COMPLAINT FILED ON: 27.07.2009<br /> DISPOED ON: 04.11.2010<br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)<br /> <br /> DATED THIS THE 4TH NOVEMBER 2010<br /> <br /> PRESENT:- SRI. B. S. REDDY PRESIDENT<br /> SMT. M. YASHODHAMMA MEMBER <br /> SRI. A. MUNIYAPPA MEMBER <br /> <br /> COMPLAINT No.1765/2009<br /> <br /> COMPLAINANT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> OPPOSITE PARTY<br /> <br /> <br /> <br /> <br /> Smt. Syed Rafia. B.I.,<br /> W/o Syed Abdul Sathar,<br /> No.692, New Ext. Church Road,<br /> 3rd Cross, Murugeshpalya,<br /> Sriramnagari, HAL Road,<br /> Bangalore – 560 017.<br /> <br /> Advocate: Sri. B.S. Prakash<br /> <br /> <br /> V/s.<br /> <br /> <br /> Tata AIG Life Insurance <br /> Company Ltd.,<br /> Richmond Road,<br /> Bangalore – 560 025.<br /> <br /> Rep: by its Managing Director<br /> <br /> Advocate: Sri. Ashok Hande<br /> <br /> <br /> <br /> O R D E R<br /> <br /> SRI. B.S. REDDY, PRESIDENT<br /> <br /> The complainant filed this complaint U/s. 12 of the Consumer Protection Act of 1986, seeking direction against the Opposite Party (herein after called as O.P) to pay the entire premium amount of Rs.18,914/- with interest at 12% p.a. and damages of Rs.20,000/- on the allegations of deficiency in service on the part of the OP. <br /> <br /> 2. The case of the complainant is to be stated in brief is that:<br /> <br /> The complainant availed policy bearing No.0000621696 issued by OP in the month of October – 2003 by paying required premium, further he made premium payment on 27.07.2004. Thereafter the complainant paid the premium amount of Rs.9,850/- through cheque under receipt dated 12.09.2006, though the amount was deducted with bank account of the complainant, nothing has come from OP branch. The complainant approached OP to enquire and to his shock learnt that the policy was lapsed and the premium money has been sent back to the complainant. The complainant has not received back the amount sent by OP. OP has adopted unfair trade practice and deficiency in service. The complainant is put to untold misery, hardship, agony due to the acts of the OP, the complainant is entitled to receive the compensation. Legal notice dated 23.12.2008 issued to the OP; OP has not replied for the same nor complied with the notice. Hence the complainant felt deficiency in service on the part of the OP and was advised to file this complaint seeking the relief stated above. <br /> <br /> 3. On appearance, OP filed version contending that the complaint is not maintainable; there is no deficiency of service nor any unfair trade practice on the part of the OP. It is admitted that the complainant applied for life insurance policy and paid premium amounts towards the same. Accordingly the complainant was allotted policy No.C000621696. However the complainant failed to furnish the details of her current occupancy details and the same was informed to her by OP company through letter dated 26.09.2006 to file a general amendment form. However till date the complainant has not filed any general amendment form comprising information regarding her current occupation. In the same letter it was stated that if any unutilized premium amount is there with OP, the same would be refunded to her shortly. The life insurance policy contract with the complainant cannot be completed without adequate information of her current occupation which is very much necessary to assess the risk factor by OP. Complainant has not furnished any details as sought by OP and due to her own volition, the insurance contract has not been completed and the OP company is willing to refund the unutilized premium amount to the complainant forthwith. The complainant’s claim for refund of entire premium of Rs.18,914/- is devoid of any merit. The complainant has paid only Rs.4,532/- as annual premium for the year 2003-04, thereafter the delay in payment of annual premium due for the next year 2004-05 and the complainant paid premium of 2004-05 and 2005-06 in September – 2006 along with penalty for Rs.9,850/-. OP is willing to refund the unutilized premium amount i.e., Rs.9,850/- to the complainant forthwith. The premium amount of Rs.4,532/- paid for each year of 2003-04 and 2004-05, the risk is already covered hence premium of those years cannot be refunded as per the IRDA regulations (Regulation 6(2)). The complainant is seeking refund of entire amount paid to OP company which is contrary to the provisions of existing law. Hence it is prayed to dismiss the complaint with costs. <br /> <br /> 4. In order to substantiate the complaint averments, the complainant filed affidavit evidence and produced documents. The authorized signatory of OP Mr. Harish Nambiar filed affidavit evidence and produced documents. <br /> <br /> 5. Both the parties filed written arguments, arguments heard on both sides. Points for consideration are: <br /> <br /> Point No.1:- Whether the complainant has proved <br /> the deficiency in service on the part of <br /> the OP?<br /> <br /> Point No.2:- Whether the complainant is entitled<br /> for the reliefs now claimed?<br /> <br /> Point No.3:- To what Order?<br /> <br /> 6. We record our findings on the above points are:<br /> <br /> Point No.1:- Affirmative. <br /> Point No.2:- Affirmative in part. <br /> Point No.3:- As per final Order.<br /> <br /> <br /> R E A S O N S<br /> <br /> 7. At the out set it is not at dispute that the complainant availed policy bearing No.C000621696 issued by OP in the month of October – 2003 by paying the required premium. The 2nd premium amount of Rs.4,532/- was paid on 27.07.2004. Further the complainant paid an amount of Rs.9,850/- through cheque dated 12.09.2006 towards the premium due for the period 2005-06 and 2006-07. The complainant has produced the copy of the policy annexure – A, policy information page annexure – B. As per annexure – B the policy date is shown 28.07.2003 and issue date as 11.08.2003, face amount shown as Rs.2,00,000/-. The copies of premium paid receipts and legal notice are produced. After OP collected the amount of Rs.9,850/- through cheque dated 12.09.2006; the complainant approached OP to enquire the status of policy; at that time the complainant was informed that the policy was lapsed and the premium money has been sent back, but in fact the complainant has not received the amount stated to have been sent by OP. The complainant demanded for refunding the premium amounts paid by issuing legal notice dated 23.12.2008; OP has not complied the demand nor replied for the said notice. Thus complainant felt deficiency in service on the part of the OP and approached this Forum claiming the relief for refund of the amount paid towards all the premiums. <br /> <br /> 8. On 28.10.2009 the learned counsel for the OP filed memo admitting that the complainant has paid yearly premium of Rs.4,532/- for two years 2003-04 and 2004-05. Further an amount of Rs.9,850/- is paid towards the premium for the period 2005-06 and 2006-07 with penalty. The main defence of OP is the complainant failed to furnish, the current occupancy details and the same was informed to her through letter dated 26.09.2006 marked as annexure – 1. In the said letter the complainant was informed to file general amendment form, but till date she has not filed any general amendment form. In the said letter she was also informed that unutilized premium amount would be refunded shortly. After perusing annexure-1 the letter dated 26.09.2006 it becomes clear that the complainant was informed for reinstatement of her policy to submit current occupation details via general amendment form. The complainant has not complied with the said request; on account of the same the request for reinstatement of policy was not considered. OP is prepared to refund the amount of Rs.9,850/- paid by the complainant towards the premium for the period 2005-06 and 2006-07 with penalty, but the complainant claims the earlier two premiums paid for the period 2003-04 and 2004-05. In our view the policy was issued after collecting the initial premium for the year 2003-04 of Rs.4,532/- and further the premium paid for the year 2004-05 was of Rs.4,532/-. For these period 2003-04 and 2004-05 the risk was already covered for the premiums paid by the complainant. Therefore the complainant is not justified to claim refund of the said two years premiums. Inspite of receipt of legal notice OP has not refunded the amount of Rs.9,850/-, on account of the same the complainant was made to approach this Forum. <br /> <br /> 9. When the policy was not reinstated for non compliance of the request to furnish current occupation details OP could have refunded the amount. The very fact of OP not refunding the amount of Rs.9,850/- amounts to deficiency in service on its part. The complainant is entitled for the refund of the said amount with litigation cost. Accordingly we proceed to pass the following: <br /> <br /> O R D E R<br /> <br /> The complaint filed by the complainant is allowed in part. OP is directed to refund an amount of Rs.9,850/- with interest at 9% p.a. from the date of complaint, till the date of realization and pay litigation cost of Rs.1,000/- to the complainant within four weeks from the date of this order. <br /> <br /> Send copy of this order to both the parties free of costs. <br /> <br /> (Dictated to the Stenographer and typed in the computer and transcribed by him, verified and corrected, and then pronounced in the Open Court by us on this the 4th day of November 2010.) <br /> <br /> <br /> PRESIDENT<br /> <br /> MEMBER MEMBER <br /> <br /> Snm:<br /> <br /> <br />