PBEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, ERNAKULAM.
Dated this the 26th day of November 2011
Filed on :26/11/2011
Present :
Shri. A Rajesh, President.
Shri. Paul Gomez, Member. Member.
Smt. C.K. Lekhamma, Member
C.C. No.630/2010
Between
T. Mohammed Ashraf, : Complainant
32/1510, Kalavath Cross road, (By Adv. K. Jagadeesh,
Palarivattom, Kochi-682 025. Sahasram Associates, Lawyers and
Notaries, Narayaneeam Buildings,
Chittoor road, Cochin-682 011.)
And
ICICI Prudential Life Insurance, : Opposite party
M.G. Road, North End, (By Adv. Sunil Sankar
Ernakulam. K.N. Sivasankaran & Asso-
Ciates, Kochi-682 002.
O R D E R
C.K. Lekhamma,Member.
The case of the complainant is as follows:
The complainant has taken Life Time Super Pension Policy with policy No. 04817863 and UIN 105 L055VOI from the opposite party. He has been regularly remitting the premium from time to time. The complainant has remitted an amount of Rs. 27,020/- towards the insurance premium. On 23-03-2010 the complainant received a letter issued by the opposite party stating that the policy has been foreclosed with effect from 19-03-2010. A cheque for an amount of Rs. 6,744/- was also enclosed therein. While making payment of the premium, the complainant was legitimately expecting coverage of pension policy. The opposite party has no right to unilaterally foreclose the insurance policy of the complainant. Unilateral foreclosure of the policy and the refusal to return full amount paid by the complainant would constitute deficiency of service. The complainant is entitled to get Rs. 20,276/- with interest from the opposite party, being the amount actually remitted by the complainant after adjusting the amount of Rs. 6,744/-. The complainant caused a lawyers notice to the opposite party. In spite of that the opposite party has not cared to make repayment. The policy conditions stated therein are not binding on the complainant as it stands contrary to the provisions of insurance Regulatory Laws and the principles of common law. Therefore, the complainant seeks the following reliefs against the opposite party to pay an amount of Rs. 20,276/-, compensation of Rs. 50,000/- along with interest at the rate of 11% p.a. from 19-03-2010 till realization and costs of the proceedings.
2. Version of the opposite party.
There is no deficiency of service or negligence on the part of the opposite party. Under the subject policy, the complainant has to pay premium regularly on due dates or during grace period. But the complainant paid only first premium and never paid renewal premiums on due date. Thus the policy culminated in to foreclosure. The complaint is not maintainable since the complainant was the advisor of the opposite party therefore he is well aware of the terms and conditions of the policy. Clause 10 of the policy terms and conditions deals with foreclosure of the policy and clause 4 deals with surrender. If the policy is not remained within two years from the due date of first unpaid premium, the surrender value as per clause 4 will be paid only after the end of their policy year. Therefore, the complainant is not entitled to get any reliefs as he prayed for.
3. The complainant and the opposite party represented through the counsel. The complainant was examined as PW1. Exts. A1 to A3 were marked on his side. The opposite party filed proof affidavit. During the proceedings the counsel for the complainant filed a memo stating he is adopting the deposition of the witness in O.S. No. 628/2010 to this case and Ext. B1 was marked. Thereafter we have heard the counsel for both sides.
4. The points for determination are as follows:
i. Whether the complainant is entitled to get refund from the
opposite party as prayed for?
ii. Compensation and costs if any?
5. Point No. i&ii. No dispute with regard to the issuance of the policy. Ext. A1 is the copy of letter issued by the opposite party to the complainant informing him that his policy has been foreclosed with effect from March 19, 2010. Ext. A2 is the copy of Notice issued by the complainant to the opposite party. Ext. A3 is the copy of lawyer notice on behalf of the complainant. Exbt. B1 is the copy of the proposal form.
The case of the opposite party is that the complainant did not pay subsequent premiums, and so his policy got foreclosed as per the terms and conditions the policy concerned. Thereby the complainant is entitled to get only the surrender value, admittedly they have paid the same to the complainant. During cross-examination complainant deposed that he was working as a policy advisor of the opposite party. He further stated that he is not remembering the policy terms and conditions, premium and premium frequency of the disputed policy. The contention of the opposite party is that the foreclosure of the policy based solely on the basis of the terms and conditions of the policy. The complainant contented that he is not aware of the terms and conditions of the policy since the opposite party failed to serve the terms and conditions of the policy. Even though the opposite party contented that they have duly forwarded the said document to the complainant. Nothing is on record to substantiate the same and the complaint was deprived of opting his rights during the free look period. In view of the above we are of the opinion that the complainant is entitled to get refund of the premium amount from the opposite party with interest. Admittedly the complainant had received Rs. 6,744/- from the opposite party by way of cheque. The complainant admitted Ext. B1 proposal form. It goes to show that complainant paid Rs. 25,000/- towards premium by way of cheque. Therefore the complainant is entitled to get the remaining amount i.e. after deducting Rs. 6,744/- from the 25,000/- (Rs. 25,000-Rs.6744=18,256). We are not ordering any compensation and costs since we have already ordered refund with interest.
6. Accordingly, we partly allow the complaint and direct that the:
opposite party shall refund Rs. 18,256/- with interest @ 9% p.a.from the date of complaint till realization to the complainant.
The above said order shall be complied with within a period of one month from the date of receipt of a copy of this order.
Pronounced in the open Forum on this the 26th day of November 2011
Forwarded/By order, Sd/- C.K. Lekhamma, Member.
Sd/- A Rajesh, President.
Sd/- Paul Gomez, Member.
Senior Superintendent.
