Delhi

New Delhi

CC/337/2010

Anupreet Kaur Marwah - Complainant(s)

Versus

M/S. Aviva Life Insurance Company Ltd. - Opp.Party(s)

03 May 2019

ORDER

 

CONSUMER DISPUTES REDRESSAL FORUM-VI

(DISTT. NEW DELHI),

 ‘M’ BLOCK, 1^STFLOOR, VIKAS BHAWAN, I.P.ESTATE,

                                               NEW DELHI-110001

 

Case No.C.C.337/2010                                                              Dated:

    In the matter of:

Ms. Anupreet Kaur Marwah,

C/o Mr. Harpal Singh Marwah,

R/o H-39, Green Park Extn.,

New Delhi-110016.

                 ……..COMPLAINANT

VERSUS

AVIVA LIFE INSURANCE CO. INDIA LTD.,

Aviva Life  Insurance Co.India Pvt. Ltd.

2^nd Floor, Prakash Deep Building,

7, Tolstoy Marg,

New Delhi-110001.

……..OPPOSITE PARTY

                

 

NIPUR CHANDNA, MEMBER

ORDER

       

The complainant has filed the present complaint against the OP under section 12 of Consumer Protection Act, 1986.  The gist of the complaint is that the complainant purchased a policy vide No.WTG 1433222 with the OP commenced w.e.f. 15.01.2007 for Rs.30,000/- p.a. for three years.  The said policy was sold by the OP with a commitment of three years only and with assurance to the tune of 10% benefits, returnable after completion of 3 years of maturity of policy in question.  The complainant paid installments of the policy for the next two years continuously on time.  When the policy was matured as per the information provided by the executive of OP,  the complainant approached to the OP for withdrawal of matured policy, the OP disclosed to her that the policy would mature after completion of 60 years and refused to entertain her.  Subsequently, the complainant sent a written complaint dt. 6.5.2005 to the OP for cancellation of the policy and refund the money deposited by her but the OP has failed to comply the demand of complainant, hence this complaint.

2.     Complaint has been contested by OP.  It has filed its written statement, wherein it denied any deficiency in services on its part and stated that the present complaint is barred by limitation u/s 24 A of CP Act 1986 as the present dispute arose in January, 2007 for policy in question, when the complainant signed the Proposal Form for the policy, whereas the present complaint was filed by the complainant in March 2010 i.e. much after the period of expiry of two years.  It has been stated that the policy terms and conditions specifically provides for a Free Look Period of 15 days, during which period the policy owner is entitled to review the policy terms and conditions and request for a cancellation,  if dissatisfied with the terms and conditions of the policy.  After expiry of the Free Look Period, the policy terms and conditions permits surrender of the policy only after completion of 3 years, where surrender value as payable in accordance with the policy terms and condition shall be payable to the complainant.  It has been pleaded that Proposal Form was filled and signed by the complainant after having understood the terms and condition of the policy. The  insurance contract was entered into between both the parties on the Standard Terms and conditions.   The surrender value had been calculated strictly in accordance with the terms of the policy.  It has also been stated that OP has acted right and well within the terms and conditions of policy

3.     Both the parties have filed their  evidences by way of affidavit.

4.     We have heard argument advance at the Bar and have perused the record.

5.     Some facts are not disputed by the parties such as the policy documents, payment of premiums.    Admittedly, the complainant received the policy in the year 2007.  She has also paid three premiums against the policy in question.  The complainant received the policy documents in the year 2007 if she was not satisfied with the policy than she ought to have approached the OP for the cancellation of the same.  After three premiums, the complainant failed to pay the further premium and as such the policy moved to lapse status.  During the pendency of the proceedings, the OP sent a cheque of Rs.38,049/-  to the complainant against the policy in question on account auto foreclosure. 

6.     As per policy terms and conditions, due to non-payment of further premium, policy moved to lapse status and as such the OP cancelled the policy and sent the surrender value to the complainant vide cheque dated 17.1.2012.  The surrender value was calculated by the OP as per the terms and conditions of the policy.   Insurance is a contract between the insured and insurer and both the parties are bound by the terms contained therein. The Hon’ble NCDRC in the matter of National Insurance Co. Ltd. vs. Vinod Puri as reported in I [2014] CPJ 341 (NC) is pleased to hold as under:

Insurance contract has to be construed like any other contract on basis of its terms and conditions and outside aid for construction of insurance policy is impermissible.

 

7.     The Hon’ble Apex Court in the case of Oriental Insurance Co. Ltd. versus Sony Cheryan reported in (1999) 6 SCC 451 is pleased to hold as under:

The insurance policy between the insurer and the insured represents a contract between the parties. Since the insurer undertakes to compensate the loss suffered by the insured on account of risks covered by the insurance policy, the terms of the agreement have to be strictly construed to determine the extent of liability of the insurer. The insured cannot claim anything more than what is covered by the insurance policy.

 

8.     Similarly in the case of General Assurance Society Ltd. vs. Chandumull Jain and Anr., reported in (1996) 3 SCR, 500, the Constitution Bench has observed that the policy document being a contract and it has to be read strictly. It was observed:

In interpreting documents relating to a contract of insurance, the duty of the court is to interpret the words in which the contract is expressed by the parties, because it is not for the court to make a new contract, however, reasonable, if the parties have not made it themselves. Looking at the proposal, the letter of acceptance and the cover notes, it is clear that a contract of insurance under the standard policy for fire and extended to cover floor, cyclone etc. had come into being.

 

9.     The Hon’ble NCDRC in the matter of Ind Swift Ltd. versus New India Assurance Co. Ltd. reported in IV[2012] CPJ 148 (NC) is pleased to rule as under:

Construction of the policy is to be construed strictly as per the terms and conditions of the policy document which is binding contract between the parties and nothing can be added or subtracted by different meaning.

10.    Similarly in LIC versus Banwarilal Yadav reported in IV[2013] CPJ 38 (NC) the Hon’ble NCDRC observed as under:

 

“Forum has no jurisdiction to go beyond terms and conditions of the Policy.”

 

11.    The NCDRC in yet another matter in the matter of Morien Chemicals Ltd. versus UCO Bank reported in III [2013] CPJ 261 (NC) is pleased to hold as under:

“Insurance Company is not liable to pay damages which are not covered under the policy.”

 

 12.   Having regard to the facts and circumstances of the case and  discussion heard, we are of the considered view that there exists no infirmity in the decision of the Insurance Company as the surrender value was calculated as per the terms and conditions of the policy and courts are not meant to add or delete the terms of contract.  The above cited judgments  are squarely applicable in the present case. 

13.    In view of the above discussion, we are inclined to hold that the disbursement of the claim of the complainant to the tune of  Rs.38,049/-  against the surrender value was justified.  The present complaint is devoid of merit, hence, dismissed.

A copy of this order each be sent to both parties free of cost by post.  This final order be sent to server (www.confonet.nic.in ). File be consigned to Record Room.

Announced in open Forum on 03/05/2019.

 

 

 

(ARUN KUMAR ARYA)

          PRESIDENT

(NIPUR CHANDNA)                                                  (H M VYAS)

       MEMBER                                                                MEMBER