BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

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[1] Yashpal Singh Rana, #5547/1, Modern Housing Complex, Manimajra, Chandigarh.

[2] Padma Rani w/o Sh. Yashpal Singh Rana, r/o H.No.5547/1, Modern Housing Complex, Mani Majra, Chandigarh.

…..Complainants

                 V E R S U S

[1] The Manager, SBI Life Insurance Co. Ltd., Central Processing Centre, Plot No.3/A, Sector 10, CBD Belapur, Navi Mumbai – 400614.

[2] The Manager, SBI Life Insurance Co. Ltd., Branch Office SCO No. 109-110, 1^st Floor, Sector 17-B, Chandigarh.

[3] Sh. Satinder Garg, Agent, C/o SBI Life Insurance Company Ltd., Branch Office SCO No. 109-110, 1^st Floor, Sector 17-B, Chandigarh.

                      ……Opposite Parties

CORAM:   SH.P.D.GOEL                    PRESIDENT

         SH.RAJINDER SINGH GILL       MEMBER

         DR.(MRS).MADANJIT KAUR SAHOTA  MEMBER

Argued by: Sh. Sandeep Bhardwaj, Counsel for Complainant.

           Sh. Rajneesh Malhotra, Counsel for OPs No.1 & 2.

           OP No.3 exparte.

PER SH.RAJINDER SINGH GILL, MEMBER

         Briefly stated, the complainant, after having been retired from service, on the insistence of OP No.3 that he would get good appreciation after one year, purchased two policies from the OP-Insurance Co. i.e. (i) for Rs.50,000/- vide Policy No.24029248108 and (ii) for Rs.49,000/- vide Policy No. 24028034808. It was alleged that when after one year, due some urgent needs, the Complainant approached the OPs to withdraw the money, to his utter shock; he was told that he could not withdraw the amount before completion of three years of the policy. It was submitted that the OP No.3 had kept the Complainant in dark and had never disclosed such a condition to him. Separate legal notices dated 10.12.2009 were served upon the OPs, but the same failed to evoke any positive results. Hence, this complaint. 

2.         Notice of the complaint was sent to OPs seeking their version of the case. OP No.3 did not turn up despite service and suffered ex-parte.

3.         The OPs No. 1 & 2 in their joint written statement, while admitting the factual matrix of the case, pleaded that the Complainant had submitted proposals for the insurance policy in question on 15.10.2007 for Unit Plus II Regular Plans and paid the initial deposit of Rs.50,000/- and Rs.49,000/- respectively towards initial proposal deposits. Based on the proposal forms, duly signed by the Complainants, policies were issued with a term of 5 years on the grounds of Utmost Good Faith. The premiums were payable annually. The terms and conditions of the policy do not provide for refund of premium. The Complainants have already availed the risk cover. Hence, the prayer of the Complainants is totally illegal and not maintainable. It was further pleaded that the policy holder was not satisfied with the terms & conditions as mentioned in the policy document, he/she has the option to return the policy under Free Look Cancellation to SBI Life Insurance Co. Ltd. All other material contentions of the complaint were controverted. Pleading that there was no deficiency in service on their part, a prayer has been made for dismissal of the complaint.

4.         Parties led evidence in support of their contentions.

5.         We have heard the learned counsel for the complainant and ld.Counsel for OPs No.1 & 2 and have also perused the record.

6.       The case of the complainants is that they purchased two insurance policies from the OP bearing No.24029248108 & 24028034808 (annexure C-4 & C-5) on making payment of Rs.50,000/- & Rs.49,000/- respectively as premium.

7.       The contention of the complainants is that when they approached the OPs, after one year of the policy in order to withdraw the money, they were told that they could not withdraw the same before completion of three years of the policy.  This fact also finds mention in Para No.6 of the complaint itself.   

8.       Admittedly, the complainant have not returned the policy document to the Opposite Parties within 15 days from the date of receipt of the policy, as stipulated in the policy, under Clause No.22-Free Look Period (Ann.B Page No.49), which is reproduced as under:-

         “Free Look Period

The Policy holder has a period of 15 days from the date of the receipt of the policy document to review the terms and conditions of the policy and where the insured disagrees to any of those terms or conditions, he has the option to return the policy stating the reasons for his objection, when he shall be entitled to a refund of the amount….”

9.       As, the complainants themselves have failed to return the policy document within the above said free look period, therefore, now they cannot seek the cancellation of the policy purchased by them alleging false allurement on the part of OPs.

10.      So far as the terms & conditions of the insurance policy are concerned, the complainants have singed the proposal form (Annexure-A & A-1).  Once the complainants are signatory to the proposal form (Ann.-A & A-1) and have also received the insurance policy & other documents, they cannot, at this later stage, wriggle out from those terms & conditions, which they had already accepted and now say that they were not aware about it.

11.      In view of the above discussion, we are of the opinion that the complaint is meritless.  The same is accordingly dismissed.  The Parties are left to bear their own costs.

12.      Certified copies of this order be sent to the parties free of charge.  The file be consigned.