DATE OF FILING : 18.07.2014.
DATE OF S/R : 25.09.2014.
DATE OF FINAL ORDER : 11.12.2015.
Kiran Kyal,
31/3, Baikuntha Chatterjee Lane, Howrah,
PIN 711 101.………………………………………………………… COMPLAINANT.
1. The Manager,
1st floor, Block A, Vindhyachal,
Municipal Holding no. 35, Dr. Abani Dutta Road,
Howrah 711101.
2. The Managing Director,
Birla Sun Life Insurance Co. Ltd.,
One Indiabulls Center, Tower 1, 15th and 16th floor,
Jupiter Mill Compound, 841, S.B. Marg, Elphinstone Road,
Mumbai 400013. ………………………………………..…OPPOSITE PARTIES.
P R E S E N T
Hon’ble President : Shri B. D. Nanda, M.A. ( double ), L.L.M., WBHJS.
Hon’ble Member : Smt. Jhumki Saha.
Hon’ble Member : Shri A.K. Pathak.
F I N A L O R D E R
- This is an application U/S 12 of the C.P. Act, 1986 filed by the petitioner, Kiran Kyal, praying for a direction upon the o.ps., Birla Sun Life Insurance Co. Ltd., to pay full interest of Rs. 13,118/- on his deposited sum and to pay compensation of Rs. 30,000/- and Rs. 5,000/- as litigation costs.
- The case of the petitioner is that the o.p. is an insurance company and the petitioner purchased a policy w.e.f. 30.06.2012 bearing policy no. 005641370 and deposited the first premium of Rs. 1,20,000/- on 25.6.2012. Later on the policy was cancelled and he was paid interest to the extent of Rs. 517.81 p. @ 10.5%. Between his deposit and the communication sent to him with an interest deposit there is a lapse of 395 days i.e., he paid the premium of Rs. 1,20,000/- on 25.6.2012 and he got the mail from the o.p. that his policy was cancelled on 27.7.2013. His Rs. 1,20,000/- was deposited with the o.ps. for 395 days and he prayed for interest @ 21.% which amounted to Rs. 27,271/-. He submitted the premium receipt as well as the mail dated 27.7.2013. He also received one letter from the o.p. on 17.9.2013 that he was paid interest of 517.81 being interest of 395 days. He approached the Chief Grievance Redressal Officer and finding no relief approached this Forum.
3. The o.p./ insurance company appearing in the case filed written version denying the allegations made against them and submitted that the case is barred by limitation and there is no cause of action for the petitioner and the case is a speculative one as there is no deficiency in service on the part of the o.ps. who already paid interest @ 10.5% p.a. They further submitted that on careful investigation the o.p. found that the policy cannot be continued and so they cancelled the same and refunded the premium amount and also paid the interest and the same was communicated to the petitioner on 30.05.2014. Thus, there was no deficiency in service. They further submitted that after enjoying the policy for over one year, the petitioner raised objection and requested for cancellation of the policy on 29.5.2013 and thus they returned the premium amount after cancelling the policy and paid also interest. As per IRDA Guidelines no interest is payable if no objection is raised during the free look period but even then the o.p. paid the minimum interest and thus prayed for dismissal of the speculative case.
- Upon pleadings of parties the following points arose for determination :
- Whether the case maintainable in its present form ?
- Whether the petitioner has any cause of action to file the case ?
- Whether there is any deficiency in service on the part of the O.P. ?
- Whether the complainant is entitled to get any relief as prayed for ?
DECISION WITH REASONS :
- All the issues are taken up together for the sake of convenience and brevity for discussion and to skip of reiteration. The case of the petitioner is that he became a policy holder of the o.p. company in respect of endowment plan called ‘Birla Sun Life Bachat Endowment Policy’ and he paid the policy premium and got the policy document on 30.06.2012. It is also noticed from mail of the petitioner dated 27.07.2013 before the Grievance Officer, Birla Sun Line Insurance Company Ltd., that the policy of the petitioner was cancelled due to misrepresentation of the agent of the o.p. and the o.p. refunded the premium amount of Rs. 1,20,000/- on 23.7.2013 even though the o.p. issued the policy on 30.6.2012. The petitioner further submitted before the Grievance Officer that he is entitled to Rs. 27,271/- as interest on the premium amount as the same was kept deposited with the o.p. insurance company for 395 days. It is noticed from the documents filed by the complainant as well as the o.p. with a penal interest @ 10.5% from the date of received till the date of refund was processed and has been credited to the account of the petitioner through his bank and the o.ps. conceded the fact that there was deficiency in service on their part. The petitioner again objected to such meager amount of interest and on 8th May, 2014 he wrote to the Managing Director of o.p. company stating that IRDA Guidelines showing that the o.p. is liable to pay interest @ 14.5% per annum and thus he is entitled to Rs. 13,118/- and not Rs. 517.81.ThisForum scrutinized the cases of the parties and the documents filed herein and keeping in mind the submissions of the ld. counsels of both sides and also keeping in mind that there is no specific provision of awarding interest in the case of disposal of this consumer case but being a civil forum this Consumer Forum is based on justice, equity and good conscience to do complete justice and in the instant case finding that the petitioner remained deprived of using his Rs. 1,20,000/- for a period of 395 days and so he should be compensated by way of payment of interest which shall commensurate with the rate of interest depending on the bank rate and this Forum finds it wise to fix the bank rate as @ 10% at the relevant time and the amount of interest calculated shall be given to the petitioner.
In the result, the claim case succeeds.
Court fee paid is correct.
Hence,
O R D E R E D
That the C. C. Case No. 401 of 2014 ( HDF 401 of 2014 ) be and the same is allowed on contest with costs.
The complainant is entitled to the relief and the o.ps. are directed to pay interest @ 10% p.a. on the above sum of Rs. 1,20,000/- for 395 days within 30 days from the date of this order and also to pay compensation of Rs. 5,000/- for the mental agony suffered by the petitioner and Rs. 2,000/- as litigation costs and both the above be paid within 30 days from this order failing the whole amount being interest calculated and the compensation of Rs. 5,000/- and the litigation costs of Rs. 2,000/- would carry interest @ 9% p.a. and also the petitioner would be at liberty to put the order in execution.
Supply the copies of the order to the parties, free of costs.
DICTATED & CORRECTED
BY ME.
( B. D. Nanda )
President, C.D.R.F., Howrah.
