THE CONSUMER DISPUTES REDRESSAL FORUM, KOZHIKODE.

C.C.35/2012

Dated this the 24^th  day of February 2014.

            ( Present:  Sri. G. Yadunadhan, B.A., LLB.                              :  President)                      

                             Sri. L. Jyothikumar, B.A., LLB.                              :  Member

                             Smt.Beena Joseph, M.A                                       : Member

ORDER

By L.Jyothikumar, Member:

            The petition was filed on 23.01.2012. This is a  complaint filed under section 12 of the Consumer Protection Act, for  an order directing the opposite party to refund Rs.20,000/- with interest, compensation of Rs.10,000/- and also cost of the litigation.

The case of the complainant is that he has taken a policy from the opposite party as induced by an agent of opposite party. Believing the words of the agent and the illustrations and statistics made available by the opposite party company, the complainant subscribed to a life insurance plan by name ‘Life Stage RP’.  The amount of premium payable was Rs.20,000/-   it may be payable half yearly @Rs.10,000/-.  The term of  the policy was 5 years and the sum assured was Rs.1,00,000/- and an additional benefit of Rs.1,00,000/- towards accident and disability benefit.  The date of commencement of the policy was 10.05.2008 and the due date for last premium is 06.11.2017. The first premium of Rs.10,000/- was paid by the complainant on 05.05.2008. The agent had informed the complainant that the opposite party company would send a letter  reminding  him about the due date for the payment  of 2^nd premium. As per the letter  from the  company complainant paid the 2^nd premium of Rs.10,000/- by way of cheque.  Complainant had specifically requested the agent and the opposite party company officials to remind him by written notice about due date for premium payment and they had assured him they would take care of such things.  But from the 3^rd premium onwards, neither the agent nor the opposite party reminded the complainant to pay the premium.  As a result premium payment got disrupted  and which culminated into lapsing of policy.  The complainant received a letter dated 15.07.2011 from the opposite party saying that they had already despatched a pay out cheque bearing No. 374325 dated 15.07.2011 drawn on ICICI Bank towards ‘fore closed’ of his policy.  The opposite party further stated in the said letter that if the complainant had not received the cheque, the opposite party would be issue the same.  There upon the complainant approached the opposite party.  The opposite party told that  they would send the cheque shortly.  On 16.08.2011 another letter was received by the complainant from the opposite party asking him to revalidate the cheque.  In fact the complainant had not received any cheque from the opposite party.  According to the complainant the opposite party was deliberately sending such letters knowing fully well that they had not sent the cheque to him.  On an enquiry made with the opposite party, the complainant was told his policy has been foreclosed and the amount payable to him after deducting all incidental charges were only a meager sum of Rs.4000/-.  The opposite party has made unauthorized deduction from the funds of the complainant.  So there is an unfair trade practice on the part of the opposite party and the complainant has suffered mental, physical, financial hardship.  Hence this petition.

            In pursuance of the notice issued by the forum opposite party appeared and filed their version.  The complainant purchased a policy under the Life Stage RP Plan which is a regular premium unit linked life Insurance Plan.  The Fund value depends  upon market value.  The contract of Insurance is based on specific terms and conditions while enrolling the complainant under the scheme.  It is denied that the opposite party under took to send reminders to the complainant regarding the payment of premium as and when they became due.  The complainant himself is responsible for the foreclosure of his policy.  On 06.05.2011,  the opposite party send a cheque No.324725 for Rs.4463.77 under the subject Policy as foreclosure amount.  So there is no negligence, deficiency of service or unfair trade practice on the part of the opposite party and hence the complainant is liable to be dismissed.

Up on the above contentions the following issued have been taken for consideration.

1. Whether there is any deficiency of service on the part of the opposite party?
2. Whether the complainant is entitled to get  any  relief?
3. Relief and cost.

        The evidence in the above case consists of oral testimony  of PW1 and documentary evidence of Exbt.A1 to A6 were marked on the side of the complainant.  No oral evidence adduced by the opposite party and no document marked on Opposite party’s side.

            The complainant contented that neither the agent  nor the opposite party reminded the complainant to pay the 3^rd premium.  As a result premium  payment got disrupted and which culminated into lapsing of policy.  Hence he had sustained loss of Rs.20,000/-.According to  opposite party it is the duty and obligation of the policy holder to pay the premium to the company and the company is not under any obligation to issue a notice regarding payment of the premium.  But opposite party has sent a letter on 15.07.2011 to the complainant that they had dispatched a payout cheque towards foreclosed’ of his policy.  Before closing the policy the opposite party did not informed the complainant regarding the  balance payment of premium.  Non-sending of reminder by the opposite party to the complainant to pay the premium was deliberate, for foreclosing a policy  is more profitable for the opposite party.  More over no document was produced by the opposite party to show that they had dispatched a pay out cheque towards foreclosed policy. It only reveals that opposite party is not so much interested to help the aggrieved consumer to get redressed.  In other words opposite party is least  interested towards the grievances of the complainant. We are of the opinion that there is hiding of some material facts and hence there is unfair trade practice on the part of opposite party for which they are liable to refund the entire amount of Rs.20,000/- along  with Rs.2000/- as compensation and Rs.500/- as cost .

            In the result complaint is allowed  directing the first opposite party to refund Rs.20,000/-(Rupees twenty thousand only) along with Rs.2000/-(Rupees two thousand only) as compensation and Rs.500/-(Rupees five hundred only)as cost of the proceedings.  Comply the order within  one month  from the date of receipt of the order.  Failing which complainant is entitled 9% interest  from the date of order till realization.

Pronounced in the open court this the 24^th day of February 2014.

Date of filing:25.01.2012.

   SD/- PRESIDENT                                    SD/- MEMBER                    SD/- MEMBER

APPENDIX

Documents exhibited for the complainant:

A1. Proposal form No.14977613 dtad.06.05.2008.

A2. First premium receipt and policy document dtd.06.05.2008

A3. Summary of benefits & features document.

A4. Letter from opposite party dtd.07.05 .2008

A5. Letter from opposite party dtd.15.07.2011.

A6. Letter from the opposite party dtd.16.08.2011.

Documents exhibited for the opposite party:

Nil

Witness examined for the complainant:

PW1. Sreekumaran.C(Complainant)

Witness examined for the opposite party:

None

                                                                                                                                    Sd/-President

//True copy//

(Forwarded/By Order)

SENIOR SUPERINTENDENT