C.C.No.35 of 2008

BETWEEN:

Guda Venkata Kotaiah,

S/o. late Sitarama Murthy,

D.No.5/78/34/1,

6/3, Pandaripuram,

Guntur – 2. … Complainant

AND

1. ING Vysya Life Insurance Company Pvt.Ltd.,

Manager,

Brodiepet, 5th line, Main Road,

Raghu Mansion Complex, Guntur.

2. ING Vysya Life Insurance Company Pvt.Ltd.,

Manager,

3rd Floor, HRT Plaza,

Benz Circle, D.No.40-1-100B/1,

Vijayawada – 10.

3. ING Vysya Life Insurance Company Pvt.Ltd.,

Manager,

ING Vysya House, 5th floor,

No.22, MG Road,

Bangalore – 560001. … Opposite parties
This complaint coming up before us for final hearing on 17-12-09 in the presence of Consumer Care Center, Counsel representing on behalf of complainant and the OPs 1&2 are remained exparte, Sri G.Sai Krishna Srinivas, Advocate for OP3, upon perusing the material on record, hearing both sides and having stood over till this day for consideration, this Forum made the following:

O R D E R

Per Sri M.V.L.Radha Krishna Murthy, Member:

This complaint is filed under section 12 of Consumer Protection Act, 1986 by the complainant praying to direct the opposite party to pay sum of Rs.25,290/- and for costs.

The brief facts of complaint are as follows:

The complainant obtained a policy of ING Vysya Life Best Year Retirement Plan Scheme from opposite parties by paying Rs.5000/- on 22-12-03 through the insurance adviser of opposite party’s company. The 2nd opposite party issued provisional deposit acknowledgement dt.22-12-03. The 3rd opposite party issued a letter to complainant regarding paid premium contribution amount of Rs.5000/- dt.22-12-03 towards contract No.90053 and details of regular annual contribution Rs.20,000/- for five years and vesting date on 25-12-09. The complainant does not know about the policy benefits and purchased on good faith of insurance advisor. The insurance adviser did not explain about the scheme of policy to complainant. The complainant renewal premium of policy paid an amount of Rs.3000/- on 05-03-05 by cash to the Manager Mr.Narra Gopichand of 1st opposite party, who issued a manual acknowledgement to complainant but the same amount was not credited to policy so far. The complainant requested opposite parties 2 and 3 through 1st opposite party orally and by representation but no use. So far the amount of Rs.3000/- paid by complainant was not accounted to his policy. The complainant requested the opposite parties to pay total amount of Rs.8000/- with interest. The complainant demands the opposite parties to pay total amount of Rs.8000/- with 24% p.a. and also Rs.5000/- towards mental agony and Rs.5000/- for suffering and inconvenience faced by complainant and also special damages.

The opposite parties 1 and 2 remained exparte. The 3rd opposite party filed written statement, which brief as follows:

The 3rd opposite party is a company engaged in the business of life insurance. Opposite parties 1 and 2 are its official designations at its respective branches at Guntur and Vijayawada. The complainant raised grievance pertains to transaction that took place in March, 2005 and as such the complaint is barred by limitation. Only after understanding the features of plan in detail and going through the terms and conditions, the complainant made proposal dt.22-12-03. The complainant did not pay any amount after the date of first payment of Rs.5000/-. The acknowledgement No.032733 produced by complainant seems to be forged one and no money has come into the system of respondent company, as alleged by complainant. The said payment was made to one Narra Gopichand, who was not shown as party in his personal capacity. The said Narra Gopichand is no more in the services of opposite party company and as such no relief can be prayed from this opposite party. In order to resolve the grievance of complainant, the company had offered to give a credit of alleged amount of Rs.3000/- to complainant’s policy. The complainant filed this complaint with a delay of one year. As a goodwill gesture, the company is still willing to give credit of alleged sum of Rs.3000/- to the complainant’s policy. As per terms and conditions of plan, the complainant is supposed to pay contribution of Rs.20,000/-. In case the customer does not want to pay annual contribution, he may pay contribution in installments in multiples of Rs.1000/- with a minimum of Rs.2000/-. In case the customer does not pay any money whatsoever the policy/plan will not lapse till the time there are sufficient sums available in the IPA to pay off the rider premiums, if any, and the charges applicable. The value under IPA in customer’s policy has reduced to ‘zero’ on account of non-payment of regular contribution and as such no refund could have been made by opposite party company. Hence, the complaint may be dismissed.

The complainant filed affidavit in support of his claim reiterating the facts mentioned in version. The 3rd opposite party also filed affidavit in support of its version reiterating the same. On behalf complainant Ex.A1 to A6 are marked. No documents are marked for opposite parties.

Ex.A1 is the copy of provisional deposit acknowledgement dt.22-12-03 for Rs.5000/-. Ex.A2 is the letter addressed to complainant by 3rd opposite party, Ex.A3 is the acknowledgement dt.05-03-05 for renewal premium issued by 1st opposite party for Rs.3000/-, Ex.A4 is the letter dt.04-12-06 addressed by complainant to 3rd opposite party requesting to credit the amount of Rs.3000/- to his policy, which was paid by him on 05-03-05, Ex.A5 is the copy of annual statement for different periods, Ex.A6 is the letter dt.26-12-03 addressed by opposite party to complainant along with copy of policy.

Now the points for consideration are that

1. Whether there is any deficiency of service on the part of opposite parties?
2. Whether the complaint is time barred by limitation?
3. To what relief the complainant is entitled to?

POINTS 1 to 2

It is not in dispute that the complainant had purchased a policy of ING Vysya Life Best Year Retirement Plan Scheme from opposite parties by paying Rs.5000/- on 22-12-03. As per the terms of policy the complainant has to pay Rs.20,000/- for 5 years. It is the case of complainant that the adviser of opposite party’s company did not explain the features of scheme of policy and that he paid a sum of Rs.3000/- on 05-03-05 by cash to the Manager of 1st opposite party, who in turn issued manual acknowledgement to the complainant under Ex.A3 and that amount was not credited to his policy. Hence, he addressed a letter dt.04-12-06 under Ex.A4 requesting the opposite party to credit amount of Rs.3000/- that was paid by him on 05-03-05 by cash.

It is the case of opposite party that the person who received Rs.3000/- from the complainant during March, 2005 is no more in the service of opposite party company. As a goodwill gesture, in order to resolve the grievance of complainant, the company is willing to give credit of alleged payment of Rs.3000/- to complainant’s policy. Further it is the case of opposite party that the complaint is time barred.

Admittedly, complainant paid an amount of Rs.5000/- at the first instance on 22-12-03 while purchasing policy from opposite parties. Subsequently, he made payment of Rs.3000/- under Ex.A3 on 05-03-05. The said amount of Rs.3000/- was not credited to policy of complainant. However, the opposite party is ready to give credit of said amount of Rs.3000/- to the policy of complainant. As per terms and conditions of policy, the complainant has to pay only contribution of Rs.20,000/- for five years either in lumsum amount of Rs.20,000/- every year or in installments in multiples of Rs1000/- with a minimum of Rs.2000/-. It is also mentioned in version of opposite party that in case the customer does not pay any money whatsoever the policy/plan will not lapse till the time there are sufficient sums available in the IPA to pay off the rider premiums, if any, and the charges applicable. It is the case of opposite party that the value under IPA in customer’s policy has reduced to ‘zero’ on account of non-payment of regular contribution. As such no refund could have been made by opposite party company. It is not mentioned by opposite party that when the Individual Pension Account (IPA) in the customer’s policy has reduced to ‘zero’. As seen from Ex.A5, statement of account for the periods 01-04-04 to 31-03-05, 01-04-05 to 31-03-06, 01-04-06 to 31-03-07, there is closing balance of Rs.4,097.59ps. as on 31-03-07 in the account of complainant (as per annual statement for the period from 01-04-06 to 31-03-07). The net closing balance at the end of financial year 2007 is shown as Rs.4,483.01 ps. Therefore, it cannot be said that the annual pension account of complainant is not reduced to ‘zero’ till the end of financial year 2007. The complaint was filed before this Forum on 21-01-08. Therefore, it cannot be said that the complaint is time barred since policy of complainant is not lapsed till the end of financial year 2007.

Therefore, in view of foregoing discussion, we are of the view that it is just and proper to refund an amount of Rs.8000/- that was paid by complainant to opposite party under policy, since the opposite party is wiling to give credit of Rs.3000/- paid by complainant on 05-03-05 under Ex.A3. Since, the amount of Rs.3000/- paid by complainant was not so far credited to the policy of complainant, we find that there is deficiency of service on the part of opposite parties. Accordingly, the issues 1 & 2 are answered in favour of complainant.

POINT No.3

As the complainant has not paid the annual premium of Rs.20,000/- for 5 years of policy, we are of the opinion that the complainant is not entitled for any interest for the amount paid by him.

In the result, the complaint is allowed in part in terms as indicated below:

1. The opposite parties are hereby directed to pay an amount of Rs.8000/- to the complainant towards policy amount paid by him.

2. The amount ordered above shall be paid within a period of six weeks from the date of receipt of copy of this order, failing which it shall carry interest @ 9% p.a. till the date of realization.

3. Each party shall bear their own costs.
Dictated to Junior Steno, transcribed by her, corrected by us and pronounced in the open Forum, this the 23rd day of December, 2009.