premium was already paid vide cheque dated 13.01.2010. The policy in question has been terminated by the OPs in an arbitrary manner and that too when all the three premiums were received by the OPs. [7] Further also, Annexure C-5, which is a copy of Kotak Smart Advantage Plan, has been issued by the OPs in the name of the complainant. From this document, it is proved that the complainant could withdraw 20% of the value at any point and the policy would have to continue till the end. The Fund Value at the end of a particular period has been incorporated in this document in a tabular chart. As per this tabular chart, the complainant can withdraw the amounts of Rs.1,72,271/-, Rs.2,32,612/- and Rs.4,73,575/- after 3, 5 and 8 years respectively. A ‘Note’ is also printed on this document at the right end which reads as under: - “Note: premium paying term is 3 years. After three years, you can withdraw your money full or partial.” [8] Thus from this document, it is further proved that there was no bar on the complainant to withdraw the money fully or partial. [9] In these facts and circumstances, termination of the policy and withdrawing the benefits vide order dated 20.05.2010 despite receiving the three premiums from the complainant and also without there being any violation of terms and conditions of the policy amounts to deficiency in service as well as unfair trade practice on the part of OPs. [10] Even the averments made in the complaint have gone unrebutted in the absence of any reply or evidence by way of affidavit on behalf OPs, who despite several opportunities failed to submit their version. [11] From above discussion, it is abundantly clear that there is deficiency in service as well as unfair trade practice on the part of the OPs, as they terminated the policy in question in an arbitrary manner without giving due opportunity of hearing to the complainant and thereafter again accepting the third premium installment. So, the present complaint is allowed and the OPs are, jointly & severally, directed to:- i) To revoke the impugned order dated 20.05.2010 (Annexure C-12) whereby the policy in question was terminated and benefits were withdrawn; ii) To implement the written commitment (Annexure C-5) and pay the committed amount to the complainant after the stated period in the written commitment; iii) To pay a sum of Rs.20,000/- as compensation for physical harassment and mental agony; iv) To pay a sum of Rs.7,000/- as costs of litigation. [12] The above said order shall be complied within 45 days of its receipt; thereafter, the opposite parties shall be liable for an interest @18% per annum on the aforesaid amount of Rs.20,000/-, till actual payment, besides Rs.7,000/- as costs of litigation. [13] Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room. Announced 30th March, 2012. SD/- (LAKSHMAN SHARMA) PRESIDENT [DISCENTED] (MADHU MUTNEJA) MEMBER SD/- (JASWINDER SINGH SIDHU) MEMBER Ad/-
C.C.No.240 of 2011 Present: None. --- The case was reserved on 19.03.2012. As per the detailed order of even date recorded separately, this complaint has been allowed. After compliance file be consigned. Announced. 30.03.2012 Member President Member
| | MRS. MADHU MUTNEJA, MEMBER | HONABLE MR. LAKSHMAN SHARMA, PRESIDENT | MR. JASWINDER SINGH SIDHU, MEMBER | | 
