DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD Dated this the 28th day of August 2009.
Present : Smt. H. Seena, President
: Smt. Preetha.G. Nair (Member) : Smt. Bhanumathi.A.K. (Member) C.C.No.133/2008
V.K. Ramakrishnan S/o. V. Kesavan Vettukattil House (Amrutha) Palappuram (P.O) Ottappalam – 679 103 Palakkad. (Party in person) - Complainant
V/s 1. Branch Manager L I C of India Branch Office, P.B No.7 Ottappalam. (Party in person) 2. Manager (CRM) Divisional Office Jeevan Prakash M G Road P B No.1133 Ernakulam – 682 011 - Opposite Parties ( Party in person ) O R D E R By Smt. H. Seena, President Case of the complainant in brief: Complainant took a policy from the Ist Opposite party through an agent Mr. Gopinath for an assured sum of Rs.1,00,000/-(Rupees One lakh only) to be paid on quarterly basis without proper briefing by the agent. Complainant paid the first premium amount of Rs.3,101/- and renewal premium amount of Rs.3,101/- Thereafter he could not make payments due to financial constraints and was not in a position to revive the lapsed policy. Complainant sent letter requesting refund of paid up premium to the opposite party on 27/12/2006. Ist Opposite party replied stating there is no provision for refund. Hence complainant prays for an order directing the opposite parties to refund the amount together with compensation for mental agony. - 2 - Opposite party filed version contending the following:
Opposite party admits the fact that the complainant holds a policy of assurance. The said policy was issued for at term of 11 years and the quarterly installment of premium is Rs.3,101/- payable for 11 years. The policy was issued interalia on the basis of the proposal dated 07.11.2005 where in the complainant has declared that the statements and answers there in were given by him after fully understanding the question and also he has understood the significance of the proposed contract. Further complainant has paid only two quarterly instalments and the total amount remitted is Rs.6,202/- Complainant's request for refund of premium dated 27/12/2006 was replied on 29/12/2006 itself stating that there is no provision for refund. Condition 4 of the policy document clearly states that “ if after at least 3 full year's premium have been paid in respect of this policy, any subsequent premium be not duly paid, this policy shall not be wholly void but the sum assured by it shall be reduced to such a sum (paid up value) as shall bear the same ratio to the full sum assured as the number of premium actually paid shall bear the same ratio to the full sum assured as the number of premiums actually paid shall bear to the total number originally stipulated for in the policy provided such reduced sum shall not be less than Rs.250/-. Complainant has paid only two premium and hence not entitled for any refund. Further the opposite party has already taken risk for the period for which premium has been paid. The premium is the consideration for taking the risk of the life of the assured and if that consideration is not paid thereafter the corporation is free from the risk and the policy will lapse. According to Opposite party, there is no deficiency in service on the part of opposite party and the complainant is not entitled for any of the reliefs claimed in the complaint.
The evidence on the part of the complainant consists of the proof affidavit and Exhibit A1 to A4 Opposite party filed affidavit. Exhibit B1 to B2 marked on the side of opposite parties.
The issues for consideration are 1. Whether there is any deficiency in service on the part of opposite party? - 3 - 2. If so, what is the relief and cost? Issues 1 & 2 Complainant herein is claiming refund of premium amount of a lapsed policy. As per the contention of the opposite party if the policy has lapsed and the insured has not paid 3 years premium, he cannot get the refund of the premium amount as the company has already taken the risk for the period for which premium has been paid.
We heard the parties in detail and carefully gone through the evidence on record. In condition 4 of the policy marked as Exhibit B2, it is specifically stated that the insured to claim the premium amount should have at least paid 3 full years premium. Moreover complainant has the option to revive the policy as per condition 3 on the payment of the arrears of the premium together with interest.
Complainant herein has stated that due to financial constraints he was not able to pay the future premium amount. Further the agent of the opposite parties has not briefed the complainant in detail about the policy and the entries in the proposed form was not recorded in the presence of the complainant. He signed the declaration form without reading the contents as the agent was known to him.
On going through the evidence on record, it can be seen that complainant is not a laymen . Instead is a highly qualified Ex-Servicemen such a person ought to have gone through the contents of the document before signing it. Acquaintance with the agent is not a justifiable reason. For the fault on the part of the complainant, the opposite parties cannot be made liable.
In view of the above discussions, we are of the view that the opposite parties acted as per law and there is no deficiency in service on their part. Complainant is not entitled for refund of the premium amount. In the result complaint dismissed. No order as to costs.
Pronounced in the open court on this the 28th day of August , 2009
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PRESIDENT (SD)
MEMBER (SD)
MEMBER (SD)
APPENDIX Witness examined on the side of Complainant Nil Witness examined on the side of Opposite party Nil Exhibits marked on the side of the complainant Ext. A1 Series – Medical Certificate of Indian Institute of Pancharkarma Ext. A2 Series – Fee Receipt form Sakthan Thampuran College and Jayaram Eduction
Centre (P) Ltd 3. Ext. A3 – LIC premium receipt 4. Ext. A4 – Letter dated 27/12/2006 addressed to Executive Director, LIC, Mumbai. Exhibits marked on the side of the Opposite Party Ext. B1 – Proposal for Insurance on Own life of Life Insurance Corporation of India Ext. B2 - Policy copy
Forums Exhibits
Nil Forwarded/By Order
Senior Superintendent
Date of fair copy : 09/09/2009 Date of despatch:
......................Smt.Bhanumathi.A.K
......................Smt.Preetha.G.Nair
......................Smt.Seena.H | | 
