BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM
VAZHUTHACAUD : THIRUVANANTHAPURAM
PRESENT
SHRI. P. SUDHIR : PRESIDENT
SMT. SATHI. R : MEMBER
SMT. LIJU B. NAIR : MEMBER
C.C.No: 266/2011 Filed on 20/08/2011
Dated: 02..09..2016
Complainant:
Ajith Soman, S/o Soman, Kilithattil, Ulloor, Medical College-P.O., Thiruvananthapuram.
(By Adv. Renjith C. Nair)
Opposite parties:
1. The Branch Manager, Birla Sun Life Insurancne Co. Ltd., 5th Floor, E.D Heights, Pattom, Thiruvananthapuram.
2. Nithin Mankar, Birla Sun Life Insurance Co. Ltd., (New Business Department) 6th Floor, Kasar Vadavali, Near Hyper City, Ghodbunder Road, Thane West-400 601.
3. Jinaraj Ninaraj Mogi, Birla Sun Life Insurance Co. Ltd., 5th Floor, E.D Heights, Pattom, Thiruvananthapuram – 695 001.
4. The Manager, Customer Care Unit, Birla Sun Life Insurancne Compny Ltd., One India Bulls Centre, Tower-1, 15th Floor, Jupiter Mill Compound, 841, Senapathy Bapati Marg, Elphistone Road, Mumbai – 400 013.
(Opp parties 1 to 4 by Adv. A.G. Syam Kumar)
This C.C having been heard on 15..07..2015, the Forum on 02..09..2016 delivered the following:
ORDER
SMT. LIJU B. NAIR, MEMBER:
Complainant’s case is that the complainant has taken a policy from the opposite party vide policy No.000486054 on 03/11/2005. He was prompt in remitting the policy premiums. The premium amount was Rs. 30,990/- quarterly and complainant remitted the premium upto 03/02/2009 which comes to a total amount of Rs. 4,28,070/-. But the deeds of the opposite parties were so suspicious that complainant lost confidence in them especially with 3rd opposite party and he demanded to cancel the said policy and return the amount he has remitted. But 3rd opposite party on such demand by the complainant approached him and through misrepresentation of facts made him to sign certain documents and also a cheque and also narrated the benefits of transferring the amount to another policy which according to the 3rd opposite party more beneficial to the complainant. By realising the chance of misuse of the cheque and fear of transferring the amount to new policy the complainant stopped payment of the cheque through his bank. But the opposite parties without transferring the amount due to the complainant to his account transferred an amount of Rs. 2,84,706.40/- towards the new policy without the knowledge and consent of the complainant. The complainant is entitled to get Rs. 4,28,070/-, which was the amount he remitted towards his policy and the new policy, if any was taken without his consent, needs to be cancelled.
2. Opposite parties filed version contending that the opposite party has already surrendered the said policy bearing policy No. 000486054 as per the terms and conditions of the policy and the surrender amount of Rs.2,84,706.40/- on the complainant’s own account and free will and was transferred to a subsequent policy sourced by the complainant. Therefore, there exists no cause of action against the opposite party. There after understanding and duly deliberating upon the terms and conditions of the “Flexi Life Line” plan, the complainant applied for an insurance policy vide proposal form bearing No. 2517869 dated 09/09/2005 wherein the complainant gave all relevant details and information in the prescribed form, for an assured sum amounting to Rs. 10,00,000/- for which a quarterly premium amounting to Rs. 27,875/- was proposed to be paid for a term of 20 years. Based on the declaration made and information provided in the proposal form, a policy bearing No. 000486054 was issued to the complainant on 03/11/2005. Soon after the issuance of the said policy the policy document was delivered to the address of the complainant. The said policy contained a note on free-look period whereby the policy holder has a right to reconsider his/her decision to purchase the policy within 15 days of receipt of the policy document in case he/she does not agree to the terms and conditions of the said policy. That on 19/02/2007 the complainant vide his letter informed the opposite party that he wanted to change to direct mode ECS monthly. Thus based on their request of the complainant, the opposite parties vide their letter dated 23/02/2007 informed the complainant that based on his request the ECS activation had been done from direct bill quarterly to monthly (ECS) and his new model premium was Rs. 10329.96/- and ECS draw will take place from the complainant’s account from 03/05/2007. That on 06/03/2009, the opposite party vide letter dated 06/03/2009 informed the complainant that the ECS payment of Rs. 10339.96 for the month of March 2009 has been dishonoured for the reason of the insufficient funds from the bank account No. 695015011-118 and also informed further that the billing mode of the complainant is now Direct Bill Quarterly. Further more in the month of April 2009, the opposite party vide their letter dated 14/04/2009 again informed the complainant that his ECS payment for an amount of Rs. 10379-96 for the month of April 2009 had been dishonoured on account of insufficient funds. That on 22/06/2009 the opposite party sent a reminder premium notice informing the status of the premiums and calling upon the complainant to pay an amount of Rs. 51650.16/-. That on 23/12/2010 the complainant made a surrender request of the said policy being policy No. 000486054. The surrender value as on the date of surrender was amounting Rs. 2,84,706.40/-. That the complainant signed to the printed letter vide the same application invariably stating that he wished to surrender the policy and transfer the surrender value to the new policy for which he was submitting the application along with the letter. In the said letter he also made a declaration the same is repeated herein verbatim – “ My Insurance Agent (Relationship Manager) has explained me the implications of my above decision and I have taken this decision of my own volition knowing fully that this may entail additional charges, costs and losses on my earlier and / or new policy / ies. I also understand that the policy / ies once surrendered will not be reinstated by the company. I undertake to hold the Company harmless under all circumstances”. The complainant after understanding and duly deliberating upon the terms and conditions of the “Vision Plan” simultaneously applied for a new policy on his daughter’s name – Arya A.S being application No. 3689363 for an annual premium payable of Rs. 2,84,706.40/-. The complainant at the time of applying for the policy issued a cheque bearing No. 003711 dated 19/12/2011 amounting to Rs. 2,85,000/-. Based on the said application, a policy bearing No. 0045742350 was issued on 27/12/2010. The cheque bearing No. 003711 issued towards the premium of the policy bearing No. 004574250 was dishonoured and accordingly policy bearing No. 004574250 was cancelled. On 29/12/2010 the complainant wrote a letter to the opposite parties requesting them transfer the full surrender amount of the policy No. 000486054 to the new application bearing No. M 3689363 as he had given stop payment for the cheque bearing No. 003711 for the policy No. 4574250. He further requested for the amount to be transferred as soon as possible and to issue new policy at the earliest. Based upon the written request of the complainant and based on the details of the application No. 3689363 (filled for policy No.2) the said amount of Rs. 284706.40 (surrender value of policy No.000486054) was transferred to a new policy being policy No. 004611961 issued on 31/12/2010. The said policy No. 004611961 is still existence. That with every policy the opposite party sends to its customers a welcome letter, which not only welcomes the customer but also informs them the modes by which they can keep a track of their policy and also requests them to go through the policy in detail and check for the accuracy of information provided in the policy. The relevant para of the said letter is mentioned herein verbatim – “A free look period of 15 days from the date of the policy receipt is provided to you to review the terms and conditions of the policy. In case you wish to discontinue your policy under the Free Look Option, kindly send us a written intimation (and the reasons thereof) about the same along with the original policy documents at our nearest branch office or our registered office address. Upon receipt of the requisite details, we will refund all the premiums paid by you till date; the contract will be rendered null and void ab initio, provided we have not received any claim intimation under this policy”. It is pertinent to note that the complainant too was sent this letter. The complainant has failed to take recourse under the said Free Look Option and as such forfeited the right to claim and modifications / amendments or to surrender the policy. As the policy documents delivered to the complainant provided him a period of 15 days within which he could have returned the policy the opposite parties 1 & 2 by stating the reason thereof. The act and conduct of the complainant in not returning / surrendering the policy within the given time signified his acceptance of the terms and conditions mentioned in the said policy documents. Hence, the present complaint deserves to be dismissed with special costs.
Issues:
(i) Whether the opposite parties committed any unfair trade practice?
(ii) If so, how the complainant is to be compensated?
3. Issues (i) & (ii): Complainant filed affidavit along with 3 documents which were marked as Exts. P1 to P3. Opposite parties filed affidavit along with 5 documents. Perused the evidence and gone through the pleadings of both sides.
4. Complainant claims that without his knowledge or concurrence opposite parties’ surrendered his earlier policy and the surrender value thus acquired was transferred to the premium of a new policy. This new policy was served to him, and on receiving the same, he came to know about it. The copy of the policy document along with copies of advocate notice was filed as documents. Opposite parties filed copies of proposal form, along with the documents to show that the complainant himself prayed for converting the amount as premium for the second policy. Complainant filed petition for production of original documents for which opposite parties filed affidavit stating that they only possess the photocopy. No further steps were taken by the complainant to object that documents. So on perusal of the documents by the opposite parties, we can assume that the alleged matter in dispute happened with the consent of the complainant. So the complaint lacks merit, which is only to be dismissed.
In the result, complaint is dismissed.
A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.
Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the Open Forum, this the 2nd day of September, 2016.
Sd/- LIJU B. NAIR : MEMBER
Sd/-P. SUDHIR : PRESIDENT
Ad sd/-R. SATHI : MEMBER
C.C.No: 266/2011
APPENDIX
I. Complainant’s witness : N I L
II. Complainant’s documents:
P1 : Copy of policy details of Ajith Soman
P2 : Advocate notice dated 11/05/2011
P3 : Registered with A/D
P4 : Corrected notice dated 30/07/2011
P5 : Postal receipts (4 Nos) series
P6 : Returned A/D cards
III. Opposite parties’ witness : N I L
IV. Opposite parties’ documents:
D1 : Application for Insurance - Birla Sunlife
D2 : Reminder premium notice dated 22/06/2009
D3 : Copy of policy cancellation / Surrender Form dated 29/12/2010
D4 : Birla Sunlife Insurance Company Ltd.
Sd/- PRESIDENT
Ad.
