BEFORE THE HON’BLE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM BAGALKOT

                                                                                                                                         Date of Admission: 13-03-2017

                                 Date of Order        : 14-09-2017

    Consumer Complaint No: 18/2017

PRESENT

1. Smt K.Sharada  B.A.L.L.B. (Spl)                          : President
2. Smt Sumangala Hadli   B.A.(Music)                     : Lady Member

           COMPLAINANT

1. Shankaranna Laxmanrao Kora,

 Age: 53 Years, Occ: Advocate,

R/o Sector No.32,

Near HESCOM Office,

Navanagar, Bagalkot.

Tq: Dist: Bagalkot.

                                                      (By Shri B.K.Patil, Advocate)

                    V/s

      1) The Managing Director,

          Bajaj Allianz Life Insurance Co. Ltd,

          GE Plaza, Airport Road,

          Yerawad, Pune – 411 006,

          State Maharashtra.

                                                         (Exparte)

     2) The Branch Manager,

          Bajaj Allianz Life Insurance Co. Ltd,

          Opp. Govt. Girls High School,

          Extension Area, Bagalkot – 587 101.

                                             (By Shri R.B.Dyavannavar Advocate)

Speaking through Smt.Sharada.K., President

            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 15,000/- towards damages and also award cost of Rs.5,000/- and any other reliefs deems fit under the circumstances of the case.

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

                That the complainant had opted for one Bajaj Allianz Life Insurance policy bearing No 0092847238 dated 24/03/2008 for a sum assured of Rs.4,08,000/- and annual premium amount was fixed for Rs 12,000/- and paid the premiums regularly for 3 years from 24/03/2008 to 24/03/2010  and opted the receipts for the same. That Complainant has paid the regular premium amount for three year without fail of Rs.36000/- There upon due to family financial crises it’s become a difficult for Complainant to continue his policy, the said fact is intimated to Op No.2 and thereby Complainant requested to Op No.2 to issue the surrender value of the above policy. But the OP1 had informed the complainant that since the amount invested by the complainant is being reinvested in share market and the fund value can only ascertain from OP No.2 Office. OP No.1 without informing or intimating to the complainant, had sent the cheque for Rs.11,915/- of Axis Bank Pune dated: 28.09.2016. The amounts to prejudice. Because this is without submitting any surrender application by the complainant and the complainant had sent the said cheque to the OP No1 and also sent one letter dated: 21.10.2016, asking the Ops what is the total amount ought to be payable to the complainant. The OP after receiving the said letter had sent one Letter dated: 08.11.2016 asking the complainant, that he has not paid the premium amount from since 6 years. This is contrary to the complainant’s request and surrender rvalue ascertaining application. Hence, Ops have adopted the unfair trade practice and caused the deficiency of service as against this complainant since Op’s have fail to follow the terms of policy and Op’s insurer mis-leaded to complainant about the policy terms while taking the above the policy for which these Op’s are liable for the act done by his insurer. Hence the complainant prays for reimburse Rs.36,000/- with accrued interest and 15,000/- as a compensation for mental agony and 5,000/- as a cost of this litigation.

3)            After receipt of the notice, OP No.1 has not appeared before this Forum. Hence placed Exparte. OP2 has appeared through his counsel and strongly opposed the claim of the complainant by filling a written version contending that the main and material allegations made in the petition are all not true, valid and binding on this OP and the complainant is put to strict proof of those allegations by documentary evidence. Further, OP contended that the complaint of the complainant is barred by limitation and same is not maintainable. Further the complainant has made a declaration that he has read the application and the answers he 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 12,000/- towards his policy. That the Op No 2 has further stated that the Complainant has failed and neglected to pay the renewal premiums, and hence the policy issued to him came to be lapsed and foreclosed for nonpayment of renewal premiums and admittedly foreclosure amount of Rs 11,915/- by way of cheque was sent to the complainant. 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)  The complainant and OP2 have filed affidavit in support of their case documents produced marked as per Annexure.

5) The complainant and OP2 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 OPs have 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.0092847238 dated 24-03-2008 for a sum of assured amount of Rs 4,08,000/- and the yearly premium of Rs 12,000/- is being paid regularly for three years as per Annexure marked Ex C-1 True copy of policy and Ex C-2 Original Policy Deposit Renewal Premium Receipt issued by Op No 2. 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 12,000/- towards his policy. Opponent further argued that nonpayment of renewal premiums and admittedly foreclosure amount of Rs 11,915/- by way of cheque was sent to the complainant. 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. That the Opponent further argued that complainant has not follow the procedure towards surrender of the policy, but instead has approached this Hon’ble Forum without any basis.

 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.12,000/- each. Total amount of Rs.36,000/- It is admitted by the Opponents.
2. That, the so many cases policy bond observed this Forum 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 OP No.2 wrote a letter to complainant dated 28-09-2016 for ascertaining the fund value. As on 28-09-2016 the total amount have been paid by way of cheque amount of Rs.11,915/- 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 “due to financial problems it is not possible for me to continue the said policy by paying the remaining premium amount.” But Op’s stated that foreclosure amount of Rs.11,915/- by way of cheque was sent to the complainant. After sent a cheque to the Complainant, but he has not accept the cheque amount.
4. 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 1^st three years regularly and he 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 No.2:- Once the deficiency in service is proved, the next point is how much compensation complainant is entitled for? It is admitted by Opponent himself that as per the true copy of Policy 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. The complainant is also entitled to get Rs.5,000/- towards mental agony and cost of the complaint is Rs 2,000/-. 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 13-03-2017 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/- (Rupees 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.2,000/- (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 receipt of this order, failing which the amount of Rs.36,000/- carries interest at the rate of 12% p.a. from
   13-03-2017 to till the date of realization.
5. Free copy of this order shall be sent to the parties immediately.

(Dictated to the Stenographer directly on computer corrected by me and then pronounced in the open Forum on this 14^th  day of September, 2017)

Witnesses examined on behalf of the complainants:-

1. Sri.Shankaranna Laxmanrao Kora,

Documents produced on behalf of the Complainants

Ex C1:- True copy of Policy of the complainant 

Ex C2:- First Premium amount Paid Receipt dated: 24.03.2008,

EX C3:- Xerox copy of Cheque No.791099, dated; 28.09.2016,

EX C4:- Request letter of complainant to OP No.1,

EX C5:- Reply letter of OPNo.1 dated: 08.11.2016,

EX C6:- Postal Receipts dated: 21.10.2016,

EX C7 Original Policy Deposit Renewal premium receipt.

Witnesses examined on behalf of the Opponent No 2:-

1) Shri Teju S/o Tarasingh Rathod