This C.C. came before us for final hearing on 13-8-2009; the complainant appeared in person; and in the presence of Sri.G.Hareender Reddy, counsel for opposite parties; upon hearing the arguments and upon perusing the material papers on record, and having stood over for consideration till this day, this Forum passed the following order:
O R D E R
(per Sri. Vijay Kumar, President)
1. This complaint is filed u/s.12 of Consumer Protection Act, 1986, with the following averments;
The complainant has insured his life on 28-3-2006 for Rs.3,00,000/- by paying Rs.12,085/- towards 1st premium (Annual Term Payment) and obtained policy bearing No.100600029279, dt.31-3-2006, the date of commencement of policy was from 28-3-2006. Due to the financial conditions, the complainant wanted to change the mode of payment as quarterly and consulted the opposite party company authorities, who in turn advised him to put in a representation for change the mode of payment. Accordingly, in the month of March, 2007, he paid quarterly premium amount of Rs.3,100/- as per the advise given by the company officials orally, as premium amount vide cheque No.009615, dt.10-4-2007 of ING Vysya Bank, Khammam and obtained a receipt to that effect. He pursued the officers of the company for official intimation regarding the effect of change in the mode of payment. On 12-7-2007 the company deputed their Marketing Executive by name K.Subrahmanyam for collection of original policy and 1st premium receipt, who received the same by passing a receipt with an assurance that the change in mode of payment and original policy will be returned within 15 days. He went on perusing the matter through the agent by name Y.U.B.Sharma, Khammam as well as with the company officials, but his efforts became in vain. The 2nd quarter payment due date has lapsed, but nothing is heard from the company and therefore he got served a legal notice on 22-9-2008 and reminded on 24-3-2008, but there is no response and there is no action, which amounts to negligent attitude of the insurance company, which caused mental agony from last 1 ½ years. Hence this complaint.
2. On receipt of the notice, the opposite party No.3 filed the counter. The opposite parties No.1 and 2 filed a memo to adopt the counter of opposite party No.3. In the counter every thing is admitted by the opposite party. It is contended that the company has accepted the request of the complainant and also agreed to exempt the late payment fee and other additional charges etc., subject to payment of due amount at a time or before the next installment due date. Because this is a matter of life insurance and the company has to bear the risk on the life of the policyholder. As and when the due installments are completed, the risk on the life of the policyholder cannot be covered by the company. The complainant had agreed to pay the defaulted premium amounts subject to exemption of late payment fee etc., it is also agreed and permitted the complainant to pay forthcoming installments quarterly without delay and without any link to the previous due payable premium amount. The total due installments payable from the complainant is Rs.27,612/-. The opposite party has already considered the request of the complainant and changed mode of premium from yearly to quarterly and this endorsement is attached to the policy documents and prayed to dismiss the complaint.
3. On behalf of the complainant, the following documents have been filed and marked as Exs.A.1 to A.5.
Ex.A.1 - Xerox copy of policy
Ex.A.2 - copy of 1st premium payment receipt
Ex.A.3 - Receipt of Market Executive, dt.12-7-2007
Ex.A.4 - Copy of legal notice, dt.22-9-2007
Ex.A.5 - Reminder, dt.24-3-2008 along with courier receipt.
4. On behalf of the opposite party, the following documents have been filed and marked as Exs.B.1 to B.7.
Ex.B. 1 - Policy document along with terms and conditions.
Ex.B.2 - Endorsement for change of mode of payment
Ex.B.3 - Policy schedule
Ex.B.4 - First premium receipt
Ex.B.5 - Proposal for insurance
Ex.B.6 - Policy Deposit Receipt
Ex.B.7 - Deposit Acknowledgment receipt
5. Upon perusing the material papers on record and upon hearing the arguments from both sides, the points that arose for consideration are, .
1. Whether the complainant is permitted to pay the due amount of
previous quarterly installments without penalties or late fee?
2. To what relief?
Points No.1:
6. It is not in dispute that the complainant is a policyholder and has been paying the annual premium from 21-3-2006. It is also not in dispute that he wanted to change the mode of payment as quarterly from annual installments and also put an application for the change of mode of payment from annual to quarterly and premium is fixed at Rs.3,100/-. It is also not in dispute that consequent upon the change of mode of payment, the complainant has paid first quarterly premium of Rs.3,100/- vide cheque No.009615, dt.10-4-2007 and it is also not in dispute that the receipt is passed by the opposite party on 4-5-2007. The only dispute is regarding the official intimation in respect of change in the mode of payment. The complainant filed this complaint in person and has been pursuing the matter with regard to the official intimation and nothing else. The opposite party has served the official intimation on 21-3-2008 and addressed a letter to the complainant informing him that his request for change of mode of payment has been considered and mode has been changed from yearly to quarterly. It is also not out of place to mention here that consequent upon the change of mode of payment, the complainant has paid the first quarterly premium for Rs.3,100/- on 23-7-2007 and this payment has been acknowledged by the opposite party by passing a receipt. Therefore, nothing is in dispute between the complainant and the opposite party.
7. The only grievance of the complainant is that he is unable to pay the entire due amount in lump sum. Before fixing of quarterly premium, the complainant has already paid the first quarterly installment. Therefore, he ought to have paid the next quarterly installment, without waiting for the official intimation from the opposite party. However the opposite party has intimated him officially, the mode of payment is changed from yearly to quarterly. Because of his non-payment of installments, the due amount has been mounted and now he expresses his inability to pay the entire amount in lump sum. Further the opposite party has considered his request, agreed and permitted him to pay the premium due, exempting penalties, late payment etc.,. But the only objection from the opposite party is that unless and until the complainant clears of the entire due amount, the company will not be cover the risk of life of the policyholder. So it is for the complainant to clear of the installments so as to enable him to pay further premiums due to the company. Taking into consideration of the facts, the complainant is permitted to pay the due amount of previous quarterly premium installments in 6 installments at Rs.4,602/- per quarter without charging any kind of interest or late payment fee and other additional charges from 10-9-2009 onwards apart from the regular premium installments. It is further clarified that unless and until the entire due installments are paid, the policy of the complainant will not come into force. With these observations, the complaint is disposed of.
Point No.2:
8. In the result, the complaint is disposed of. The complainant is permitted to pay the due amount of previous quarterly premium installments in 6 installments at Rs.4,602/- per quarter from 10-9-2009 onwards and exempted from charging any kind of interest or late payment fee and other additional charges apart from the regular premium installments. It is further clarified that unless and until the entire due installments is paid, the policy of the complainant will not come into force.
Dictated to the steno, transcribed by her, corrected and pronounced by us in the open forum, on this 31st day of August, 2009.
PRESIDENT MEMEBR MEMBER
DISTRICT CONSUMERS FORUM
KHAMMAM
Appendix of Evidence
Witnesses examined for complainant
-None-
Witnesses examined for opposite parties:
-None-
Exhibits marked for complainant:
Ex.A.1 - Xerox copy of policy
Ex.A.2 - copy of 1st premium payment receipt
Ex.A.3 - Receipt of Market Executive, dt.12-7-2007
Ex.A.4 - Copy of legal notice, dt.22-9-2007
Ex.A.5 - Reminder, dt.24-3-2008 along with courier receipt.
Exhibits marked for opposite party :
Ex.B. 1 - Policy document along with terms and conditions.
Ex.B.2 - Endorsement for change of mode of payment
Ex.B.3 - Policy schedule
Ex.B.4 - First premium receipt
Ex.B.5 - Proposal for insurance
Ex.B.6 - Policy Deposit Receipt
Ex.B.7 - Deposit Acknowledgment receipt
PRESIDENT MEMEBR MEMBER
DISTRICT CONSUMERS FORUM
KHAMMAM
