BEFORE THE HON’BLE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM BAGALKOT

                                                                                                                                         Date of Admission: 02-08-2016

                                 Date of Order        : 15-07-2017

                                Consumer Complaint No: 116/2016

PRESENT

1. Smt K.Sharada  B.A.L.L.B. (Spl)                          : President
2. Smt Sumangala Hadli   B.A.(Music)                     : Lady Member
3. Shri Shravanakumar. D. Kadi M.Com. L.L.B.(Spl : Member

           COMPLAINANT

1. Shri  Baddappa S/o Ramappa Rathod

 Age: 56 Year, Occ: Private Business

R/o Rama Nilaya,

Near Daddenavar Hospital,,

Extension ,Bagalkot.

                                            (By Shri S.B.Kataraki & B.K.Patil Advocate)

                    V/s

1. The Managing Director,

Bajaj Allianz Life Insurance Co Ltd,

G.E.Plaza,Airport Road,

Yarawada PUNA-411006

         2)  The Branch Manager,

Bajaj Allianz Life Insurance Co Ltd,

Opp: Govt Girls High School,

Extension Area,Bagalkot-587101

                                              (By Shri R.B.Dyavannavar Advocate.)

Speaking through Sri Shravanakumar.D.Kadi, Member

        Complaint filed by the complainant under section 12 of the consumer Protection Act 1986 (herein after referred to as Act) against the opposite parties (in short the Ops) Claiming of Rs 19,907/- with accrued interest to the complainant and Rs 15,000/- towards mental agony caused to the complainant, and also award cost of Rs 5000/-.

2. Brief facts of the case are as follows:-

        That the complainant had opted for one Bajaj Allianz Life Insurance policy bearing No 0100248135 dated 07-06-2008 for a sum of Rs 1,15,000/- and annual premium amount was fixed for Rs 10000/- and paid the premiums regularly for 3 years from 02-06-2008 to 17-06-2010 and opted the receipts for the same. As per the provisions of the policy description 6 (c) mention about the surrender value of the policy, as the surrender value is payable to the policy holder only 1^st three policy years being in regular subject to the regular payment of the yearly premiums. Accordingly the complainant has paid 3 numbers of yearly premiums regularly. After that due to some financial problems faced by the complainant it was not possible to pay the next consequent premium amount to the said policy. After paying 3^rd premium amount, the Complainant had contacted the opponent No 2 to ascertain what is the amount to be refunded if the policy is surrendered, then Op No 2 had not informed anything about the surrender value to the Complainant. After that the Op No 2 had sent a cheque for Rs 10,093/- bearing No 538910 dated 30-09-2015 of Axis Bank. But the Complainant was not submitting the surrender application to the said policy to the Opponent. If the said policy is surrendered as per the terms and conditions of the Opponent clause 6C of the opponents. In the said column it is written that the surrender value if any is payable only, after completion of 1^st three policy years,the surrender value will be paid to the policy holder,if the Complainant comply with that above clause, but in this case Complainant not submitting the surrender application, then it  amounts to deficiency in service and also after the complainant requested the advocate to issue a legal notice to the opponents on 09-11-2015.Hence the complainant prays for reimburse Rs 19,907/- with accrued interest, and 15,000/- as a compensation for mental agony, and 5000/- as a cost of this litigation.

3) a) After receipt of the notice, the Op No 1 did not appear either in-person or by counsel in spite of giving sufficient time. Hence were placed exparte

3) b) After receipt of the notice, Opponent No 2  has appeared through its counsel and strongly opposed the claim of the complainant by filling a written version contending that the complaint of the complainant is false, frivolous and vexatious and further contended that the complaint of the complainant is barred by limitation and same is not maintainable. Further the complainant has made a declaration that she has read the application and the answers she entered in the application is full, complete and true and the opposite party believing them to be such, will rely and act on them, otherwise the proposed application becomes void. Thereafter both the policy Holder and the company are bound by the terms and conditions of the Insurance policy which is issued by the company, based upon the proposal given by the policy Holder. Op No 2 has further stated that the policy was issued to the complainant only after the complainant agreed and accepted the terms and conditions of the policy and upon agreeing the same the complainant has paid the policy premium amount of Rs 10000/- towards her policy. That the Opponent has Further stated that the policy is unit Linked policy, premium amount is consideration for taking risk of life of the insured and the premium so paid takes risk for the period for which the premium has been paid and company has covered the risk of the complainant till the date of foreclosure of the said policy. That the Opponent further stated that the present status of poicy is complainant has failed and neglected to pay the renewal premiums admittedly by the foreclosure amount of Rs 10,093/- bearing cheque No 538910 dated 30-09-2015 was sent to the Complainant.. Hence has prayed for liable to be dismissed with cost.

4)  Both parties have filed affidavit in support of their case documents           produced marked as per Annexure

5) Both the side advocates have filed their written arguments. Heard the arguments on the both side. Now the following points for our consideration in deciding the case are;

i) Whether the Op has rendered deficiency in service to the complainant?

ii) Whether the complainant is entitled to the relief as is sought for?

iii) What Order?

6) Our findings to these points are as hereunder:

i) Affirmative,

ii) Partly Affirmative,

iii) As per final order

REASONS:-

7. POINT NO 1:- In order to avoid repetition of the facts and reasons and also to save time, we take up the complaint for passing order as follows:-

                 It is not in dispute that the complainant had opted one Bajaj Allianz Life Insurance Policy bearing No 0100248135 dated 07-06-2008 for a sum of assured amount of Rs 1,15,000/- and the yearly premium of Rs 10000/- is being paid regularly for three years as per Annexure marked Ex C-1 Original policy bond and Ex C-2 Policy Accounting Enquiry ,Ex C-3 Payment reference, Ex C-4 Legal Notice to Opponents dated 09-11-2015, and Ex C-5  Postal Receipts , Ex C-6 Postal acknowledgement,  Ex C-7 Reply letter from Opponent to the Complainant’s Counsel, Ex C- 8 Postal Acknowledgement.  That the complainant counsel argued that as per the provisions stipulated policy description 6(c) it has mentioned about the surrender value is payable to the policy holder only after 1^st three policy years being in regular subject to the regular payment of the yearly premiums.

                That the Opponents counsel argued that policy was issued to the complainant only after the complainant agreed and accepted the terms and conditions of the policy and upon agreeing the same the complainant has paid the policy premium amount of Rs 10000/- towards his policy. That the Opponent further argued that complainant has not follow the procedure towards surrender of the policy, but instead has approached this Hon’ble court without any basis. That the Opponent has Further stated that the policy is unit Linked policy, premium amount is consideration for taking risk of life of the insured and the premium so paid takes risk for the period for which the premium has been paid and company has covered the risk of the complainant till the date of foreclosure of the said policy.

 In view of above discussion this forum observed the following points:-

1. That the Complainant has paid 1^st three years annual premium of Rs 10000/- each. Total amount of Rs 30000/- It is admitted by the Opponents. And Opponent No 2 has already paid amount of Rs 10093/- through cheque.
2. That, as per the Original policy Bond shows Ex C-1  provisions stipulated policy description 6 (c) Surrender value:-

1. The surrender value if any, is payable only after first three policy years.
2. The Surrender Value payable will be equal to Regular premium fund Value and the Top-Up Premium Fund value less the Surrender Charge as per Section 37)f)
3. The Company shall thereafter terminate the policy upon payment of the full surrender value.

3. That the Opponent stated in the objection if complainant wants to surrender the policy he can make application the format of which is available. As on 30-09-2015 surrender value of Rs 10093/- this amount has already paid to Complainant through cheque.

4. That the Complainant submitted the Xerox Copy of judgment copy. when the complainant paid the premium ^1st three years regularly, then Complainant is eligible for benefit under the said policy. As per the provision of the policy it is favorable to the complainant. In this case that the complainant paid the premium ^1st three years regularly. That the Opponent has paid the surrender value to the Complainant without submitting the application of surrender. But Complainant not received the full premium amount of Rs 30,000/-.  

“When the Opponent mentioned in the Policy bond sum assured amount then Opponent is liable to pay reimburse the Premium amount.”

2014 C.J.898 (N.C) Oriental Insurance Co Ltd V/s Iairavatha and Another That Hon’ble Court observed that “Insurance Company cannot escape its liability after accepting premium from consumers”

2009 (3) CPR 53 (L.I.C. of India and Others V/s Kailash Chandra Kar) That Hon’ble court observed that “Consumer Protection Act, is a beneficial legislation and it cannot allow Insurance Company to escape liability on technical grounds to deprive the consumer of benefits to which he was entitled to.”

        Hence this is none other than deficiency in service rendered by the Opponents and we answer to point No 1 in affirmative.

8. POINT No2:- Once the deficiency in service is provide, the next point is how much compensation complainant is entitled for? It is admitted by Opponent  himself that as per the Policy bond submitted by the complainant Ex C-1 Total premium amount of Rs 30,000/-  Op No 2 has already paid Rs 10093/- then remaining premium amount of Rs 19,907/-  and we fix the liability of the Opponents of Rs 19,907/- along with interest @ 9% p.a. towards mental agony of Rs 5000/- and cost of the complaint is Rs 2000/-Hence, we answer Point No 2 partly in the affirmative

9. POINT NO3:- In view of our findings to point No 1 and 2 we proceed to pass the following. . .

Complainant’s Complaint is allowed in part as follows:-

1. Op No 1 and Op No 2 jointly and severally have to pay an amount of Rs 19,907/-(Nineteen Thousand Nine hundred and seven Rupees only) along with interest @ 9% p.a. from the date of Payment of  Premium amount to till the date of realization.
2. Op No 1 and Op No 2 jointly and severally have to pay an amount of Rs 5,000/-(Five thousand only) towards mental agony caused to the complainant.
3. Op No 1 and Op No 2 jointly and severally have to pay an amount of Rs 2000/-(Two Thousand only) towards cost of the litigation.
4. Op No 1 and Op No 2 jointly and severally have to comply this order within One month from the date of receipts of this order, failure which the amount carries interest at the rate of 12% p.a.from the date of payment of premium  amount to till the date of realization.
5. Free copy of this order shall be sent to the parties immediately.

Witnesses examined on behalf of the complainants:-

1. Shri Badappa S/o Ramappa Rathod

Documents produced on behalf of the Complainants

Ex C1:- Original Policy Bond of the complainant 

Ex C2:- Policy Accounting Enquiry

Ex C3:- Payment reference

Ex C4:- Legal Notice to opponents

Ex C5:- Postal receipts

Ex C6:-Postal Acknowledgement

Ex C7:- Reply Letter from Opponent

Ex C8:- Postal Acknowledgement

Witnesses examined on behalf of the Opponent No 2:-

1. Shri Gururaj  Desai