DATE OF FILING : 17.03.2015.
DATE OF S/R : 10.06.2015.
DATE OF FINAL ORDER : 19.07.2016.
Shri Nilanjan Roy,
son of Shri Shib Roy,
residing at 94/C, Lala Babu Shire Road, 3rd floor, Belur Bazar,
P.S. Bally, District Howrah,
PIN 711202. ………………………………………………………… COMPLAINANT.
1. IDBI Fortis Life Insurance Company Ltd.,
presently known as IDBI Federal Life Insurance Company Ltd.,
represented by its Managing Director & C.E.D.1st floor, Trade View,
Oasis Complex, Kamala City, P.S. Marg, Lower Parel ( west ),
Mumbai 400013.
2. The Senior Manager,
Policy Servicing, IDBI Fortis Life Insurance Company Ltd.,
presently known as IDBI Federal Life Insurance Company Ltd.,
Oasis Complex, Kamala City, P.S. Marg, Lower Parel ( west ),
Mumbai 400013.
3. The Branch Manager,
IDBI Bank, 334, G.T. Road, Bally, near Belur Math,
Badamtala Branch,
Howrah 711201.……………………………………………OPPOSITE PARTIES.
P R E S E N T
Hon’ble President : Shri B. D. Nanda, M.A. ( double ), L.L.M., WBHJS.
Hon’ble Member : Smt. Jhumki Saha.
Hon’ble Member : Shri A.K. Pathak.
F I N A L O R D E R
- This is an application U/S 12 of the C.P. Act, 1986 filed by the petitioner, Shri Nilanjan Roy, against the o.p., IDBI Life Insurance Company Ltd. and two others, praying for direction upon the o.ps. to refund his paid up premium amounts which were received by o.p. no. 1 from the petitioner on account of first premium and to pay compensation for a sum of Rs. 1 lakh for mental agony and harassment and costs.
- The case of the petitioner is that he is a policy holder in respect of IDBI Federal Policy no. 4000164258 under IDBI Fortis Incomesurance Endowment and Money Back Plan which commenced from 06.03.2010 for a term of 20 years and for obtaining the said policy the petitioner deposited a sum of Rs. 50,000/- by A/c payee cheque dated 18.02.2010 drawn on SBI Liluah Branch as first installment of premium and the o.p. issued the policy certificate and other allied papers in favour of the petitioner.
- Due to inconvenience the petitioner intended not to continue the said policy and did not deposit the subsequent premiums and accordingly requested the o.ps. to accept his surrender of the policy and return Rs. 50,000/-. The petitioner waited for a considerable period and made several representations before the o.p. nos. 1 & 2 but no reply received. On 21.8.2013 one Uday Sankar, Senior Manager, Policy Servicing Department, wrote him a letter instructing him on certain points and also requested him to avail further assistance from the nearest IDBI Branch. On the basis of the same the petitioner had been to the office of the o.p. no. 3 who stated the petitioner that his surrender of policy might be accepted and the first premium would be refunded on condition that he had to agree to reinvest the said amount of Rs. 50,000/- as fixed deposit in IDBI Branch. The o.p. no. 3 also told him that to avail the opportunity he had to deposit the original policy certificate required for the purpose and then the matter to be considered. On 14.11.2013 the petitioner deposited the original policy containing 25 pages and other allied papers through a forwarding letter cum receipt addressing the o.p. no. 2 in the office of o.p. no. 3 who received the same by putting his signature on the copy. The petitioner also expressed his intention to purchase the fixed deposit certificates of Rs. 50,000/- by writing a letter. Later on the petitioner had been to the office of the o.p. no. 3 on several times to know about the fate of his application dated 14.11.2013 and the o.p. no. 3 told him that instruction from head office not reached his office. Then finding no other alternative the petitioner took the help of law by sending a legal notice on 14.7.2014 but the o.ps. did not respond and then the petitioner filed this case as the agent of the company namely Nilanjan Acharya, who received his premium prior to getting the policy and who filled up the proposal form also did not pay heed to him. Mr. Acharya’s distributor code no. is 1000014578.
- The o.ps. contested the case by filing a written version denying the allegations made against them and submitted that the petitioner filed a false, incorrect and malafide case before this Forum which is liable to be dismissed U/S 26 of C.P. Act, 1986. The present complaint of the petitioner does not fall under definition of consumer dispute under the C.P. Act, 1986 and o.p. neither had any deficiency in service nor any unfair trade practice in the instant case. The policy holder Shiben Roy, father of the present petitioner, Nilanjan Roy, carefully understood the terms and conditions of IDBI Policy by voluntarily filing the proposal form no. 208041373 duly signed by him on 19.2.2010 wherein the sum assured was Rs. 8,38,800/- and the petitioner had chosen the premium of Rs. 49,479.20 p. being yearly premium payment with term of 15 years and policy term 20 years. On receipt of first premium of Rs. 49,998.94 p. towards the initial premium along with proposal form for the insurance policy, the o.p. evaluated the same and issued policy document bearing no. 4000164258 on 06.03.2010 to the life assured. The policy holder received the policy document along with schedule and the standard terms and conditions thereto and a welcome letter was sent to the life assured which was duly delivered to him. This petitioner and his father are both educated persons. The policy document is approved by IRDAI and it is agreed between the parties that the policy can be transferred at any time after payment of two years premiums from the date of commencement of policy and it is the admitted case of the o.p. that the policy continued only for one year and the life assured was provided with insurance coverage during the period for which the policy was in force and in such a condition nothing is payable to the life assured on surrender or lapse of the policy.
- It is true that the petitioner sent a letter on 02.8.2013 stating his inconvenience to continue the said policy and requested refund of first premium but in the mean time the policy had lapsed for non receipt of renewal premium during the revival period of two years. The petitioner ought to have prayed for refund of the policy premium within 15 days of free look period as had been mandated by the IRDAI but the complainant had written the o.p. company on 02.8.2013 for cancellation of the policy after the expiry of the free look period. The o.p. never assured the petitioner to refund the deposited amount of first premium. The o.p. agreed that on 02.8.2013 they received the prayer of the petitioner and on 21.8.2013 they gave reply showing reasons for lapse of the policy and asking the petitioner to pay the outstanding dues for revival of the policy and they told the petitioner that no surrender amount was payable to him. They further told him that the policy not being returned within 15 days free look period it is deemed under law that the policy which was sent to the petitioner was accepted and so having no deficiency in service the petitioner is not entitled to any refund of premium or any compensation or any litigation costs as prayed for.
6. Upon pleadings of parties the following points arose for determination :
- Is the case maintainable in its present form ?
- Whether the petitioner has any cause of action to file the case ?
- Whether there is any deficiency in service on the part of the O.Ps. ?
- Whether the complainant is entitled to get any relief as prayed for ?
DECISION WITH REASONS :
- All the issues are taken up together for the sake of convenience and brevity for discussion and to skip off reiteration. In support of his case, the petitioner filed affidavit in evidence and also the o.p. no. 3 filed affidavit. The affidavit in evidence and the documents of the petitioner show that the petitioner was provided with a letter dated 06.03.2010written by M.D. and CEO of IDBI requesting him to pay the rest premiums for 14 year son or before 6th March, 2024. It is also stated there that the company gave him option of cancellation of the policy within the free look period of 15 days from the date of receipt of this document and also they provided him premium payment details wherefrom it is noticed that the name of the insured was Nilanjan Ray and the date of commencement of the policy was March 6, 2010 and the policy was for 20 years and the sum assured Rs. 8,38,800/- and the premium amount received by the o.p. no. 3 was Rs. 49,489. 2 p. and the rest was service tax, education cess being the total payment received Rs. 49,998.94 and the next premium was fixed 6.3.2011. It is specifically stated that if the policy holder does not pay the premium within the grace period from the premium due date then the policy will be lapsed. It is also mentioned that a special surrender value is available once a policy acquires a paid up value which is after one, two or three full years premiums have been paid for policies with premium payment period 5, 10, and 15 years respectively but is not guaranteed subject to the approval of the IRDA. The policy also provides a minimum guaranteed surrender value once the policy is acquired a paid up value.
- In the instant case the petitioner wrote to the o.p., IDBI on 02.8.2013 requesting the o.p. to return the money deposited by him in the first premium along with 3 ½ years interest through account payee cheque within 30 working days. On receipt of the said letter dated 02.8.2013 the Sr. Manager, Policy Servicing replied the petitioner dated 21.8.2013 stating that as per the policy terms and conditions during the first three years after the commencement date of the policy if the policy holder does not pay all regular premiums within the grace period of 30 days then he would not be allowed to any refund as the policy got lapsed by that time because two years revival period was also allowed to the petitioner but in the instant case the policy started on 06.03.2010 and thus the second premium was due on 06.03.2011 and then after lapse of six months from the revival period of two years the petitioner being an educated person cannot claim refund of money as the revival period was over and he claimed return after 3 ½ years.
- Insurance is a contract whereby one undertakes to indemnify another against loss, damage or liability arising from an unknown or contingent event and is applicable only to some contingency or act to agree in the form. An agreement by which one party for a consideration promised to pay money or its equivalent to other party upon destruction, loss or injury of some thing in which other party has an interest. In this case also such insurance policy document is binding on both the parties in respect of the terms and conditions mentioned therein. Our Supreme Court categorically mentioned that it is the duty of the court to interpret the policy document to be understood by the parties at the time of contract. Without altering the nature of the said contract thus the words of the policy document clearly shows that in the case of lapse of the policy or in the case of cancellation of the policy the petitioner would not be entitled to any refund except on specific cases where the prayer has been made at least after payment for 2 or 3 years premiums.
In view of above discussion and findings this Forum finds that the petitioner approached the o.p. after a lapse of 3 ½ years from the date of commencement of the policy or 2 ½ years from the date of second premium date being 06.03.2011being due and also the revival period of two years having expired from the date of payment of second premium the policy got cancelled and the petitioner is not entitled to any relief as prayed for.
In the result, the application fails.
Court fee paid is correct.
Hence,
O R D E R E D
That the C. C. No. 96 of 2015 be and the same is dismissed on contest with costs against the O.Ps.
Supply the copies of the order to the parties, free of costs.
DICTATED & CORRECTED
BY ME.
( B. D. Nanda )
President, C.D.R.F., Howrah.
