Haryana

StateCommission

A/1063/2015

BAJAJ ALLIANZ LIFE INSURANCE CO.LTD. - Complainant(s)

Versus

SUKHJINDER KAUR - Opp.Party(s)

VARUN CHAWLA

06 Dec 2016

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

                                                 

First Appeal No  : 1063 of 2015

Date of Institution: 11.12.2015

Date of Decision : 06.12.2016

 

 

1.      Bajaj Allianz Life Insurance Company Limited, Ganpati Building Opp. Madhu Hotel, Jagadhari, Road, Yamuna Nagar through Branch Manager.

2.      Bajaj Allianz Life Insurance Company Limited. GE-Plaza Airport Road, Yerwada through its Managing Director.

(through Mr. Rajinder Singh Kalsi, Zonal Legal Manager (North), Bajaj Allianz Life Insurance Company Limited, SCO -215-217, Sector-34, Chandigarh.

                                                                   Appellants–Opposite Parties

 Versus

 

Sukhjinder Kaur aged 40 years widow of Sh. Mastan Singh, Village Kottarkhana, Tehsil Jagadhari, Distt. Yamuna Nagar.

 

                                      Respondent –Complainant

 

 

CORAM:             Shri B.M. Bedi, Judicial Member.

                             Shri Diwan Singh Chauhan, Member   

 

Argued by:          Sh. Varun Chawla, Advocate for the appellants.

Sh. Shyam Singh Chhokar, Advocate for the respondent.

 

                                                   O R D E R

 

B.M. BEDI, JUDICIAL MEMBER

 

Bajaj Allianz Life Insurance Company Limited and its functionaries-opposite parties (for short ‘Insurance Company’) have preferred the present appeal against the order dated 30.09.2015 passed by the District Consumer Disputes Redressal Forum, Yamuna Nagar (in short, ‘District Forum’) vide which the complaint was allowed and appellants-opposite parties were directed to pay insured sum of Rs.1,00,000/- alongwith interest at the rate of 9% per annum from the date of filing of the complaint till its realisation and also pay Rs.5000/- as compensation and Rs.5000/- as litigation expenses to the complainant.

2.      Sukhjinder Kaur-complainant filed complaint submitting that Mastan Singh, her husband, purchased a life insurance policy known as New Family Gain from the Insurance Company on 12.01.2008 with sum assured of Rs.1,00,000/-. Rs.10,000/- was payable as premium annually. The next premium was due on 12.01.2009. However, Mastan Singh did not pay the premium.  The policy lapsed after 30 days of the due date.  Mastan Singh got the policy revived on 21.08.2009 by paying the premium.  Mastan Singh died on 23.02.2010.  Insurance Company was informed.  Insurance Company paid only Rs.9994/- and did not pay the insured amount. Complainant filed complaint under Section 12 of the Consumer Protection Act, 1986 before the District Forum.

3.      Notice being issued. Opposite parties contested the complaint by raising plea that Mastan Singh purchased the policy which lapsed on 12.02.2011 (Date wrongly mentioned) still opposite parties refunded Rs.9954/-. It was stated that since the life insured failed to pay the premium despite lapse of 30 days grace period, policy lapsed on 12.02.2011. Other allegations were denied.

4.      District Forum after hearing both the parties allowed the complaint and issue directions to the opposite parties as mentioned in opening para of this order.

5.      Aggrieved of the order of the District Forum, the opposite parties have come up in appeal. 

6.      We heard learned counsel for the parties and perused the file.

7.      The undisputed facts are that Mastan Singh purchased Life Insurance Policy which commenced from 12.01.2008.  The sum assured was Rs.1,00,000/- and the premium was payable annually. Next premium was due on 12.01.2009 which was not paid and policy lapsed after 30 days i.e. on 12.02.2009.  Life insured got the policy revived on 21.08.2009 by paying the premium vide Receipt (Annexure-C-6) which the Insurance Company does not dispute. As per the terms of the policy in the event of non-payment of premium within 30 days of its due, the policy would lapse. However, it could be got revived by the policy holder within 2 years of first unpaid premium.  It is not disputed that policy lapsed on 12.02.2009 as premium payable on 12.01.2009 was not paid for 30 days i.e. till 12.02.2009.  It is also not disputed that the policy was revived on 21.08.2009 by paying premium vide Annexure C-6.  There is an endorsement under the revival premium receipt Annexure C-6 which reads as under:-

“You are covered for Rs.1 lac SA for Accidental Death under Group PA Policy OG-10-9999-9960-00000011 of BAGIC for 1 yr from the revival date.”

8.      Learned Counsel for Insurance Company contends that this coverage is only for accidental death under Group PA policy and not under the Life Policy besides that the same was payable by Bajaj Allianz General Insurance Company (BAGIC) and not by Bajaj Life Insurance Company.  We do not agree with this contention. The life insured has purchased the policy from Bajaj Life Insurance Company Limited. It had no brevity of contract with Bajaj General Insurance Company. This coverage was extended by Bajaj Life Insurance Company and not Bajaj General Insurance Company and upon revival of the lapsed policy.  When the opposite party has extended the benefit of accidental death for one year from date of revival, and death occurring within one year of the revival, the Insurance Company was liable to pay the assured sum.  This is irrespective of the facts that no premium was paid on 12.01.2010. Insurance Company had extended the benefit from the date of renewal and not the date of original lapse.  It is not the case of Insurance Company that the revival was to date back to the original date of payment of premium.  Therefore, Insurance Company cannot be allowed to say that since premium due on 12.01.2010 was not paid therefore, the death benefit was not available on account of death occurring on 23.02.2010. Thus the District Forum has rightly allowed the complaint.  There is no merit in the appeal hence dismissed.

9.      The statutory amount of Rs. 25000/- deposited at the time of filing the appeal be refunded to the complainant against proper receipt and identification in accordance with rules, after the expiry of period of appeal/revision, if any

 

Announced 06.12.2016

(Diwan Singh Chauhan) Member

(B.M. Bedi) Judicial Member