Karnataka

Chitradurga

CC/67/2017

Smt Zubeda Bi W/o Syed Samiulla - Complainant(s)

Versus

The Branch Manager,Max Newyork Life Insurance Co Ltd., - Opp.Party(s)

Sri.S.Syedswaleha

03 Mar 2018

ORDER

COMPLAINT FILED ON:17/06/2017

DISPOSED      ON:03/03/2018

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

CC.NO: 67/2017

 

DATED:  3^rd MARCH 2018

PRESENT: - SRI. T.N. SREENIVASAIAH  : PRESIDENT                                   B.A., LL.B.,

                   SRI.N. THIPPESWAMY        : MEMBER

                          B.A., LL.B.,   

……COMPLAINANT/S	Smt. Zubeda Bi, W/o Syed Samiulla,    Age: 50 Years, R/o Opp: Areoplane Building, Bada Makan, Chitradurga.   (Rep by Sri.S. Syed Swaleha, Advocate)
V/S
…..OPPOSITE PARTIES	1. The Branch Manager, Max New York Life Insurance Company Limited, Regd: Office, Max House, III Floor, 1, Dr. Jha Maarg, Okhla, New Delhi-110020.   2. The Branch Manager, Max New York Life Insurance Company Limited, Bhargave Complex, II Floor, Opp: Government Hospital, Behind V Law College, Tumkur-572101.   (Rep by Sri. B.M. Ravichandra, Advocate)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainant u/Sec.12 of the C.P Act, 1986 for the relief to direct the OPs to send the policy copy as per the promise, Rs.40,000/- the amount paid with interest at the rate of 18% p.a, Rs.1,50,000/- towards mental shock, pain and  such others reliefs.

2.      The brief facts of the case of the above complainant are that, on 08.08.2009 OPs have approached the complainant and requested to take insurance policy and as per the policy, the complainant has to pay Rs.20,000/- every year.  On the words of the OPs, the complainant has purchased the policy on 08.08.2009 and paid Rs.20,000/- to the OPs.  On that day, the OPs have issued the booklet which contains the Xerox copy of proposal form bearing No.727919037/2009-2010/01 and acknowledgement of receipt of policy and OPs have assured that, they will send the original policy along with bond to the complainant.  Again the OP No.2 approached the complainant and suggested that, the complainant has to pay another Rs.20,000/- then he will manage to get the original policy and bond immediately.  On the faith of the wording of OP No.2, the complainant has paid Rs.20,000/- to the OPs and the OP No.2 promised to send the original policy copy to the complainant but, the OPs have not send any policy copy to the complainant till today.  The complainant approached the OPs so many times but, they have drag on the matter on one or the other pretext.  The OPs have send cheque for Rs.16,692-63 but, as per the letter of OPs, the complainant has not received any such amount.  Till today, the OPs have not send any original policy.  The complainant has issued notice on 16.06.2015.  After sending of this notice, the OPs have not send any original policy or bond, which is a deficiency of service.  The complainant has filed an application under Section 24 of the C.P Act seeking condonation of delay in filing this complaint.  Hence, prayed for allow this complaint.           

3.      After issuance of notice to the OPs, OPs appeared through Sri. B.M. Ravichandra, Advocate and filed version.  As per the version, the OPs have taken a contention that, the complaint filed by the complainant is barred by limitation under Section 24A of the C.P Act, 1986.  It is submitted that, as per Section 24A of the C.P Act, the complaint is to be filed within a period of two years from the date of cause of action.  The complainant has filed the present complaint alleging that he did not receive the policy bond issued by the OPs on 25.08.2009.  Further it is pertinent to mention that, the last premium paid by the complainant was on 25.08.2010.  Thus the cause of action has to be calculated from the date of last paid premium and in this case, it shall be on 25.08.2010.  Even the Hon’ble State Commission, Chandigarh in the matter of TATA AIG Life Insurance Co.Ltd., Vs. Harvinder Sing & Others arising out of FA No.300/2014 decided on 27.10.2014 has clearly held that the cause of action has to be calculated from the date of last premium amount.  While pronouncing the judgment, the Hon’ble Commission observed as follows:

“The next question, to be decided is as to whether the complaint was barred by limitation or not.  The answer to this question, is in the affirmative.  The first premium was paid by respondent No.1/complainant in April 2005.  The second premium fell due on 26^th April 2006.  He could pay the same up to 26.05.2006 after availing of the grace period of 31 days.  He, however, did not pay the same.  The policy, thus, lapsed.  He did not get revived the same.  The cause of action arose to him on 26.05.2006.  He could file the complaint up to 26.05.2008.  The complaint having been instituted on 30.04.2013 was palpably barred by time.  The District Forum was also right in holding so.”  

 

It is further submitted that, the complainant after completely understanding the terms and conditions of our product “Max Life Smart Steps (plus) plan had voluntarily applied for a policy by voluntarily filling up the proposal form.  On the basis of the information provided by the complainant a policy bearing No.727919037 was issued on 25.08.2009 stipulating for an annual premium of Rs.20,000/- against the sum assured of Rs. 2,40,000/- for a premium paying term of 12 years.  Thereafter, all the policy terms and conditions were sent to the complainant by speed post bearing AWB No.EH096141696IN, which was duly delivered to the complainant.  In case the complainant had any objections with respect to any terms and conditions of the policy, he is entitled to request for the cancellation of the policy within the free look period of 15 days.  However, it is pertinent to mention that, the OP never received any complaint with respect to the said policy from the complainant within the free look period.  The complainant duly paid the premium due on 25.08.2010 and as such, the complainant had paid an aggregate amount of Rs.40,000/- under the said policy.  It is further submitted that, the renewal premium under the said policy was due on 25.08.2011 and the OP duly sent a renewal premium notice dated 26.07.2011 reminding the complainant about the same.  The complainant failed to revive the policy within the stipulated time period and as such, the policy was auto foreclosed and the surrender value amounting to Rs.16,692-63 was processed in favour of the complainant through cheque No.561497 dated 25.08.2014.  The relevant clause of the policy contract is reproduced below as under:

“14.2 Discontinuance of premiums within three years of inception of the policy:

1. If all the annual target premiums have not been paid for at least 3 consecutive years from the effective date of coverage, the insurance cover (sum assured) under the policy shall cease immediately on expiry of the grace period and the Unit Account will be closed.

c) In case the policy is not revived during the revival period, the policy will terminate and the surrender value as at the date of lapse, if any, shall be paid at the end of third policy anniversary or at the end of the revival period, whichever is later.  

 

Under these circumstances, there is no deficiency of service on the part of OPs and prayed for dismissal of the complaint.               

4.      Complainant has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-5 were got marked and closed his side. On behalf of OPs, one Sri.Dhirj Malik, the Deputy Manager (Legal), has examined as DW-1 by filing the affidavit evidence Ex.B-1 to B-7 documents have been got marked.  

5.      Arguments of both sides heard.

6.      Now the points that arise for our consideration for decision of above complaints are that;

 

(1)  Whether the complaint filed by the complainant is barred by limitation?

              (2) What order?

          7.      Our findings on the above points are as follows:-

          Point No.1:- Negative.

          Point No.2:- As per final order.

REASONS

8.      It is the case of the complainant that, he has purchased the insurance policy from the OPs on 08.08.2009 and paid a sum of Rs.20,000/- as the yearly premium amount.  By that time, the OPs have collected the amount from the complainant and promised to send the policy to the complainant.  Again on 30.07.2010, the OP No.2 has approached the complainant and collected an amount of Rs.20,000/- and promised to send the policy along with bond, in total the OPs have collected Rs.40,000/- from the complainant.  After that, the OPs have failed to send the policy or bond.  Finally, the complainant sent notice to the OPs and asked to send the policy bond in the year 2015.  The OPs have filed their version and taken a contention that, they have agreed that, the complainant has paid a sum of Rs.40,000/- in two times and last installment was paid on 30.07.2010.  After the payment of an amount of Rs.20,000/- the complainant has not filed any complaint before this Forum till 2017.  The complainant has asked to supply the bond and policy on 16.06.2015.  The main contention of the OPs that, the complainant has filed this complaint after two years from the date of last premium.  In this case the complainant has paid last premium on 30.07.2010.  After that, the complainant has not paid any amount to the OPs.  As per Section 24 A of the C.P Act, the complaint has to be filed before the Forum within two years from the last payment and the OPs asked that, the OPs have send the amount of Rs.16,692-63 to the complainant and the complainant has received the same on 25.08.2014.  But the complainant says that, he has not received any amount send by the OPs and he has no knowledge with regard to the non-supply of the policy bond.  The notice has been send by the complainant to the OPs on 16.06.2015.  The OPs have not supplied the policy to the complainant well in time.  No doubt the complainant is having a good case for final adjudication.  But, at this stage, the complainant has not filed this complaint well in time.

 

  9.    We have gone through the entire documents filed by the OPs.  According to the complainant, he has purchased the insurance policy from the OPs and he has paid an amount to the OPs in two time ie., first time on 08.08.2009 and second time on 30.07.2010 in all a sum of Rs.40,000/-.  But after the payment of two installments, the complainant has not paid further premium amount to the OPs.  The OPs have send a letter to the complainant asking to pay the remaining premium amount but, the complainant has not paid the premium amount.  But the complainant taken a main contention that, the OPs have not supplied the policy along with bond.  The OPs have taken a contention that, the complainant has not filed this complaint within time   which clearly goes to show that, the complaint filed by the complainant is barred by limitation.  The complainant has not filed this complaint well in time as prescribed under the Act.     Accordingly, this Point No.1 is held as negative to the complainant.          

            10.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

            The complaint filed by the complainant U/s 12 of CP Act 1986 is hereby dismissed as barred by limitation.  No order as to costs.

             (This order is made with the consent of Member after the correction of the draft on 03/03/2018 and it is pronounced in the open Court after our signatures)         

 

                                     

 MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OP:

DW-1:  Sri. Dhirj Malik, the Deputy Manager (Legal) of OPs by way of affidavit evidence. 

Documents marked on behalf of Complainant:

01	Ex-A-1:-	Insurance premium receipt
02	Ex-A-2:-	Payment receipt
03	Ex-A-3:-	Legal Notice dated 11.06.2015
04	Ex-A-4:-	Postal receipts
05	Ex-A-5:-	Reply notice dated 23.07.2015

 

Documents marked on behalf of OPs:

01	Ex-B-1:-	Proposal form
02	Ex-B-2:-	Letter dated 25.08.2009
03	Ex-B-3:-	Policy document
04	Ex-B-4:-	Policy terms and conditions
05	Ex-B-5:-	Illustrative details
06	Ex-B-6:-	Policy amendment request form (A)
07	Ex.B-7:-	Renewal premium notice

 

 

 

MEMBER                                                            PRESIDENT

Rhr**