Date of filing : 24.01.2014

 IN THE TAMIL NADU STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI.

 

Present: Hon’ble Thiru Justice R.SUBBIAH       ... PRESIDENT

             Thiru. S. KARUPPIAH             …  JUDL. MEMBER

 

C.C. No.19 of 2014

 

                               Orders pronounced on:   26.10.2022

 

V.Vasanthakumari,

W/o.Mr.K.M.Vijayan,

No.3, Crescent Avenue,

K.P. Puram, R.A. Puram,

Chennai-28.                                         … Complainant

vs.

 

1. State Bank of India,

rep. by its Branch Manager,

R.A. Puram (P & SB) Branch,

No.84, Greenways Road,

R.A. Puram,

Chennai 600 028.

(amended as per orders dt.4.11.19

in MP No.207 of 2019).

 

2.SBI Life Insurance Company Limited,

rep. by V.Susil Kumar,

State Head-Operations,

T.C.9/1094-1, 3rd Floor,

Sathas Building, Sasthamangalam,

Trivandrum,

Kerala 695 010.

 

3.SBI Life Insurance Company Limited,

rep. by Asst. General Manager,

State Bank Learning Centre,

No.20, Pycrofts Garden Road III Floor,

Nungambakkam, Chennai 600 006.     ... Opp. Parties.

             For Complainant      :  M/s.K.M.Vijayan Associates

             For Opp. Party No.1 :  M/s.R.Subramanian

             For OP Nos.2 and 3  :  M/s.Yogesh Kannadasan.

 

This Complaint came up for final hearing on 25.08.2022 and, after hearing the arguments of the counsels for the parties and perusing the materials on record and having stood over for consideration till this day, this Commission passes the following:-

O R D E R

 

R.Subbiah, J. – President.

 

             The complainants herein seeks this Commission to direct the Opposite Parties to -

             i) deposit Rs.15 lakh with accumulated benefits and interest on the date of realization under the Policy;

             ii) pay Rs.10 lakh as compensation for the mental harassment and damages caused to the complainant & Rs.50,000/- towards costs.

 

             2.  The averments made in the complaint are concisely given below:-

           The complainant is a customer of the OPs/SBI and she took a pension Policy called "SBI Life-Unit Plus II Pension" bearing proposal No.28-5546912, dated 10.09.2007, from the 2nd OP. The Policy was issued on 24.09.2007 and its date of vesting was 24.09.2012.  She paid 10 instalments of premium at the rate of  Rs.1,50,000/- per half year  for a period of 5 years from 2007 to 2011 and the policy vested on 24.09.2012.  At the time of taking the policy in question on 24.09.2007, the agents of the OPs/Insurance Company told the complainant that pension would be paid periodically if invested on maturity, otherwise, the maturity amount would be paid. The complainant did not want to continue in the Scheme as she was in dire need of funds.  Hence, she requested the OPs/Insurance Company to credit the maturity amount of Rs.15 lakh together with accumulated benefits to her account, but in vain, whereupon, she sent a letter, dated 07.12.2012, to the Insurance Company, objecting to the conversion of the maturity amount into pension fund without any intimation to her and simultaneously, making a surrender request to pay the maturity amount.  By letter, dated 26.12.2012, the Insurance Company rejected the said surrender request and returned all the connected papers and it prompted her to lodge a customer complaint with the Insurance Company on 10.01.2013 through her Bank/1st OP and, by letter, dated 09.07.2013, she was informed that the maturity amount would be paid only by way of pension and not otherwise. Further follow-up made by the complainant did not yield any outcome.  The act of the Insurance Company in denying payment of the maturity proceeds of the Policy and extending the policy unilaterally beyond the period of maturity without the consent and against the wishes of the policy holder is not only a clear instance of service deficiency but a restrictive/unfair trade practice, due to which, the complainant has suffered not only mental agony but also loss of investment and interest, for which, the OPs are liable to

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