DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD

Dated this the 6^th day of October  2012 

Present:  Smt.Seena.H, President

            : Smt.Preetha.G.Nair, Member

            : Smt.Bhanumathi.A.K, Member                    Date of Filing :08/03/2012

CC No.46/2012

K.V.Jalajamani,

W/o.Raveendranath,

Pathinettamkandam House,

Flat No.S-10, Bypass Road,

Sekharipuram,

Near Bramakumari Ashramam,

Kalpathy, Palakkad.                                                -        Complainant

(By Adv.K.V.Sujith)
 

Vs 

1.The Center Head,

   M/s.Reliance Life Insurance Company Ltd.,

   9^th & 10^th Floor, Bldg.No.2, R-Tech Park,

   Nirlon Compound, Next to Hub Mall,

   Behind I-Flex Bldg. Goregaon (East),

   Mumbai – 400 063

(By Adv.N.Rajesh)

2.The Manager,

    M/s.India Info Line Insurance Brokers Ltd.

    Shop No.MP VIII/608-AB, 2^nd Floor,

    A.M.City Plaza, Main Road,

    Mannarghat,  Palakkad.                             -        Opposite parties

O R D E R

By Smt.PREETHA G NAIR, MEMBER       

The complainant has availed a cash flow plan from the opposite parties and remitted Rs.5,000/- on 27/7/2011 vide receipt number 0193539, and on 28/7/11 amount of Rs.15,000/-  vide receipt number 0193540 and an amount of Rs.79,000/- on 29/07/2011 vide receipt number 0193544 with 2^nd opposite party, who has collected the amount on  behalf of the 1^st opposite party. Subsequently 1^st opposite party has issued a policy No.19198283 dated 23/9/2011. As per the offers and promises given by 2^nd opposite party’s Sales Executive  Mr.Prajeesh, the complainant availed the cash flow plan. On going through the terms and conditions of the policy, it is understood that it is against the offers which the opposite parties and sales executive explained and given on in  his own  handwriting to complainant. The complainant met the Sales Executive of 1^st opposite party and clarified about the offers given by 2^nd opposite party and understood that it is only a misrepresentation made by him to cheat him. The complainant expressed her unwillingness to continue with the policy and the Sales Executive of 1^st opposite party has asked to give back the original policy, a cancelled cheque and Bank details of complainant which was duly given to him. He has promised that the amount will be credited to the complainant’s account immediately. But so far no amount is returned by the opposite parties to the complainant.  The act of opposite parties will amount to unfair trade practice and deficiency of service. The complainant has sent a registered lawyer notice to opposite parties and thereafter the 1^st opposite party has sent a reply stating false contentions. Inspite of receiving all necessary documents required for cancelling the policy and returning  the money the opposite parties failed to give the legitimate claim put forward by the complainant. Hence the complainant prays an order directing the opposite parties to pay

1.    Rs.99,000/- being the amount payable for cash flow plan policy with 12% interest from 23/9/2011 till realization and

2.    Rs.20,000/- as the compensation for mental agony and financial loss and cost of the proceedings.

2^nd opposite party set exparte. No version filed by 2^nd opposite party.

1^st opposite party filed version stating the following contentions. The 1^st opposite party admitted that the complainant had taken out a policy from them under cash flow plan was issued on 23/9/11. The policy document was once again printed and handed over on 14/10/11. The complainant has never approached the opposite party for cancellation of the policy. Complainant entered into the agreement with open eyes and also had the benefit of 15 days of free look period within which she could have repudiated the policy, which was not done. Hence the opposite party prayed that dismiss the complaint with cost.

Both parties filed their chief affidavit. Ext.A1 to A7 except A5 marked on the side of the complainant. Ext.B1 to B2 marked on  the side of the 1^st opposite party. Matter heard.

Issues to be considered are;

1.    Whether there is any deficiency in service on the part of opposite parties? 

2.    If so, what is the relief and cost?

 Issue No.1 & 2 

We perused relevant documents on record. The fact of collection of amounts and issuance of the policy is admitted by the opposite party. The complainant stated that after receipt of the policy, understood that it is against the offers which  the opposite parties through its sales executive explained and given on in his own handwriting to him. But that document was not marked. Also the complainant has not produced the person executed the document to examine. Ext.A1 to A3 show that the complainant has deposited Rs.99,000/- to the 1^st opposite party and issued a policy dated 23/9/11. According to the complainant after receiving the policy understood that it is only a misrepresentation  made by him to cheat. No contradictory  evidence produced by the opposite parties. Also the opposite parties had not produced evidence to show that terms and conditions were given to the complainant before receiving the payment. Ext.A6 series shows that the complainant sent a lawyer notice dated 16/1/2012 to opposite parties.  Ext.A7 is the reply notice sent by the 1^st opposite party. 2^nd opposite party has not sent reply. Also 2^nd opposite party has not filed version and affidavit.

The questionnaire filed by 1^st opposite party. The answers filed by the complainant. The question regarding the terms and conditions of the policy available at the time of joining the scheme answered by the complainant that the Sales Executive stated that if 4 years of premium is paid the amount will accrue to the tune of Rs.8 lakhs. It is totally different as mentioned in Ext.A4. 

The complainant demanded the refund of the amount paid to the opposite parties within six months through the lawyer notice.  The complainant stated that  after receipt   of the policy she demanded the amount paid to opposite parties.  Also the complainant stated that the brochure marked as Ext.B2 is not given. No contradictory evidence produced by the opposite parties. As per Ext.A1 to A3 the complainant deposited the amount of Rs.99,000/- to the opposite parties on September 2011. The opposite parties had not produced  evidence to show that any loss made to them for cancellation of policy and the amount given to complainant. The collection of amounts and issuance of the policy is admitted by the opposite party. The complainant stated that after receipt of the policy and on going through the terms and condition of the policy it is understood that it is against the offers given  by the Sales Executives on behalf of the opposite parties.                     No contradictory evidence produced by the opposite parties. The opposite parties had not produced evidence to show that brochure given to the complainant. Further complainant stated that the original policy, blank cancelled cheque leaf and pass book details were collected by 1^st opposite party to promise that the amount will be credited to her account. But the opposite parties had not credited the amount to the complainant.

As per regulation 7 of the Insurance Regulatory and Development Authority Regulations, 2010 in case of discontinuance of the policy, the insurance companies shall not levy more than Rs.5,000/- maximum. It is a well established  fact that any agreement which takes away a legal right of a citizen is void. The complainant paid Rs.99,000/- to the opposite parties. So Rs.5,000/- deducted from Rs.99,000/- as the maximum discontinuance  charges for the policies.i.e. Rs.99,000 – Rs.5,000 is Rs.94,000/- is the ordered amount.

In the above discussions we are of the view that there is deficiency in service on the part of opposite parties.  In the result complaint allowed.  We direct the opposite parties jointly and severally liable to pay the complainant an amount of Rs.94,000/- (Rupees Ninety four thousand only) with 12% interest from the date of deposit to the date of order and pay Rs.1,000/- (Rupees One thousand only) as cost of the proceedings.

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

Pronounced in the open court on this the 6^th day of October  2012.

  Sd/-

Seena.H,

President

   Sd/-

Preetha.G.Nair,

Member

     Sd/-

Bhanumathi.A.K,

Member 

APPENDIX

Exhibits marked on the side of the complainant

Ext.A1–Original receipt No.0193539 dated 27/7/11 issued by 2nd opposite party

Ext.A2 -Original receipt No.0193540 dated 28/7/1issued by 2nd opposite party

Ext.A3–Original receipt No.0193544 dated 29/7/11issuedby 2nd opposite party

Ext.A4–Copy of the cash flow plan policy issued by 1st opposite party dt. 23/9/11

Ext.A6 series–Copy of lawyer notice dtd.16/1/12 with postal receipt and

                    acknowledgemnent card.

Ext.A7 – Reply sent by 1^st opposite party  dtd.28/2/12

Exhibits marked on the side of the opposite party

Ext.B1 – Photocopy of proposal form

Ext.B2 – Photocopy of Reliance Cash flow plan Brochure

Cost

Rs.1,000/- allowed as cost of proceedings