CONSUMER DISPUTES REDRESSAL FORUM

Palakkad, Kerala

Dated this the 25^th  day of February 2014

                                              C.C.No.74/2013

PRESENT : SMT. SEENA. H, PRESIDENT                                  Date of filing:  11/04/2013

               : SMT. SHINY.P.R ,MEMBER

     : SMT.SUMA K.P, MEMBER

Mr. V.M. Nazar,

228(1169) Karayankkad House,

Vadakkenchery (PO),

Palakkad District.                                                                    : Complainant

(By Adv. B. Ravikumar)

                                                         Vs

1. M/s  Max New York Life Insurance Co. Ltd.,

Operation Centre, 90-A, Udyog Vihar,

Sector 18, Gurgaon, Hariyana – 122015

(By Adv. S.M. Unnikrishnan)

1. M/s  Max New York Life Insurance Co. Ltd.,

Max  House, 3^rd Floor, Dr.Jha Marg,

Okhla, New Delhi,110020

1. M/s  Max New York Life Insurance Co. Ltd.,

7^th Floor, Vankarath Tower,

Bye Pass - Pipeline  Junction

Palarivattam, Cochin, 682024

1. Ajith. M, Authorised Agent,

M/s  Max New York Life Insurance Co. Ltd.,

7^th Floor, Vankarth Tower,

Bye Pass - Pipeline  Junction

Palarivattam, Cochin, 682024                                                          :  Opposite Parties

O R D E R

By Smt. Shiny . P. R , Member

Complaint in brief:

         The Complainant had taken a life Insurance Policy with opposite parties 1 to 3 through 4^th opposite party who is the authorised agent of opposite parties 1 to 3.  He had paid 2 quarterly premium of Rs. 12,500/- each and 3^rd premium paid to 4^th opposite party.  But 4^th Opposite party had not remitted the premium collected from the Complainant.  After 3 years Complainant wanted to discontinue the Life Insurance coverage, he surrendered the Policy on 22/08/2011 through 4^th opposite party.  But  opposite parties did not pay the amount of premium collected.  On 17/04/2012 Complainant sent a lawyer notice to opposite parties.  Opposite party 1 to 3 replied for the same stating that they are not liable for the refund of the premium amount.  The conduct of opposite parties is deficiency in service and unfair trade practice.   Hence the Complaint.

1^st opposite party entered appearance and filed version.  Opposite party 2 to 4 are exparte.

1^st opposite party admitted the Policy and 2 quarterly premium which were paid by the Complainant.  1^st opposite party contended that all Policy terms and condition explained to the Complainant at the time of joining the policy and offered 15 days free look  period.  He can return the Policy at that time.   He did not utilize this opportunity.  Besides this, he had paid only 2 quarterly premium.  3^rd premium had not received by the opposite party 1 to 3.  As per the terms and conditions of the Policy approved by IRDA, Policy may be surrendered after 3 years if one year full premium has been paid.  Opposite party submitted that now the policy is in lapse mode and they are not liable to pay the premium amount which was collected from Complainant.  No deficiency in service and unfair trade practice from the part of opposite parties.  Hence  Complaint is liable to be dismissed.

Complainant and 1^st opposite party filed their chief affidavits.   Complainant is examined as PW1.  Ext. A1 to A3 marked from the side of Complainant and Ext. B1 to B5 marked from the side of 1^st opposite party.

The following issues  are to be considered.

1. Whether  there is any deficiency in service or unfair trade practice from the part of opposite party.

1. If so what is the relief and cost ?  

ISSUES 1 & 2

          Heard both parties:-  We perused the relevant documents on record.  1^st opposite party admitted the Policy and 1^st and 2^nd installment which were paid by the Complainant.  But they denied the acceptance of 3^rd installment.  The Complainant had taken Policy on 22.04.2008 and surrendered the policy on 22/08/2011.  As  per the Policy terms and conditions approved by IRDA the policy may be surrender after 3 years provided the Complainant had paid at least one annual target Premium.  In this case Complainant paid only two quarterly Premium of Rs. 12,500/- each. Complainant failed to pay the full one year annual Premium.  So the Policy has been lapsed as per the terms and conditions of policy. PW1 admitted at the time of the cross examination that 3^rd quarterly installment was paid to 4^th opposite party.  No evidence was adduced before the forum to prove that the complainant   had paid the 3^rd   and 4^th installments of premium.The insurance is a contract, both parties are bound by the terms and conditions thereof.  The Policy has been lapsed within a year from its inception and it was not revived by the complainant.The request of the Complainant for surrender and refund of money paid cannot be allowed. The free look period was also expired.

In the above circumstances we are of the opinion that there is no deficiency in service or unfair trade practice from the part of opposite party.  Complainant is not entitled to get the Premium Amount of Rs. 32,500/- Complaint dismissed with no order as to cost.

Pronounced in the open court on this the 25^th day of February 2014

                                                                                                         Sd/-

                                                                                        Smt. Seena. H

                                                                                             President

                                                                                                          Sd/-

                                                                                           Smt. Shiny. P.R

                                                                                              Member

                                                                                                                      Sd/-

                                                                                                   Smt. Suma K.P 

                                                                                                      Member

APPENDIX

Exhibits marked on the side of the complainant

Ext. A1 -   True Copy  of lawyer Notice  dated 17/04/2012  sent to  opposite Party  along with          

                  Acknowledgement card and Postal Receipt.

Ext. A2 -   Reply to lawyer notice dated 08/05/2012

Ext.A3  -   Customer  Acknowledgement Slip issued by Opposite Party.

Exhibits marked on the side of the opposite parties

Ext. B1 - True copy of the Proposal form

Ext. B2 - True copy of the change of address request and documents.

Ext. B3 - True copy of the change of address sanction letter issued by opposite party dated 

               22/07/2011.

Ext. B4 – True copy of the surrender request dated 22/08/2011.

Ext. B5 - True copy of the surrender  of Policy  dated 30/08/2011.

Witness examined on the side of complainant

PW1 -  Mr. V.M. Nazar

Witness examined on the side of opposite parties

Nil

Cost allowed

Nil