Per Sri A. Hazarath Rao,  President:-

        The complainant filed this complaint u/s 12 of the Consumer Protection Act seeking a direction to the opposite party to renew the insurance policy bearing No.06330843 or to settle the claim of the complainant or to pay Rs.16,000/- together with interest @24% p.a.; Rs.50,000/- as damages and Rs.10,000/- as costs.

2.    In brief the averments of the complaint are these:

        The complainant on 30-09-07 obtained Life time super insurance policy bearing No.06330843.   The said policy was for a period of twenty years ending by 30-09-06.   The complainant paid Rs.20,000/- at the time of obtaining the said policy.    Neither the opposite party nor its agents contacted the complainant to collect the subsequent premiums.   Under those circumstances the complainant is unable to pay the subsequent premiums. Subsequently the complainant approached the opposite party and requested it to renew the policy after receiving the arrears of balance premium amount.   The opposite party refused to renew the said policy.   On the other hand, the opposite party cancelled the said policy without informing the complainant and sent a cheque for Rs.4,816.37 ps dated 01-10-10.  The opposite party deducted Rs.16,000/- from the amount paid by the complainant and thus committed the offence of cheating. The complainant suffered a lot mentally and physically on account of the above attitude of the opposite party.  The above conduct of the opposite party amounted to deficiency of service.  As the opposite party is not willing to renew the policy, it is just and necessary to return the remaining amount of Rs.16,000/-.  The complainant estimated his suffering both mentally and physically at Rs.50,000/-.   The complainant got issued a notice on 07-03-11 through his advocate requiring the opposite party to return Rs.16,000/- and also Rs.50,000/- as damages.   The opposite party though received notice kept quite.   The complaint therefore may be allowed.

3.     The contention of the opposite party in nutshell is hereunder:

        The complainant did not raise any consumer dispute and as such this Forum has no jurisdiction to entertain the complaint.   It was the complainant’s own act of not paying the premium under the subject policy either on due date or within the grace period culminated into foreclosure of the policy for which the opposite party cannot be held liable.   The complainant paid single premium only at the time of obtaining the subject policy and failed to pay the subsequent premiums and allowed the policy to be lapsed and made the opposite party to foreclose it.  The opposite party issued a cheque for Rs.4,816.37 ps in favour of the complainant which the complainant received.  The said policy acquires surrender value only after the payment of full premium for the first policy year and would payable only after the completion of three policy years.   If the policy is not revived within two years from the due date of first unpaid premium then the surrendered value as per clause 2.2 will be paid only after the end of three years. The complainant is not entitled to claim any damages as his own act of non payment made the policy to lapse.   The opposite party did not commit any deficiency of service.   The complaint therefore be dismissed.

4.  Exs.A-1 to A-3 were marked on behalf of the complainant. No documents were marked on behalf of the opposite party.  For the sake of convenience the terms and conditions of the policy are marked as Ex.A-1(a) and the cheque issued by the opposite party is marked as Ex.A-1(b).

5.  Now the points that arose for consideration in this complaint are:

1.  Whether the opposite party committed deficiency of service?

3.  Whether the complainant is entitled to compensation?

        4.  To what relief?

6.    Admitted facts in this case are these:

1.  The complainant obtained life time super policy on 30-09-07        (Ex.A-1).

        2.  The complainant paid Rs.20,000/- as premium at the time of                        taking policy.

        3.  The complainant did not pay subsequent premiums.

        4.  The opposite party issued cheque for Rs.4,816.37 ps

                Ex.A-1(b)

        5.  The complainant got issued notice to the opposite party

                (Exs.A-2 and A-3)

7.   POINT No.1:-   The contention of the complainant is that he could not pay the subsequent premiums as the agents of the opposite party did not collect premium from him.   The terms and conditions of the policy filed by the complainant marked as Ex.A-1(a) are binding on both the parties being a contract as rightly contended by the opposite party.

         Payment of Premiums:

1. Premiums are payable on the due dates and at the rate mentioned in the policy at time of commencement of the policy.   However, a grace period of not more than 30 days, where the mode of payment of premium is other than monthly, and not more than 15 days in the case of monthly mode is allowed.   If a premium is not paid on the due date or during the days of grace, the provisions as per Clause 4.4 shall apply and the policy holder will continue to have the benefit of investment in the respective unit funds. 
2. Premiums are payable without any obligation on the company to issue a notice for the same.
3. Premiums are payable through any of the following modes:-
   1. Cash
   2. Cheques
   3. Demand Drafts
   4. Pay Orders
   5. Bankers Cheque
   6. Internet (Infinity/Bill Junction/Bill Desk)
   7. Electronic Clearing Stystem
   8. Credit Card

        *Amount and modalities will be subject to Company rules and relevant legislation/regulation.

iv)   If the policy holder suspends payment of premium for any reason whatsoever, the Company shall not be held liable and the benefits, if any will be available only in accordance to the policy conditions”.

Revival of the policy:

A policy, which has lapsed for non-payment of premium within the days of grace, may be revived subject to the following conditions:-

  a) The application for revival is made within two years from the due date of the first unpaid premium.    If the policy is not revived within this period, then the policy shall be foreclosed by paying the surrender value at the end of the revival period or at the end of three years, whichever is later.

b) The policy holder, at his own expense, furnishes satisfactory         evidence of health of the Life Assured, if required;

c)  The receipt of arrears of premiums

d) The revival of the policy may be on terms different from those       applicable to the policy before it lapsed; and

e)  The revival will take effect only on it being specifically         communicated by the company to the Life Assured.

f)  During this period, the policy holder will continue to have the       benefit of investment in the respective unit funds.

8.   The terms and conditions of the policy did not cast any obligation on the opposite party to issue notice in respect of due premiums.   The reason assigned by the complainant for non payment of subsequent premiums is devoid of merit in view of the specific clause mentioned in the terms and conditions of the policy.    The complaint was silent when he requested the opposite party to revive his lapsed policy.    Under those circumstances, the opposite party cannot be found fault for not renewing the complainant’s policy.

9.     It is not the case of the complainant that the amount sent by the opposite party under Ex.A-1(b) does not represent the true surrender value.  Therefore, we are of the considered opinion that the opposite party did not commit any deficiency of service and answer this point against the complainant.

10.  POINT No.2:-   In view of above finding the complainant is not entitled to any compensation in our considered opinion and answer this point also against the complainant.

11. POINT No.3:-   In view of above findings, in the result the complaint is dismissed without costs.

Typed to my dictation by Junior Steno, corrected by me and pronounced in the open Forum dated this the 18^th day of June, 2012.

MEMBER                                             MEMBER                                             PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant:

For opposite party :   NIL

                                                                                                                       PRESIDENT