Haryana

Karnal

CC/140/2021

Vikas Bakshi - Complainant(s)

Versus

SBI Life Insurance Company Limited - Opp.Party(s)

Dheeraj Sachdeva

25 Feb 2022

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KARNAL.

 

                                                        Complaint No. 140 of 2021

                                                        Date of instt.09.03.2021

                                                        Date of Decision:25.02.2022

 

Vikas Bakshi son of Shri Guru Dutt Bakshi, resident of B-8, near DAV college for Women, Bakshi Bhawan, Railway Road, Karnal.

 

                                               …….Complainant.

                                              Versus

 

1.     SBI Life Insurance Company Limited, through its Branch Manager, SCO no.144, 2^nd floor, near OPS Vidya Mandir School, Sector-13, Urban Estate, Karnal.

 

2.     Rishi Kumar Sharma (IA/CIF) State Bank of India, Nissing, tehsil Nissing, District Karnal.

 

                                                                      …..Opposite Parties.

 

Complaint Under Section 35 of Consumer Protection Act, 2019.

 

Before   Sh. Jaswant Singh……President.       

      Sh. Vineet Kaushik…….Member

              Dr. Rekha Chaudhary…..Member

  

 Argued by: Shri Dheeraj Sachdeva, counsel for complainant.

                    Shri N.K. Zak, counsel for opposite party no.1.

                   Opposite party no.2 given up.

 

                    (Jaswant Singh President)

 

ORDER:   

                

                   The complainant has filed the present complaint Under Section 35 of Consumer Protection Act, 2019 against the opposite parties (hereinafter referred to as ‘OPs’) on the averments that complainant had purchased a policy bearing no.IM681859010 under SBI Life-Flexi Smart Plus on 08.05.2018, through OP no.2 Mr. Rishi Kumar Sharma and paid a sum of Rs.44460.55 Ps, as yearly premium. At the time of purchasing of said policy, OP assured that the next installment will be automatically deducted from the bank account of complainant. Thereafter, OP did not give any information about the policy, as well as on which date, the next installment will be due nor his agent gave any satisfactory reply to the complainant after repeated requests. Complainant came to know that the OP without any intimation and information lapsed the said policy, intentionally and deliberately. The complainant requested the OP several times for restore the policy in question or refund the amount of premium, deposited by him at the time of obtaining the policy but till date neither OP restore the policy nor refunded the amount. In this way there was deficiency in service and unfair trade practice on the part of the OP. Hence this complaint.

2.             On notice, OP no.1 appeared and filed its written version stating therein that complainant is challenging the terms and conditions of the policy which was issued in March 2018, hence the date of cause of action if any was in May, 2018. However, complainant filed the present complaint in the year 2021 i.e. after the expiry of limitation period prescribed in the Consumer Protection Act. It is further stated that the dispute raised in the present complaint is regarding refund of premium amount of Rs.44,460.55 paid under the policy no.IM681859010.  It is further stated that the policy document is the evidence of the insurance contract and governed by the terms and condition of the policy. In the present case, as per the IRDAI guidelines, the policy has provided 15 days freelook period to ascertain the terms and conditions of the policy and if the policy holder has not agreed with it, the policy holder had an option to cancel the policy claim refund of premium within 15 days free look period by submitting original policy document to the OP alongwith the written objection. However, in this case the policy holder did not opt for the same and preferred to continue the policy. It is further pleaded that the terms and conditions of the policy does not provide for cancellation and refund of premium of the policy after expiry of freelook period. It is further pleaded that complainant has availed the insurance cover for the period for which he paid the premium, for the basic sum assured of Rs.5,00,000/-, the OP would have honored the claim of the insured event would have occurred during the said period. It is further pleaded that complainant had opted for term of the policy as 10 years and premium paying as 10 years and payment of premium as annual. The date of commencement of the policy is 08.05.2018, which is an admitted fact. The first renewal premium was due on 08.05.2019. However, the same was not received. The date for payment of renewal premium and consequences of the non-payment premium are clearly stated in the terms and conditions of the policy. The OP has no contractual obligation to send any renewal premium intimation. However, as a customer service gesture, the OP had sent renewal premium intimation dated 25.03.2019 for premium due date 08.05.2019. However, complainant did not pay the premium. Thereafter, OP sent a notice of discontinuance dated 07.06.2019 but complainant did not respond to the said notice. Hence, the fund value under the policy is disinvested after deduction of discontinuance charges and credited to the discontinued policy fund. The same has been intimated to the complainant, vide a letter of discontinuance dated 18.03.2020. The said discontinued fund value will be payable to the complainant on 1^st working day of the sixth policy year. There is no deficiency in service on the part of the OP. The other allegations made in the complaint have been denied and prayed for dismissal of the complaint.

3.             On notice, OP no.2 did not appear and lateron, OP no.2 given up by the learned counsel for complainant being unnecessary party, vide separate statement dated 06.07.2021.

4.             Parties then led their respective evidence.

5.             Complainant has tendered into evidence his affidavit Ex.CW1/A and closed the evidence on 17.11.2021 by suffering separate statement.

6.             On the other hand, OP no.1 has tendered into evidence affidavit of Neelam Singh Ex.RW1/A, copy of proposal form Ex.R1, insurance policy Ex.R2, renewal notice Ex.R3, discontinuance policy notice dated 07.06.2019 Ex.R4, discontinuance letter dated 18.03.2020 Ex.R5 and closed the evidence on 21.01.2022 by suffering separate statement.

7.             We have heard the learned counsels of the parties and perused the case file carefully and have also gone through the evidence led by the parties.

8.             Learned counsel for complainant, while reiterating the contents of the complaint, has vehemently argued that complainant had purchased a policy from the OP by paying a sum of Rs.44460.55 as yearly premium. At the time of purchasing of said policy, OP assured that the next installment will be automatically deducted from the bank account of complainant. When the next premium was due, complainant came to know that the OP without any intimation and information lapsed the policy. The complainant requested the OP several times to restore the policy in question or refund the amount of premium, deposited by him at the time of obtaining the policy but till date neither OP restored the policy nor refunded the amount. Hence prayed for allowing the complaint.

9.             Learned counsel for OP no.1, while reiterating the contents of the written version, has vehemently argued that as per the terms and conditions of the insurance policy, if the policy holder has not agreed with it, the policy holder had an option to cancel the policy claim refund of premium within 15 days free look period by submitting original policy document to the OP, alongwith the written objection but in the present complaint complainant failed to do so.  He further argued that OP no.1 had sent renewal premium intimation dated 25.03.2019 for premium due date 08.05.2019. However, complainant did not pay the premium. Further, OP sent a notice of discontinuance dated 07.06.2019 but complainant did not respond the said notice. Hence, there is no deficiency in service on the part of the OP. Hence, prayed for dismissal of the complaint.

10.           Admittedly, the complainant had purchased an insurance policy from OP and payment of mode was yearly.

11.           As per version of the complainant, at the time of purchasing the policy, OP no.1, assured that the next installment will be automatically deducted from the bank account of complainant but neither OP no.1 gave any information about the policy nor sent any intimation as and when the next installment will be due. On the other hand, OP no.1 submits that they had sent renewal premium intimation, vide letter dated 25.03.2019 for premium due date 08.05.2019 but complainant did not pay the premium. In support of his version OP placed on record renewal notice Ex.R3 dated 25.03.2019. Hence, plea taken by the complainant that OP has not sent any intimation to complainant regarding the due date of premium has no force.

12.           OP sent a notice of discontinuance of the policy Ex.R5 dated 07.06.2019 to the complainant. The relevant portion of the same which reproduced as under:-

“Since you have neither revived the policy nor opted for complete withdrawal of the policy, it is deemed that you have opted for complete withdrawal of the policy, in terms of IRDAI regulation. The fund value less discontinuance charges Rs.2109.97 under your policy amounting to Rs.42592.72 has been credited to Discontinued Policy Fund.

The Discontinued fund value will be paid to you on the first working day of the 6^th policy year subject to receipt of Surrender discharge Form & Original Policy Document by us on or before the first working day of the 6^th policy year.

 

13.           The complainant neither replied the said letter nor rebutted the same. Hence, in view of the above, we are of the considered view that complainant has failed to prove the deficiency in service on the part of the OP no.1. Thus, the complaint of the complainant is premature at this stage and deserves to be dismissed.

 14           OP no.1 clearly stated in the letter Ex.R5 the discontinued fund value will be paid on the first working day of the 6^th policy year subject to receipt of Surrender discharge Form & Original Policy Document

15.           In view of above observation, we dismiss the present complaint being premature. Complainant is at liberty to lodge his claim on the first working day of the 6^th policy year after completing the formalities as required by the OP.  No order as to costs. This order shall be complied with accordingly. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Announced

Dated:25.02.2022

 

 

                                                                       

                                                                President,

                                                    District Consumer Disputes

                                                   Redressal Commission, Karnal.

 

       

                (Vineet Kaushik)        (Dr. Rekha Chaudhary)      

                     Member                        Member