Tamil Nadu

North Chennai

228/2012

G.Velayutham, - Complainant(s)

Versus

The Manager, Bharathi Axa Life Insurance Co., Ltd, - Opp.Party(s)

M.Elangovan

15 Jun 2015

ORDER

                                                               Complaint presented on:  28.09.2012

                                                                Order pronounced on:  15.06.2015

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

    2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

 

PRESENT: THIRU.K.JAYABALAN, B.Sc., B.L.,         :      PRESIDENT

                    TMT.T.KALAIYARASI, B.A.B.L.,                   :       MEMBER II

 

MONDAY THE 15^th  DAY OF JUNE 2015

 

C.C.NO.228/2012

 

 

 

G.Velayutham,

S/O. govindaraj,

No.10/12, 2^nd Street,

Sri Kattuponniamman Nagar,

Thiruvottiyur,

Chennai – 19.

                                                                                            ..... Complainant

 

..Vs..

	1.The manager, Bharati Axa Life Insurance Co,Ltd., Old No.41, New No.116, 2nd Floor, Nelson Manickam Road, Aminjikarai, Chennai – 600 029.   2.The Manager, Bharati Axa Life Insurance Company Ltd., Red.No.130,Unit 601 7 602, Western Express Highway, Geregaon (East), Mumbai – 400 063.
	.....Opposite Parties

Date of complaint                                           : 01.10.2012

Counsel for Complainant                                 :M/S M.Elangovan

Counsel for 1^st & 2nd Opposite party                 :Mrs.Eleveera Ravindran

 

O R D E R

 

BY PRESIDENT THIRU. K.JAYABALAN B.SC., B.L.,

          This complaint is filed by the complainant u/s 12 of the Consumer Protection Act.1986.

THE COMPLAINT IN BRIEF:

 

          1. The complainant applied to the 1^st opposite party obtained policy No. 500-2861820 for the premium of Rs.50,000/- payable  annually for a period of 10 years and the assured amount was RS. 2,50,000 and the date of the 1^st policy was issued on 11.02.2009 and the period of the policy is 11.02.2009 to 11.02.2019 . The complainant paid the 2^nd premium of Rs.50,000/- on 11.02.2010 through online payment. However on 13.03.2010 the 1^st Opposite Party intimated the complainant that due to nonpayment of premium his Insurance Policy lapsed immediately, the complainant contacted the 1^st opposite party person and showed the proof of payment. Even then the 1^st opposite party customer care called on several times and the 1^st opposite party also sent a letter dated 16.01.2011 that the complainant has to pay the 2^nd premium. Hence, vexed with the attitude of the 1^st opposite party he sent a letter dated 24.09.2011 to the 1^st opposite party asking them to cancel the policy and refund the premium paid by him. The opposite parties without doing so sent a Fund transaction for the period between 01.01.2009 and 10.05.2012 that the total account value is Rs.40114.82. The 1^st opposite party did not to give any reply about the payment of the 2^nd premium then the 1^st opposite party received all the documents from the complainant and after verification and premium certificate for the period 01.01.2009, 11.05.2012 showing the total premium received is Rs.1,00,000/- including the 2^nd premium. Further, the 1^st opposite party asked the complainant to continue the scheme and pay the premium for the year 2011 and 2012 then the complainant approached the State Consumer Chennai for the grievances. However, the problem was not resolved. The premium was not refunded to the complainant as requested by him. Hence the complainant sent a legal notice and the 1^st opposite party gave incorrect reply. Hence the complainant filed this complaint praying to cancel and surrender this policy and also refund the total premium amount of Rs.1,00,000/- paid by him along with 18% interest from the date of deficiency caused  by the 1^st opposite party and also pay compensation for deficiency in service and mental agony caused to the complainant apart from the cost of litigation expenses.

 

2.WRITTEN VERSION OF THE OPPOSITE PARTIES 1 AND 2 IN BRIEF:

 

          The opposite party admits that the complainant applied for Insurance Policy for a period of 5 years with a Annual Premium of Rs.50,000/- and the policy commenced on 11.02.2009 After receipt of the policy documents within 15 days     i.e. within the free look period the complainant can cancel the policy if he wants and after that he cannot cancel the same as per the terms and conditions of the policy. The opposite parties  submit that vide their letter dt 19.02.2010 they had clearly intimated to the complainant that the standing instruction through credit card for the premium of Rs.50,000/- which the complainant had claimed to have paid towards the second annual premium had been dishonored by his bank the reason being ‘declined’. The complainant was requested to immediately pay the renewal premium of Rs.50,000/-  at any nearest branches of the opposite parties by way of cash/pay order demand draft in order to keep the policy in force and retain the policy and also to take steps with regard to the credit card. The opposite parties submit that vide their letter dt 13.03.2010 they had informed the complainant that his policy was lapsed owing to nonpayment of annual premium of Rs.50,000/- which he had to pay on or before 11.02.10. if any premium due  within the first 3 years policy years remain unpaid even after the grace period of 30 days from the date of unpaid premium, the benefits under the policy will cease to exist from the date of such unpaid premium (also termed as ‘lapse Date) and the policy will lapse. However the policy fund will continue to participate in the performance of the investment funds till the period allowed for the reinstatement of the policy and the investment risk in the investment portfolio shall be borne by the insured during the period. The opposite parties admits that the complainant is aware of the benefits payable under the policy. There is no merit in the complainant filed by the complaint and prays to the dismiss this complaint.

3.POINTS FOR CONSIDERATION:   

 

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

               Parties?

          2. To what relief the Complainant is entitled in this complaint?

 

4.POINT:1

          The admitted facts are that the complainant has applied a policy with the 1^st opposite party on payment of Rs.50,000/- Annual by for a period of 10 years and the policy No.500-28618020 was allotted to him and the sum assured was Rs.2,50,000/ - and the  policy was issued  and it will  come  to force on 11.02.2009 ending on 11.02.2019 and Ex A1 is proof of the payment of the 1^st premium and Ex B2  the proposal form along with annexure and under Ex.B1  is the letter including policy specification. The 2^nd premium was due for a payment on 11.02.2010.

 

          5.According to the complainant he paid the 2^nd premium sum of Rs.50,000/- on 11.02.2010 through on line payment which was evidenced under ExA3 transactions acknowledgement and further proof to show that  Ex.A4 is credit card statement for the proof payment of Rs.50,000/- to the opposite parties on 11.02.2010 however, the opposite parties sent exhibit A5 letter dated 13.03.2010 to the complainant that his policy  lapsed on  13.03.2010 and hence he was requested to pay the outstanding premium to avail the benefits of the policy. The complainant replied under ExA10 that he had already paid the 2^nd premium  on 11.02.2010 by using his ICICI credit card and for which the opposite party replied under ExA15 that they are looking in to the matter. At least on 11.05.2012 the opposite party sent Ex.A15 to the complainant that initial premium of amount 50,000/- and also showing total premium received Rs.1,00,000/- As per Ex.A3,  A4, the complainant paid 2^nd premium amount on 11.02.2010 itself. Only after more than 2 years, the opposite party admitted under Ex A15 that the 2^nd premium amount paid by the complainant. Further the said 2^nd premium was also confirmed by the opposite party by their e-mail dated 18.05.2012 which was marked as Ex.A6 addressed to the complainant. Therefore from the documents Ex.A3 and Ex A4, ExA15 and Ex.A16 the complainant proved the 2^nd premium amount of Rs.50,000/- Paid on 11.02.2010 itself to the opposite party. Though this 2^nd premium amount was paid on 11.02.2010 itself the opposite parties nearly for 2 years corresponded with the complainant, that as if he is due to pay the 2^nd premium is established that the opposite parties have committed deficiency in service without giving proper credit to the account of the complainant about the 2^nd payment of premium. Therefore in that respect the opposite parties 1 and 2 committed deficiency in service.

6.POINT : 2

          After payment of 2^nd premium the complainant represented to the 1^st opposite party in person and also through correspondence that he had paid the 2^nd premium within due date and even after that the opposite parties demanded to pay the 2^nd premium has caused mental agony to the complainant is accepted. Vexed with the attitude of the opposite parties the complainant wrote to the opposite party to cancel the policy and to surrender and pay the amount to him. The opposite party would contend that within free look period the policy holder can cancel the policy and in this case the complainant did not do so and further if any premium due within first 3 years of the policy years remain un  paid even after the grace period of 30 days from the date of un-paid premium the benefits under the policy will seize to exists and however policy bound to continue to  participate in the performance of the investment fund and therefore the complainant is not entitled to cancel the  policy and to get the premium amount paid by him.

 

          7.It is correct that within the free look period of 15 days the policy holder has to cancel the policy as per terms and conditions of the policy. Here, the complainant wants to cancel the policy because of the deficiency committed by the opposite party that the premium paid by him was not credited into his account after more than 2 years. The opposite party suddenly woken up and said that through Ex.A15 and A16 that the 2^nd premium of Rs.50, 000/- was duly paid by the complainant. Therefore the opposite parties only have not prompted to credit the payment made by the complainant. Further the opposite party made the complainant to run pillar to post in such a way for the 2^nd premium already paid by him. Therefore the contention of the opposite party that the complainant has not chosen to cancel the policy within free look period and he has been continue further will not apply to the facts and circumstances of this case. To cancel, the opposite party has contended that as per Ex.B3 policy condition 4.4 re-instatement of the policy provides as follows:

 

    If the policy is not reinstated during the reinstatement period, the policy will stand terminated and the policy fund value as at the expiry of Reinstatement period net of surrender charge as on the lapse date shall be payable at the completion of the third policy year or at the end of the Reinstatement Period, whichever is later.

 

The complainant prayed to cancel and surrender the policy. However terms and conditions of the policy under 7.5. Surrender of policy will be based on the policy benefit period i.e life assured period. However in the case in hand the  complainant paid only 2 installments and further has not continued the policy by paying further premium, in spite communication received from the opposite party and hence he is not entitled for the such assured  amount in the policy as prayed by him at this stage.  The complainant has duly paid the 2^nd premium within the due date in such circumstances the reinstatement of the policy does not arise.  It is  established  that the opposite party has committed deficiency in service not giving credit to the payment of the 2^nd premium for  more than 2 years therefore in such circumstances the claim of the complainant that he wanted to  cancel the policy and surrender and pay the premium paid by him is accepted. Apart from that as the opposite party have committed deficiency in service, as stated above the complainant is entitled for reasonable compensation from the opposite parties. For that the complainant prayed only a sum of Rs.1000/- towards costs and expenses of the litigation and such amount also is entitled from the opposite parties. Since the complainant is entitled for the refund of the premium amount paid by him and also it is decided to award compensation to him it may not be proper to order interest to the complainant for the premium amount paid by him from the date of deficiency caused by the opposite party.  As indicated above the complainant is entitled for relief’s  in this case.      

 

          In the result the complaint is partly allowed. The opposite parties are ordered to cancel the policy No.500-2861820 in the name of the  complainant and refund the total premium amount of Rs.1,00,000/-(Rupees one lakhs only) paid by the  complainant to him and also to  pay a sum of Rs.50,000/-(Rupees fifty thousand only) towards compensation for the deficiency in service committed by the opposite parties and mental agony caused to him and also entitled for a sum of Rs 1000/-(Rupees one thousand only) towards litigation expenses. The above amounts shall be payable to the complainant within 6 weeks from the date of receipt of copy of this order failing which the amounts shall carry 9%  interest till the date of payment. In respect of other relief’s the complaint is dismissed.

 

Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 15^th   day of June  2015.

 

 

MEMBER – II                                                               PRESIDENT

 

 

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1 dated  11.02.2009                  First  Premium Receipt

                  

Ex.A2 dated 11.02.2009                   Fund Transaction Notice

                  

Ex.A3 dated 11.02.2010                   Transaction payment acknowledgement

                  

Ex.A4 dated 03.03.2010                   Credit Card Statement ICICI  Bankss

                  

Ex.A5 dated 13.03.2010                   Opposite Party sent a letter to complainant

                                                For payment of 2 premium

Ex.A5 dated 13.10.2010                   Statement of Accounts

                  

Ex.A7 dated 13.09.2011                   Statement of Accounts

 

Ex.A8 dated 24.09.2011                   Complainant sent a letter to opposite parties

 

Ex.A9 dated 09.05.2012                   Statement of Accounts

                  

Ex.A10 dated 11.05.2012                 Complainant letter

 

Ex.A11 dated 16.05.2012                 Reply mail from opposite party

 

Ex.A12 dated 20.06.2012                 Complainant sent a email complaint to the State

                                                    Consumer Help Line

 

Ex.A13 dated 26.06.2012                 State Consumer Help Line, Chennai’s proceeding

                                                    in SCH/Doc.No.45862.

 

Ex.A14 dated 16.07.2012                 Representation of the Complainant to the opposite

                                                    Party

 

Ex.A15 dated  11.05.2012      Premium Certificate for the period 01.01.2009 to

                                                    11.05.2012

Ex.A16 dated18.05.2012                  E mail from Opposite party to complainant

 

Ex.A17 dated 27.06.2012                 Reply mail from opposite party to state consumer  

                                                    Help Line

                  

                                                                                     

LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTIES:

 

Ex.B1 dated  NIL                    Letter enclosing policy specifications and other

                                                Enclosures

 

Ex.B2 dated NIL                     Proposal Form along with annexures

 

Ex.B3 dated NIL                     Policy Bond – Terms & conditions

 

Ex.B4 dated 11.02.09             First premium Receipt

 

Ex.B5 dated 19.02.10             Letter sent by the opposite parties to complt

                                                Stating that his standing instructions through

                                                Credit card was dishonored

 

Ex.B6 dated 13.03.10             Letter sent by opposite parties to complt informing 

                                                  about policy lapse

Ex.B7 dated 07.10.11             Letter sent by opposite parties to complt

 

Ex.B8 dated 26 05.12             E-mail sent by opposite parties grievance                 

                                                  Redressel  cell to complt       

                                               

 

MEMBER – II                                                               PRESIDENT