BEFORE THE HON’BLE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM BAGALKOT

                                                                                                                                         Date of Admission: 18-10-2016

                                 Date of Order        : 18-08-2017

    Consumer Complaint No: 205/2016

PRESENT

1. Smt K.Sharada  B.A.L.L.B. (Spl)                          : President
2. Smt Sumangala Hadli   B.A.(Music)                     : Lady Member
3. Shri Shravanakumar. D. Kadi M.Com. L.L.B.(Spl : Member

           COMPLAINANT

1. Smt Sumangala D/o Gurusiddappa Desai

 Age: 45 Year, Occ: Household work,

R/o near Mini Vidhan Soudha, Bilagi

                                                      (By Shri C.B.Sobarad Advocate)

                    V/s

      1) The Branch Manager,

          Bajaj Allianz Life Insurance Co Ltd,

          Opp: Govt Girls High School,

          Extension Area, Bagalkot-587101.

     2) The Managing Director,

          Bajaj Allianz Life Insurance Co Ltd,

          G.E.Plaza,Airport Road,

          Yarawada PUNA-411006

                                             (By Shri R.B.Dyavannavar Advocate)

Speaking through Sri Shravanakumar.D.Kadi, Member

                Complaint filed by the complainant under section 12 of the consumer Protection Act 1986 (herein after referred to as Act) against the opposite parties (in short the Ops) Claiming of Rs 36,000/- with accrued interest to the complainant and Rs 40,000/- towards mental agony caused to the complainant, and also award cost of Rs 20,000/-.

2)   Brief facts of the case are as follows:-

                That the complainant had opted for one Bajaj Allianz Life Insurance policy bearing No 0083661791 dated 22/01/2008 for a sum assured of Rs 4,08,000/- and annual premium amount was fixed for Rs 12000/- and paid the premiums regularly for 3 years from 22/01/2008  and opted the receipts for the same. That with taking un-due advantage of Complainant illiterate, Op’s insurer have concealed the terms of policy and they by given severally false suggestion which its chain system for his profit. That Complainant has paid the regular premium amount for three year without fail of Rs 36000/- There upon due to family financial crises it’s become a difficult for Complainant to continue her policy the said fact is intimated to Op No 1 and there by Complainant requested to Op No 1 to refund her invested amount of Rs 36000/- with interest. After long marathon op’s have issued a letter dated 09-02-2016 with enclosed cheque amount of Rs 12182/-. In the said letter it is mentioned that policy is terminated and as per the surrender value amount of Cheque Rs 12182/- is paid. The Complainant was dissatisfied and lodged her oral protest and demanded to refund total premium amount of Rs 36000/- which it was already paid as per the policy terms. Since complainant has paid three regular premium amount for which Op’s shall not be deduct any amount under any head But Op’s have not responses in proper manner further Complainant has not encash the above said cheque amount till today’s dated. Hence,Op’s have adopted the unfaith trade practice and caused the deficiency of service as against this complainant since Op’s have fail to follow the terms of policy and Op’s insurer misleaded to complainant about the policy terms while taking the above the policy for which these Op’s are liable for the act done by his insurer. Hence the complainant prays for reimburse Rs 36000/- with accrued interest, and 40,000/- as a compensation for mental agony, and 20,000/- as a cost of this litigation.

3)            After receipt of the notice, the Op No 1and 2  have appeared through its counsel and strongly opposed the claim of the complainant by filling a written version contending that the complaint of the complainant is false, frivolous and vexatious and further contended that the complaint of the complainant is barred by limitation and same is not maintainable. Further the complainant has made a declaration that she has read the application and the answers she entered in the application is full, complete and true and the opposite party believing them to be such, will rely and act on them, otherwise the proposed application becomes void. Thereafter both the policy Holder and the company are bound by the terms and conditions of the Insurance policy which is issued by the company, based upon the proposal given by the policy Holder.Op No 2 has further stated that the policy was issued to the complainant only after the complainant agreed and accepted the terms and conditions of the policy and upon agreeing the same the complainant has paid the policy premium amount of Rs 12000/- towards her policy. That the Op No 2 has further stated that the Complainant has failed and neglected to pay the renewal premiums, and hence the policy issued to her came to be lapsed and foreclosed for nonpayment of renewal premiums and admittedly foreclosure amount of Rs 12182/- by way of cheque was sent to the complainant. Further stated that the insurer for cancellation of the policy stating the reason, which the complainant has failed to do so. The said option is also provided by the Insurance regulator in its guidelines. Hence has prayed for liable to be dismissed with cost.

4)  Both parties have filed affidavit in support of their case documents           produced marked as per Annexure

5) Opponents advocate has filed their written arguments. Heard the arguments on the both side. Now the following points for our consideration in deciding the case are;

i) Whether the OPs have rendered deficiency in service to the complainant?

ii) Whether the complainant is entitled to the relief as is sought for?

iii) What Order?

6)    Our findings to these points are as hereunder:

i) Affirmative,

ii) Partly Affirmative,

iii) As per final order

REASONS:-

7)    POINT NO 1:- In order to avoid repetition of the facts and reasons and also to save time, we take up the complaint for passing order as follows:-

                 It is not in dispute that the complainant had opted one Bajaj Allianz Life Insurance Policy bearing 0083661791 dated 22-01-2008 for a sum of assured amount of Rs 4,08,000/- and the yearly premium of Rs 12,000/- is being paid regularly for three years as per Annexure marked Ex C-1 True copy of policy and Ex C-2 Original Cheque dated 09-02-2016 issued by Op No 2. That the Opponents counsel argued that policy was issued to the complainant only after the complainant agreed and accepted the terms and conditions of the policy and upon agreeing the same the complainant has paid the policy premium amount of Rs 12000/- towards her policy. Opponent further argued that nonpayment of renewal premiums and admittedly foreclosure amount of Rs 12,182/- by way of cheque was sent to the complainant. Further stated that the insurer for cancellation of the policy stating the reason, which the complainant has failed to do so. The said option is also provided by the Insurance regulator in its guidelines. That the Opponent further argued that complainant has not follow the procedure towards surrender of the policy, but instead has approached this Hon’ble court without any basis.

 In view of above discussion this forum observed the following points:-

1. That the Complainant has paid 1^st three years annual premium of Rs 12000/- each. Total amount of Rs 36000/- It is admitted by the Opponents.
2. That, the so many cases policy bond observed this forum provisions stipulated policy description 6 (c) Surrender value:-

1. The surrender value if any, is payable only after first three policy years.
2.  The Surrender Value payable will be equal to Regular premium fund Value and the Top-Up Premium Fund value less the Surrender Charge as per Section 37)f)
3. The Company shall thereafter terminate the policy upon payment of the full surrender value.

3. That the Opponents argued Op No 2 wrote a letter to Opponent dated 09-02-2016 for ascertaining the fund value. As on 09-02-2016 total amount have been paid by way of cheque amount of Rs 12182/- and further stated that the insurer for cancellation of the policy stating the reason, further stated that the insurer for cancellation of the policy stating the reason, and mention in the Complainant’s “due to financial problems it is not possible for me to continue the said policy by paying the remaining premium amount.” But Op’s stated that foreclosure amount of Rs 12182/- by way of cheque was sent to the complainant. after sent a cheque  to the Complainant,but she has not accept the cheque amount.
4. When the complainant paid the premium 1^st three years regularly, then Complainant is eligible for benefit under the said policy. As per the provision of the policy it is favorable to the complainant. In this case that the complainant paid the premium ^1st three years regularly and she need money stating the reasons.

“When the Opponent mentioned in the Policy bond sum assured amount then Opponent is liable to pay reimburse the Premium amount.”

 2014 C.J.898 (N.C) Oriental Insurance Co Ltd V/s Iairavatha and Another That Hon’ble Court observed that “Insurance Company cannot escape its liability after accepting premium from consumers”

2009 (3) CPR 53 (L.I.C. of India and Others V/s Kailash Chandra Kar) That Hon’ble court observed that “Consumer Protection Act, is a beneficial legislation and it cannot allow Insurance Company to escape liability on technical grounds to deprive the consumer of benefits to which he was entitled to.”

        Hence this is none other than deficiency in service rendered by the Opponents and we answer to point No 1 in affirmative.

8)    POINT No2:- Once the deficiency in service is provide, the next point is how much compensation complainant is entitled for? It is admitted by Opponent  himself that as per the true copy of Policy  submitted by the complainant Ex C-1 Total premium amount of Rs 36,000/-   and we fix the liability of the Opponents of Rs 36,000/- along with interest @ 9% p.a. towards mental agony of Rs 5000/- and cost of the complaint is Rs 2000/-Hence, we answer Point No 2 partly in the affirmative

9)     POINT NO3:- In view of our findings to point No 1 and 2 we proceed to pass the following. .

Complainant’s Complaint is allowed in part as follows:-

1. Op No 1 and Op No 2 jointly and severally have to pay an amount of Rs 36,000/-(Thirty Six Thousand Rupees only) along with interest @ 9% p.a. from 18-10-2016 to till the date of realization.
2. Op No 1 and Op No 2 jointly and severally have to pay an amount of Rs.5,000/- (Rupees Five thousand only) towards mental agony caused to the complainant.
3. Op No 1 and Op No 2 jointly and severally have to pay an amount of Rs.2,000/-(Two Thousand only) towards cost of the litigation.
4. Op No 1 and Op No 2 jointly and severally have to comply this order within One month from the date of receipts of this order, failure which the amount carries interest at the rate of 12% p.a. from 18-10-2016 to till the date of realization.
5. Free copy of this order shall be sent to the parties immediately.

(Dictated to the Stenographer directly on computer corrected by me and then pronounced in the open Forum on this 18^th   day of August 2017)

Witnesses examined on behalf of the complainants:-

1. Smt Sumangala D/o Gurusiddappa Desai

Documents produced on behalf of the Complainants

Ex C1:- True copy of Policy of the complainant 

Ex C2:- Original Cheque issued by Opponent No 2

Witnesses examined on behalf of the Opponent No 2:-

1) Shri Teju S/o Tarasingh Rathod