BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM,

ERNAKULAM.

Date of filing : 18/02/2014

Date of Order : 02/07/2014

Present :-

Shri. A. Rajesh, President.

Shri. Sheen Jose, Member.

Smt. V.K. Beena Kumari, Member.

C.C. No. 98/2014

Between

And

O R D E R

A. Rajesh, President.

1. The undisputed facts of the complainant's case are as follows :-

Fascinated by the rosy promises of one Mr. Pramod an agent of the opposite party and the assurances of the opposite party, the complainant invested Rs. 50,000/- in the investment fund 'enhancer' on 16-10-2004. As per the scheme explained to the complainant, he is to deposit only one time payment of Rs. 50,000/- and also assured that the amount would be doubled in the eighth year and in addition to that they offered insurance coverage for eight years for which Rs. 1,000/- was collected. During November 2004, the complainant received letter dated 26-10-2004 from the opposite party with premium receipt, policy details with policy. At that juncture, the opposite party revealed that the complainant has to pay Rs. 51,000/- as annual premium for 42 years and the total premium amount would come to Rs. 21,42,000/-. The complainant informed the opposite party vide letter dated 18-11-2004 that he does not want to proceed with the policy and requested either to refund Rs. 51,000/- or payment of Rs. 1 lakh offered at the maturity of 8 years. As per the scheme, the opposite party ought to have paid the investment return Rs. 1,00,000/- on 15-10-2012. In spite of repeated requests, the opposite party failed to pay the amount with interest. Thus, the complainant is before us seeking direction against the opposite party to pay Rs. 1,00,000/- with interest @ 12% p.a. together with costs of the proceedings.

2. Despite service of notice from this Forum, the opposite party opted to remain absent during the proceedings for their own reasons. Proof affidavit has been filed by the complainant. Exts. A1 to A6 were marked on his side. Heard the learned counsel for the complainant.

3. The points that emanated for consideration are as follows :-

1. Whether the complainant is entitled to get Rs. 1,00,000/- from the opposite party with interest?

2. Whether the opposite party is liable to pay the costs of the proceedings to the complainant?

4. Point No. i. :- The complainant deposited a sum of Rs,. 51,000/- with the opposite party on 16-10-2004 evidenced by Ext. A1 receipt. According to the complainant, on receipt of the policy document, he came to know that the terms and conditions are totally against the promises and assurances made by the opposite party. Accordingly, he issued Ext. A6 letter dated 18-11-2004 to the opposite party which reads as follows :-

“I am in receipt of your letter dated 28-10-2004 and the policy and other connected papers. I have invested Rs. 50,000/- as one time investment and not as annual insurance premium. Now, it is learned that I have to pay Rs. 21,42,000/- as premium for 42 years, which I never dreamt off. All the original documents are returned.

You are directed to refund Rs. 51,000/- or pay double the invested amount as promised at the maturity of eight years.”

5. Regulation 6 (2) of the Insurance Regulatory and Development Authority (Protection of Policy holders interest) Regulation 2002 reads as under :-

“While acting under Regulation 6 (1) in forwarding the policy to the insured, the insurer shall inform by the letter forwarding the policy that he has a period of 15 days from the date of receipt of the policy document to review the terms and conditions of the policy and where the insured disagrees to any of those terms or conditions, he has the option to return the policy stating the reason for his objection, when he shall be entitled to a refund of the premium paid, subject only to deduction of a proportionate risk premium for the period on cover and the expenses incurred by the insurer as medical examination of the proper and stamp duty charges.”

6. In the instant case, the complainant sent Ext. A6 letter to the opposite party by invoking his right under Regulation 6 (2) of the above Regulation. The opposite party did not pay any attention towards the lawful demand of the complainant as stated in Ext. A6. It is pertinent to note that nothing is forthcoming on the part of the opposite party as to the reason for the inaction on their part in furtherance of Ext. A6. The absence of the opposite party in this Forum speaks volumes not to mention conspicuous. The above conduct of the opposite party not only amounts to deficiency in service, but also to unfair trad practice. In view of the above, the complainant is entitled to get refund of the deposited amount with interest @ 12% p.a. from the date of deposit till realisation.

7. Point No. ii. :- The primary grievance of the complainant having been met squarely and sufficiently, we refrain from awarding costs of the proceedings. Rejected hence.

8. In the result, we partly allow the complaint and direct that the opposite party shall refund Rs. 51,000/- to the complainant together with interest @ 12% p.a from the date of payment till realisation.

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

Pronounced in the open Forum on this the 2^nd day of July 2014.

Sd/- A. Rajesh, President.

Sd/- Sheen Jose, Member.

Sd/-V.K. Beena Kumari, Member.

Forwarded/By Order,

Senior Superintendent.

A P P E N D I X

Complainant's Exhibits :-

Opposite party's Exhibits :: Nil

=========