Delhi

New Delhi

CC/175/2022

Praveen Jain - Complainant(s)

Versus

M/S. SBI Life Insurance Co. Ltd. - Opp.Party(s)

23 May 2023

ORDER

 

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-VI

(NEW DELHI), ‘M’ BLOCK, 1^STFLOOR, VIKAS BHAWAN,

I.P.ESTATE, NEW DELHI-110002

Case No.CC-175/2022

 

IN THE MATTER OF:

PRAVEEN JAIN

F-664, Gali No. 6,

Near Laxmi Narayan Mandir,

Ganesh Nagar-II, Shakarpur,

Delhi – 110092.

....Complainant

 

Versus

 

SBI LIFE INSURANCE CO. LTD.

2^nd Floor, A Block, Annexe Building,

State Bank of India,

11, Parliament Street,

New Delhi – 110001.

...Opposite Party

 

Quorum:

Ms. Poonam Chaudhry, President

Mr. Bariq Ahmad, Member

Mr. Shekhar Chandra, Member

                                                          Date of Institution:22.07.2022

 Date of Order     : 23.05.2023

 

ORDER

 

SHEKHAR CHANDRA, MEMBER

1. The present complaint has been filed under provisions of the Consumer Protection Act, 2019 (in short CP Act) against Opposite Party (in short OP) alleging deficiency of services.

2. Briefly stated facts of the case as narrated by the complainant are that in the month of April, 2021 the complainant visited his bank i.e. State Bank of India, Madhuban Branch, for his banking work. Some agents of the OP were sitting in the bank premises; they saw the complainant and instantly stand surrounded and they succeed to trap the complainant by showing golden dreams. They told the complainant that if the complainant will one time invest the amount under the ‘Retirement Scheme’, the complainant will get tax-free double the amount in 5 years. Under the temptation of high-interest rates, the complainant got trapped and immediately issued a cheque of Rs.1,50,000/- to the agents of the OP.
3. Thereafter on 3^rd or 4^th day the complainant got a confirmation telephonic call from the office of OP, the calling official narrated the whole scheme which was shocking and surprising to the complainant as the scheme was narrated by the agents was totally different. The complainant states that it neither the agents of the OP nor OP never provided the details of benefits, & policy to the complainant, which clearly shows that the agents of the OP adopted unfair trade practices for selling the policy to the complainant. According to the official of the OP the complainant has to pay Rs.1,50,000/- per year upto a minimum of 5 years. Since the complainant was not able to afford this policy, the complainant immediately decided to cancel the policy.
4. On the very next day the complainant contacted the agents who were sitting in branch of State Bank of India and asked them to cancel the policy but they clearly refuse to do so. To feel helpless at the hands of the agents of the OP, the the complainant wrote a letter on 21.04.2021 to the OP for cancellation of the policy.
5. After sending the policy cancellation letter, the OP remain silent for a year, and after completion of the year the OP demanded the premium form the complainant, upon which the complainant immediately contacted to the concerned branch of complaint’s bank and narrated the whole story before them but in vain, though the branch Manager asked the agents to send the copy of policy which the agents sent immediately on mail. Seeing no way, the complainant wrote a letter to the branch Manager of concerned bank for stopping the payment against premium.
6. The complainant submits that the act & activities of the OP is totally unfair trade practice, illegal and against the business ethics. The OP is selling the policy by hook or crook; the agents of the OP under the guidance of the officials of the OP trapping the gullible general public at large like the complainant.
7. The complainant further submits that the cause of action for filing the present complaint is still continues and subsisting hence the present complaint is being filed well within time as prescribed in the law and there is no delay. It is stated that the OP is working for gain well within territorial jurisdiction of this Commission and disputed amount of the case is below Rs.50 Lakhs hence this Commission is fully empowered to adjudicate upon the present matter.
8. Thus, the present complaint with the prayers that a directions be issued to the OP to cancel the policy of the complainant and refund the amount i.e. Rs.1,50,000/- alongwith interest @ 18% p.a. to immediately and without any further delay. It is also prayed that the OP be directed to pay Rs.55,000/- as compensation for unnecessary harassment, mental agony and pain with Rs. 22,000/- as cost of litigation.
9. Notice of the present complaint case was served on the OP and the OP in its written statement to the complaint it is submitted by the OP that the demand of the complainant is outside the terms and conditions of the policy, which is the evident from the insurance contract. It is stated by the OP that since the proceedings before this Commission being summary in nature, the complaint is not maintainable. Further, the allegations require a thorough investigation, examination and cross-examination of witnesses which are beyond the purview of this Commission and only civil courts are competent to adjudicate such cases. Various other pleas have also been taken by the OP to deny the claim of the complainant.
10. In the meantime, after filing the written statement, the OP had a relook on the grievances of the complainant. Vide its communication dated 29.11.2022, the OP has conceded the demand of the complainant. The contents of the said communication are reproduced below:

“This is with reference to your request regarding cancellation of the captioned policy.

In this regard we wish to inform you that the policy issued to you is SBI Life-Retire Smart Issued on 09/01/2021 for yearly premium of Rs. 1,50,000/- with premium paying term of 5 years and policy term of 10 years. The policy has been issued as per the details furnished in the proposal form duly signed by you.

On review of the case facts, it has been decided to cancel the policy under free look potion and refund the premium of the policy as per the terms and conditions governing the free look clause along with the applicable interest.

To proceed for cancellation……………………………………….”,

 

11. On receipt of the aforesaid communication, the complainant has filed an application under Order 12 Rule 6 of the Code of Civil Procedure, 1908 praying for a direction to release the admitted amount to the complainant. However, as regard the disputes for the interest, cost and compensation, the same may be decided on its own turn.
12. Since the amount to be refunded has been admitted by the OP, a direction is issued to the OP to release the admitted amount of Rs. 1,50,000/- to the complainant within two weeks from the date of receipt of this order. Since the complainant has been compelled to take a legal recourse for refund of his hard erned money, the opposite party is directed to pay interest over the due amount @ 9% per annum from the date of deposit till realization. The complainant shall also be entitled to litigation expenses which we quantify to Rs. 25,000/-. In view of the order as above, the complaint case is disposed of accordingly.

A copy of order be sent to all the parties free of cost. The order be also uploaded in the website of the Commission (www.confonet.nic.in).

File be consigned to the record room along with a copy of the order.

 

(Poonam Chaudhry)

President

 

(Bariq Ahmad)                                                             (Shekhar Chandra)

    Member                                                                              Member