Punjab

Ludhiana

CC/14/281

Kuldip Singh - Complainant(s)

Versus

Reliance life ins.co.ltd - Opp.Party(s)

26 Mar 2015

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, LUDHIANA.

 

                                                                 Complaint No: 281 of 27.03.2014

                                                                                                                    Date of Decision: 26.03.2015

                                                                                                                   

Kuldip Singh s/o Sh.Budh Ram, resident of Village Baho Majra, Tehsil Khanna, District Ludhiana.

……Complainant

Versus 

1. The President and Deputy CEO, Reliance Life Insurance Company Limited, H Block, 1^st Floor, Dhirubhai Ambani Group, Dhirubhai Ambani Knowledge City, Navi Mumbai, Maharashtra-400710.

2. Reliance Life Insurance Company Limited, Building no.1, Sector 21-C, Opposite Main Bus Stand, Mandi Gobindgarh, Tehsil Amloh, District Fatehgarh Sahib, Punjab.

3. Shambu Lal s/o Sh.Jai Ram, resident of House No. D-115, Focal Point, Khanna.

         

…..Opposite parties 

 

COMPLAINT UNDER SECTION 12 OF THE

CONSUMER PROTECTION ACT, 1986.

 

Quorum:     Sh.R.L.Ahuja, President

                     Sh.Sat Paul Garg, Member

                    Smt.Babita, Member

 

Present:       Sh.P.S.Bal, Advocate for complainant.

                   Sh.Shakti Jain, Advocate for OP1 and OP2.

                   Ms.Shivani Garg, Advocate for OP3.

 

 

                                            ORDER

 

(R.L.AHUJA, PRESIDENT)

 

1.               Present complaint under Section 12 of The Consumer Protection Act, 1986 (herein-after in short to be referred as ‘Act’) has been filed by Sh.Kuldip Singh s/o Sh.Budh Ram, resident of Village Baho Majra, Tehsil Khanna, District Ludhiana (herein-after in short to be referred as ‘complainant’) against The President and Deputy CEO, Reliance Life Insurance Company Limited, H Block, 1^st Floor, Dhirubhai Ambani Group, Dhirubhai Ambani Knowledge City, Navi Mumbai, Maharashtra and others (herein-after in short to be referred as ‘OPs’)- directing them to return Rs.1,50,000/- alongwith interest @ 24% p.a. up-to-date to the complainant, to pay Rs.50,000/- as compensation and to pay Rs.11,000/- as litigation expenses to the complainant.

2.                Brief facts of the complaint are that the complainant purchased a policy bearing no.16340112 and paid a sum of Rs.1,50,000/- to the Ops, through different cheques. The Ops assured the complainant that the money paid by the complainant will be multiplied very shortly i.e. within five years and the complainant will get handsome returns of the amount in lieu of the premiums paid by him to the Ops under the above said policy. The Ops also obtained the signatures of the complainant on various blank papers and forms. Due to un-avoidable circumstances of the family, the complainants needs money so he visited the branchoffice of Life Insurance Company Limited to know the position of his policy and applied for withdrawal the amount ofRs.1,50,000/-, but the complainant was astonished to hear from the dealinghand of the Ops that the total amount in his above said policy is just Rs.1,30,000/- and if he would withdraw any money from this amount, then he would receive after deduction of 20% amount from Rs.1,30,000/- without any interest. The complainant paidRs.1,50,000/- through different cheques as detailed above, so he is entitled to recover Rs.1,50,000/- alongwith up-to-date interest at the bank market rate from the Ops. But the Ops are not paying the full amount, which they received from the complainant i.e. Rs.1,50,000/- alongwith interest at the Bank Market rate. The complainant also served a legal notice on dated 6.2.14 to the OP1, through Registered/ A.D., through his counsel. In reply to that notice of Ops it was stated that the complainant paid three premiums and the current fund value of the complainant is Rs.1,32,978.32p (indicative) and they further stated that the complainant will get the amount after deduction as per policy terms and conditions since the complainant had opted for market plan. Claiming the above act as deficiency in service on the part of the Ops, the complainant has filed this complaint.

3.                On notice of the complaint, OP1 and OP2 appeared through their counsel and filed written statement taking preliminary objections that the present complaint is hopelessly time barred; complainant is not consumer as defined under Consumer Protection Act; the complaint being frivolous and vexatious is liable to be dismissed under section 26 of the Consumer Protection Act; the complainant has concealed and suppressed the material and relevant facts of the case. Further in the parawise, it has been submitted that the answering Ops had issued the following policy alongwith the terms and conditions governing the policy and a welcome letter. The details of the same are reproduced herewith for kind perusal of this Forum:-

Policy Name	Super Automatic Term Plan
Policy Number	16340112
Policy Issue date	28.02.2010
Proposer	Kuldeep Singh
Premium amount	Rs.50,000/-
Mode	Yearly
Policy Term	10 years
Premium Term	10 years

 

          The above said policy document was dispatched on 9.3.10 through registered post by the answering Ops at the given address of complainant and the same was admittedly duly received by the complainant. Further stated that the complainant had signed the declaration and authorization contained in the proposal form, which inter alia specifically states as under:-

*          I declare that statements in this proposal are true and I have disclosed all information which might be material to the company while issuing the policy contract.

*          I have read the sales literature of the proposed plan and fully understand the terms and conditions of the plan alongwith the associated risk and benefit, which I proposed to take.

*          I/We confirm that the premium have not been and will not be generated from proceeds of any criminal activity/ offence listed in the prevention in the money laundering act, 2002 or under any other applicable laws, should their be any adverse change in my integrity or reputation. I shall inform Reliance Life Company immediately.

*          I agreed that insurance protection shall only be provided effective from the date of acceptance of the risk by the company.

 

          Meaning thereby the assured /proposer was explained all the terms and conditions of the policy and only after his satisfaction, he provided the details in the proposal form and signed the same thereby accepting the terms and conditions therein. It is further stated that the policy schedule filed by the complainant itself states the Premium paying term under the policy was of ’10 years’ and complainant had received the policy documents and all the applicable charges, Premium paying terms, benefits etc. are duly mentioned in the policy. Further submitted that as per section 6(2) of the Insurance Regulatory and Development Authority (Protection of Policyholders Interests) Regulations, 2002, insured can avail free look period cancellation or modifications within 15 days of the receipt of the policy document. The said clause is duly mentioned on the first page of the policy document and the complainant had duly received the policy document and therefore was fully aware of with the terms and conditions governing the policy, but did not opt for free-look cancellation after the receipt of policy meaning thereby accepted the terms and conditions of the policy. On merits, submitted that the complainant himself proposed for life Insurance policy under the plan ‘Super Automatic Terms Plan’ and submitted the requisite documents. The complainant paid three premiums of Rs.50,000/- each under the policy thought the fact that the premium paying term was 10 years. Further denying the contents of all other paras, Ops prayed for the dismissal of the complaint.

4.                On notice of the complaint, OP3 appeared through his counsel and filed written statement taking preliminary objections that the complaint is not maintainable in the present form; the complaint is bad for mis-joinder of the party; the complainant has not come to the Forum with clean hands and has suppressed the material facts from this Forum. True facts of the case are that the OP3 was sales Manager in the Reliance Life. The OP3 having no public dealings. The son of the complainant namely Gurcharan Singh having Advisor Code 21013020 was Authorized agent of the company. The said policy subject matter of the complaint was sold by said Gurcharan Singh, who is the real son of the complainant and this fact is also mentioned in the documents attached by the complainant on the file. Said Gurcharan Singh is the beneficiary of the commissions to be paid by the company for the sale of the policy and further premiums paid by the customers to which the OP3 has no concern. Son of complainant namely Gurcharan Singh has received Rs.7065/-, Rs.2346/-, Rs.1802/- and Rs.675/-, through different cheques which were encashed by his son in the Bank Account State Bank of Patiala. On merits, denying the contents of all other paras of the complaint, OP3 prayed for the dismissal of the complaint.

4.                In order to prove his case, Ld. Counsel for the complainant has placed on record affidavit of complainant Sh.Kuldip Singh Ex.CA, wherein, the same facts have been reiterated as narrated in the complainant and also placed on record documents Ex.C1 to Ex.C10. On the other hand, Ld. Counsel for OP1 and OP2 has placed on record affidavit of Sh.Vineet Ahuja, Authorized Signatory, Reliance Life Insurance Company Limited, SCO 41, 2^nd Floor, above Titan Show Room, Feroze Gandhi Market, Bhai Wala Chowk, Ludhiana Ex.RA, wherein, the same facts have been reiterated as narrated in the written statement and also placed on record document Ex.R1. Whereas, Ld. Counsel for OP3 has placed on record affidavit of OP3 Sh.Shambu Lal s/o Jai Ram Ex.RA3 alongwith document Ex.R3/1.

5.                We have heard the Ld. Counsel for the parties and have also perused the entire record placed on file.

6.                It is undisputed facts that the complainant purchased a policy bearingno.16340112 and paid premium of Rs.1,50,000/- to the Ops. As per the contentions of the complainant, complainant was in need of money and approached Ops for the repayment of the amount, which they have to pay with interest. However, the Ops only offered Rs.1,32,978/- to the complainant, vide reply to the legal notice dated 11.02.14 on account of current fund value of the policy, which was not acceptable to the complainant.

7.                On the other hand, Ld. Counsel for OP1 and OP2 has strongly contended that complainant has not applied for the cancellation of the policy within free look period of 15 days nor surrendered the policy till date to get the fund value of the policy, as per terms and conditions of the policy.

8.                During the course of arguments, Ld. Counsel for the complainant has stated at bar that complainant is ready to surrender the policy in order to get the refund the value of the policy, as per the terms and conditions of the policy. On the other hand, Ld. Counsel for OP1 and OP2 has stated at bar OP1 and OP2 will make the payment of the surrender value of the policy, in case the policy is surrendered by the complainant and the Ops will consider the claim of the complainant and will settle and pay the current value of the policy as per the terms and conditions of the policy.

9.                In view of the above discussion, the present complaint is partly allowed against OP1 and OP2 and complainant is directed to surrender the policy within 15 days from the receipt of the copy of the order. Thereafter OP1 and OP2 are directed to settle and pay the fund value of the policy, as per the terms and conditions of the policy. Keeping in view of the peculiar circumstances of the case, no order as to compensation and cost is passed. Complaint against OP3 stands dismissed. Copy of the order be supplied to the parties, free of costs. File be consigned to record room.

 

          (Babita)                          (S.P.Garg)                      (R.L.Ahuja)

          Member                           Member                         President

Announced in Open Forum.

Dated:26.03.2015 

Hardeep Singh