Complainant present in person

Opponents absent

Per : Mr. V. P. Utpat, President              Place   :  PUNE

                                        J U D G M E N T 

                                          27/06/2014                                                                   

          This complaint is filed by the consumer against the Insurance Company for deficiency in service under section 12 of the Consumer Protection Act, 1986.  The brief facts are as follows,

1]       The complainant is a resident of Pune-Satara Road, Pune.  The opponent no. 1 and 2 are the Head office and Branch office of the Insurance Company, which are situated at Mumbai and Pune respectively.  It is the case of the complainant that she has purchased one policy no. 12839741 by making payment of Rs. 6,00,000/-.  That policy was matured.  The executive of the opponent asked the complainant for purchasing two short term policies of Rs. 2,00,000/-.  However, it was difficult for the complainant to purchase two policies, hence, the executive had insisted to take one policy of Rs.2,00,000/-.  Thereafter she was again convinced for obtaining short term policy of Rs. 60,000/-.  Thus in all she had invested an amount of Rs.8,60,000/-  with  the  opponents.   The  opponents  have  wrongly  issued policy for Rs. 2,60,000/- in the name of her daughter, who is residing permanently at USA.  All these facts were disclosed to the opponents and the complainant had prayed for making payment of all the polices.  It was also directed to the complainant to pay premium for next seven years and that was not possible for the complainant.  Thus the complainant has prayed for refund of Rs. 8,60,000/-, legal charges of Rs. 10,000/-, compensation for mental and physical sufferings to the tune of Rs. 4,00,000/-.  The total claim of the complainant is Rs. 12,70,000/-.

2]      The opponent though duly served did not file written version.  During the pendency of the proceeding the complainant has received Rs. 60,000/- i.e. amount of one of the policy and the opponent has filed Memorandum of Settlement, in which they have agreed to pay policy amount, if the complainant has produced the original policies and ready to accept the surrender value.  That proposal is refused by the complainant.

3]      After scrutinizing the documentary evidence, which is produced on record by both the parties, considering pleadings and hearing the arguments, the following points arise for the determination of the Forum. The points, findings and the reasons thereon are as follows-

REASONS    :-

4]      It is significant to note that during pendency of the proceeding, the complainant had received an amount of Rs. 60,000/-.  Hence, the claim as regards of policy of Rs. 60,000/- should be treated as settled.  It is the case of the complainant that, even though her policy of Rs.6,00,000/- was matured, the opponent did not pay said amount.  On  the     contrary,   they   have  insisted for again  investment  of Rs.2,00,000/- and that amount  was invested by the complainant.  It is also the case of the complainant that the opponents have issued policies in the name of her daughter instead of the complainant.  They have further asked to pay premium for seven years; that was not agreed by the complainant.  It is the opinion of the Forum that the complainant is entitled for maturity value of first policy i.e. Rs. 6,50,000/-, as well as investment of Rs. 2,00,000/-, which was wrongly invested by the opponent in the name of the daughter of complainant.  There is no any fault of the complainant; hence she can not be compelled to accept surrender value of the policies.  The complainant is entitled for compensation for mental and physical stress as well as cost of the proceeding.      In the result this Forum answer the points accordingly and pass the following order.  

                                      O R D E R

1. The complaint is partly allowed.

1. It is hereby declared that the opponents have caused deficiency in service by not making payment of matured insurance policy and by not obtaining consent of the complainant for purchasing new polices.

3.       The opponents are directed to pay  an amount of Rs. 8,50,000/- (Rs. Eight Lac Fifty Thousand only) and an amount of Rs.10,000/- (Rs. Ten Thousand only) towards compensation for mental and physical sufferings  and costs of the complaint within six weeks from the date of receipt of copy of this order.

4.       If the abovementioned amount is not paid within the stipulated period of six weeks, it shall carry interest @ 9% p.a. from the date of order till its realization.

5.       Copies of this order be furnished to the parties free of cost.

6.       Parties are directed to collect the sets,  which  were  provided  for

Members within one month from the date of order, otherwise those will be destroyed.