DISTRICT CONSUMER DISPUTES REDRESSAL FORUM  PALAKKAD

Dated this the 4^th  day of August  2015

Present   : Smt.Shiny.P.R. President

               : Smt.Suma.K.P.  Member                                                Date of filing: 07/03/2014   

(C.C.No.33/2014)

Dr.Nishanth Murukesh,

S/o.Murukesan Panan,

11, Cinamon close,

Norchenden, Manchester

M224QF, United Kingdom (U.K.)

Rep.by Power of Attorney

Dr.Murukesh,

Sapnam, Nemmara Road,

Near Canara Bank, Kollengode,

Palakkad                                                                                             -              Complainant

(By Adv.S.Sivadas & P.R.Hariharan) 

Vs

1.The Branch Manager

    M/s.ICICI Prudential Life

    Insurance Company Ltd.

    Near Rappadi, Fort Maidan,

    Palakkad

2.The Branch manager,

   M/s.ICICI Prudential Life

  Insurance Company Ltd.,

   Thrissur                                                                                            -              Opposite parties

(By Adv.P.Sasidharan)

O R D E R

By Smt.Shiny.P.R.  President.

Brief facts of the complaint.

The complainant as per the advice of the opposite party’s agent subscribed to a product launched by the opposite party known as LIFE TIME GOLD. As per the  terms and conditions contained in the policy the complainant became a subscriber to the above policy. The complainant was to pay a sum of Rs.2,00,000/- per annum for 3 years. The policy term was for 10 years. At the end of the policy period the opposite party assured the complainant that he would be able to receive  Rs.10,00,000/-. The policy number of the complainant was 08784049 and the same commenced on 30/4/2008. The complainant had made payments for 3 years i.e. he had paid a sum of Rs.6, 00,000/- to the opposite party as premium for the above policy. During November 2013 complainant wanted to know about the details regarding surrendering of the policy and hence he approached the opposite party to enquire about the same. The opposite party informed the complainant that his policy has already been assigned in favour of one Bhagyaraj who surrendered the policy, the funds have been credited to Bhagyaraj’s account.

The complainant is a doctor working in England, the original policy was with him, and he has not authorized the opposite party to assign his policy to any person much less to Bhagyaraj. 

When he knew about the fraudulent assignment, the complainant sent letter dated 23/11/2013 for which no action was taken by the opposite parties. Again the complainant sent a letter to the opposite party dated 17/12/2013. Thereafter several communications, e-mails etc., were also exchanged between the complainant and the opposite party. Finally the opposite party agreed to pay back the amount paid by the complainant treating the same as surrendered policy. The complainant having no other choice as he had to go back to England, accepted the same.

The opposite parties have acted dishonestly, practiced fraud and service rendered by them are clearly deficient.

Hence the complaint. Complainant prays for an order directing the opposite parties to pay to the complainant

1. A sum of Rs.10, 00,000/- being the sum assured to the complainant.
2. A sum of Rs.1, 50,000/- being the amount spent by him towards air fare etc.., for coming to India from England.
3. A sum of Rs.5,00,000/- as compensation for mental agony and trauma undergone by the complainant.

Complaint was admitted and issued notice to opposite parties. Opposite parties entered appearance and filed their version stating that complaint is bad for non jointer of necessary party. The complainant has made allegation against the agent Mr.Bhagyaraj.V.S. He was not impleaded in the present complaint. For any alleged omission, commission or negligence of the insurance advisor beyond their defined duty / authority, the opposite cannot be made vicariously liable. The policy is a contract entered between the policy holder and insurance company and parties to it are bound by its terms and conditions. Any benefit under the policy is payable strictly in accordance with the terms and conditions. In this case opposite party received a duly signed assignment form by the Assignor and Assignee vide date 11-4- 2011. However the request could not be processed as this assignment form was not witnessed as per the requirement and the same was informed to Nishanth Murukesh vide letter dated 18/5/2011. But neither the complainant nor his authorized person approached opposite party for any complaint regarding the assignment form. Thereafter the opposite party received other assignment form dated 27/5/2011 duly signed by Assignor and Assignee and witnessed by Mr.Joy.JAloor.  On 15/6/2011 opposite party received duly signed surrender request form from Mr.Bhagyaraj.V.S. Then the surrendered amount of Rs.559252.82 was credited to the account of Bhagyaraj. Afterwards the opposite parties received two letters dated 23/11/2013 and 24/12/2013 from Murukesh alleging unauthorized assignment. Then opposite party conducted investigation and found that signature in the assignment form was forged by the agent. Then opposite parties immediately sent a show cause notice to Bhagyaraj and terminated Bhagyaraj for breach of agency agreement. Then opposite party immediately reversed the surrendered entry and refund the premiums along with interest @4.% to the complainant. Hence there is no deficiency in service on the part of opposite parties. Opposite parties also submitted that the out of the total Rs.6 lakhs  deposited in the policy amount, Rs.1,41,500/- was paid by the advisor Bhagyaraj. The said amount was refunded to this advisor on March 11, 2014. This was also informed to this complainant. Complainant was further informed that pursuant to the payout made to the advisor he would have to pay the balance amount of Rs.1,41,500/- towards the subject policy to continue his policy. After getting this information complainant never approached the opposite party. Opposite party submitted that the complainant was not produced any documents  to prove that the entire premiums of Rs.6 lakhs was paid by him and not by advisor. Hence there is no deficiency in service from the part of opposite party, complaint is liable to be dismissed.

Both parties filed their chief affidavits. Exts.A1 to A6 are marked from the side of complainant. Exts.B1 to B11 are marked from the side of opposite parties. Interrogatories also filed by opposite parties and complaint answered for the same.

            Issues for consideration

1. Whether there is any deficiency in service on the side  opposite parties ?
2. If so, what is the relief?

Issues 1&2

Complainant heard. Opposite parties are not present for hearing.  We have perused the documents produced. Opposite parties admitted the policy and the fact that their agent Bhagyraj committed forgery and surrendered amount of  Rs.559252.82  credited to the account of Bhagyaraj. V S. Opposite parties contended in their version that  they had sent a letter (Ext B4)  to the complainant stating that they are unable to comply with his request due to incomplete details furnished and  requesting him to send a duly filled forms signed by the proposer of the policy within 15 days. Complainant answered for this question in the questionnaire filed by the opposite parties as no such letter has been received. Opposite parties did not produce any documents to prove that they had sent such a letter to the complainant. Complainant came to know the fact of surrender of the policy only on November 2013, when he went to the opposite parties to know about the details regarding surrendering of the policy. By fraudulent surrender of the policy by Mr.Bhagyaraj complainant sustained financial loss. According to the complainant he had paid Rs 6,00,000 for the premium for 3 years. Opposite parties are not produced any documents to show that Rs.1,41,500/- was paid by Mr.Bhagyaraj towards the 3^rd premium of the policy or examined Mr.Bhagyraj to prove their case. Opposite parties not produced any documents to rebut the submissions of the complainant.

Opposite parties admitted their agent Bhagyraj committed forgery and surrendered amount of Rs.559252.82 have been credited to the account of Bhagyraj. Hence Opposite parties are vicariously liable to  compensate the complainant for the acts of their agent. As per Ext.A6 discharge voucher complainant received Rs.616495.80 (including interest @ 4% for an amount of Rs.559252.82 from 15-6-2011 to 3-1-2014). From the documents produced before the Forum,  we came to the conclusion that  complainant is not indented to surrender the policy on 15-6-2011. Without verifying the documents produced by their agent, opposite parties credited an amount of Rs.559252.82  to their agent’s account.  By this act of opposite parties, the complainant forced to surrender the policy on 3-1-2014 and sustained huge financial loss and mental agony. Hence the opposite parties have the liability to compensate the loss sustained and mental agony suffered by the complainant. For calculating the financial loss of Complainant, he did not produce documents to show that he had spent Rs.1,50,000 as air fare for coming to India from England. Hence we are not in a position to allow this expense.

In the above circumstances we are of the view that the opposite parties are deficient in service. In the result complaint is allowed. Opposite parties are jointly and severally liable to pay

1.      An amount of Rs 40,747 (Rupees Forty thousand seven hundred and forty seven only)  towards the balance amount payable(600000- 559253-already paid),

2.      An amount of Rs.10,000/- (Rupees Ten thousand only)  for mental agony suffered and

              3. An amount of Rs.2,000/- (Rupees Two thousand only) as cost of proceedings

Order shall be complied within a period of one month from the date of receipt of order, failing which complainant is eligible for 9% interest per annum for the whole amount from the date of order, till realization.

Pronounced in the open court on this the 4^th day of August  2015.

                                                                                                                      Sd/-

                      Shiny.P.R.

                      President   

                          Sd/-

                      Suma.K.P.

                      Member

Appendix

Exhibits marked on the side of complainant

Ext.A1 –  Photocopy  of application No.20092684 dated 28/4/2008 issued by opposite party in

                favour of complainant alongwith policy  

Ext.A2  – Photocopy of letter dated 23/11/2013 from Power of Attorney of complainant to 1^st

                   opposite party

Ext.A3   - Photocopy of letter dated 17/12/2013 from complainant to 1^st opposite party

Ext.A4  –  Photocopy of mail dated 31/1/14 from Nitu Singh on behalf of opposite parties to

                 complainant

Ext.A5  –   Photocopy of mail dated 3/1/14 from Nitu Singh on behalf of opposite parties to

                  complainant

Ext.A6  –   Photocopy of Advance discharge voucher issued by complainant to opposite party

                   dated 4/1/14

Exhibits marked on the side of opposite party

Ext.B1 –  Photocopy  of application No.20092684 dated 28/4/2008 issued by opposite party in

                favour of complainant 

Ext.B2 –  Photocopy of policy documents  issued by opposite party  to complainant

Ext.B3 –  Photocopy of Assignment Form dated 11/05/2011

Ext.B4 – Photocopy of letter dated 18/5/2011 issued by opposite party to complainant

Ext.B5 –Photocopy of assignment form dated 27/5/2011

Ext.B6 – Photocopy of payout requested dated 15/6/2011

Ext.B7 – Photocopy of show cause notice dated 30/1/2014

Ext.B8 – Photocopy of termination letter dated 5/3/2014

Ext.B9 – Photocopy of e mail dated 3/1/2014 from Nitu Singh to complainant

Ext.B10 –Photocopy of Bank statement

Ext.B11 –Photocopy of email dated 19/5/2014 from Nitu Singh to complainant  

Cost 

Rs.2,000/-allowed as cost of the proceedings.