Order No.  9  dt.  24/05/2017

       The case of the complainant in brief is that the complainant being allured by the authorized representative of o.ps. paid the premiums with the idea that the policies are only for one time payment of premium. The complainant after receiving the policies found that the said policies are not concerned with one time payment but it is a recurring premium deposit for terms of 12 and 30 years under payment mode ‘annual’. After going through the documents the complainant asked for the refund of the amount after cancellation of the policies but the request of the complainant was turned down. Subsequently the complainant sent a lawyer’s notice but no action was taken on behalf of o.ps. Only the complainant was informed that the o.ps. are not liable to refund the amount to the complainant on the ground that free look period for cancellation of the policies are over. On the basis of the said fact the complainant filed this case praying for direction upon the o.ps. for refund of the amount paid by the complainant to the tune of Rs.2,30,931.28 along with compensation of Rs.1,50,000/- and litigation cost of Rs.50,000/-.

            In spite of receipt of notices the o.ps. did not contest this case by filing w/v and as such the case has proceeded ex parte against the o.ps.

            The complainant in order to prove the case filed the evidence on affidavit whereby she stated that she was allured by the agent of o.ps. paid the amount to o.ps. for one time payment for availing of the policies. But after receiving the policies the complainant found that it was a recurring deposit for long 12 and 30 years. The complainant being an aged lady it was not possible for her to continue the policies and she had no such intention to pay recurring premium in respect of those policies for long 12 and 30 years. Immediately after receiving the policies the complainant exercised her option for cancellation of the policies and asked for refund of money. The o.ps. did not accept the prayer of the complainant for cancellation of the policies  though it was exercised within the free look period. In view of the said fact the complainant filed this case.

            The complainant also filed the documents in support of her contention. In view of the evidence on record as well as materials placed before this Forum, we hold that that there was deficiency in service on the part of o.ps. and the complainant though exercised her option within the free look period for cancellation of the policies the same was turned down without applying mind by o.ps. Having regard to the said fact we hold that the complainant will be entitled to get refund of the amount paid by her along with compensation and litigation cost. Thus the case is disposed of accordingly.

            Hence, ordered,

            That the CC No.507/2015 is allowed ex parte with cost against the o.ps. The o.ps. are jointly and/or severally directed to refund a sum of Rs.2,30,931.28 (Rupees two lakhs thirty thousand nine hundred thirty one and paise twenty eight) to the complainant along with compensation of Rs.3000/- (Rupees three thousand) only for harassment and mental agony and litigation cost of Rs.1000/- (Rupees one thousand) only within 30 days from the date of communication of this order, i.d. an interest @ 10% p.a. shall accrue over the entire sum due to the credit of the complainant till full realization.            

            Supply certified copy of this order to the parties free of cost.