Complaint filed on: 14.05.2015
Complaint Disposed on:12.04.2017
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AT CHICKMAGALUR.
COMPLAINT NO.87/2015
DATED THIS THE 12th DAY OF APRIL 2017
:PRESENT:
HON’BLE SRI RAVISHANKAR, B.A.L, LL.B., - PRESIDENT
HON’BLE SMT B.U.GEETHA, M. COM., LL.B., -MEMBER
HON’BLE SMT H. MANJULA, B.A.L., LL.B., - MEMBER
COMPLAINANT:
Puttaswamy Gowda B.E.,
S/o Eregowda, A/a 55 years,
R/o Belur Road, Opp. Anjaney
Petrol Bunk, Chikkamagalur.
(By Sri/Smt.L.P.Sathish, Advocate)
V/s
OPPONENT:
1.Reliance Life Insurance
Company Limited,
Registered Office, H Block,1st Floor,
Knowledge City, Navi Mumbai,
2.Reliance Life Insurance
Company Limited,
Kruthika Arcade, 1st Floor,
N.R Circle, Holenarsipura road,
3.Reliance Life Insurance
Company Limited,
Krishna Towers, Next to
City police station, M.G Road,
Chikkamagalur.
(OP By Sri/Smt. T.R.Harish, Advocate)
By Hon’ble President Sri. Ravishankar,
:O R D E R:
The complainant filed this complaint U/s 12 of the Consumer Protection Act 1986 against OP alleging deficiency in service in not paying the amount of Rs.25,000/- as undertaken as per the policy schedule issued by Op no.1 to 3. Hence, prays for direction against Op no.1 to 3 to pay Rs.25,000/- as undertaken by them along with interest at the rate of 18% per annum till payment and compensation towards bouncing of the cheque and compensation for deficiency in service.
2. The brief facts of the complaint is that:
The complainant had taken a policy from Op no.1 to 3 known as RELIANCE CASH FLOW PLAN vide policy no.18374032, which effects from 08.01.2011, the sum assured under the policy is Rs.1,00,000/- and the term of the policy is 16 years, the installment payable by the complainant is Rs.9,895/- per annum. The complainant after obtaining the said policy is regular in paying the premiums towards the policy and now the policy is in force.
As per the terms and conditions of the policy on the survival of the life assured, the Op no.1 to 3 have undertaken to pay Rs.25,000/- after break of every 3 years from issuance of the policy i.e., in the year 2015 Rs.25,000/-, in the year 2018 Rs.25,000/-, in the year 2021 Rs.25,000/- and in the year 2024 Rs.25,000/- is payable to the complainant, but surprisingly in the year 2015 the Op no.1 to 3 company have sent a cheque for Rs.20,000/- drawn on HDFC bank vide cheque no.215110 dated 08.01.2015. The Op no.1 to 3 company have sent a cheque for Rs.20,000/- instead of Rs.25,000/- as undertaken, even the cheque which was sent to the complainant was not honored by the bank and issued a memo dated 20.04.2015 for the reason that the instrument is outdated, banker of the complainant have collected Rs.200/- from his account for dishonor of the cheque.
The Op no.1 to 3 company have not paid the amount mentioned in the policy schedule, instead of that have only paid Rs.20,000/-, for which this complainant made an enquiry with Op no.2, for which Op no.2 told that it is by mistake and typographical error the amount was mentioned as Rs.25,000/- instead of Rs.20,000/- and insisted to receive Rs.20,000/- instead of Rs.25,000/- as per the terms and conditions of the policy. Therefore, Op no.1 to 3 rendered a deficiency in service in not paying Rs.25,000/- as per the policy schedule issued by them.
Hence, complainant filed this complaint and prays for direction against Op no.1 to 3 to pay the amount of Rs.25,000/- regularly as per the policy schedule along with interest and compensation for deficiency in service as prayed above.
3. After service of notice Op no.1 to 3 appeared through their counsel and filed version and contended that the Op no.1 is Reliance Life Insurance Co. Ltd., is a company duly incorporated under the provisions of the Companies Act, 1956 having its registered office at 9th & 10th floor, Building No.2, R-Tech Park, Nirlon Compound, Next to Hub Mall, Behind 1-Flex Building, Goregaon (East), Mumbai-400068, the Op no.2 & 3 is the branch offices of Op no.1 at Hassan & Chikkamagalur respectively. The said Relaince Life Insurance Company is primarily into the business of Life Insurance duly approved as per the Government of India through the insurance regulator IRDAI and has branches across India and is widely acclaimed for its reputation and services. These Ops have craved a niche for themselves in the insurance products as well as in the services across the country.
The complainant after understanding the terms and conditions of the Reliance Cash Flow Plan by voluntarily filled up a proposal form bearing no.WCOO10912518 signed and offered to pay Rs.9,743/- towards premium under the policy for the period up to 16 years, the sum assured is Rs.1,00,000/- , after receipt of the duly filled proposal form along with payment of Rs.10,000/- made by complainant towards initial premium, this Op had issued a policy bearing no.18374062 to the complainant which commences from 08.01.2011, they have dispatched policy documents along with policy schedule to the complainant.
The Ops further contended that the policy schedule issued to the complainant which discloses the benefits payable to complainant and it is submitted that as per the terms agreed and understood by complainant benefit on survival of life assured was payable at Rs.20,000/- on 8th January 2015, 2018, 2021 and 2024. However erroneously due to some technical error in the policy documents delivered to the complainant under the basic benefit clause an amount of Rs.25,000/- written as survival benefit amount payable to the complainant on 8th January 2015, 2018, 2021 and 2024 instead of Rs.20,000/-. After the identification of the said error this Op no.1 to 3 during the routine quality check the said error was rectified, thereafter an apology letter was issued to the complainant along with corrected/rectified policy schedule page, the said corrected schedule was received by complainant. Hence, as per the terms and conditions of the policy, survival benefit amount of Rs.20,000/- was sent to the complainant. The same was dispatched to the complainant.
Subsequently these Ops received a letter dated 03.04.2015 from complainant intimated these Ops about the dishonor of cheque and requested the Op to issue a fresh cheque towards survival benefit amount, accordingly the cheque bearing no.215110 drawn on HDFC Bank for an amount of Rs.20,000/- was re-dispatched to the complainant on 08.04.2015, but it is pertaining to note that the complainant has not raised any concern or complaint regarding the issuance of an amount of Rs.20,000/- through cheque in the said letter. There is no deficiency in service on the part of Op no.1 to 3 in issuing cheque for Rs.20,000/- after correction of the policy schedule. The complainant filed this false complaint only after thought in order to gain wrongfully.
Op no.1 to 3 further contended that the complainant has made a total 5 premiums in respect to the said policy amounting to sum of Rs.49,764/- and complainant is not entitled to get Rs.25,000/- as survival benefit as claimed in the complaint, he is only entitled to get Rs.20,000/- as survival benefit as per the policy schedule. Hence, they are not liable to pay the claim made by complainant and prays for dismissal of the complaint.
4. Complainant filed affidavit and marked documents as Ex.P.1 to P.3. Op no.1 to 3 also filed affidavit and documents marked as Ex.R.1 to R.4.
5. Heard the arguments.
6. In the proceedings, the following points do arise for our consideration and decision:
- Whether there is deficiency in service on the part of OPs.
- Whether complainant entitled for any relief & what Order?
7. Our findings on the above points are as follows:-
- Point No.1: Affirmative.
- Point No.2: As per Order below.
: R E A S O N S :
POINT NOs. 1 & 2:
8. There is no dispute that complainant had obtained Reliance Cash Flow Policy from Op no.1 to 3 vide policy no.18374032 in the year 2011 for assured amount of Rs.1,00,000/-, the policy came into force from 08.01.2011, the period of the policy is 16 years and the amount of premium per year is Rs.9,895/-. There is also no dispute that the Op no.1 to 3 have after receipt of the premium have issued policy documents and policy schedule who undertaken to pay Rs.25,000/- by survival of the insured periodically, but complainant alleges that Op no.1 to 3 have issued a cheque for Rs.20,000/- instead of Rs.25,000/- as survival benefit as undertaken as per the policy. Hence, alleges deficiency in service.
9. On contrary Op no.1 to 3 have taken a contention that it is by oversight/mistake the amount was mentioned as Rs.25,000/- in the policy schedule instead of Rs.20,000/- which was issued to the complainant. Subsequently, after notification they have rectified the mistake and apology letter was sent to the complainant by correcting the policy schedule and issued a cheque for Rs.20,000/- to the complainant. The said cheque was accepted by the complainant. Hence, submits no deficiency in service.
10. The complainant has produced policy documents with a schedule marked as Ex.P.1 and also produced original cheque stands in the name of complainant dated 08.01.2015 marked as Ex.P.2 and endorsement given by HDFC Bank for return of the cheque without honor dated 20.04.2015 marked as Ex.P.3.
The learned advocate for complainant vehemently argued that Op and complainant have entered into a contract which was dully signed by both parties. The terms and conditions of the policy are binding on both parties. Hence, as per the terms and conditions of the policy the Op no.1 to 3 have to pay Rs.25,000/- as survival benefit to the complainant, hence prays for direction against Op no.1 to 3 to pay Rs.25,000/- as survival benefit.
11. On contrary the learned advocate for Op also vehemently argued that after notification of the mistake they have corrected the mistake in the policy schedule and issued new policy schedule to the complainant which was served on complainant. Hence, they have issued a cheque for Rs.20,000/- as per the policy schedule and submits no deficiency in service and Op no.1 to 3 have sworn affidavit and produced proposal form marked as Ex.R.1, corrigendum to the policy schedule marked as Ex.R.2 and policy schedule for Reliance Cash Flow Plan marked as Ex.R.3 and also produced a letter issued by complainant with respect to the dishonor of the cheque marked as Ex.R.4. Except these documents Op no.1 to 3 has not produced any documents to establish that the policy issued to the complainant was a mistake. We are of the opinion that if any erroneous conditions arose in the policy which was duly signed by both parties, the said agreement/contract/policy should be cancelled by consent of both the parties, whereas in this complaint the Op no.1 to 3 have not made any efforts to cancel the policy issued to the complainant by stating the error/mistake. We noticed that Op no.1 to 3 have only issued an apology letter and a policy schedule to the complainant as per Ex.R.2 and 3. Mere issuance of policy schedule will not suffice the cancellation of the policy terms and conditions, even we noticed that Op no.1 to 3 have sworn that the said apology letter was served on complainant, but had not produced any documents to show that the said corrected policy schedule was served on the complainant. The Op no.1 to 3 has arbitrarily made a correction of the policy terms and conditions against the policy terms and conditions. The policy produced by complainant marked as Ex.P.1 clearly shows that Op no.1 to 3 have undertaken to pay Rs.25,000/- as survival benefit of the policy holder, accordingly the Op no.1 to 3 have to stick-on to the said terms and conditions, therefore Ops are estopped from changing the terms and conditions and policy schedule.
Further we are of the opinion that Ops had not produced any materials to show that the survival benefit under the Reliance Cash Flow Plan policy is Rs.20,000/- only, mere corrigendum letter and altered policy schedule will not suffice to correct the terms and conditions of the policy, hence, we are of the opinion that Op no.1 to 3 rendered deficiency in service in not issuing survival benefit of Rs.25,000/- to the complainant if policy is continued as undertaken in the policy schedule. Hence, Op no.1 to 3 are liable to pay Rs.25,000/- as survival benefit on 8th January 2015, 2018, 2021 and 2024 as undertaken along with compensation of Rs.25,000/- for deficiency in service and litigation expenses of Rs.2,000/- to the complainant. As such for the above said reasons, we answer the above point no.1 and 2 in the Affirmative and proceed to pass the following:-
: O R D E R :
- The complaint filed by the complainant is partly allowed.
- OP no.1 to 3 are directed to pay Rs.25,000/- (Twenty Five thousand Rupees only) regularly as per the policy schedule to the complainant.
- Op no.1 to 3 further directed to pay compensation of Rs.25,000/- (Twenty Five thousand Rupees only) for deficiency in service along with litigation expenses of Rs.2,000/- (Two thousand Rupees only) to the complainant.
- The OP no.1 to 3 further directed to comply the above order within 30 days from the date of receipt/knowledge of the order, failing which the payable amount shall carry interest @ 9% P.A. till realization.
- Send free copies of this order to both the parties.
(Dictated to the Stenographer transcribed typed by her, transcript corrected by me and then pronounced in Open Court on this the 12th day of April 2017).
(B.U.GEETHA) (H. MANJULA) (RAVISHANKAR)
Member Member President
ANNEXURES
Documents produced on behalf of the complainant:
Ex.P.1 - Reliance Life Insurance Policy document.
Ex.P.2 - Original cheque dtd 8.1.15.
Ex.P.3 - Return memo.
Documents produced on behalf of the OPs:
Ex.R.1 - Copy of the proposal form.
Ex.R.2 - Letter issued by Op to complainant.
Ex.R.3 - Policy schedule.
Ex.R.4 - Copy of the letter issued by complainant to Op dtd:3.4.15.
Dated:12.04.2017 President
District Consumer Forum,
Chikmagalur.
