Delhi

East Delhi

CC/72/2015

ABHISHEK - Complainant(s)

Versus

RELIANCE LIFE INS - Opp.Party(s)

05 Jan 2016

ORDER

           DISTRICT CONSUMER DISPUTE REDRESSAL FORUM EAST Govt of NCT Delhi

          CONVENIENT SHOPPING CENTRE, 1^st FLOOR, SAINI ENCLAVE, DELHI 110092                                       

Consumer complaint no.   72/2015

In matter of

Mr Abhishekh Jain, adult   

s/o Sharad Jain

R/o- B-248, Yojna Vihar,  Delhi 92………………………………………………..…………….Complainant

                                                                    Vs

1- Reliance Life Insurance Co. Ltd.

    Office   9- 10^th Floor, Building No. 2

    R Tech Park, Nirlon compound Next to HUBB Mall

    Behind Flex Building, Goregaon East, Mumbai-400063

2- Reliance Life Insurance Co. Ltd.

    16/17, Padam Singh Road,

    Karol Bagh, Delhi ……….……………………………………………………….…………….Respondents                                                                                                         

                                                                                                       Date of Institution – 19/02/2015

                                                                                                       Date of Order         - 02/02/2016                                                                                                          

Order by Dr P N Tiwari, Member : 

 

Brief Facts of the case                                                                                                

Mr  Abhishekh Jain, complainant, is a educated person dealing in food processing business. He has taken a money back life insurance policy from OP. Complainant on assurance from OP, that he will get an interest free loan of Rs Ten lakh payable in ten years, filled policy proposal form by himself. He paid the first installment of Rs 99,999/- through cheque vide no. 916239 dated 10/03/2013. He received policy bond with terms and condition but without any loan benefit. On enquiring from OP office for loan issue, he was told that Rs 10 Lakh cheque will be sent within 48 hours.

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                                                          Consumer complaint no.   72/2015

 

But he did not get any loan benefit. After number of calls to OP, no response was received. Thereafter he approached Ombudsman. Not getting any satisfactory response, he filed complaint claiming refund of premium amount paid along with 18% interest and Rs 2 Lakh as harassment and Rs 25000/- as litigation cost.

 

After perusal of facts and evidences in complaint, notices were served. OP filed written statement denying all the allegations in the complaint. OP admitted that complainant has purchased a life insurance policy as per terms and conditions. Policy bond along with terms and condition has been received by him. As per terms and condition of the policy, if insured is not satisfied, he has to make a letter for cancellation within 15 days of receiving the policy bond and the premium amount will be refunded after deducting misc. charges. The said policy was a life insurance policy does not endorse for loan benefit to insure. Parties filed their rejoinder and evidences on affidavit and arguments were heard.  

 

On scrutinizing facts and evidences of parties, premium receipt reads as policy paying term is Five years with annual premium amount Rs 99,999/-to be paid every year continuously for five year and total tenure of the policy is 15 years. The policy first premium date is 12 July 2013 and every 12 July is the premium paying date for five year. The maturity date is 12 July 2028 with maturity amount Rs 4,74,984/.  

In policy terms and condition the refund of premium amount is applicable after three continuous premiums are paid in time by the complainant. In the Reliance life Insurance money back plan, insured sum assured amount is less then what insured will pay in five years. More so, the money back benefits would be available from 11^th years. In all insured will get much less maturity amount if he would continue for all specified period of the policy.  The maturity value of the policy does not give any future benefit to any one because premium paid is more than the maturity amount.                                                                                                                      Page 02

                                                          Consumer complaint no.   72/2015

This clearly shows the unfair trade practice adopted by the OP for minting money.

WE allow this complaint and direct OP to refund the premium amount paid by the complainant with 9% interest from the date of filing this complaint within 30 days. We also award compensation of Rs 10,000/- to be paid to complainant to be paid in time which will include harassment, mental pain and agony. Failing to comply the order in time will carry 9% interest on entire awarded amount.

The order copy be sent to the parties as per act and file be consigned to the record room

 

 (Dr) P N Tiwari - Member                                                           Md Poonam Malhotra-Member                   

                                       

                                                   Mr N A Zaidi - President

 

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