Punjab

Faridkot

CC/19/256

Kulwinder Singh - Complainant(s)

Versus

SBI LIfe Insurance Co. Ltd - Opp.Party(s)

Hardeep Bajaj

03 Mar 2020

ORDER

 DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, FARIDKOT

 

Complaint No. :         256 of 2019

Date of Institution:     15.10.2019

Date of Decision :       03.03.2020

 

Kulwinder Singh, aged about 47 years s/o Mehal Singh, r/o V.P.O. Maste Ke, Basti Ram Lal, Tehsil and District Faridkot.

...Complainant

Versus

1. SBI Life Insurance Company Limited, Corporate Office: Natraj, M V Road & Western Highway Express Highway Junction, Andheri (East), Mumbai-400069 through its Managing Director/responsible person.
2. SBI Life Insurance Company Limited, Branch Office : Narula Complex, 2^nd Floor, Circular Road, Near Bus Stand, Faridkot through its Branch Manager.

.....OPs

Complaint under Section 12 of the

Consumer Protection Act, 1986.

 

Quorum:  Sh. Ajit Aggarwal, President,

                Smt. Param Pal Kaur, Member.

 

Present: Sh Hardeep Bajaj, Ld Counsel for complainant,

              Sh Nirmal Singh Sandhu, Ld Counsel for OPs.

 

 

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(ORDER)

 (Ajit Aggarwal, President)

                                      Complainant has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 against  OPs seeking directions to OPs to issue policy documents and for further directing OPs to pay Rs.50,000/- as compensation for deficiency in service harassment, inconvenience and mental agony suffered by him besides Rs.5,000/- as litigation expenses.

2                            Briefly stated, the case of the complainant is that complainant submitted a proposal form no.QE399895 to OPs for issuance of Policy for his daughter Amneet Kaur and paid Rs.99,900/-as first premium vide cheque no.412093 dated 26.02.2013, which was encashed by OPs. It is submitted that till today, Ops have not issued any policy document to him though he is receiving messages to get the same renewed. Complainant approached OP-2 and requested to issue policy document, but to no effect. He also wrote letter dated 13.07.2019 to OPs to issue Policy documents to him, but all in vain. Now, a week ago OP-2 advised complainant to obtain duplicate policy documents by making payment and to give declaration that he has lost

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the original ones. On protest by complainant, OPs forced him to give such declaration and to give charges for duplicate policy documents. It is submitted that complainant has not received policy documents despite several requests, which amounts to deficiency in service and trade mal practice on their part. He has prayed for directions to Ops to release policy documents to complainant without charging any cost. He has also prayed for directing them to pay Rs.50,000/- as compensation for harassment, inconvenience, mental agony besides litigation expenses of Rs5,000/-. Hence, the present complaint.

3                           The counsel for complainant was heard with regard to admission of the complaint and vide order dated 21.10.2019, complaint was admitted and notice was ordered to be issued to the opposite party.

4                          OP-1 and 2 filed written statement where they have denied all the allegations of complainant being wrong and incorrect and asserted before the Forum that complainant applied for SBI Life Scholar 2 Policy on 26.02.2013 alongwith initial premium deposit of Rs.99,900/-and made his daughter Amneet Kaur beneficiary in said

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policy. It is admitted that they issued policy in question to complainant and its date of commencement was 5.03.2013 and same was despatched to complainant on 8.03.2013 through speed post vide consignment no.EM7591254721N and policy issued to complainant never received back to them undelivered. If complainant had not received the policy documents, he could have approach them at that time or could have applied for duplicate policy but now, he has filed the present complaint after long period of six years. It is averred that delivery status of website of speed post is not available and records are maintained for only three months. Term of policy was for ten years and premium payment frequency was yearly and renewal premium was payable on yearly basis during the term of policy. First renewal premium was due on 5.03.2014, but complainant did not pay any renewal premium and therefore, his policy was lapsed. Complainant had period of 5 years from the due date of first unpaid premium to get his policy revived, but complainant did not approach them for revival of policy within stipulated revival period. it is further averred that policy acquires any paid up if premiums have been paid regularly for three years, as per clause 3 paid up value and as complainant has paid

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only one premium, therefore no benefits are payable to him under the present policy. He paid initial premium of Rs.99,900/- and out of Rs.99,900/-, amount of Rs.99,062/-was adjusted under the policy towards initial premium and balance amount of rs.1038/-was kept in deposit for adjustment in renewal premiums. However, complainant did not pay any renewal premiums and did not get revived his policy and after expiry of revival period on 5.03.2019, the amount of Rs.1038/-lying in deposit was refunded alongwith unclaimed interest. through speed post vide consignment no.EM7591254721N and it never received back undelivered Allegations of complainant that no policy documents were supplied to him are totally denied being wrong, incorrect and false. There is no deficiency in service on the part of answering OPs and prayer for dismissal of complaint with costs is made.

5                       Parties were given proper opportunities to prove their respective case. The complainant tendered in evidence his affidavit Ex.C-1 and documents Ex C-2 to C-4 and then, closed his evidence.

 

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6                           In order to rebut the evidence of the complainant, ld counsel for OP-1 and 2 tendered in evidence, affidavit of Neelam Singh Ex OP-1,2/1 and documents Ex OP-1,2/2 to Ex OP-1,2/4 and then, closed the same on behalf of OP-1 and 2.

7                      We have heard ld counsel for parties and have carefully gone through evidence and documents placed on record by them.

8                     From the careful perusal of record and documents placed on record by parties, it is observed that case of the complainant is that he purchased Insurance Policy for his daughter from OPs and paid Rs.99,900/-as first premium through cheque dated 26.02.2013, but till today, Ops have neither issued him Insurance Policy nor any Policy related document though messages for renewal of same are being received by him. Grievance of the complainant is that despite several visits and repeated requests, OPs have not issued him Insurance Policy. On the contrary, plea taken by Ops is that they despatched the insurance policy on 8.03.2013 through speed post vide consignment no.EM7591254721N and it never received back undelivered. Delivery

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status is maintained for only three months and now, no record is available with them. As per OPs, Policy term was ten years and premium was to be paid yearly but complainant did not pay any renewal premium and therefore, his policy was lapsed. He had sufficient period of 5 years from the due date of first unpaid premium to get his policy revived, but he did not approach them for revival of policy and even did not pay the first premium and now, his policy stands lapsed. There is no deficiency in service on their part and prayed for dismissal of complaint with costs.

9                     It is admitted case of the parties that complainant purchased insurance policy in question from them. It is also admitted by them that he paid initial premium of Rs.99,900/-alongwith proposal form. There is also no denial to the fact that he made request for providing him insurance policy.  Plea taken by Ops that they delivered the copy of insurance policy to complainant on 8.03.2013 through speed post vide consignment no.EM7591254721N, has not legs to stand upon as they have not placed on record any document showing said consignment number to prove their version. As per OPs,

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complainant paid initial premium of Rs.99,900/-on 26.02.2013, policy commenced from 5.03.2013 and due date for first premium was 5.03.2014, but he did not pay first premium on due date and never paid any renewal premium and therefore, his policy was lapsed on 5.03.2014 as per clause 2 of Insurance Policy, but careful perusal of their version shows that when they have not issued any policy document or terms and conditions to complainant, then complainant is not bound to follow the said terms and conditions. As per Ops, policy of complainant was lapsed on 5.03.2014 as per clause II due to non payment of first premium, but when complainant has not received any policy or policy documents alongwith terms and conditions, how can he come to know about due date for next premium. Moreover, Ops have asserted in written reply that after expiry of revival period on 5.03.2019, the amount of Rs.1038/-was refunded to complainant alongwith unclaimed interest through cheque dated 17.05.2019, but Ops have not placed on record any copy of said cheque showing credit of said amount in the account of complainant. Hon’ble Punjab & Haryana High Court in case titled as New India Assurance Company Ltd Vs Smt Usha Yadav & Ors 2008 (3) RCR (Civil) Page 111 has

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held that it seems that Insurance Companies are only interested in earning the premiums and find ways and means to decline claims. All conditions which generally are hidden need to be simplified so that these are easily understood by a person at the time of buying any policy. The Insurance Companies in such cases rely upon clauses of the agreement, which a person is generally made to sign on dotted lines at the time of obtaining policy, but in present case neither Insurance Policy nor any policy related documents containing terms and conditions were ever supplied to complainant.

10                       From the above discussion, the present complaint is hereby allowed. OPs are directed to issue insurance policy to complainant within 30 days of receipt of the copy of order, failing which complainant shall be entitled to initiate proceedings under section 25 and 27 of the Consumer Protection Act. Copy of order be given to parties free of cost. File be consigned to record room.

Announced in Open Forum

Dated : 03.03.2020       

                                      (Param Pal Kaur)           (Ajit Aggarwal)

                   Member                             President