This case is coming for final hearing on 23-02-2015 in the presence of Sri S.S.Chalam, Advocate for Complainant and Sri A.Venkateswara Rao, Advocate for Opposite Parties and having stood over till this date, the Forum delivered the following.
The present complaint is filed by the complainant under Section-12 of Consumer Protection Act on 02.01.2013 against the opposite parties 1 & 2 and requested the Forum to direct the opposite parties (1) to refund Rs.60,000/- along with 24% interest from 31.03.2010 till realization (2) to pay compensation of Rs.40,000/- towards physical and mental agony and to pay costs for legal expenditure.
The brief averments are as follows: The complainant submits that he took Shri Plus plan policy from the Opposite Parties in the month of March, 2008 by paying mode of premium of Rs.20,000/- i.e., first installment. The sum assured for the said policy is Rs.1,50,000/-. After receiving the 1st installment i.e., the premium and the sum assured is Rs.1,00,000/- which will be given by the Opposite Parties at the time of maturity of the period. After receiving the first installment i.e., the opposite parties allotted to policy No.LN110-800038954. At the time of issuing the policy, the opposite parties stated that yearly premiums has to be paid regularly and if the customer wants to surrender his policy, it can be once after three years and the customer will be entitled for the benefits covered under the policy. Likewise, the complainant paid three installments on 24.03.2008 vide receipt No.1891172 for Rs.20,000/-; on 04.04.2009 vide receipt No.1892304 for Rs.20,000/-; on 31.03.2009 vide receipt No.0515795 for Rs.20,000/- in toto the complainant has paid Rs.60,000/- to the opposite parties towards policy installments as on 31.03.2010.
All of a sudden on 19.10.2012 the complainant’s health is not well and for his medical expenses, the complainant approached the 1st opposite party’s office for surrendering his original bond to take the values of the policy as per surrender value.Thereby, he has submitted a request letter to the opposite parties to release the surrender value as per the policy conditions.The opposite parties are intentionally dragging the matter with one or other reason.Then, the complainant has made a representation to the Ombudsman.Even the Ombudsman also advised the opposite parties to release the amount, but the opposite parties kept quite.As a senior citizen and also he is in need of medical expenses, he has submitted his request for releasing the surrender values of the policy.The Complainant finally got issued a legal notice to the opposite parties on 03.12.2012.Even after receiving the legal notice also, the opposite parties not responded and the complainant is forced to file the present complaint before this Forum.
Notices were served to the Opposite Parties 1 & 2. But 1st Opposite Party has not filed the counter. 2nd Opposite Party filed counter. The 1st opposite party has filed adoption memo to treat the counter of 2nd opposite party on their behalf.
In the counter the opposite parties stated as follows:The averments mentioned by the complainant are all not true and correct and also without any cause of action the complainant has filed the present complaint before this Forum which is not maintainable as per the law.As per the averments mentioned by the complainant, they does not fall within the meaning of Section-2(1)(d) of Consumer Protection Act and thereby the complainant is not a consumer as there is no fault of opposite parties.More particularly, the complainant has taken Shri Plus Policy bearing No.LN110-80038954 from the opposite parties which commenced on 19.04.2008 for a term of 15 years with a sum assured for Rs.1,50,000/- and a premium of Rs.20,000/- has to be paid yearly.At the time of taking the policy the agent had clearly explained about the policy terms and conditions to the complainant.If any customer disagrees with the terms and conditions of the policy they are at liberty to ask in writing for cancellation of the policy within 15 days of the receipt of this policy documents.The complainant after paying three installments, he kept quite and thereby the policy was lapsed and even the complainant has not choosen for revival of the lapsed policy.Hence, as there is no fault on the part of the opposite parties, the complaint is liable to be dismissed.
On perusing the pleadings of both sides, the Forum has framed the following issues to be considered.
Whether there is any deficiency of service on the part of Opposite Parties;
To what relief.
The Complainant filed his evidence affidavit and on his behalf Ex.A1 to A.14 were marked.On behalf of the opposite parties Sri E.Sridhar in the capacity of Asst. General Manager filed Evidence Affidavit and on behalf of Opposite Parties Ex.B1 and B2 were marked. The complainant and the Opposite Parties have submitted their written arguments as well as oral arguments.
Point Nos.1 & 2: The present complaint is filed by the complainant against Opposite Parties 1 & 2 requesting the Forum to direct the opposite parties to refund the policy amount of Rs.60,000/- along with interest at 24% from 31.03.2012 till realization along with compensation and costs for litigation. The opposite parties in their version stated that there is no deficiency of service on the part of the opposite parties. As the complainant himself not paid premiums of the policy and thereby the policy is lapsed. Even when there are chances for revival of the policy also, the complainant did not come forward and kept silent. Hence, as per the terms of the policy, the complainant is entitled for the surrender value only.
At the time of arguments, the opposite parties stated that as the complainant has not choosen to revive the policy after the policy was lapsed and also observing the clause-7 and 11 of the policy conditions that is mentioned under Ex.A1 and B2 the complainant is not entitled only for the surrender value of 85% of the payment after deduction of the charges clause-7 mentioned in Ex.A1/Ex.B2.
The three receipts for paying the premiums of the policy No.LN 110-800038954 vide i) receipt No.1892304 dated 04.04.2009 for Rs.20,000/- along with Premium receipt No.0141948; ii) receipt No.1891172 dated 24.03.2008 for Rs.20,000/-; iii) receipt No.0515795 dated 31.03.2009 for Rs.20,000/- were marked as Ex.A3 to Ex.A5. Ex.A6 is the letter submitted by the complainant to refund the amount of Rs.60,000/- along with other benefits.Ex.A7 is the letter dated 25.10.2012 issued by the 1st opposite party to the Grievance Redressal cell of the opposite parties’ company for sending the bid value statement and surrender value quotation.The said Ex.A7 is also served to the complainant.Ex.A10 is the Auto Surrender Warning Letter dated 20.10.2012 served to the complainant.In the said Ex.A10 the opposite parties are mentioning about the premium due date by paying the policy premium on 19.04.2011.Ex.A12 is the legal notice served to the opposite parties 1 & 2 for paying the entire Rs.60,000/- amount along with other benefits.Ex.A14 is the letter issued by the 2nd opposite party to the complainant referring about the Ex.A7 and suggested the complainant to collect the surrender proceeds from the local office i.e., 1st opposite party.On perusal of Ex.A2 first premium receipt for Shri Plus Policy, the date of commencement of the policy starts from 19.04.2008 and the policy term will be completed by 15 years.The payment of Rs.20,000/- made by the complainant will be varied from 19.04.2008 to 19.04.2009.As seen from Ex.A5 three receipts, it seems the complainant has paid three premiums/installments i.e., Rs.60,000/- to the opposite parties.As on 22.04.2009 the complainant has paid three installments and the said policy will be renewed till one year.Thereafter, vide Ex.A10 opposite parties intimated the complainant to pay the 4th installment on 19.04.2011 to continue the policy.The complainant inspite of continuing the policy by renewing the same on 19.10.2012 vide Ex.A6 he has requested the opposite parties to refund Rs.60,000/- amount vide surrender value mentioned in the policy terms along with other benefits.
As seen from Ex.A1/Ex.B2 policy conditions and terms under Clause-4 the details about the reviving of the lapsed policies are mentioned.As per Clause-4 if a policy is not revived during the revival period the contract shall be terminated by paying the surrender value.As per the clause-11 of Ex.A1/Ex.B2 the details about the surrender value are explained.In Clause-11 it was mentioned as “Policy can be surrendered after the end of three years from the date of commencement, cash surrender value payable depends upon the payment of premiums as mentioned in column.If the policy is surrendered more than two years but less than three years;
at the end of 3rd year 80% of the value of the units will be refunded
at the end of revival period 85% of the value of the units will be refunded.
Here, in this matter, after paying three installments on 22.04.2009 the complainant has not paid the installments or choosen for the option of the revival of the policy.So, as per clause-4 the complainant is only entitled for the surrender value as per the terms mentioned under the policy.
As per Clause-7 the details about the charges levied by the opposite parties are mentioned. In clause-7(e), it was mentioned as currently the fund management charges at @ 1% of the fund for all funds.
As per Clause-4 of the Ex.A1/Ex.B2 and he is only entitled for the surrender value of the policy for 85% of the value of the units after deducting the 1% charges towards fund management charges.After deducting the fund management charges under Clause-7(e) i.e., 1% of the charge i.e., Rs.510/- the complainant is only entitled for Rs.50,490/- from the opposite parties.
As seen from the pleadings of both sides and the facts mentioned by the complainant it seems there is no fault on the part of the opposite parties as complainant himself surrendered the policy.
The opposite parties are directed to refund Rs.50,490/- to the complainant along with interest at 12% p.a. from 19.10.2012 i.e., date of Ex.A6 till realization.As there is no fault on the part of the opposite parties compensation and costs were not granted.
Accordingly, points 1 & 2 are answered.
17. In the result, the complaint is allowed in part. The opposite parties are directed to refund Rs.50,490/- along with interest at 12% p.a. from 19.10.2012 till realization. No order as to compensation and costs. Time for compliance is 30 days from the date of receipt of this order.
Dictated to the Stenographer, transcribed by her, corrected by me and pronounced by us in the open Forum on this the 13th day of March, 2015.
Sd/- Sd/-
President (FAC) Member District Consumer Forum – I,
Visakhapatnam
APPENDIX OF EVIDENCE
Exhibits Marked for the Complainant:
President (FAC) Member District Consumer Forum–I,
Visakhapatnam
