BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM,

ERNAKULAM.

Date of filing : 13/09/2010

Date of Order : 30/09/2011

Present :-

Shri. A. Rajesh, President.

Shri. Paul Gomez, Member.

Smt. C.K. Lekhamma, Member.

C.C. No. 492/2010

Between

And

O R D E R

C.K. Lekhamma, Member.

1. The complainant's case is as follows :

The complainant availed an insurance policy from the opposite parties on payment of the premium Rs. 50,000/-. The complainant issued cheque dated 19-10-2007 towards the subsequent premium. After three years, the opposite parties intimated the complainant by notice dated 17-05-2010 that the aforementioned cheque was dishonoured three years before and hence they closed the policy. Since, the opposite parties sent the cheque for collection after much delay, the complainant was under the bonafide belief that the cheque would have been honoured. The opposite parties are liable to refund the premium already collected from the complainant. But they had refunded only Rs. 14,035/- to the complainant. Hence the opposite parties committed deficiency of service. The opposite parties are liable to refund the balance premium amount of Rs. 35,965/- to the complainant. Hence this complaint. The complainant seeking reliefs against the opposite parties to refund the balance premium amount of Rs. 35,965/- to the complainant with interest and costs of the proceedings.

2. The complainant and the opposite parties appeared through counsel. We have given sufficient time to the opposite parties to file their version. But they did not file the same. Eventhen, we afforded an opportunity to the counsel for the opposite party to cross-examine the complainant. The complainant examined as PW1. Exts. A1 and A2 were marked on his side. Thereafter, the opposite parties remained absent. We have heard the counsel for the complainant.

3. The points for consideration are as follows :-

1. Whether the complainant is entitled to get refund of the balance premium amount from the opposite parties?

2. Costs of the proceedings, if any?

4. Point Nos. i. and ii. :- The case of the complainant is that he issued cheque dated 19-10-2007 towards the premium evenafter lapse of 3 years, the opposite parties informed the complainant that the cheque issued by him was dishonoured, hence they foreclosed the policy.

5. In Ext. A1 letter, it is stated that the opposite parties have not received the outstanding payment towards the premium hence they were constrained to foreclose the policy and sent cheque for an amount of Rs. 14,035.42 towards the final settlement of the policy. Ext. A2 letter dated 14-06-2010 in which it is mentioned that the cheque issued by the complainant on 19-10-2007 had been dishonoured. According to the complainant, he paid Rs. 50,000/- towards the premium there is no contrary evidence against the contention of the complainant. There is no evidence on record to show that the opposite party had sent the renewal of premium reminder to the complainant. Neither party produced the terms and conditions of the policy. So, we are at a loss to understand as to whether there is a clause in the policy if the complainant is not remitted the premium then the policy would become lapsed and the insured is not entitled to get the premium refunded. In view of the above, we are of the opinion that the complainant is entitled to get the entire amount that he remitted towards the earlier premium. During cross-examination, the complainant agreed that he received Rs. 14,035.42 from the opposite parties. Therefore, the complainant is entitled to get the outstanding amount of Rs,. 35,965/- from the opposite parties with interest. In the facts and circumstances of the case, we are not ordering any litigation costs. Since, we have already ordered refund with interest.

6. Accordingly, we allow the complaint and direct that the opposite parties shall jointly and severally refund Rs. 35,965/- to the complainant together with 9% interest from the date of complaint till realisation.

The order shall be complied with, within a period of one month from the date of receipt of a copy of this order.

Pronounced in open Forum on this the 30^th day of September 2011.

Sd/- C.K. Lekhamma, Member. Sd/- A. Rajesh,President.

Sd/- Paul Gomez, Member.

Forwarded/By Order,

Senior Superintendent.

A P P E N D I X

Complainant's Exhibits :-

Opposite party's Exhibits :: Nil

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Date of Despatch of this Order ::

By Post ::

By Hand ::