Page 55 - The Insurance Times April 2025

Rs. 49,900 each - one in his name, two in his wife's name, State Commission rejected this plea, as the insurer provide
and two in his daughter's name. no evidence to show that a lawyer had been appointed or
When he received the policies a couple of weeks later, he that legal fees had been paid. The Commission conclude that
the ex parte decision against the insurer was based on
discovered that each policy required premium payments for
proper reasoning and dismissed the appeal with further costs
10 years. It was not a one-time payment, as the agent had
of Rs.10,000.
conveyed. Singh, who had already retired from service,
immediately took up the issue with the insurer, pointing out The insurer then filed a revision petition before the national
that the premiums were beyond his paying capacity and that Commission. It argued that the complaint was time-barred,
the policies had been mis-sold. as the policies were issued in 2009 while the complaint was
The insurer refused to cancel the policies and refund the pre- failed in 2013. The Commission rejected this argument,
mium, claiming that the free-look period had expired. Singh noting that the partial refund of 20 per cent of the premium
had been issued in 2012, making the complaint well within
argued that the free-look period could commence only from
time when filed in 2013.
the date of receipt of the policies and that he had sent his
representation within a week the insurer offered a refund of The National Commission acknowledged that Singh, a re-
20 per cent of the premium, which Singh refused to accept. tiree, would not be able to pay an annual premium for the
Instead, he filed a complaint before the Lucknow District next 10 years. It concluded that the insurer's agent had
Consumer Forum II, alleging deficiency in service. He sought enticed and deceived Singh. The Commission further ob-
a full refund of the entire amount of Rs. 2,47,700 paid for served that there was no justification for refunding only 20
the five policies. He also demanded compensation and costs. per cent of the premium while forfeiting the remaining
amount collected through mis-selling.
Tata AIA did not contest the complaint. The Forum ordered
the insurer to deduct processing charges and refund the In its judgment dated November 7, 2024, delivered by J
balance premium of Rs. 2,47,000 along with 9 per cent in- Rajendra, the National Commission concluded that the well-
terest. Additionally, the insurer was directed to pay Rs. reasoned concurrent findings of both the District Forum and
10,000 as compensation and Rs. 5,000 as litigation costs. A the State Commission could not be questioned in revision
period of two months was given for compliance, failing which proceedings. It also upheld that the award of compensation
12 per cent interest would be payable. and costs was reasonable. Accordingly, the insurer's revision
Tata AIA challenged the order in appeal, contending that petition was dismissed, and the orders in Singh's favour
were upheld.
its lawyer had failed to defend the case. The Uttar Pradesh

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50 April 2025 The Insurance Times