Order-7.
Date-30/08/2017.
Shri Sangita Paul, Member.
This is an application u/s.12 of the C.P. Act, 1986.
Complainant by filing this case states that from O.P.-3 he learnt that O.P.-1 and 2 started schemesof one-time investment with high return sometimes in the month of August-2016. Complainant issued three cheques worth Rs.24,995/-, Rs.25,000/- and rs.34,493/- respectively for investing in the one-time. By making a premature closure of one of fixed deposits complainant issued three cheques in favour of O.P.-1. O.P.-3 told that he would put the date. Complainant was also asked to put signature over few blank forms prescribed by O.Ps.-1 and 2. On being convinced by the version of O.P-3 complainant disclosed all his credentials, background and other parameters as asked by O.P.-3. O.P.-3 assured that if complainant invests according to their specified policies obviously complainant would get an assured high return, high interest. He will get high interest than the monthly income scheme of Government. Being allured by the sweet words of O.P.-3 complainant trusted O.P.-3 blindly. He was convinced by words of O.P.-3. As a result he invested the money in different schemes of O.Ps.-1 and 2 as per choice of O.P.-3. But complainant never verified the same from other persons. He issued cheques in favour of O.Ps.-1 and 2. But complainant never received a phone call from O.Ps.-1 and 2. Complainant was expecting policy certificates from the O.Ps. In the month of May-2012 complainant was told over phone by O.P.-3 to collect the policy certificates from office of the O.Ps.-1 and 2. He was told that he would get the policies at his doorsteps. Complainant did not get the policies. Complainant went to O.Ps.-2 and 3 but he returned after getting lots of false assurances. Thereafter he received three renewal information in the form of message of the three policies with defaulter information in the month of April-2016. He came to learn that the policies have created a deep financial burden to him. A person who identified himself as one engaged by O.P.-1 assured complainant that from April-2016 he will receive the monthly income benefit as he has converted the said policies into short term policies and the locking periods are four years from the date of commencement. Complainant wrote a letter to O.P.-2 to refund the deposited amount. Complainant is a school teacher by profession and to deposit rs.90,000/- per year is an impossible affair. He paid money for one time investment. Complainant invested money being allured by the false hopes of O.P.-3. Thus O.P.-3 earned commission from the premium of complainant. After getting the policies for a long period of time complainant went to O.P.-2. Complainant was told to contact to the Mumbai Office and O.P.-3. O.P.-3 avoided complainant by saying that he was not a responsible person to answer the complainant’s words. Complainant also got no help from Ombudsmen as well. The O.Ps. by misrepresentation compelled complainant to open three policies which are impossible for him to continue. Hence complainant prays for directing the O.Ps. to refund Rs.84,488/- only invested in the said three policies with 9 percent interest till full satisfaction, directing to O.ps. to pay Rs.1,00,000/-only by way of compensation, harassment, mental pain and agony and for unfair trade practice and Rs.1,00,000/- as litigation cost.
Notices were served upon the O.Ps. on 27/06/2017, but on the next date i.e. on 17/07/2017 none of the O.Ps. turned up. On successive dates i.e. on 08/08/2017 and 11/08/2017, O.Ps. did not enter appearance. No W.V. is filed. As a result the case was fixed for ex-parte hearing and we proceeded for judgment.
Decision with Reasons
We have travelled over documents on record i.e. complaint petition , photocopy of letters addressed to Reliance Life Insurance Co. and photocopy of reply to complainant from reliance.
It appears that complainant came across an insurance broker mentioned here as O.P.-3 who informed complainant that he could get a high return from one-time investment in Reliance Life Insurance Co. Ltd. Complainant believed in the words of O.P.-3. Before meeting, O.P.-3 made several calls to complainantinsisting on making payment. Complainant paid Rs.84,488/- in three cheques being amount Rs.24,995/-, Rs.25,000/- and Rs.34,493/- respectively. Complainant made premature closure of his fixed deposit and invested the same with a hope of high return. But complainant was duped by the O.ps. By collecting money from complainant O.P.-2 opened three separate policies in the name of complainant and complainant had to pay yearly premium. Complainant was not prepared for this situation. In the hope of getting high return from one-time investment, he invested but the reality was made totally different . It was not possible for him to give yearly premium of Rs.84,488/- for three policies. The O.Ps. withmalafide intention had made false promise before complainant. Complainant being an innocent person and a teacher by profession failed to understand their trick. Being allured by the sweet words of O.P.-3 he agreed to make Reliance Life Insurance policy. O.P.-3 compelled complainant to make these policies. Complainant also thought that he would have to pay for one time only and he would get a high return than the interest of nationalized banks, but on the contrary, he was totally disappointed thinking that he had to pay Rs.24,995/- for the policy being No.51482643 and he has to pay the same amount for five years, also Rs.25,000/- for the policy being No.5119253 for five years and Rs.34,493/- for five years for policy No.51482543 for five years. That is to say he has to pay Rs.84,488/- each year for three policies. His salary isstated to be Rs.49,820/- per month. It is impossible for a person like him to continue the policies. Complainant fell pray at the hands of O.P.-3. O.P.-3 missold the policies for earning a profit. O.P.-3 earned presumably a handosme commissionfrom the premium of complainant. O.P.-1 grabbed the entire money and O.P.-2 being the branch office of O.P.-1 also gained profit. Insurance policy is a contract by and between the insurer and the insured and it stands upon utmost faith. In this case O.Ps. missold the policies by adopting unfair trade practice by way of misguiding the innocent complainant. Even after issuance of policies they are not ready to meet the client. In this connection, complainant wrote a letter to eliance Life Insurance Co. Ltd. Mumbai Office for cancelling the policies and refunding the entire insurance amount. He also informed that he never signed the application form, his signature is forged in the forms. On 03/05/2016 the complainant was informed that his cancellation would be calculated and they would inform the complainant. Reliance Life Insurance failed to inform complainant of their calculations and the amount they are supposed to disburse.
In view of the above discussion, it is clear that O.Ps. are reluctant to provide promised service. They are deficient in rendering service to the client. They sold the policies with a view to earn profit. So complainant is entitled to get relief.
In the result complaint merits success.
Hence,
Ordered
That the case be and the same is allowed ex-parte against O.Ps.-1, 2 and 3 with cost of Rs.10,000/-.
O.Ps. are jointly and severally directed to refund Rs.84,488/- to complainant with 20 percent deduction thereof as administrative and other charges within one month from the date of this order.
Failure to comply with the order will entitle the complainant to put the order into execution u/s-27 read with section-25 of C.P. Act, 1986.
