Date of Filing : 18.06.2011
Date of Order : 02.12.2011
BEFORE THE BANGALORE URBAN 4th ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM
No. 8, Sahakara Bhavan, Cunningham Road, Bangalore – 560 052
Dated 2nd DECEMBER 2011
PRESENT
Sri. J.N. HAVANUR ….. PRESIDENT
Sri. GANGANARASAIAH ….. MEMBER
Smt. ANITA SHIVAKUMAR ….. MEMBER
COMPLAINT NO. 1108 / 2011
Sri. H.G. Ramakanth,
S/o. H.R. Govindaraja Iyengar,
#2159, 5th Cross, Kuvempunagar,
Channapatna – 562 160,
Ramanagara District. ……. Complainant
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V/s.
1. Reliance Life Insurance,
#28, Centenary Building,
4th Floor, M.G. Road,
Bangalore – 560 001.
2. India Infoline Limited,
#3/23, 2nd Floor, KHB Colony,
80 Feet Road, 2nd Stage,
Opp. Megamart, Basaveswaranagar,
Bangalore – 560 079. …… Opposite Parties
ORDER
By Smt. ANITA SHIVAKUMAR, MEMBER
This Complaint is filed by the Complainant u/s. 12 of the Consumer Protection Act, 1986.
The brief facts of the complaint filed by the Complainant against OPs are that he met the officials of OP2 on 29/01/2010 at Channapattana for obtaining Insurance Policy. They told about the Reliance Health Insurance plan. As he was convinced by the representation made by OP2 (who is the agent of OP1) agreed to take policy of OP1. He paid Rs.5,000/- cash and a cheque bearing no. 702099 dated 29/01/2010 of Canara Bank, Channapattana Branch for Rs.7,500/-. He requested OP2 to present the said cheque for encashment on 10/02/10 due to shortage of amount in his account. OP2 agreed for the same and also assured that they will contact him before submitting the cheque to bank, but OP2 failed to contact him and presented the said cheque on 08/02/2010 itself for encashment which was dishonoured by the Bank. Thereafter, OP2 called the Complainant and requested him to pay Rs.7,500/- by way of cash. Accordingly, he paid Rs.7,500/- by cash in their office at Gopalan Mall, Bangalore on 13/02/2010, for which OP2 issued receipt with acknowledgement. He got the Policy Bond from Reliance Life Insurance which is named as ‘Traditional Super InvestAssure Plan’ bearing No.16241476 dated 30/01/2010 by post. When he perused the bond, he found some mistakes in the policy bond i.e., his initials in the name and also in installment premium. Immediately the same was brought to the notice of the advisor i.e., Op2 orally. OP2 assured to correct the mistakes in name of the Complainant and installment premium. After one year i.e., in the month of January 2011, the wife of Complainant visited IIFL office (OP2 office) at Basaveshwar Nagar to pay the premium amount. But, they refused to accept the premium and advised her to pay the premium at any of the Reliance Branch. Then, the Complainant visited Reliance Branch at Mandya. There he came to know that his policy has been withdrawn/cancelled due to non payment of the full premium amount. When he asked for full details of the process, they told him to contact the Bangalore Branch. The Branch Manager of IIFL refused to furnish the details. When he approached Bangalore Reliance Branch to know about the details, the Complainant was shocked to hear that his Policy has already been cancelled. He further enquired about the reason for cancellation and also about the amount already paid by him while obtaining the policy. OP1 Branch Office staff told that they received only Rs.5,000/- from the Complainant which will be refunded to him and at the same time they denied the subsequent payment of Rs.7,500/- which was paid to OP2 on behalf of OP1. But OP2 denied the submission of OP1 that without receipt of Rs.7,500/- how OP1 has issued policy bond? Several requests were made by the Complainant by sending e-mails to the higher officials of OP1 and phone calls, but he is not able to get the information about the cancellation, and payments made by him. After several requests, OP1 sent a cheque for Rs.5,000/- dated 20/04/2011 along with letter stating that the remaining amount of Rs.7,500/- paid to OP2 is not received by OP1 for which he is not responsible. Since the cheque issued in the name of Complainant was wrongly entered, along with the written complaint he returned the said cheque to OP1 and copy was issued to OP2 on 28/5/2011. They assured that the matter will be settled within 10 days. But it has not settled yet. Hence, the Complainant approached this Forum seeking direction to OPs to refund his amount of Rs.12,500/-, Rs.50,000/- as compensation and Rs.10,000/- towards cost.
2. Notices sent to OPs through RPAD were duly served on them. Ops 1 & 2 represented through their Counsels and filed their statement of objections. OP1 submitted that the Complainant has falsely alleged and he denied the payment of Rs.7,500/- paid through cheque was dishonoured and also denied the receipt of same payment made by way of cash to OP2. Hence OP1 prayed for dismissal of complaint.
3. OP2 submitted that he is duly authorized by the OP1 in order to market the insurance products. OP2 is authorized to solicit the insurance business of OP1 on their behalf as per the agreement between them dated 01/04/2009. He submitted that he never intimated about the dishonor of cheque and also submitted that he was not aware about the same until the Complainant approached the OP2 to pay the balance amount of Rs.7,500/-. OP2 admitted that the Complainant has paid Rs.7,500/- on 13/02/2010 and he accepted the amount and issued receipt with duly signed and sealed on behalf of OP1 since he is an authorized agent of OP1. OP2 has submitted that when the OP1 has issued policy in favour of Complainant, there is no question of non payment of Rs.7,500/-. OP1 has refunded the amount of Rs.5,000/- and OP1 is also liable to refund the balance amount of Rs.7,500/-. Therefore, OP2 is not liable to pay any amount to the Complainant and prayed for dismissal of the complaint against OP2.
4. In the course of enquiry into the complaint, the complainant has filed affidavit evidence reproducing what he has stated in his complaint and Mr. Manjesh.C an authorized representative of OP1 and Mr. Rajkumar.N, Officer and authorized signatory of OP2 have filed their affidavit evidences reproducing what they have stated in their respective versions. The complainant along with his complaint produced copies of documents like copy of policy, copy of two Receipts, one for Rs.5,000/- and another for Rs.7,500/-, copy of premium collection receipt issued by OP1, copy of letter issued by OP1, letter issued to OPs dated 28/05/2011, copy of letter dated 05/04/2011 issued by OP1. Along with affidavit, the Complainant filed agent’s licence details, acknowledgements, email correspondence and other original documents. OP1 has produced copy of authorization letter, proposal form, copy of cheque issued by the Complainant for Rs.7,500/-, premium collection receipt, copy of policy, copy of letter addressed to Complainant dated 15/4/2011 along with refund of Rs.5,000/-by way of cheque. OP2 has produced copy of Licence issued by IRDA, Certificate issued by OP1 to prove that he is authorized agent of OP1. We have heard the Counsels for Complainant and OP1 and perused the records.
5. On the above materials, following points arise for determination.
1. Whether the complainant proves that the Ops have caused deficiency in service in not renewing the policy?
2. To what relief the complainant is entitled to?
6. Our findings on the above points are as under:
Point No.1 - In the Affirmative
Point No.2 - As per Final Order
REASONS
7. Point No.1 – We have gone through the contention of both parties. It is true that there was transaction between the Complainant and OP1 & 2. Complainant has taken health policy of OP1 named ‘Traditional Super InvestAssure Plan’ bearing No.16241476. It was introduced to the Complainant by representative of OP2 and narrated about the policy and after being satisfied by the explanation told him to pay Rs.12,500/- as a premium amount and get benefit of Rs.1,00,000/- under health coverage policy. He paid Rs.5,000/- in cash on the same day i.e., on 29/1/2010 and issued cheque for Rs.7,500/- dated 29/01/2010. Accordingly OP2 issued Receipt on behalf of OP1. At the time of handing over the cheque, the Complainant requested them to present the said cheque after 10/02/2010 due to insufficient fund in the account. OP2 assured him the same. Due to advance presentation of cheque i.e., on 08/02/2010, the cheque was dishonoured on the reason of “insufficient funds” in his account. Immediately on receiving this information, Complainant has paid Rs.7,500/- in cash to OP2 and Receipt issued to him dated 13/02/2010. OP1 issued policy bond with all other particulars like sum assured is Rs.93,750/-, annual installment premium is Rs.12,500/- etc.
8. When Complainant approached OP2 to pay the subsequent premium for 2011 to renew his policy, OP2 refused to accept it and suggested him to pay the premium amount to any of the Reliance Branch Office. Accordingly, he visited Reliance Branch Office, then he came to know that the policy has been cancelled already i.e., in the month of January 2011 due to non payment of full premium. The Complainant’s complaint against OPs is that payment is made as annual premium as per the bond for Rs.12,500/-. Though the entire premium was paid to Ops, they cancelled his policy without intimating to him. Unilaterally OPs have cancelled it for a year ago and neither they refunded his amount nor intimated to him till he approached them.
9. On perusal of the material documents, as per the policy copy Rs.12,500/- is the annual premium. It fulfills the annual premium for the year 2010, that too Complainant has paid Rs.5,000/- by way of cash on 29/1/2010 and Rs.7,500/- also paid by way of cash on 13/02/2010 after the cheque issued was dishonoured. Hence, payment of Rs.12,500/- is made and policy certificate is issued accordingly by the OP1. When the Complainant requested OP1 to refund his amount, he came to know about the cancellation of the policy OP1 assured him to refund it at the earliest. But they did not refund the amount though he requested several times and sent letters and emails to them. On 15/04/2011 after repeated requests, OP1 has refunded Rs.5,000/- by way of cheque along with the letter where he stated that the amount should be paid in the form of cheque when the payment made through an agent not in the form of cash. Hence, Rs.7,500/- is not received by OP1 from OP2 which cannot be refunded. In our view this statement of OP1 really not justifiable, because the earlier payment of Rs.5,000/- is also made through OP2 by way of cash. It is received by OP1, but he denied the receipt of remaining amount of Rs.7,500/- made through same way. It is also not reliable statement that when OP2 is authorized agent of OP1, the customers can pay in any form of payment believing that he is making payment to OP1. Even OP2 accepts the payment on behalf of OP1 only since he is authorized to receive it as per the agreement entered into between both the OPs. It cannot be disbelieved that OP1 received the entire premium amount of Rs.12,500/- from OP2. Even after the receipt of Rs.12,500/- the cancellation of policy of the Complainant amounts to deficiency in service. We can also observe that neither OP1 continued the policy of the Complainant as they received full premium amount nor they refunded the amount to the Complainant, as it has been cancelled, is amounts to deficiency in service. OP1 retained that amount for entire year without sending back when it is cancelled in the stage of inception of policy. It is pure negligence in service. If OP1 has not received Rs.7,500/- from OP2, it is his look out to recover since OP2 is an agent of OP1. But it should not penalize the Complainant though he is not at fault who is victimized between Ops 1 & 2 here. Due to mistake in the cheque issued by OP1 dated 14/04/2011 towards refund of money of Rs.5,000/- the Complainant has returned to OP1 for correction. It is not denied by the Counsel for OP1 in his arguments and submitted that he is ready to refund it. Only on the denial of receipt of Rs.7,500/-, it cannot be considered, because the Complainant has proved payment by producing document. The Complainant had opted for health insurance for the definite purpose in the interest of security. Keeping his money for a year is not fair. Therefore, Ops 1 & 2 are liable to compensate for that. Therefore, we answer point No. 1 in affirmative and pass the following order.
ORDER
The complaint is allowed.
OPs 1 & 2 are jointly and severally directed to refund Rs.12,500/- within 30 days from the date of this order.
Ops are directed to pay Rs.5,000/- towards compensation for mental agony, hardship, inconvenience caused due to Ops’ negligence.
OPs are further directed to pay Rs.2,000/- towards cost.
Failing which OPs shall pay interest @ 9% p.a from the date of this order till it is repaid on entire decretal amount.
Both parties are given free copies of the order.
Dictated to the Stenographer, got it transcribed and corrected, pronounced in the open Forum on this the 2nd day of December 2011.
MEMBER MEMBER PRESIDENT
SSS
