Aviva Life Insurance fined Rs 10,000

Chandigarh, February 5
The District Consumer Dispute Redressal Forum-I, in a recent order, has slapped a fine of Rs 10,000 on Aviva Life Insurance Company for its failure to make payment to a Ropar resident, who was seeking money for the treatment of his kidney after surrendering the policy.

The forum, comprising president PD Goel and members Rajinder Singh Gill and Madanjit Kaur Sahota, observed that the complainant wrote to the insurance company that he had already submitted the request for the cancellation of the policy with complete documents. Therefore, there is no question to submit a fresh request for surrender of the policy. The forum also directed the insurance company to pay Rs 22,010 to the complainant as the value of the surrendered policy.

The complainant, Swarn Singh, submitted that he had took a policy from the insurance company with a premium of Rs 10,000 per year. According to the terms and conditions of the policy, he deposited three premiums of Rs 30,000. However, as he was diagnosed with kidney failure in the past year and for treatment, he approached the company for refund of the money after surrendering the policy along with a request form on March 2011. He further stated that he received an email from the company on May 4, 2011, stating that the request for surrender of the policy had been cancelled. He was also advised to submit a fresh request for the same. On May 7, 2011, he informed the company that as he had already submitted the request for cancellation of the policy with complete documents at its Chandigarh branch, so it is not possible for him to submit a fresh request. He further submitted that he was suffering from a kidney disease and a surgical operation was done on him on May 16, 2011, at the PGI, Chandigarh.

The counsel for the insurance company submitted that the complainant was requested to reapply for the cancellation of the policy through e-mails on May 4 and May 9 in 2011. Moreover, he did not make a fresh request and the policy was not cancelled. The company did not refuse to release the value of the surrendered policy. Hence, the policy was not cancelled and the complainant was duly intimated about it. He was assured that in case he wishes to cancel the policy, he should make a fresh request for cancellation but he did not do so. Hence, there has been no deficiency in service on the part of the insurance company.