Holding Bharti Axa Life Insurance Company Limited deficient in services, state consumer disputes redressal commission, Chandigarh, directed the insurance company to pay Rs 20,000 as compensation along with Rs 10,000 as cost of litigation to a Dhanas resident.
The commission issued the directions on November 15 while disposing of the appeal challenging the order of district consumer disputes redressal forum dated August 23, 2013 filed by Nirmal Singh, by which his complaint was dismissed.
The state consumer commission has now directed the insurance firm to refund Rs 27, 523 to Nirmal Singh.
Nirmal had purchased an insurance policy from the company limited in name of his granddaughter in November 2009.
He alleged that, despite making payment of second installment, the insurance company raised another demand.
In spite of showing receipt he was asked to make the payment following which he had sought the refund of Rs 30,000 paid, but the insurance company had flatly refused.
He alleged that the insurance company had issued a fresh policy in favour of his granddaughter, for which, he had neither requested nor signed any document.
The company said inspite of regular notices sent to the complainant, he had failed to deposit the premium amount of the policies and therefore, the same acquired a lapsed status.
The consumer panel said, "The insurance company not only resorted to unfair trade practice, but was also deficient in rendering service to Nirmal Singh, as a result of which, the insurance policy lapsed and he was unnecessarily saddled with another policy, which he never proposed. The insurance firm is liable to refund money received from Nirmal Singh."