CONSUMER DISPUTES REDRESSAL FORUM    PALAKKAD

Dated this the 30^th day of April  2014

PRESENT :  SMT. SEENA. H, PRESIDENT

               :  SMT.  SHINY. P.R, MEMBER

               :  SMT. SUMA. K.P, MEMBER                                  Date  of filing : 10/10/2013

                                                            CC /  169 / 2013

Chandran. V,

S/o. Late Velayudhan. K,

Kenath Paramba,

Kunnathurmedu,

Palakkad  - 678 013                                                                :           Complainant

(By Adv. T.G. Suresh)

Vs

1. The Director,

     SBI Life Insurance Company Ltd.,

     (Head-Client Relationship),

     Kapas Bhavan, Plot No.3A,

     Sector No. 10, CBD Belapur,

     Navi Mumbai – 400 614.

2.  The Regional Director,

     SBI Life Insurance Company Ltd.,

     Regional Office, South – 3,

     No.24, Sri Sai Ram Tower,

    2^nd Floor, 5^th Main,

    K.P. Puttanachetty Road,

    Chamrajpet,

    Banglore – 560 018.

3.  The Senior Executive-operations,

      Head Processing Centre,

      SBI Life Insurance Company Ltd.,

      T.C. 9/1094-1, 3^rd Floor,

      Sastha Building,

      Sasthamangalam,

      Trivandrum – 695 010.

4.  Prakash. C.P,

      Business Development Manager,

      SBI Life Insurance Company Ltd.,

      State Bank of India, Local Head Office,

      S.S. Kovil Road, Thampanoor,

      Thiruvanathapuram – 695 001.                                        :           Opposite parties

      (By Adv. P. Prasad)

                                                            O R D E R

BY Smt. SUMA. K.P, MEMBER

Brief case of the complainant :-

The complainant herein is an Ex-serviceman having served in the army for nearly 30 years.  The representative of the 4^th opposite party the business development manager of SBI Life Insurance approached the complainant and promised him that if some amount is deposited with SBI Life Insurance policy it will be doubled on completion of 5 year period.  The complainant accordingly deposited Rs. 1,01,000/- with SBI Life Insurance Scheme.  The complainant was waiting for maturity of the deposit.  As per the instruction given by the 4^th respondent, on maturity, intimation will be received from the Head Office well in advance.  Only on receipt of intimation regarding maturity of the policy from the Head Office the complainant was supposed to approach for the maturity amount.  The complainant waited till 25/9/2012 for receipt of intimation.  But the same was not received.  Hence the complainant applied for withdrawal of maturity amount on 27/9/2012.  On receipt of request of withdrawal amount the Head Processing Centre, Trivandrum had intimated the complainant that they are unable to refund the entire amount as the complainant was late in applying for refund.  Again the complainant approached the Head Office, Mumbai.  They replied that they had despatched the maturity intimation letter along with option sheet on 21/7/2012 through EMS Speed Post. But the complainant submits that he had never received the said EMS speed post.  Complainant states that two days delay in filing the petition for the withdrawal of maturity amount  is not due to the negligence from his part.  Hence he filed complaint seeking an order directing the opposite parties to pay a sum of    Rs. 2,00, 000/-  to the complainant as maturity amount of SBI Life Insurance policy with     18 % from 24/9/2012 onwards and also to pay compensation of Rs. 2,00,000/- for the mental agony due to the loss sustained by him since he could not complete the construction of his house and solemnization of  marriage of his daughter.

            Notice was issued to opposite parties for appearance.  Opposite parties entered appearance and filed version denying all the  allegations in the complaint.  Complaint is not maintainable in law and is filed without any bonafides.  The complainant had applied for Unit Plus Two  Pension plan policy and the opposite parties issued the policy as per his request.  It is clear from the policy documents that it is Unit Link Product and the investment risk is borne by the policy holder.  The complainant after accepting the policy with terms and condition had also not opted for the cancellation of policy within free look period of 15 days.  The benefit payable at maturity is also specifically stated in the policy.  The policy is a pension policy and at maturity the complainant can compute upto 33 % of the maturity amount and can opt for any of the annuities for the balance 67% of maturity amount.  The fund value under the policy as on the date of maturity was Rs. 1,05,950.24. Opposite parties  had also sent intimation and the complainant sent reply stating that policy address was the address of the complainant’s  wife’s birth home and she was settled at Bangalore.  Hence he could not receive the communication sent to the policy address at Palakkad.  The opposite party states that as per regulatory guideline of IRDA as per policy terms and conditions full withdrawal of pension amount is not possible at maturity.  He can withdraw a maximum of 33% and balance 67% can be used for purchasing any one of the annuities as available on the maturity date.  Opposite parties cannot act in violation of the terms and conditions of the policy.  In the above circumstances the complainant is not entitled to get any relief and hence the complaint has to be dismissed.

The points that arises for consideration are ;

1.  Whether there is any deficiency of service?
2. If so, what is the relief and cost?

The evidence consists of chief affidavit of both parties.  Complainant was cross examined as PW1 by the opposite party counsel.  4^th opposite party  was cross examined as DW1 by the complainant.  Ext.A1 to Ext.A6 was marked from the side of complainant and Ext.B1 to Ext.B7 Series marked on the side of opposite parties.  Heard both parties.

               The complainant submits that the retirement benefit he received is the only saving in his life and he had planned to construct a house and get his daughter’s marriage with that money.  The 4^th opposite party approached the complainant and convinced him that if some amount is deposited in SBI Life Insurance policy it will be doubled on completion of 5 years.  Accordingly he handed over Rs.1,01,000/- and he had signed the premium vouchers on 4/9/2007. The maturity date was intimated as 24/9/2012.  Complainant was not an educated person to read and understand the policy details before signing the policy papers and was not aware that on completion of vesting date complainant have to commute upto 33% and remaining 67 % will merge with the pension scheme.  He was eagerly waiting for the maturity date to withdraw the full amount to conduct the marriage of his daughter.  When the complainant approached the SBI Life Insurance office at Palakkad he was told that he could apply only after getting the intimation letter from the Head Office.  Complainant waited for the letter till 25/9/2012.  Since he has not received the intimation he could apply for the withdrawal only on 27/9/2012.  This was not wilfull negligence from the part of the complainant.  The opposite party had denied the right of withdrawal of maturity amount due to this delay.  The opposite party refused all his application and requests without any leniency.  We perused all the relevant documents produced before the Forum.  Ext.B2 is the policy issued to the complainant by the opposite party.  Ext.B6 series reveals that the complainant had sent several requests to the opposite parties to waive the terms and conditions as a special case and wants the entire matured value.  The opposite party had stated that they had sent an intimation to the complainant regarding the maturity of the policy.  But no acknowledgement nor postal receipt of the issuance of the said letter is produced by the opposite party before the Forum.  The complainant had also stated that the letter mentioned dated 12/6/2012, intimating maturity date is not received by him.  Opposite party failed to prove the statement that intimation was sent to the complainant on 12/6/2012.  There are yet another method by which opposite party ought to have intimated the matter to the complainant regarding the maturity.  Opposite party had not produced any evidence to show that the matter was communicated to the complainant.  If the complainant had received the said communication he would have withdrawn the maturity amount  before the vesting date itself.  Non receipt of the letter is not a default on his part.  The complainant being a layman is not supposed to understand terms and conditions of the policy in its strict sense .The delay of 2 days in applying for the withdrawal of maturity amount cannot be construed as violation of terms and condition of the policy.  The right of withdrawal cannot be denied to the complainant , sticking upon technicalities.  The application for withdrawal shall not be denied merely because of 2 days delay.  Moreover the opposite parties had not produced any evidence to the effect that the intimation was served upon to the complainant before maturity.  This amounts to deficiency of service on their part.  Point No.1 is answered accordingly.

           In the light of the above discussion, we are of the view that complainant is entitled to withdraw the entire maturity amount.  Hence the complaint is allowed and we direct the opposite parties to pay the maturity value as on the vesting date to the complainant with 9% interest from the date of complaint till date of order.  We also direct the opposite parties to pay an amount of Rs. 5,000/- as compensation for the mental agony suffered by the complainant along with cost of Rs. 1,000/-.

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

Pronounced in the open court on this the 30^th day of April 2014

                                                                                                            Sd/-

                                                                                 Smt. Seena. H

                                                        President

                                                                                        Sd/-

                                                         Smt. Shiny. P.R

                                                        Member

                                                                                      Sd/-

                                                        Smt. Suma. K.P

                                                         Member

                                                            A P P E N D I X

Exhibits marked on the side of complainant

Ext.A1 - First Premium Receipt (copy) issued by the 1^st opposite party in the name of complainant dated  24/9/2007.

Ext.A2  -  Letter (copy) sent by the 3^rd opposite party to the complainant dated 3/10/2012.

Ext.A3  -  Letter (copy) sent by the complainant to the 1^st opposite party.

Ext.A4  -  Letter (copy) sent by the complainant to the 2^nd opposite party dated 27/11/2012.

Ext.A5  -  Letter (copy) issued by the 1^st opposite party to the complainant dated 22/2/2013.

Ext.A6  -  Letter (copy) sent by the 1^st opposite party to the complainant dated 26/2/2013.

Exhibits marked on the side of opposite parties

Ext.B1  -  Proposal form (copy) issued by the 1^st opposite party to the complainant

Ext.B2  -  policy document (copy)

Ext.B3  -  Letter (copy) sent by the 1^st opposite party to the complainant dated 12/6/2012.

Ext.B4 - Transaction Cum Unit Statement (copy) issued by the 1^st opposite party dated 28/10/2013.

Ext.B5  -  Annuity Option Sheet (copy)

Ext.B6 Series -  Copies of Letters sent by the complainant to the opposite parties.

Ext.B7 Series -  Copies of the Reply Letters.

Witness examined on the side of complainant

PW1     -  Chandran. V (complainant)

Witness examined on the side of opposite parties

DW1    -  Prakash. C.P (4^th opposite party)

Cost allowed

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