CONSUMER DISPUTES REDRESSAL FORUM,PALAKKAD

Dated this the 16^th May, 2015

PRESENT :  SMT. SHINY.P.R, PRESIDENT

               :  SMT. SUMA. K.P, MEMBER                     Date  of filing : 26/02/2014

CC /30/2014

1. Sumera Jasmine,

    D/o.P.M.Saidalavi,

    Pathiyarakalam, Kinavallur Post,

    Palakkad.678 612                                                :        Complainants

2. Mehabooba Syed,

    W/o.P.M.Saidalavi

    Pathiyarakalam, Kinavallur Post,

    Palakkad.678 612                                        

    (Complainants represented by authorized person)

  Vs

Divisional Manager,                                                   :        Opposite party

The Bajaj Allianz Life Insurance Co. Ltd,

Surmi Plaza, East Fort Road, Palakkad.   

(By Adv.Sachindas.P)

O R D E R

By Smt. Suma. K.P, Member,

The case of the complainant(s)  is that they were the  individual subscribers of the insurance policy of The Bajaj Allianze Life Insurance Co.Ltd., Palakkad.  On 28/12/2012, the Branch Officer made them believe without loss, they can subscribe to a new insurance policy with good prospects after closing the 2 existing insurance policy in the name of complainants 1 and 2.  The details of the closed/surrendered Insurance policies of the complainant on 28/12/2012 are as follows.

1. The Bajaj Allianz Capital UnitGain Insurance policy bearing No:0040720375-B1 (RS 1) was in the name of Ms.Sumera Jasmine.
2. The Bajaj Allianz Capital UnitGain Insurance policy bearing No:0032958305-B3 (RM 1) was in the name of Ms.Mehbhooba Syed.

Due to the premature closing of the insurance policies the complainant incurred a loss to the tune of Rs.26,354/-.  The complainant has subscribed on 28/12/2012 to a Bajaj Allianz Invest Gain Economy Insurance Policy by paying an amount of Rs. 1,00,285/- to the cash counter of  opposite party.  The complainant states that they had noticed the deduction of amount in the cheques issued by opposite party only after the surrender of the insurance policy. When they contacted the Branch Manager, he assured that their loss shall be made good at any cost.  Complainant preferred to wait for 4 months but the loss was not made good.  Complainant narrates that they had sent letters to the Divisional Manager of opposite party at Palakkad and Chief Grievance Officer of opposite party.  On 22/12/2013 the complainant filed a complaint before the Insurance Ombudsman.  The complainant approached the opposite party to pay the 2^nd installment of the premium of Rs.97,279/- after deducting the loss.  She was adviced by the staff to send a cheque to the head office of the opposite party for the said amount.   The complainant states that the cheque was returned without stating any reasons.  She had also received a threatening letter from the opposite party stating that their insurance policy was lapsed and insurance benefit are no longer available and if the complainant wishes to revive the insurance policy she need to submit a medical fitness certificate.  The prayer of the complainant is to direct the opposite party to accept the premium after deducting the loss of Rs.26,354/-, inspite of the complainant assurance to make payment after the decision of insurance ombudsman in the matter, and also to grant a compensation to the tune of Rs.10,000/- along with loss incurred of Rs.26,354/- .

The notice was served to the opposite party for appearance.  Opposite party entered appearance through counsel and filed version contending the following.  Complainants have filed the present complaint only with malafide intention to harass the opposite party and to exert pressure and withheld material information of facts.  The complaint is not bonafide, legal, proper and therefore it deserves to be dismissed.  The complainant is not coming with clean hands and has failed to disclose all the correct facts.  It is also bad for non-joinder of necessary parties as allegations are made against a person who are neither a party nor named in the complaint.  The complaint is bad in law as there is no deficiency in service or unfair trade practice being committed by the opposite party and it is not maintainable.  All the allegations and statements made in the complaint are contrary to the terms and conditions of the policy document and hence do not deserve any advantage from his own mistakes.    It is submitted that the complainants had applied for the surrender of the said policies which was duly registered and a letter to that effect showing the amount payable along with amount deducted towards charges and Fund Value as on the date of surrender.  Accordingly, the surrender request was processed only on the basis duly signed and witnessed policy request form along with original policy bond and self attested KYC documents received from the complainant.   When the complainants came with the request for premature closing on 28/12/2012 the officials of opposite party strongly discouraged the premature closing of the aforesaid insurance policies because of the penalty involved for premature closing as per the terms of insurance contract policy which was duly agreed by the concerned parties.  Accordingly in the 2 aforesaid insurance policies cheques were issued to the respective customers and they have encashed through their respective bank accounts.  On the very same day  complainant had submitted a duly filled and signed proposal form  for a Invest gain- ECONOMY Policy along with KYC documents and proposal deposit of Rs.1,00,284/- and 92 paise and insurance policy of the scheme was issued to the complainant.  In the event of any discreptancy and disagreement with any of the policy terms, complainant was provided with an option to opt for the cancellation of the policy within 15 days of receipt of policy document which she has failed to exercise and signifies that the complainant was fully satisfied by the issuance of the policy.  The policy was due for payment as per the terms and agreement on 28/12/2012 and the premium amount was Rs.99,187/-.  The complainant had issued a cheque drawn on Punjab National Bank for an amount of Rs.72,250/- which was short of Rs.26,937/- than the stipulated amount.  The opposite party could not accept the cheque under any circumstances since as per Section 64 of the Insurance Act and the cardinal rule of insurance coverage is that only on payment of exact amount of premium the insurance policy become operational at exact date.  Hence the cheque was returned to the complainant.  The Opposite party has also issued a lapse information letter to the complainant dtd.11/02/2014 because of the non payment premium and inorder to revive a lapsed insurance policy the policy holder is required to submit a good health declaration.  This intimation letter was issued only as a information which has been highlighted as a threatening letter by the complainant.  The complainant has stated several false frivolous and vexatious reasons for the non payment of the premium in time which is opposed to truth.   It is further submitted that the complainant was availing various insurance policies from the company and is well aware of insurance policies and its features.  The aim of the complainant in raising non legally sustainable allegations is only on experimental basis and the entire act of the complainant regarding the premature closure and non payment of premium is with ulterior motives. It was also submitted that opposite party has not failed to provide any type of legally responsible customer service to the complainant at any point of time,  hence the prayer for compensation has to be dismissed.

Both parties filed chief affidavits as well as documents. Complainant filed application to order opposite party to renew the premium by accepting the policy amount. IA was allowed vide separate order.  Opposite party filed application to cross examine the complainant.  Ext.A1-A21 was marked from the part of the complainant. Ext.B1-B15 was marked from the side of the opposite party.

Heard both parties.

The following issues are to be considered.

1.  Whether the complaint is maintainable?

2. Whether there is any deficiency of service on the part of the opposite party?
3. Reliefs and cost? 

 ISSUE No. 1

We had verified the documents produced before the Forum.  It is obvious from Ext.A17 and Ext.B5 that the Bajaj Alliance Investgain ECONOMY insurance policy is a unit linked policy and is a speculative investment.  The law is well settled that such policies are speculative in nature and the same are taken for investment purpose and as such the policy holder of such policies are not consumers and the disputes relating to such policies are not sustainable before the consumer Forum. Our National Commission in Ram Lal  Aggarwalla Vs Bajaj Allianz Life Insurance Co.Ltd in (2013(2)CPR 389 (NC) has held that the policy being an unit linked policy and is dependent on the market volatility and value may go up or may come down depending upon the market condition.  The investment made by the complainant was to gain profit.  Hence it was invested for commercial purposes and therefore complainant is not a consumer under the opposite parties.  The money invested the sharemarket is no doubt a speculative game and the speculative investment and the matter does not come under consumer protection act.  On this score the  complaint is liable to be dismissed. 

In view of the aforesaid discussions and findings of our Apex Courts we are of the opinion that the present complaint is not maintainable under the consumer protection Act 1986 and as such it is dismissed being devoid of merits.  Issue No.1 is answered accordingly.  Hence other issues need not be considered. 

Pronounced in the open court on this the 16^th  day of May 2015.

                                                                   Smt. Shiny.P.R

                                                                     President

                                                                                                                                                                                       Smt. Suma. K.P

                                                                       Member

                                                A P P E N D I X

Exhibits marked on the side of complainant

Ext.A1- Surrender details of policy number-0040720375 of Sumera Jasmine dtd.28/12/2012

Ext.A2- Surrender details of policy number-0032958305 of Mehabooba syed dtd.28/12/2012

Ext.A3 – New Policy No.0290357963 of Sumera Jasmine dtd.28/12/2012

Ext.A4 -Additional amount received of Mehabooba dtd.25/11/2013.

Ext.A5 – Letter send by Sumera Jasmine dtd.22/10/2013. To Divisional Mananger, BALIC.

Ext.A6- Letter send by BALIC to Sumera Jasmine dtd.22/10/2013.

Ext.A7- Letter send by BALIC to Sumera Jasmine dtd.29/10/2013

Ext.A8- Letter send by Sumera Jasmine dtd.15/11/2013 to Chief Grievance Officer, BALIC.

Ext.A9 -Letter send by Sumera Jasmine dtd.22/12/2013  to Ombudsman, Ernakulam.

Ext.A10-Letter send by Sumera Jasmine dtd.7/1/2014  to  BALIC, Pune.

Ext.A11- Letter send by BALIC, Pune. dtd.25/1/2013  to  Sumera Jasmine.

Ext.A12- Letter send by Sumera Jasmine dtd.2/2/2014  to  Div.Manager,BALIC, Palakkad.

Ext.A13- Letter send by BALIC dtd.12/2/2014  to  Sumera Jasmine.

Ext.A14- Letter send by BALIC, Palakkad dtd.11/2/2014  to  Sumera Jasmine

Ext.A15-1^st  Premium receipt dtd.29/01/2013

Ext.A16-Policy document

Ext.A-17-Policy Details No.0202031696

Ext.A18-Attested  copy of PNB Pass book

Ext.A19-Counter foil of cheque book

Ext.A20-Authorization letter

Ext.A21-Request letter  for IT Certificate

Exhibits marked on the side of opposite party

Ext.B1- Terms and Conditions of Bajaj Allianz Capital UnitGain Insurance policy bearing No:0040720375

Ext.B2- Surrender/withdrawal request form of Mrs.Sumera Jasmine can be identified dtd. 28/12/2012

Ext.B3- Terms and Conditions of Bajaj Allianz Capital UnitGain Insurance policy bearing No:0032958305

Ext.B4- Surrender/withdrawal request form of Mrs.Mahabooba can be identified dtd. 28/12/2012

Ext.B5- Terms and Conditions of Bajaj Allianz InvestGain Economy Insurance policy bearing No:0290357963

Ext.B6- Letter to Ms.Sumera Jasmine, due to her non responsive telephone dtd.29/10/2013

Ext.B7-Letter dtd.12/02/2014 complaint  regarding policy number:0290357963(02-14-022067)

Ext.B8 – Insurance Act of 1938 Section 64 VB

Ext.B9- Lapse Intimation letter by BALIC dtd. 11/02/2014

Ext.B10- Bajaj Allianz Shield Plus (SP) Insurance policy bearing No.0161028971

Ext.B11- Bajaj Allianz Shield Plus (SP) Insurance policy bearing No.0162834336

Ext.B12-Statutory Revival Quotation by BALIC dtd.26/06/2014

Ext.B13- Photocopy of PNB cheque bearing No.589887 of issued by Mr.Saidalavi to prove that 2^nd installment of the premium is for Rs.1,02,385/- dtd.28/07/2014

Ext.B14- Mr.Saidhalavi’s PAN Card (ARTPP1467G) copy bearing his signature

Ext.B15- Letter stating Mr.Saidalavi’s willingness to pay the insurance premium for an on her behalf of the complainant Sumera Jasmine dtd.28/12/2012

Witness marked on the side of complainant

Nil     

Witness examined on the side of opposite party

Nil

Cost Allowed

No cost allowed.