Delhi

North

CC/289/2017

SURENDER KUMAR CHAUHAN - Complainant(s)

Versus

SBI LIFE INSURANCE & ORS - Opp.Party(s)

30 May 2023

ORDER

District Consumer Disputes Redressal Commission-I (North District)

[Govt. of NCT of Delhi]

Ground Floor, Court Annexe -2 Building, Tis Hazari Court Complex, Delhi- 110054

 

CC No.: 289/2017

 

Sh. Surender Kumar Chauhan

S/o Late Dr. Amar Singh

R/o House No. B-77 First Floor

Inderpuri, New Delhi-110012                             …                      Complainant

 

                                                          Vs

 

The Manager,

SBI Life Insurance Co. Ltd.

Service Branch, 2^nd Floor,

112 Daryaganj road, SBI Building

Daryaganj, New Delhi-110002                                      …            Opposite Party No.1

 

Chief Operating Officer,

SBI Life Insurance Co. Ltd.

Central Processing Centre,

7^th level (D wing) & 8^th Level,

Seawood Grand Central, Tower 2,

Plot No. R-1,

Sector-40, Seawoods, Nerul Node,

Distt. Thane, Navi Mumbai-400706                    …            Opposite Party No.2

 

30/05/2023

ORDER

 

Ashwani Kumar Mehta, Member:

 

1.       The present complaint has been filed under Section 12 of the Consumer Protection Act, 1986. The brief details of facts, as alleged by the Complainant in the Complaint in hand, are that Complainant is a senior citizen and pensioner having retired on 31.07.2016. The Complainant invested Rs.1.50 in the SBI Life-Smart Elite Plan Gold Cover Policy No.53006555101 vide customer no.441549421 on 17.08.2016. The commencement date of the policy is 26-08-2016. After investing Rs.1.50 lakhs by way of first instalment of payment, he found that his investment of Rs. 1.50 lakhs has been reduced to only Rs.1.12 lakhs meaning thereby loss of Rs.38,000/- during first year. Therefore, he submitted a written request dated 18.08.2017 to OP to discontinue the policy with immediate effect but the OP debited an amount of Rs.1.50 lakhs towards 2^nd installment from his SBI bank pension account. The complainant has alleged that the OP has totally neglected the factual contents of the letter dated 18.08.2017 and failed in its duty to close the said policy w.e.f. 18.08.2017. The OP has gone ahead a step further by deducting even another installment of the premium of Rs.1.50 lakh from his account. Therefore, he has filed this complaint praying to:-

1. Direct the Opposite Party to pay an amount of Rs.3,00,000/- plus accrued interest @ 9% to complainant towards the mental and physical harassment caused to the senior citizen complainant in the present complaint.
2. Pass an interim order to stop any further deduction from the Complainant account on head of the premium of said policy.
3. Direct the Opposite Party to pay compensation Rs.5,00,000/- towards the mental and physical harassment caused to the senior citizen complainant in the present complaint.
4. Direct the Opposite Parties to pay Rs.50,000/- to Complainant in the present complaint towards the litigation cost for pursuing the present litigation and further direct.
5. Pass any other order as this Hon’ble Court/Commission may deem fit and proper in the circumstances of the present complaint.

 

2.       Accordingly, notices were issued to the OPs and in response to the Notice issued, the OPs have filed its reply stating that the OPs had issued policy bearing no. 53006555101 with date of commencement as 26.08.2016 for a sum assured of Rs.15,00,000/- with annual premium of Rs.1,50,000/- for a term of 5 years. It is  mentioned in the policy that “Some benefits guaranteed and some benefits are variable with returns based on the future performance of SBI Life Insurance Co. Ltd. If policy offers guaranteed returns, then the same will be clearly marked as “guaranteed” in the illustration table on this page. If policy offer variable returns, then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates are not guaranteed and they are not the upper or lower limits of what policyholder might get back as the value of the policy is dependent on a number of facts including future fund investment performance. It is clearly mentioned in the policy that “it is only an illustration and does not in any way create any rights and/or obligations. The actual experience on the contract may be different from what is illustrated. The non-guaranteed low and high rate mentioned above relate to assumed investment returns at different rates and may vary depending upon market conditions.” OP has also stated that there are no provisions in terms and conditions of the Policy that permit the cancellation of policy and refund of premium after the free look period.

3.       On the allegations of less return under  policy bearing no.53006555101 which is Unit linked policy, the OPs have cited the judgement delivered by the Hon’ble National Commission in Revision Petition no.658 of 2012, Ram Lal Aggarwalla Vs. Bajaj Allianz Life Insurance Co. Ltd. vide order dated 23.04.2013 reling on the judgment of the Hon’ble State Commission, Odisha in First Appeal No. 162 of 2010 in the case of Smt. Abanti Kumari Sahoo Vs. Bajaj Allianz Life Insurance Co. Ltd. wherein the Commission held that the money of the petitioner invested in the share market is not doubt a speculative gain and the speculative investment matter does not come under the Consumer Protection Act. Hence, the complaint is liable to be dismissed on this ground alone.

4.       The OPs have further contended that in the letter dated 10.08.2017, the Complainant did not request for deactivation of SIEFT CMP auto debit The Complainant stated that he does not want to continue with the policy. If the complainant wanted to deactivate the instructions to debit the premium, the Complainant had to give formal request for deactivation of SIEFT CMP auto debit mode in proper format. The same was clearly mentioned in the reply sent by the OP which was annexed by the Complainant alongwith his complaint. The Complainant is simply making allegations without any basis. It was clearly mentioned in the policy that he cannot withdraw the policy and get refund as there is a lock in period of 5 years. The Complainant is not entitled to get any other amount or relief of whatsoever in nature. The demand of the Complainant is unjust and illegal and hence the present complaint should be dismissed.

5.       In view of the above averments/documents/Evidence put forth by the parties, the complaint has been examined and it has been observed that:-

a) As per surrender clause mentioned in the terms & conditions of the policy, the policyholder is eligible to surrender the policy after payment of the first model premium and the Complainant has informed the OPs on 18.08.2017 about his intention to discontinue the policy with immediate effect.

 

b) It is also not disputed that the Complainant submitted letter to the OP on 18-08-2017.

 

c)  As per the intimation given by the Complainant on 18-08-2017, the OP should have initiated all necessary steps to discontinue the policy including  deactivation of auto debit mode but the OP did  not take any step on the ground that Complainant has not given any formal request to deactivate the auto debit mode in the proper format. The defense taken by the OPs in this regard, does not sound convincing as OPs have failed to substantiate the necessity of this intimation on the Format. In case, this format was badly needed by the OPs to deactivate the auto debit mode, the OPs should have informed the complainant immediately in this regard but the OP communicated with the Complainant through letter dated 07-09-2017 for which the OP has also not clarified about the date of delivery of this letter.

 

d) Since the Complainant has given timely intimation to the OPs to discontinue of the policy, the OPs have debited the amount of Rs.1,50,000/- towards second installment from Complainant’s bank account unauthorized. Therefore, the Complainant is entitled to receive this money back from the OPs with interest @ 9% from the date of its realization till the date of the payment.

 

e) As per surrender clause mentioned in the policy, the  Complainant is entitled to surrender the policy after the payment of the first model premium and which he has done on 18.08.2017 and the amount of surrender value on that day is payable after completion of the fifth policy year as per terms and conditions of the policy.

 

 6.      In light of the  these observations, we are of the considered view that the complainant has suffered directly due to deficient service of the OP-1 & OP-2, both, in terms of the deficiency defined in the Act which includes  any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained in relation to any service and includes any act of negligence or omission or commission by such person which causes loss or injury to the consumer. 

 

7.       Therefore, we feel appropriate to direct the OP-1 & OP-2 to pay the Complainant jointly or severally:-

 

I. the amount of first instalment as per the surrender clause mentioned      

   in the terms & conditions of the policy;

        II. Rs.150000/- (Rupees One Lakh Fifty Thousand only), the amount of     

            2^nd Installment, with interest at the rate of 9% p.a. from the date of its

            realisation from complainant’s account till the date of the payment.

       III.Rs.50,000/-(Rupees Fifty Thousand only) as compensation to the

            Complainant for the mental pain, agony and harassment.

             

8.       It is clarified that the amount, as directed above, shall be paid to the complainant within 30 days from the date of this order failing which the OP shall be liable to pay interest @12% per annum from the date of expiry of 30 days period.  It is also clarified that OPs shall deduct the amount paid to Complainant on 30-08-2021 from the amount to be paid to complainant as per the above directions. 

 

9.        Order be given dasti to the parties in accordance with rules. Order be also uploaded on the website. Thereafter, file be consigned to the record room.

 

 

                                 ASHWANI KUMAR MEHTA                                   DIVYA JYOTI JAIPURIAR                                        Member                                                                         President  

    DCDRC-1 (North)                                                    DCDRC-1 (North)