BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MYSORE-570023

CONSUMER COMPLAINT NO.640-2015

DATED ON THIS THE 15^th July 2016

      Present:  1) Sri. H.M.Shivakumara Swamy

B.A., LLB., - PRESIDENT   

    2) Smt. M.V.Bharathi                    

                                   B.Sc., LLB., -  MEMBER

                     3) Sri. Devakumar.M.C.                  

                                                          B.E., LLB.,    - MEMBER

Sri Devakumar.M.C.

Member

1.     The complainant has filed the complaint under section 12 of the C.P.Act 1986, against the opposite party, alleging unfair trade practice and deficiency in service by opposite party and prayed for a direction to pay the balance policy surrender value of `23,000/- and accrued bonus of `35,000/-, to pay `20,000/- towards compensation for mental agony and harassment, to pay `50,000/- towards compensation for unfair trade practice and deficiency in service, cost of the proceedings with such other reliefs.
2.    The complainant obtained a Jeevan Anand policy (with profit) from opposite party, on 23.11.2006.  Premium has been paid until 2013 only.  Later, on 02.07.2015, surrendering the policy to opposite party, requested for the payment of the policy amount along with accrued benefits.  The opposite party has paid `29,439/- as against the payment of premium of `52,000/-, which accrued bones of `35,000/- as on the date of surrender of the policy.  The demand made by the complainant for the payment of balance amount, went in vain.  As such, alleging the unfair trade practice and deficiency in service filed the complaint, seeking reliefs.
3.     The opposite party filing its version, admitted the issue of the insurance policy on 24.11.2006.  It submits the complainant has discontinued the payment of premium from 24.02.2013, hence, the policy got lapsed.  Opposite party denies the promise to repay the entire amount of premium paid along with accrued bonus, if the payment of premium discontinued after the lapse of three years from the date of payment of premium.  It submits, the policy has acquired the paid up value as per clause 4 of the “conditions of privilege” of the policy.  The complainant is entitled for higher amount.  The G.S.V. was `21,015/- and S.S.V with accrued bonus was `29,435/-.  Hence, the higher value has been paid to the complainant on 03.07.2015 on surrender of the policy.  So there is no delay / deficiency in service by opposite party and it is not liable to pay any amount and prays for dismissal of the complaint.
4.     To prove the facts, both parties filed their respective affidavit and relied on several documents.  Written arguments filed and oral arguments submitted by both side.  On perusing the documents, the matter has been posted for orders. 
5.     The points arose for our consideration are:-

1. Whether the complainant establish the deficiency in service and unfair trade practice by opposite party in not making the insurance policy benefits along with accrued bonus on surrender and thereby he is entitled for the reliefs sought?
2.  What order?

6.    Our findings on the aforesaid points are as follows:

Point No.1 :- In the negative.

Point No.2 :- As per final order for the following

:: R E A S O N S ::

7.    Point No.1:- The complainant had taken the policy on 24.11.2006 and the premium had been paid quarterly until 2013 and the policy lapsed for non-payment of the premium amount.  On 02.07.2015, complainant claimed the surrender value along with accrued bonus of the policy.  A sum of `29,434/- credited to complainant’s bank account by opposite party on 04.07.2015.  Aggrieved complainant demanded for payment of balance amount with accrued bonus and for statement of bonus paid to the policy.  The opposite party fail to comply the demands.  Hence, the complaint alleging the deficiency in service and unfair trade practice by opposite party and sought for the reliefs.
8.    The complainant paid 25 quarterly premium amount towards the policy i.e. 24.11.2006 to 24.11.2012, total amounting to `41,725/- only and the policy lapsed from 24.02.2013 due to non-payment of premium amount.  The complainant had paid the premium for a minimum period of three years and as such, the policy acquired the paid up value under clause 4 of the “conditions and privileges” of the policy.  Opposite party contended that, it has not agreed or promised to repay the entire premium amount with accrued bonus, if discontinued the payment of premium after completion of three years from the date of commencement of the policy.  The policy surrendered for cash after three years of payment of premium, the “guaranteed surrender value” (GSV) is equal to 30% of the total amount of premium paid excluding the 1<sup>st</sup> year premium of the policy, is payable.  However, the opposite party considered more liberal surrender value, called as “special surrender value” (SSV).  The SSV will be more than GSV.  The SSV calculated as a percentage of paidup value + bonus /guaranteed addition.  The GSV with cash value of accrued bonus as per clause 7 of the policy is `21,015/-.  The SSV with cash value of accrued bonus in `29,435/-.  Hence, the higher value has been paid to the complainant on 03.07.2015.  As such, there is no unfair trade practice and deficiency in service on the part of opposite party, and it is not liable to pay any amount to the complainant and prayed for dismissal of the complaint.
9.    On perusal of the material on record, the purchase of policy on 26.11.2006 had been admitted and the quarterly premium of `1,699/- has been paid for 25 quarter i.e. 24.11.2006 to 24.11.2012.  The complainant established the payment of premium for atleast three years from the date of commencement of risk under the policy.  The complainant in total paid `41,725/- as premium amount.  The opposite party considering the special surrender value is higher than the guaranteed surrender value, paid the same to the complainant, as per the calculations made by it and narrated in the written arguments.  Further, the complainant fail to establish that he had paid premium of `52,000/- and the same has accrued the bonus of `35,000/- as on the date of the surrender of the policy.  As such we are of the opinion that, there is no unfair trade practice and deficiency in service on the part of opposite party and complainant is not entitled for any reliefs as sought.  Accordingly, the point No.1 is answered in the negative.
10. Point No.2:- In view of the above, we proceed to pass the following

:: O R D E R ::

1. The complaint is dismissed.
2. Give the copies of this order to the parties, as per Rules.