AHMEDABAD - Gbic.co.in

Shri Shyam Singh Thakur resident of Bhopal lodged the complaint that he has taken BajajAllianz Life Insurance Company’s Policy No. 0102506313 on his own life and policy no.0102618730 on the life of his wife Smt. Rekha Singh Thakur for single premium of Rs.50,000/- and issued a cheque for the same on 04.07.2008. Proposal form was filled in byShri Sanjay Sharma, Branch Manager and policy was issued for three years annual premiuminstead of single premium by making on authenticated correction, which he came to knowonly when he received a call for the payment of subsequent premiums. He immediatelylodged the complaint on 13.05.2009 to cancel the policy and refund the amount and followedup by the reminders, but he did not get any response from the respondent.Aggrieved from the action of the respondent the complainant lodged the complaint on21.10.2009 seeking the direction to refund the amount Rs. 1.00 lakh with interest forcompensation for mental agony and expenses.The Complainant presents himself and submitted that he has taken the policy with theunderstanding for single premium for Rs. 50,000/- each, but the Branch Manager has issuedthe policy for 03 years term with annual term instead of single premium. On receiving a callfor the renewal premium, he came to know that he has been cheated by the Branch Manager,by making correction in proposal form without his knowledge hence, applied for thecancellation of the policy and refund the amount, which he did not received despite of hisseveral reminders since May 2009. He should be compensated for mental agony and loss ofinterest.The Respondent represented by Shri Ankur Chawla, Deputy Manager, Bhopal submitted thatthe policy was issued wrongly under annual premium instead of Single Premium andcompany has decided to refund the premium waiving the expenses and risk premium. I havebrought a cheque each of Rs. 50,000/- to deliver to the complainant.FINDINGS & CONCLUSIONS:-There is no doubt that the above Policies were issued to the complainant and it is proved thatthe policies were issued towards annual premium instead of single premium. The proposalform is filled in for single premium only, hence the respondent has agreed their mistake andcancelled both the policies and prepared the cheque of Rs. 50,000/- each to deliver to thecomplainant. The complainant claimed the amount with interest and compensation formental agony, hence, he refused to accept the cheques.Insurance is a contract of utmost good faith, both the parties are expected to reveal all thematerial facts, failing to which vitiate the contract ab-initio.Hence the respondent is directed to refund Rs. 50,000/- under each policies with Interest @9% from the date of the receipt of the premium to till the date of payment, within 15 daysfrom the date of receipt of this order, failing to which further interest @ 9% will bepayable.Dated at BHOPAL, on 07 th of JANUARY 2010.