Delhi

New Delhi

CC/97/2015

Surender Pal Singh - Complainant(s)

Versus

M/S. Tata Aia Life Insurance Company Ltd. - Opp.Party(s)

18 Mar 2019

ORDER

 

                                                                   CONSUMER DISPUTES REDRESSAL FORUM-VI

‘M’ BLOCK, 1^STFLOOR, VIKAS BHAWAN,

I.P.ESTATE, NEW DELHI-110002.

 

Case No.CC. 97/2015                                                                            Dated:

In the matter of:

Surender Pal Singh

S/o Late sh. Ghasi Ram

R/o 120, type-III, Sector-1

Sadiq Nagar, New Delhi-110049

....COMPLAINANT

 

VERSUS

 

TATA AIG Life Insurance Company Ltd.

Ashoka Estate, 3^rd Floor, Barakhamba Road,

Connaught Place, Opposite Metro Station

New Delhi-110001.

         .....OPPOSITE PARTY

 

 

PRESIDENT- ARUN KUMAR ARYA

 

ORDER

The complainant has filed the present complaint against the OP under section 12 of Consumer Protection Act, 1986. The facts as alleged in the complaint are that the complainant is the holder of the policy bearing no.  c101676728, issued on 21/03/2005, for sum assured of Rs. 2,00,000/-. (This amount become Rs. 2,11,000/- after March, 2008 as per the company’s decision.) It is alleged that the duration of policy was 21 years, periodical coupon amount is Rs. 2,11,000/- every third year i.e. in March 2008, 2011, 2014 etc. and maturity date March 2026. The premium payment mode was Quarterly payment.

It is further alleged that the premium amount was of Rs. 5,494/- including S. Tax and subject to charge as per company’s decision time to time. It is further alleged that the policy was issued to the complainant through the authorized agent Mrs. Pratiba Patra W/o Sh. B.Patra, colleague of the complainant’s Deptt. Of Revenue, Ministry of Finance. The premiums were paid through the agent in the beginning and some time by complainant and also through net banking.

It is further alleged that the complainant has been paying his premiums continuously till date, hence, the company also has paid two times the P.C. amount of Rs. 20,000/- and 21,100/- in March,2008 and 2011 respectively. But in March 2014 the company sent the cheque no. 480139 dated 25/03/2014 of Rs. 2193.49/- instead of Rs. 21,100/- It is  further alleged that the complainant made requests/complains several times at all levels in the company and its grievance cell but the concerned officials told to complainant that the amount of Rs. 18,906.5/- was adjusted towards the APL(Auto Premium Loan) for four premiums of the year 2013 unpaid by the policy holder. It is further alleged that the complainant made complaints/requests several times in all possible ways as in writing, telephonically and through e-mails but all concern officials replied either differing from one to others or repeated unsatisfactorily. The complainant had also complainted to the office of the IRDA and its call center two times but no response came to the complainant, hence this complaint.

OP was noticed and OP had filed written statement. It is stated on behalf of OP that the present complaint is not maintainable and is liable to be dismissed as there is no deficiency in service on the part of OP. It is stated on behalf of OP that complainant had applied for policy of OP by paying annual premium to the agent of answering OP but the acceptance of the policy was subject to certain terms and conditions as provided to the complainant at the time of policy acceptance. At the time of filing the said application form. the Life Assured was explained that the contract of insurance is based on doctrine of Uberrima Fide, i.e., of Utmost Good Faith, and complainant should correctly, honesty and fairly disclose all the material facts within his knowledge to the OP  to allow them to assess the risk to be undertaken with respect to the policy to be issued to him in the application form. That he should correctly, honestly and fairly disclose all the material facts within his knowledge to the OP that may arise from within his knowledge to the OP that may arise from that date of signing of the application form to the date of issuance of the policy to him. The life assured also signed all the declarations to that effect after reading and understanding the same.

It is further stated on behalf of OP that the complainant has not paid regular premium and due to non-receipt of the regular premium due on March 21, 2009, an automatic Premium Loan (APL) has been applied on the policy of complainant towards this premium and the same is done with intention to keep the policy alive. This implementation of APL is done as per agreed terms and conditions of the insurance agreement.

It is further stated that after the APL is applied, It is a process that daily interest is to be levied on the amount of APL at applicable rates from the respective premium dates and is compounded annually. Accordingly, complainant might be paying the other premium on time, but the interest applied on APL was also to be adjusted in the amount of the further premium paid. It is also a agreed process that premiums paid would be first utilized towards the repayment of your outstanding APL. In this particular case, same is applied with honest intention on the part of answering OP to keep the policy and its benefits alive for the complainant.

 It is further stated that the OP received premiums of Rs. 5494/- on 08/05/2013 and 25/07/2013 respectively and the said payments have been utilized toward the repayment of Automatic Premium Loan (APL) which was already applied towards the policy lapse in 21/07/2012 and 21/09/2012. It is further stated that the details of the APL Levied towards the policy are clearly mentioned in the letter dated 18/09/2014 while replying to the queries of the complainant.

Since none appeared on behalf of OP and no evidence was filed therefore, OP was ordered to be proceeded with ex-parte on 25/09/2017 by our Predecessor Bench.

Complainant has filed his evidence by way of affidavit wherein he has corroborated the contents of his complaint. File is perused.

From the un-rebutted testimony of the complaint and documents placed on record, we are convinced that the story put forth by the complainant is true. The complainant has placed on record the details of the premium paid by him for the month of March and September, 2013 against which the OP has utilized his coupon amount under the pretext of APL. Bare perusal of the deposit receipts make it clear that the complainant has deposited the premium amount with the OP and same is accepted by the OP in such circumstances deduction of the coupon amount under the pretext of APL amounts to unfair trade practice and deficiency in service on the part of the OP. We therefore hold OP guilty of deficiency in services and directed as under :-

i)     Pay to the complainant a sum of Rs. 21,100/- along with interest @ 9% p.a. from the date of filing of the present complaint i.e. 12/12/2015, till payment.

ii)    Pay to the complainant a sum of Rs. 5,000/- as compensation towards harassment, mental agony and pain which will also include the cost of litigation.

 

The order shall be complied within 30 days of the receipt of the copy of the order. If the said amount is not paid by the OP within a period of one month from the date of receipt of this order, the same shall be recovered by the complainant along with simple interest at the rate of 10% per annum from the date of this order till recovery of the said amount. A copy each of this order each be sent to both parties free of cost by post. Orders be also sent to www.confonet.nic.in. File be consigned to record room.

Pronounced in open Forum on 18/03/2019

                                                (ARUN KUMAR ARYA)

                                                         PRESIDENT

(NIPUR CHANDNA)                                                                        (H M VYAS)

      MEMBER                                                                                      MEMBER