SURINDER KUMAR SINGAL Vs. AVIVA LIFE INSURANCE CO. INDIA PVT. LTD.

JUDGEMENT

(1.) THIS appeal is directed against the order dated 13.3.2014, rendered by the District Consumer Disputes Redressal Forum -II, UT, Chandigarh (hereinafter to be called as the District Forum only) vide which it disposed of the complaint filed by the complainant (now appellant) as under:

(2.) IT was further stated that the complainant paid regular premiums for 6 continuous years from 2007 to 2012, in all paying Rs. 6,00,000. Thereafter, the complainant enquired from the opposite parties about the value of his investment, when he was informed by them vide letter dated 27.4.2012 (Annexure C -3) that the current value of the amount deposited was Rs. 5,30,556 against the payment of Rs. 6,00,000. He lodged a protest with the opposite parties by showing his willingness to surrender the Policy. To his utter surprise, the complainant was informed that the Policy could be surrendered by paying surrender charges, to which he was not agreed as the same was not disclosed in the proposal form. It was further stated that the premium paying term of the Policy was 40 years, whereas, he would be insured only upto 70 years. It was further stated that the opposite parties were deficient, in rendering service, as also, indulged into unfair trade practice. When the grievance of the complainant, was not redressed, left with no alternative, a complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter to be called as the "Act" only), was filed.

(3.) IT was further stated that, as per the terms and conditions of the Policy, if the premium payment was discontinued after 36 months, from the date of commencement then the Policy could be reinstated or could be surrendered after penalty. As per Article 15, the Policy was to remain in force for full risk cover for two consecutive years, from the due date of first unpaid regular premium, during which period it (Policy) may be reinstated. The Policy holder could reinstate the Policy subject to Article 7.4 of the terms and conditions of the same. It was further stated that if within the reinstatement period, the surrender value of units attributable to regular premium fell below a single premium amount, the Policy was to automatically terminate and the Policy holder was to be paid the surrender value. The Policy holder had a right to surrender the Policy in accordance with Article 14 and surrender value was payable to the person pursuant to which the Policy was to terminate.