DISTRICT CONSUMER DISPUTES REDRESSAL FORUM PALAKKAD

Dated this the 27^th  day of February 2013

Present : Smt.Seena H, President

            : Smt. Preetha.G. Nair, Member

            : Smt. Bhanumathi.A.K, Member           Date of filing: 09/10/2012

(C.C.No.187/2012)

Subramanian,

S/o.Viswanatha Iyer,

Plot No.5, Sanskruthi Sabari,

Lay Out, P.N.Pudur,

Coimbatore – 641 041

Tamilnadu                                                     -       Complainant

(By.R.Gangadharan)

V/s

1.The Chief Operating Officer,

   Kotak Mahindra Old Mutual

   Life Insurance Ltd.

   Central Processing Centre,

   Godrej Coliseum,

   8^th Floor, Lokmanya Pan Bazar,

   Behind Everard Nagar,

   Sion Trombay Road,

   Sion East, Mumbai – 400 022

(By Adv.R.Baluraj) 

2.The Manager /Authorized Officer,

   Kotak Life Insurance Co.Ltd.

   Malabar Fort, 2^nd Floor,

   G.B.Road, Palakkad.

(By Adv.R.Baluraj)                                         -        Opposite party

O R D E R

By Smt.BHANUMATHI.A.K. MEMBER

Complaint in brief:

The complainant has taken a life insurance policy named Kotak Smart Advantage Policy No.01561226 client ID 52678652 on 31/3/2009 and life assured to Ms.Dhwani Dinesh from the opposite parties. The premium amount is Rs.95,000/-. The complainant paid two premiums in total. On 9/6/2010 the opposite parties issued a statement of accounts showing that the above said insurance is assigned to Ms.Pooja Ajaybhai Desai without the consent of the complainant. The complainant has not permitted  or directed opposite parties to assign the insurance policy to any person. Aggrieved by this the complainant has complained before the customer care several times directly and through    e-mail. The explanation given by the opposite parties was not satisfactory. Besides the primary application itself shows that the signature of the complainant is concocted one. All these made the complainant apprehends that the above said act of the opposite parties is a clear foul play and it will cause damages and hardship to the complainant apart from the monetary loss. The complainant  believes that it is not safe to continue the above said policy for longer. The complainant demanded  the opposite parties to discontinue the above said policy and  return the premium amount with interest and compensation for mental agony. But the opposite parties have not properly replied or solved the grievance. So the complainant sent a lawyer notice dated 23/7/12 stating these facts. But they have not sent any reply.

So the complainant prays an order directing the opposite parties to return the premium amount of Rs.1,90,000/- paid by the complainant with interest @18% from the date of remittance and to pay Rs.2,00,000/- as compensation for mental agony and cost of the proceedings.

Opposite parties entered appearance and filed version with the following contentions.

      The complainant had submitted a proposal forum on 30/3/09 and a policy No.01561226 was issued. As per the policy the sum assured was Rs.5,00,000/- and installment premium is Rs.95,000/-. When the issue regarding  assignment was raised before IRDA, the opposite parties have sent a letter dated 29/8/11 stating that the policy has never been assigned. The owner of the policy is the complainant  and the life assured is Ms.Dhwani Dinesh.  In the subsequent statements of account there is no mention about any assignment. It is denies that the proposal forum is not signed by the complainant. There is a provision of ‘Free look cancellation in column No.17 of the policy as well as in the welcome letter dated 31/3/09. Under the said provision the complainant could have got the policy cancelled within 15 days from the date of receipt of the same. Having failed to do so, he cannot discontinue the policy.

There is no deficiency of service on the part of opposite parties and complaint is liable to be dismissed.

Both parties filed their respective affidavits. Ext.A1 to A7 and B1 to B3 marked.

Heard the complainant.

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

The complainant has taken a life insurance policy named   Kotak Smart Advantage Policy No.01561226 client ID 52678652 on 31/3/09 and life assured to Ms.Dhwani Dinesh. Ext.A1 shows the same. The complainant paid two premiums of Rs.95,000/- each. In total the complainant paid Rs.1,90,000/- to the opposite party. On 9/6/10 the opposite party issued a statement of account showing that the above said insurance policy is assigned to Ms.Pooja Ajaybhai Desai. It is evident from the Ext.A2 document. The complainant has not directed the opposite parties to assign the insurance policy to any person. The above act of  opposite parties caused the complainant to lose confidence in the establishment and the complainant decided to discontinue the said policy. The complainant sent several e-mails to the opposite party asking to pay back the amount he had paid as two premiums. Ext.A5 to A7  are the e-mails sent by the complainant to IRDA. Ext.B3 is the e-mail issued by 1^st opposite party, client service desk to the complainant. In Ext.B3 document it is stated as “please ignore the statement of account dated 9/6/10 as there was some technical aberration  which caused certain problems”. So that it is clear that the opposite parties have committed  some mistake in the Ext.A2 document. In Ext.A2 document, statement of accounts, Assign name is Pooja Ajaybhai Desai. The complainant has not permitted to assign the insurance policy to the said Pooja Ajaybhai Desai. This act of opposite parties is a sufficient reason for the complainant to lose faith in the opposite party’s establishment. So the opposite party is bound to return the amount.

As per clause 7 of IRDA Regulations 2010 The table annexed maximum discontinuance charges for the policies having annual premium above Rs.25,000/- is Rs.5,000/-. The complainant has paid two premium of Rs.95,000/- each. That comes out of Rs.1,90,000/- So that the opposite party is liable to pay an amount of Rs.1,85,000/- to the complainant.

In the result complaint allowed. Opposite parties are jointly and severally directed to pay an amount of Rs.1,85,000/- along with Rs.5,000/- as compensation for mental agony and Rs.1,000/- 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 27^th  day of February 2013.

  Sd/-

Seena H

President

   Sd/-

Preetha G Nair

Member

    Sd/-

Bhanumathi.A.K.

Member

A P P E N D I X

Exhibits marked on the side of complainant

Ext.A1-  Photocopy of  Kotak Life Insurance Policy  No.01561226

Ext.A2-  Photocopy of statement of accounts  issued by opposite parties

Ext.A3 series  -  Copies of lawyer notices  alongwith postal receipts and

acknowledgement cards.

Ext.A4 – Copy of e-mail sent to opposite  party

Ext.A5  - Copy of e-mail complaint to IRDA dtd.9/7/11

Ext.A6 – Copy of e-mail complaint to IRDA dtd.14/7/11

Ext.A7 – Copy of e-mail complaint to IRDA dtd.3/9/11

Exhibits marked on the side of opposite parties

Ext.B1 – Photocopy of proposal form  issued by opposite party

Ext.B2 – Photocopy of letter addressed to the complainant by opposite party

Ext.B3 – Copy of letter addressed to the complainant by Client Service Desk of opposite party dated 16/3/11

Cost allowed

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