Chandigarh

DF-II

CC/660/2017

Ms. Surjit Kaur - Complainant(s)

Versus

SBI Life Insurance Company Ltd., - Opp.Party(s)

Mashwinder Singh Adv.

19 Jul 2018

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Consumer Complaint  No	:	660 of 2017
Date  of  Institution	:	30.08.2017
Date   of   Decision	:	19.07.2018

 

 

 

 

Mrs.Surjit Kaur w/o Sh.Tejbir Singh, R/o House No.1471, Sector 22-B, Chandigarh.    

 

             ……..Complainant

Versus

 

1]  SBI Life Insurance Company Ltd., Regd. Office: Natraj MV Road & Western Express Highway Junction, Andheri (East), Mumbai 400069, through its Managing Director/Chairman.

 

2]  Smt.Arundhati Bhattacharya, Chairman SBI Life Insurance Company Ltd., Regd. Office: Natraj MV Road & Western Express Highway Junction, Andheri (East), Mumbai 400069, through its Managing Director/Chairman.

   

    2^nd Address: SBI Life Insurance Company Ltd., 109, Madhya Marg, Bank Square, Sector 17-B, Chandigarh. 

 

 ………. Opposite Parties

 

BEFORE:  SMT.PRITI MALHOTRA    PRESIDING MEMBER

            SH.S.K.SARDANA            MEMBER

 

Argued By: Sh.Mashwinder Singh, Adv. for complainant.

           Sh.Rajneesh Malhotra, Adv. for OPs.

 

PER PRITI MALHOTRA, PRESIDING MEMBER

 

                                As per the case, the complainant, a senior citizen, purchased two policies of SBI Life Insurance Company Ltd. on 6.3.2010 and 16.2.2011 bearing No.35002158108 & 35008369805 for a sum assured of Rs.1.25 lacs and Rs.1.26 lacs respectively for term of five years and she paid Rs.40,000/- each, every year for continuous period of 5 years and as such paid an amount of Rs.4 lacs for two policies.  It is averred that the complainant at the time of purchasing the policies in question told the Opposite Parties that she do not have any child and the whole maturity amount shall be paid to her after five years. 

         It is averred that the complainant was shocked to know that on maturity of Policy No.35002158108, an amount was transferred in her account to the tune of Rs.1,41,000/- only against the deposited amount of Rs.2.00 lacs.  It is averred that when the complainant brought this matter to the notice of OPs, they told that the rest of the amount will be paid to her after attaining the age of 100 years or on death. It is also averred that the Opposite Parties have sold her the policies in question under misrepresentation.  It is submitted that the complainant also came to know later on that her another policy No.35008369805 was also sold by misrepresentation as per the earlier policy.  Then the complainant took this matter to the Insurance Ombudsman, who directed the OPs to convert the Policy No.35008369805 into Endowment Plan and asked them to refund the excess amount of the premium along with maturity claim, which the Opposite Parties paid as per said directions.  However, in respect of the first policy No.35002158108, the Insurance Ombudsman did not issue such direction nor the Opposite Parties considered the request of the complainant to give all benefits in respect of that policy also.  It is also submitted that the Opposite Parties by paying the all benefits in respect of Policy No.35008369805 have admitted their mistake, but did not make the payment of all such benefit in respect of another similar policy No.35002158108.  Hence, this complaint has been filed alleging deficiency in service on the part of OPs. 

 

2]       The Opposite Parties have filed reply and while admitting the factual matrix of the case, stated that on maturity of Policy No.35002158108, the OPs had paid the maturity amount of Rs.1,41,971/- to the complainant, payable as per terms & conditions of the policy, which is just and legal.  It is stated that the complainant is also entitled to get Basic Sum Assured on his attaining the age of 100 years, subject to terms & conditions of the policy. 

         It is submitted that as far as the Policy No.35008369805 is concerned, the maturity payment was yet to be made and the insurance company was directed by the Insurance Ombudsman vide order dated 3.3.2016 to convert this policy into endowment plan since inception for 5 years, adjusting the premiums already paid under the policy without asking further premiums and refund the excess amount of premium along with maturity claim. Accordingly, the Opposite Parties had credited an amount of Rs.2,72,526/- into the account of the complainant on 28.4.2016. It is also submitted that the Insurance Ombudsman held that the settlement of the maturity claim is in accordance with the policy terms & conditions under Policy No.35002158108 and that the case does not invite any interference.  Pleading no deficiency in service and denying rest of the allegations, the Opposite Parties have prayed for dismissal of the complaint.

 

3]       Replication has also been filed by the complainant thereby reiterating the assertions as made in the complaint and controverting that of the reply filed by Opposite Parties.  

 

4]      Parties led evidence in support of their contentions.

 

5]       We have heard the ld.Counsel for the parties and have also perused the record.

 

6]       Admittedly, the complainant on 6.3.2010 and 16.2.2011 obtained SBI Life-Shubh Nivesh Policies bearing No.35002158108 & 35008369805 respectively for a sum assured of Rs.1.25 lacs and Rs.1.26 lacs respectively from the OPs for term of five years and paid Rs.40,000/- each, every year for continuous period of 5 years and as such paid an amount of Rs.4 lacs for two policies.  It is also evident that the complainant was when paid the less maturity amount in Policy No.35002158108, she challenged that before the Insurance Ombudsman, wherein she also challenged the mis-selling of both the policies bearing Nos.35002158108 & 35008369805. 

 

7]       The Insurance Ombudsman vide its order dated 03.03.2016 (Ann.Z) upheld the validity of the payment made by the Insurance Company under Policy No.35002158108 holding it in accordance with the policy terms and condition, whereas in respect of similar another policy bearing No.35008369805, wherein the maturity payment was yet to be made, it directed the insurance company to convert this policy into Endowment Plan since inception for 5 years adjusting the premiums already paid under the policy without asking further premiums and to refund the excess amount of premium along with maturity claim.

 

8]       Complying the said order of Insurance Ombudsman dated 3.3.2016, the Opposite Parties had credited an amount of Rs.2,72,526/- to the account of the complainant against Policy No.35008369805. 

 

9]       The complainant before us challenged the less payment made against the Policy No.35002158108 and prayed that the OPs be directed to convert this policy too into Endowment plan since inception for five years adjusting the premiums already paid under the policy without asking further premiums and refund the excess amount of the premium along with maturity claim, which were given in respect of another policy No.35008369805 of similar nature.

 

10]      We are of the concerted view that the order for conversion of Policy No.35008369805 into Endowment Plan and granting the benefit thereof accordingly, and at the same time, holding the payment made in similar another Policy of the complainant bearing No.35002158108 by the Opposite Parties as valid, is not just & legal.  In our considered opinion, the Policy No.35002158108 of the complainant shall also be treated & dealt with at par with another policy No.35008369805 and be given the benefit accordingly, as the plan opted by the complainant in both these policies were the same i.e. SBI Life-Shubh Nivesh (Ann-Z Page No.21 & 55) by not doing so, the Opposite Parties have resorted to unfair trade practice and remained deficient in rendering proper service to the complainant.

 

11]      From the above discussion and findings, the deficiency in rendering proper service on the part of Opposite Parties and their indulgence into unfair trade practice has been proved, which certainly has caused harassment and financial loss to the complainant.  Therefore, the complaint stands allowed against the OPs with direction to pay to the complainant the balance financial dues/benefits under Policy No.35002158108, by converting it into Endowment plan since inception for five years adjusting the premiums already paid under the policy without asking any further amount, along with maturity claim, as per the procedure adopted with her similar Policy No.35008369805, after deducting the amount already paid to her.  The Opposite Parties shall also pay compensation cost of Rs.10,000/- along with litigation expenses of Rs.7000/- to the complainant. 

         This order shall be complied with by the Opposite Parties jointly & severally within a period of 30 days from the date of receipt of its certified copy, failing which they shall be liable to pay additional compensatory cost of Rs.10,000/- apart from above relief.

         The certified copy of this order be sent to the parties free of charge, after which the file be consigned.

Announced

19^th July, 2018                                                                        

 (PRITI MALHOTRA)

PRESIDING MEMBER

 

 

 

(S.K.SARDANA)

MEMBER