IMPORTANT POINTS
(1) Guaranteed Loyalty Additions (GLA) – The entitlement to GLA is not automatic upon the payment of premiums but is contractually tied to specific “insured events.”
(2) Strict Construction of Insurance Contracts – An insurance policy is a legal contract. Its terms must be interpreted as expressed, without any addition, deletion, or substitution. Courts and Commissions cannot award relief that contradicts the explicit provisions of the policy document.

JUDGMENT

Sangita Dhingra Sehgal, President—The facts of the case as per the District Commission record are as under:—

“1. The present complaint has been filed under section 35 of the Consumer Protection Act, 2019 (in short CP Act-2019) against Opposite Parties (in short OP’s) alleging deficiency of services.

2. Briefly stated the facts of the case are that the complainant had taken a policy of unit linked insurance plan (ULIP) No.623172343 of Max Life Insurance Co. Ltd for insurance cover of Rs 2 lac on 29.6.2009 @ premium of Rs.20.000/- payable on 7th July annually and the Complainant used to deposit Premium of Rs.20,000/- annually through Cheque at the office of Opposite Party No. 2.

3. It is stated that a premium of Rs.20,000/- was deposited by the complainant for 11 years totaling of Rs 2,20,000/- at the office of Opposite Party no.2 from 2009 to 2019. And on 22nd July, 2020, the complainant surrendered his original policy bond at the office of Opposite Party no. 2 & there after the Opposite Party transferred Rs.27,842.84 paise to the complainant’s bank a/o as unit fund value where as Guaranteed Loyalty was not paid to the complainant.

4. It is stated that the Opposite Party through mail dated 3.3.2022 has refused to pay Guaranteed Loyalty although 1st premium for Rs.20,000/- paid by complainant on 7th July, 2009 was reserved specifically by Opposite Party towards payment of guaranteed Loyalty to the complainant. It is submitted that the Complainant through mail dated 1.9.2022 informed that non-payment of Guaranteed Loyalty to the complainant is illegal & the complainant has no alternative but to approach District Consumer Forum for recover of his 1st Premium for Rs.20,000/- reserved by the Opposite Party towards payment of Guaranteed Loyalty. And the Opposite Party through mail dated 1.9.2022 further informed that Guaranteed Loyalty Addition is not payable.

5. The Complainant submits that when the policy was taken, the Company’s name was Max New York Life Insurance Co. Ltd. & it’s name was changed from time to time.

6. The Complainant states that the first premium for Rs.20,000/- was paid on 7th July, 20009 to the Company & Premium receipt was issued to the complainant where in it has been mentioned that “The first year annual premium will be used to provide Guaranteed Loyalty Additions and will not be allocated to the Investment funds”.

7. The Complainant submits that Rs 20,000/- is his money& it is not Opposite Party’s money.

8. The Complainant further submits that the complainant has paid total premium of Rs.2,20,000/- for 11 years to the Opposite Party company and in return the complainant has received Rs. 1,79,094- 16 paise as partial withdrawal & Rs.27,842-84 paise as surrender value totaling of Rs 2,06,937/- from the Opposite Party company.

9. It is stated that Non- Payment of Guaranteed Loyalty Addition by the Opposite Party is illegal, contrary to law, arbitrary, Unfair & deficiency in service by Opposite Party.

10. It is prayed that to direct the OP Addition Guaranteed Loyalty for Rs.20,000/- be paid by Opposite Party along with interest@10%per annum from 7th July, 2009 till date totaling of Rs.65,000/- to the Complainant against Ist premium for Rs.20,000/- kept reserved by Opposite Party towards payment of Guaranteed Loyalty. And to directed to pay Rs.60,000/- towards mental agony& harassment, & Rs.25,000/- towards cost of petition.”

2. The District Commission after taking into consideration the material available on record passed the judgment dated 20.12.2024, whereby it held as under:—

“... 24. It is not in dispute that the complainant purchased a Unit Linked Insurance Plan (ULIP) policy (No. 623172343) from Max Life Insurance Co. Ltd. on 29.6.2009 for an insurance cover of Rs.2,00,000, paying an annual premium of 220,000 via cheque for 11 years, totaling 22,20,000/-.

25. The complainant surrendered the policy on 22.7.2020, and the insurer transferred 227,842.84 as the unit fund value