Punjab

Ludhiana

CC/14/846

Jagroop Singh - Complainant(s)

Versus

Reliance Life Ins.Co.Ltd - Opp.Party(s)

Hamir Singh

27 May 2015

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, LUDHIANA.

                                                          C.C. No.846 of 11.12.2014

                                                          Date of decision: 27.05.2015

Jagroop Singh aged about 52 years son of Harnek Singh resident of village Librha, Tehsil Khanna, District Ludhiana.

                                                          ….Complainant.

                                       Versus

1.Reliance Life Insurance Company Limited, branch Office S.C.O.-41, 2^nd Floor, Feroze Gandhi Market, Pakhowal Road, Ludhiana Pin Code-141001 through its Branch Manager.

2.Reliance Life Insurance Company Limited, Registered Office-H Block, 1^st Floor, Dhirubhai Ambani knowledge city, Navi Mumbai, 400710, through its MD/Chairman/authorized Person.

                                                …Opposite parties.

 

COMPLAINT UNDER SECTION 12 OF THE

CONSUMER PROTECTION ACT, 1986.

 

Quorum:    Sh.R.L.Ahuja, President.

                   Sh.Sat Paul Garg, Member.

                                     

Present:       Sh.Harvir Singh Paul, Adv, for complainant.

                   Sh.Shakti Jain,Adv, for Ops.

 

ORDER

R.L.AHUJA, PRESIDENT.

  

 

1.                Present complaint under Section 12 of the Consumer Protection Act, 1986, has been filed by Sh.Jagroop Singh(hereinafter in short to be described as ‘Complainant’) against Reliance Life Insurance Company Limited and others (hereinafter in short to be described as ‘OPs’) directing them to pay Rs.26,000/- as premium paid plus Rs.4290/- as interest @9% p.a. from 16.1.2013 till the filing of the present complaint plus Rs.10,000/- as compensation and litigation expenses total Rs.40,290/- alongwith upto date interest at the abovesaid rate till the final realization of the amount to the complainant.

2.                In brief, the case of the complainant is that the complainant purchased a non unit linked and non participating life insurance policy of the Ops guaranteed money back plan having contract No.50693547 which was purchased on 16.1.2013 on payment of Rs.26,000/- as first premium/consideration. The premium and proposal in question was accepted and No.50693547 was allotted as contract number and the complainant’s life was insured under the present policy. At the time of offering the policy besides other premiums and assurances, the agent/S.M. of Ops Manav Sanam assured the complainant that the objective of the present policy is life insurance and savings and further, it was assured that it is a flexible plan, if he would not want to continue the policy in future, then the complainant will have the option to terminate it any time and the complainant will be paid back full premiums amount plus 9% p.a. interest on this amount on his demand after the completion of eighteen months. After acceptance by the complainant, the agent got signed few blank forms and papers from the complainant and further assured that the Ops will sent original policy documents within 60 days. Within this time, the agent only handed over the photocopy of A-1 to the complainant on the same day. Except the same, the Ops did not send any policy documents to him during this period. Even after the expiry of this period, the Ops failed to send any policy documents despite repeated requests and visits to the OP1 and the said agent on the part of the complainant. Thereafter, the said agent handed over the photocopy of A-2 to the complainant in April, 2013. Thereafter, the complainant approached many times to the Ops and the agent to the supply the policy documents but the Ops continued to put off the matter on one pretext or the other and due to non supply of the policy documents, the complainant did not pay the second premium. As per the assurance given to the complainant, the Ops were liable to pay premium amount plus 9% p.a. upto date interest on this amount after the expiry of eighteen months. So, the complainant visited the OP1 office in the first week of July, 2014 to enquire how to claim back the agreed amount. But to the surprise of the complainant, OP1 then manager told the complainant that they are not liable to pay amount to him at any point of time. The complainant sent a legal notice dated 15.7.2014 through his counsel to the OP2 with the request to pay back the premium paid plus 9% p.a. upto date agreed interest within 30 days from the receipt of the notice but with no result and again served a legal notice dated 12.9.2014 to the OP2, but neither Ops replied to the notice nor made any payment to the complainant. Hence, this complaint.

3.                Upon notice of the complaint, Ops were duly served and appeared through their counsel Sh.Shakti Jain, Advocate and filed their written reply, in which, it has been submitted in the preliminary objections that the complaint being frivolous and vexatious is liable to be dismissed u/s 26 of the Consumer Protection Act as the complainant has failed to make out a case of “deficiency of service” as alleged or otherwise within the meaning of Consumer Protection Act, 1986, the present complaint is not maintainable. The complainant has concealed and suppressed the material and relevant facts of the case and the complaint has been filed with malafide and dishonest intention. The contract of the insurance between the answering Ops and the complainant is governed by its policy terms and conditions. The complaint is devoid of any material particulars and has been filed merely to harass and gain undue advantage and unjustified monies from the answering Ops and further, the complaint has been filed with ulterior motive and malafide intention to cause harassment and prejudice to the answering Ops which is a company of high repute. The complainant has failed to setup nexus between the damages claimed in the present complaint and the damages suffered by him and the damage claim is arbitrarily, without basis and is an abuse of process of law. Further, it is submitted that based on the answers, statements, premium amount, premium paying term opted and declarations  made in the proposal form duly executed and submitted by the complainant and the answering Ops had issued the following policies alongwith the terms and conditions governing  the policy and a Welcome Letter. The details of the policies are as under:-

Policy Name	Reliance Life Guaranteed Money Back Plan
Policy Number	50665389
Policy Issue Date	08.01.2013
Proposer	Jagroop Singh
Premium Amount	Rs.25,000/-
Mode	Yearly
Policy Term	15 years
Premium Term	5 years
Dispatch Mode	Speed Post No.EQ548278256IN dated 10.01.13

 

Policy Name	Reliance Life Guaranteed Money Back Plan
Policy Number	50693547
Policy Issue Date	17.01.2013
Proposer	Jagroop Singh
Premium Amount	Rs.26,000/-
Mode	Yearly
Policy Term	15 years
Premium Term	5 years
Dispatch Mode	Speed Post No.EQ548313925IN dated 19.01.13

 

The above policies documents were dispatched through speed post by the answering Ops at the given address of the complainant and the same were admittedly received by the complainant. Further, it is submitted that the complainant had signed the declaration and authorization contained in the proposal form, meaning thereby that the proper/complainant was explained all the terms and conditions of the policy and only after his satisfaction, complainant provided the details in the proposal form and signed the same, thereby accepting the terms and conditions mentioned therein. Further, it is submitted that the policy schedule filed by the complainant itself states the premium paying term under the policy was of ‘5 years’, and as such, the complainant was fully aware of the minimum premium paying term and also about the premium payment being regular in nature. Further, it is submitted that the complainant had received the policy documents and all the applicable charges, premium paying terms, benefits etc, are dully mentioned in the policy and he was fully aware about all the terms and conditions and benefits. Further, it is submitted that as per Section 6(2) of the Insurance Regulatory and Development Authority (Protection of Policyholder Interests) Regulations, 2002, insured can avail free look cancellation or modifications within 15 days of the receipt of the policy document and the said clause is duly mentioned on the first page of the policy document as well as in the policy condition. The complainant had admittedly duly received the policy documents and therefore, he was fully aware with the terms and conditions governing the policy but did not opt for free-look cancellation after the receipt of the policy, meaning thereby he had accepted the terms and conditions of the policy. On merits, the fact regarding issuance of the policies in question is admitted. However, it is submitted that the complainant also did not lodge any complaint with the answering Ops for non-receipt of the policy documents. Otherwise, similar pleas were taken as mentioned in the preliminary objections and at the end, denying any deficiency in service and all other allegations made in the complaint against the answering OPs are denied being wrong and incorrect and made prayer for dismissal of the complaint with costs.

4.                Both the parties adduced their respective evidence by way of tendering their duly sworn affidavits and documents, which we have perused carefully after considering the rival contention of learned counsel for both the parties.

5.                 Perusal of the record reveals that it is an undisputed fact between the parties that the complainant had purchased the non unit linked and non participating life insurance policy of the Ops with guaranteed money back plan having contract No.50693547 which he had purchased on 16.1.2013 on payment of Rs.26,000/- as first premium/consideration. Further, it is a proved fact on record that the premium and proposal was accepted by the Ops. It is also not disputed fact between the parties that the complainant did not pay any other installment of premium. Further, it is a proved fact that parties are governed by the policy terms and conditions of the policy.

6.                As per the plea of the Ops that the complainant had only paid one premium at the time of purchase of the policy and thereafter, he did not pay any premium on account of further premium and also did not exercise the option to get cancelled the policy within the free look period of 15 days and only served a legal notice after the lapse of one year with the request to refund the amount.

7.                During the course of arguments, learned counsel for the complainant has not denied this fact but he has stated at bar that the complainant is not willing to continue with the policy and only interested to get refund of the amount which may become due after surrender of the policy.

8.                In the light of our above discussions, we hereby allow this complaint and direct the complainant to make a request by filing an application for surrender of the impugned policy with the Ops within 15 days from the date of receipt of copy of this order and thereafter, Ops are directed to consider the application and to revive the policies, if the same is in lapse stage, and thereafter, to pay the fund value/surrender value of the impugned policy to the complainant within 30 days from the date of receipt of application from the complainant, as per the terms and conditions of the policy and in accordance with latest law. Further, OPs are directed to pay compensation to the tune of Rs.5000/-(five thousand only) to the complainant on account of mental pain, agony and harassment suffered by him and Rs.2000/-(two thousand only) as litigation costs to the complainant. Compliance of order be made within 30 days from the date of receipt of copy of this order which be made available to the parties free of cost and thereafter the file be consigned to the record room.

 

(Sat Paul Garg)                                           (R.L.Ahuja)  

Member                                                      President

 Announced in open Forum

on 27.05.2015

Gurpreet Sharma