CONSUMER DISPUTES REDRESSAL FORUM – X
GOVERNMENT OF N.C.T. OF DELHI
Udyog Sadan, C – 22 & 23, Institutional Area
(Behind Qutub Hotel)
New Delhi – 110 016
Case No.568/2012
SHRI HEMANT MIRCHANDANI
127 RAS VOJAR APARTMENTS,
99, I.P. EXTENSION,
DELHI-110092
…………. COMPLAINANT
VS.
M/S TATA AIG LIFE INSURANCE COMPANY LTD.,
1ST FLOOR, COMMUNITY CENTRE,
NEW FRIENDS COLONY,
NEW DELHI-110065
………….. RESPONDENT
Date of Order:10.06.2016
O R D E R
A.S. Yadav – President
The complaint pertains to mis-selling of insurance policy.
The factual matrix leading to the filing of the complaint is that the complainant’s father was induced by Mr. Moolchandani to purchase three policies in the name of the complainant for Rs. 50,000/- each. The complainant was assured a return of Rs.2,65,469/- immediately. The three insurance policies bearing no. C284508179, C675275723 and C675279509 were received by the complainant in July 2011 but the complainant’s father did not open the policy as instructed by aforementioned Mr.
Moolchandani. Thereafter, he opened the policies envelopes as he did not received the promised assured return. He made several complaints to the OP company asking them to look into the matter. The first complaint was made on 18.08.2011 and a reply was received from OP vide letter dated 29.08.11. In the reply it is stated that free look cancellation period is over and hence the policy cannot be cancelled. The complainant’s father again made a complaint vide letter dated 08.09.2011, stating about the fraudulent conduct of the OP’s agents. OP in their letter dated 26.09.2011promised to investigate the matter. As complainant’s father failed to receive any investigation report he once again made a complaint vide letter dated 26.09.11. OP vide letter dated 30.09.2011 replied that necessary action will be taken on the issues raised by the complainant’s father. However, the said policies cannot be cancelled beyond the “Free look Period”.
The complainant’s father made further compliant to IRDA but no action has been taken. Complainant also filed a complaint against the OP Company after demise of his father in the year 2011. The complainant pursued the OP company for cancellation of policy and refund of the premium amount. OPs once again vide letter dated 30.6.12 gave assurance to investigate the matter. Thereafter the complaint was filed in this Forum on 12.10.12.
OP has filed his written version wherein, it is stated that the policies were issued and the request for cancellation was made on 18.08.2011 which was after the free look period of 15 days. It is further stated the terms and condition of the policy were clearly explained to complainant and therefore the policies cannot be cancelled. OP has also refunded Rs.83/- in all three polices along with covering letter dated 18.03.2013.
We have examined to entire material on record including the documents and correspondence annexed with the pleadings. The correspondence and documents have not been denied by OP. Perusal of the correspondence reveals that the complainant has repeatedly made representation regarding mis-selling of the policy to OP company. OP has given assurance to investigate the matter while expressing its
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inability to cancel the policies. OP did not share the investigation report with complainant and has not filed the same in the Forum. OP has not even provided the name of the agent through whom, these policies were issued and the process through which the said agent was exonerated from such grave allegation. On the face of it, whole action has been taken by OP in purely mechanical manner, without verifying the actual records and for this internal mismanagement of OP company, the complaint cannot be made to suffer. The insurance company always propagate efficient services, but thing are otherwise.
In our considered view OP, insurance company has failed the confidence reposed in it by a simple consumer.
We therefore hold OP guilty of deficiency in service and unfair trade practice and direct it to refund Rs.1,50,000/- along with 9% interest from the date of deposit till encashment. He is also awarded Rs.25,000/- as compensation for harassment and mental agony inclusive of litigation cost.
Let the order be complied within one month of the receipt thereof. The complaint stands disposed of accordingly.
Copy of order be sent to the parties, free of cost, and thereafter file be consigned to record room.
(D.R. TAMTA) (A.S. YADAV)
MEMBER PRESIDENT
