Tamil Nadu

South Chennai

CC/8/2016

K.Kalyani - Complainant(s)

Versus

The Chief Executive Officer, Bajaj Allianz Life Insurance Company Ltd.., - Opp.Party(s)

A.S.Balaji

09 Nov 2022

ORDER

                                 Date of Complaint Filed :11.12.2015

                                 Date of Reservation      : 17.10.2022

                                  Date of Order               : 09.11.2022

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT:    TMT. B. JIJAA, M.L.,                                                 : PRESIDENT

                        THIRU. T.R. SIVAKUMHAR, B.A., B.L.,                :  MEMBER  I 

                       THIRU. S. NANDAGOPALAN., B.Sc., MBA.,          : MEMBER II

 

CONSUMER COMPLAINT No. 08/2016

WEDNESDAY, THE 9^th DAY OF NOVEMBER 2022

Ms.K.Kalyani,

D/o. Late. R.Krishnan,

No.4-A, 1^st Floor, Mahalakshmi Apartment,

70, Kasturibai Nagar 3^rd Main Road,

Adayar, Chennai - 600 020.                                                                                                      …  Complainant

-Vs-

1.The Chief Executive Officer,

   Bajaj Allianz Life Insurance Company Ltd.,

   GE Plaza, Airport Road, Yerawada,

   Pune-411 006.

 

2.The Branch Manager,

   Bajaj Allianz Life Insurance Company Ltd,

   No. 11, Astalakshmi Apartment Ground Floor,

   MG Road,Thiruvanmiyur,

   Opposite to Adyar Ananda Bhavan,

   Chennai-600 041.                                                                                                                    ... Opposite Parties

******

Counsel for the Complainant             : M/s. A.S. Baalaji

Counsel for the Opposite Parties        : M/s. S. Namasivayam

 

        On perusal of records and having heard the oral arguments of the Opposite Parties, we delivered the following:

ORDER

Pronounced by the Member-I,Thiru. T.R. Sivakumhar, B.A., B.L.,

1.      The Complainant has filed this complaint as against the Opposite Parties under section 12 of the Consumer Protection Act, 1986 and prays to direct the Opposite Parties to pay a sum of Rs.29,777.04/- towards life insurance policy surrender which was deducted by the Opposite Party and to pay a sum of Rs.50,000/- towards mental agony and hardship suffered by the Complainant and to pay a sum of Rs.50,000/- towards defect in service.

2.     The averments of Complaint in brief are as follows:-

        The Complainant had taken life insurance policy via Online from the Opposite Party vide Policy No. 0169450695 on 17.05.2010 and the product name is Group Unit Gain Account; Fund Name: Group Asset Allocation Fund. The policy term period is for 7 years and the insurer has liberty to surrender the policy at the end of 5^thyear. She had paid insurance premium for a sum of Rs.4,000,00/-. Due to personal reasons she had surrendered her policy No. 0169450695 on 20.05.2015 which she took with the Opposite Party in the 2^nd Opposite Party's Branch, Chennai i.e., after the end of the 5^thyear from the date of taking the policy. A surrender Acknowledgement letter dated 20.05.2015 was issued by the 2^ndOpposite Party. Query No. 58668634 dated 20.05.2015 02:44 PM was allotted to her. While surrendering her life insurance policy, the total number of units accumulated was 25967.5073 and NAV was 20.0451 and the amount payable to her was mentioned as Rs.5,08,824.12 deducting penalty and Service Tax. Also, as per the life insurance terms and conditions it has been stated that Full withdrawls allowed after full 3 years premiums have been paid at bid value of the units. She had paid premium for 4 years continuously without any break. The Opposite Party clearly informed her that no penalty shall be levied, if the policy is surrendered after 5 years. But a sum of Rs.4,89,053/- was alone received by the Complainant on 27.05.2015 through HDFC bank via electronic funds transfer. Also, she had confirmed with the Opposite party several times before surrendering the policy and the terms and conditions and they said that no penalty will be levied if she surrenders her policy then. On 09.06.2015 and 12.06.2015, she made an online complaint to the Grievance Officer, Customer Care department of the Opposite Party and a reply dated 22.06.2015, was sent to her through email stating that as per the life insurance policy the surrendered units are 24977.84 and NAV is 20.03 as on 25.05.2015 and that after deducting penalty of Rs. 10,005.92, the total amount payable is Rs.4,89,053/- and that the payment made is in accordance with the approvals obtained from IRDA and is uniform for all customers of the company. The Grievance Officer, Customer Care department of the Opposite Party failed to note that she had surrendered the policy on 20.05.2015 at 02:44 PM and not on 25.05 2015 as stated by them. This was brought to the notice of the Grievance Officer, Customer Care department of the Opposite Party through email, but of no avail. She had lost about Rs.30,000/- in the above transaction as she is a pensioner and as such she cannot afford to lose Rs. 30,000/- which is a huge amount for her. She had sent a Legal Notice to the 1^st Opposite Party regarding the above issue on 10.07.2015 through RPAD for which she had received no reply from them as on date. The Opposite Party failed to comply with her above demand. There has been a deficiency of service by the opposite party since, they assured her that no penalty will be deducted if the policy is surrendered after 5 years. Though she had surrendered the policy on 20.05.2015, the Opposite Party in their reply via email had mentioned that she had surrendered the policy on 25.05.2015. The Complainant states that the mental agony undergone by her cannot be quantified. Hence, the complaint.

3.   Written Version filed by the Opposite Parties in brief are as follows:-

  The Insurance Policy will be issued on the basis of a duly signed proposal form submitted by the Complainant for the Bajaj Allianz Life Insurance Policy and we will issue him with a Policy document with Policy Number and date which would clearly reflect the Installment premium, the Term and frequency of premium and other salient features and conditions. The Policy is an Evidence of a Contract of the life assurance between Bajaj Allianz Life Insurance Company Limited and the Policy holder. The policy is based on the application and declaration which the Complainant made in the proposal form. It is compassionate to the claimants and claims are always honoured so long as they are not in breach of the elementary insurance principle of uberrimae fidei or utmost faith. At the time of surrender the Complainant  has agreed  to the terms and conditions  relating  to  surrender a    extracted    from     the    policy    000 document,   "The    account   value  

surrender value/maturity value on the basis on which your request shall be processed may be subject to revision at the time of final verification of request statement of account. The company reserves the right to make necessary correction in payout value to remove any inadvertent errors and prepare the same in accordance with policy terms. The payment of Surrender value/fund/account/maturity value partial withdrawal amount shall be sufficient discharge of Bajaj Allianz Life Insurance Company Ltd's liabilities. She has read the terms and conditions of the policy of insurance and fully understand the implications of my request for partial withdrawal/surrender as contained herein". It is further submitted that while processing the surrender value t it was observed that in the Account Statement of the Policy holder due to technical error under the head NET INVESTMENT there were multiple entries showing the Net Investment (12195.52) twice dated 15.6.2011 and 16.5.2011 which caused the generation of statement mentioning the amount of Rs.5,08,824.12 /- Thus after rectifying the same the surrender process was carried out and accordingly the surrender value amount of Rs.4,89,053/- was paid to the complainant in accordance with the terms and conditions of the policy. Having accepted the payment based on the agreed terms and conditions of the policy it is not open to the Complainant to seek unjust enrichment based on a technical error. There is no deficiency in service on the part of the Opposite Parties. Hence prayed to dismiss the complaint.

4.      The Complainant submitted her Proof Affidavit and Written Arguments. On the side of the Complainant, documents Ex.A-1 to Ex.A-8  were marked. The Opposite Parties submitted its Proof Affidavit and Written Arguments. On the side of the Opposite Parties, documents Ex.B-1 to Ex.B-2, were marked.

Points for Consideration:-

1. Whether there is deficiency in service on the part of the Opposite Party?

2. Whether the Complainant is entitled for reliefs claimed?

3. To what other reliefs the Complainant is entitled to?

Point No.1 :-

It is an undisputed fact that the Complainant had availed Unit Link Policy bearing No.0169450695 of the opposite Parties, which commenced on 17.05.2010. It is also not in dispute that the yearly premium of Rs.10,000/- was paid for 4 years for an insured sum of Rs.4,00,000/- and the said policy was surrendered at the end of 5^th year i.e., on 20.05.2015.

The dispute arose when the payment on surrender was taken on 25.05.2015 instead of 20.05.2015 and a sum of Rs.4,89,053.42p was paid as against the sum of Rs.5,20,521.28, as full withdrawal is allowed/permitted after full 3 years premium have been paid at bid value of the units. Hence the Complainant had suffered a loss of Rs.29,777.04p on surrender.

The Contentions of the Opposite Parties were that the Net investment of 12195.52 units was made twice on 15.06.2011 and on 16.05.2011 which caused the generation of statement mentioning the amount of Rs.5,08,824.12p, after rectifying the same the surrender value amount of Rs.4,89,053/- was paid to the Complainant. And having accepted the payment based on the policy terms and conditions the Complainant cannot claim for any further amount based on a technical error. Further the account value, surrender value, maturity value shall be processed may be subject to revision at the time of final verification of request/ statement of account, which was agreed by the Complainant.

On discussion made above and on perusal of records, from Ex.A-3 it is clear that the subject policy was surrendered and the request of surrender of Unit Link Policy of the Complainant was registered on 20.05.2015 at 2.44 pm and the Surrender Value Calculation based on the Net Asset Value (NAV) of the previous business day, i.e., on 19.05.2015 was taken into account and calculation was provided to the Complainant, wherein the total number of Units surrendered was 25967.5073 units at the NAV of Rs.20.0451, valuing a total sum of Rs.5,20,521.28. In the said calculation a sum of Rs.10,410.43 and a sum of Rs.1,286.73 were deducted on the head penalty and service tax, respectively. From Ex.A-4 Mail dated 09.06.2015 in page no.9, sent by the Complainant to the Opposite parties, wherein the short payment of Rs.4,89,053/- was credited to her account on 27.05.2015 as against the agreed sum of Rs.5,20,521.28p and the said payment made was not correct and was wrongly calculated, for which by reply mail dated 12.06.2015 the Opposite Party had sent a calculation to the Complainant, wherein it was explained that the NAV was taken on 25.05.2015 instead of 20.05.2015 and the Units were shown as 24977.84 instead of 25967.5073. Hence by rejoinder mail dated 12.06.2015 sent by the Complainant to the Opposite Parties, it is clear that the Complainant had explained and mentioned about the date, units and the amount agreed to be paid, and further that only on several confirmation made regarding the payment to be made on surrender, the value was freezed on 20.05.2015. From Ex.A-1 the renewal premium notice sent by the Opposite party to the Complainant, it is clearly mentioned that full withdrawal is allowed/permitted after full 3 years premium have been paid at bid value of the units, when that is so, the Opposite Parties are not entitled to deduct penalty as mentioned in Ex.A-3. Hence it is clear that though the opposite Parties had freezed the value of the units on 20.05.2015 itself as found in Ex.A-3, they have negligently calculated the NAV on 25.05.2015 and the and value of units as 24977.84 instead of 25967.5073 and as discussed above the Opposite Parties are not entitled to deduct penalty of Rs.10,410.43p as on 20.05.2015, thus the Opposite Parties had caused a loss of Rs.29,777.04p as claimed by the Complainant. The negligent act of the Opposite Parties clearly amounts to deficiency in service on their part and thereby had caused serious mental agony and monetary loss to the Complainant. Accordingly Point No.1 is answered.

Point Nos.2 &3:-

As discussed and decided Point No.1 against the Opposite Parties, the Opposite Parties are liable to pay a sum of Rs.29,777.04p being deducted on the Life Insurance Policy bearing No.0169450695 surrendered on 20.05.2015 by the complainant and also liable to pay a sum of Rs.25,000/- towards deficiency of service and mental agony caused to the Complainant, along with costs of Rs.3000/-. And the Complainant is not entitled for any other relief/s. Accordingly, Point Nos. 2 and 3 are answered.

In the result the Complaint is allowed in part. The opposite parties 1 and 2 are jointly and severally directed to pay a sum of Rs.29,777.04p (Rupees Twenty Nine Thousand Seven Hundred Seventy Seven and four paise Only) being deducted on the Life Insurance Policy bearing No.0169450695 surrendered on 20.05.2015 by the complainant and also to pay a sum of Rs.25,000/- (Rupees Twenty Five Thousand Only) towards deficiency of service and mental agony caused to the Complainant, along with costs of Rs.3000/- (Rupees Three Thousand Only), to the Complainant, within 8 weeks from the date of receipt of this order, failing which the above amounts shall carry interest at the rate of 9% p.a from the date of receipt of this order till the date of realisation.

In the result the Complaint is allowed.

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 9^thof November 2022. 

 

 

S. NANDAGOPALAN                             T.R. SIVAKUMHAR                                   B.JIJAA

         MEMBER II                                            MEMBER I                                     PRESIDENT

 

 

List of documents filed on the side of the Complainant:-

 

Ex.A1	21.05.2011	Renewal Premium Notice
Ex.A2	07.06.2011	Policy Premium Paymnt Receipt
Ex.A3	20.05.2015	Copy of Policy surrender acknowledgement receipt issued by Opposite Party
Ex.A4	09.06.2015 to 18.06.2015	Copy of Online Complaints sent to Opposite Party
Ex.A5	22.06.2015	Reply email sent by Opposite Party
Ex.A6	10.07.2015	Legal Notice sent to 1st Opposite Party
Ex.A7	16.11.2015	Legal Notice sent to 2nd Opposite Party
Ex.A8	25.11.2015	Acknowledgement card receipt

 

List of documents filed on the side of the Opposite Party:-

 

Ex.B1	18.05.2015	Surrender partial withdrawl form
Ex.B2	08.06.2011	Statement of Accounts

 

 

 

S. NANDAGOPALAN                            T.R. SIVAKUMHAR                                B.JIJAA

         MEMBER II                                             MEMBER I                                  PRESIDENT