Sri Shyamal Gupta, Member

Aggrieved over dismissal of her complaint case by the Ld. District Forum, this Appeal is preferred by Smt. Jyotsna Mukherjee, the Complainant.

Briefly stated, case of the Complainant is that, being misguided by the agent of Respondent Company, she took the subject insurance policy from of the said Company.  Thereafter, although she somehow managed to pay the annual premium for three years, in view of some financial urgency, she wanted to withdraw the amount of two premiums.  She was, however, allowed to withdraw only a sum of Rs. 25,000/-.  Thereafter, as per the advice of Branch Service Manager of the Respondent Company, she opted for migrating to another policy.  Thereafter, all on a sudden, without any prior notice, a foreclosure notice dated 21-11-2013 along with a cheque for a sum of Rs. 45,531.58 was sent to her.  However, she has not encashed the said cheque as yet.  Aggrieved with such arbitrary act of the OPs, the complaint case was filed.

Counter case of the OPs is that, the Complainant, after understanding the pros and cons of the disputed policy, voluntary opted for it.  After receiving the policy documents through post, the Complainant did not raise any objection within the free look period.  Not only that, the Complainant also paid 3 premiums in respect of the said policy.  On 03-06-2013, the Complainant requested for partial withdrawal of Rs. 25,000/- and also switched over to another fund, namely, Protector Fund. The said request was duly processed by the OPs and the sum of Rs. 25,000/- was transferred to the bank account of the Complainant directly.  Meanwhile, as the surrender value, post withdrawal of Rs. 25,000/-, became less than one annualized premium, the same was foreclosed on 08-11-2013 and the foreclosure cheque of Rs. 45,531.58 was sent to the Complainant. 

Decision with reasons

Ld. Advocates for the parties were heard and documents on record gone through thoroughly.

It appears from the photocopy of Proposal Form that the Appellant was a Pension-holder.  At the time of opting for the disputed policy, the incumbent was almost 62 years old.  As the tenure of said policy was 38 years, going by this, the policy would mature at the age of her 100 years. Also, significant to note that as against the declared annual income of Rs. 2,12,000/-, Appellant needed to fork out Rs. 50,000/- every year as premium in respect of the said policy.

Taking into consideration such unusual features and keeping in mind the fact that the proposal form was not filled up by the Appellant, which is clearly visible from the proposal form itself, and also the fact that she has not encashed the cheque of Rs. 45,531.58 being sent by the Respondents, we find no reason to disbelieve the allegation of the Appellant.  It is true that the policy document was sent to the Appellant by post and she ought to go through the same carefully on receipt of the same.  However, it appears, out of her complete faith in the sincerity of purpose of the agent concerned she did not go through the same.  Probability is also there that, at such advanced age, she did not have the due wherewithal to read between the lines of voluminous documents in order to understand its true implications.

This is not the first time that allegation of misspelling of policy has been raised against the Respondent Company.  However, it seems, they are immune to any criticism.

Be that as it may, taking due note of the circumstantial evidence, we deem it fit and proper to direct the Respondents to refund the entire deposited sum to the Appellant after deducting Rs. 25,000/- that has already been credited to the account of the Appellant.  Considering the lapses on the part of the Appellant, we refrain from allowing any other relief to her.

The Appeal, thus, succeeds in part.

Hence,

O R D E R E D

The Appeal stands allowed against the Respondents on contest in part. Respondents are directed to refund Rs. 1,25,000/- to the Appellant within 40 days from today, i.d., simple interest @ 9% p.a. shall be payable from the date of filing of the complaint case before the Ld. District Forum till full and final payment is made.  The impugned order is hereby set aside.