BEFORE THE HON’BLE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM BAGALKOT

                                                                                                                                         Date of Admission: 23-04-2016

                                 Date of Order        : 15-07-2017

                                Consumer Complaint No: 58/2016

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. Smt Jayashri D/o Vamanarao Badami

 Age: 45 Year, Occ: Advocate,

R/o House No156, Ward No 1

Behind Ambabhavani Temple,

                                                      (By Shri 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 36,000/- with accrued interest to the complainant and Rs 25,000/- 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 0061112635 dated 21/08/2007 for a sum of Rs 4,08,000/- and annual premium amount was fixed for Rs 12000/- and paid the premiums regularly for 3 years from 21/07/2007 to 21/08/2009 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 the complainant requested the Authority Concerned to release the surrendered value amount of the said policy. But the Opponents have not responded properly for the phone call of the complainant. Non refund of the surrender value of policy amount, amounts to deficiency in service and also after the complainant requested the advocate to issue a legal notice to the opponents on 23-11-2015.Hence the complainant prays for reimburse Rs 36000/- with accrued interest, and 25,000/- as a compensation for mental agony, and 5000/- as a cost of this litigation.

3) After receipt of the notice, the Op No 1and 2  have 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 12000/- towards her policy. That the Op No 2 has Further stated that the averments at Para 10 of the complaint very clearly shows that the complainant has never approached this Op for surrender of the policy. Opponent further stated that the 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 issued and if complainant wants to surrender the policy she can make application the format of which is available. As on 07-07-2016 total amount have been paid in case of surrender value is  Rs 29880/- and further stated that the insurer for cancellation of the policy stating the reason, which the complainant has failed to do so. The said option is also provided by the Insurance regulator in its guidelines. 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 0061112635 dated 21-08-2007 for a sum of assured amount of Rs 4, 08,000/- and the yearly premium of Rs 12000/- is being paid regularly for three years as per Annexure marked Ex C-1 Original policy bond and Ex C-2 Letter by complainant to opponent for surrender the policy. 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 12000/- towards her policy. Opponent further argued that the complainant has never approached this Op for surrender of the 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 which is premature complaint.

 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 12000/- each. Total amount of Rs 36000/- It is admitted by the Opponents.
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 Opponents argued complainant has never approached this Op for surrender of the policy but Complainant wrote a letter to Opponent dated 23-11-2015 for ascertaining the fund value. That the Opponent stated in the objection if complainant wants to surrender the policy she can make application the format of which is available. As on 07-07-2016 total amount have been paid in case of surrender value is Rs 29880/- and further stated that the insurer for cancellation of the policy stating the reason, further stated that the insurer for cancellation of the policy stating the reason, and mention in the Complainant’s letter dated 23-11-2015 “due to financial problems it is not possible for me to continue the said policy by paying the remaining premium amount.” But after sent a legal notice to the Op requesting to release the reliefs asked for on 23-11-2015 and the acknowledgments has been received by the opponents in regard to the releasing the amount, but they have not responded properly and not steps taken regarding surrender value.

4. That the both the parties submitted the Xerox Copy of  judgment copy When the complainant paid the premium 1^st 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, and she need money stating the reasons.

“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 36,000/-   and we fix the liability of the Opponents of Rs 36,000/- 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 NO 3:- 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 36,000/-(Thirty Six Thousand Rupees only) along with interest @ 9% p.a. from the date Premium payment 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  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. Smt Jayashri D/o Vamanarao Badami

Documents produced on behalf of the Complainants

Ex C1:- Original Policy Bond of the complainant 

Ex C2:- Letter from Complainant to Opponent

Ex C3:- Postal Acknowledgement

Witnesses examined on behalf of the Opponent No 2:-

1. Shri Teju S/o Tarasingh Rathod