BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM
KADAPA Y.S.R DISTRICT
PRESENT SMT. K. SIREESHA, B.L., PRESIDENT FAC
SRI M.V.R. SHARMA, MEMBER.
Tuesday, 8th July 2014
CONSUMER COMPLAINT No. 75 / 2013
Kuppala Siva Ramaiah, S/o K. Srinivasulu,
aged 41 years, Taxi Driver, R/at D.No. 4/1/230,
Madakalavari Palli, 7th block, Gopavaram,
Kadapa District, A.P. Pin – 516 227. Complainant.
Vs.
1. HDFC Bank Ltd., Rep. by its Branch Manager,
D.No. 8-3-34, Mydukur Road,
Badvel, YSR District.
2. HDFC Standard Life Insurance Co. Ltd., Rep. by its
Branch Manager, D.No. 7/300, 1st floor, Angat Towers,
Holmaspet, Proddatur, YSR District.
3. HDFC Standard Life Insurance Co. Ltd., Rep. by its
General Manager, 11th floor, Lodha Excelus,
Apollomill compound, N.M. Joshi Road,
Mahalaxmi, Mumbai – 400 011. Opposite parties.
This complaint is coming before us for final hearing on 19-06-2014 and perusing complaint and other material papers on record and on hearing the arguments of Sri G. Trivikram Singh, Advocate for complainant and Sri M. Suresh Kumar, Advocate for O.P.1 and O.P. 2 & O.P. 3 called absent and set exparte on 06-5-2014 and the matter is having stood over for consideration this day, the Forum made the following:-
O R D E R
(Per Sri M.V.R. Sharma, Member),
1. This Complaint is filed under section 12 of the Consumer Protection Act 1986 requesting this forum to direct the Opposite parties:-
(a) To pay the amount of Rs. 1,00,000/- together with 24% p.a. interest from 14-9-2012 till the date of realization by cancelling the policy bearing No. 15442283,
(b) To pay compensation of Rs. 50,000/- for causing physical stain and mental agony.
(c) To pay Rs. 2,000/- towards cost of the complaint.
2. The case of the complainant is that, he saved an amount of Rs. 1,00,000/- for the purpose of his house construction. The said amount was kept an idle for requirement of further amount, knowing the same the staff of the O.P.1 Mr. Sahadev (Branch Manager) and Mr. Sampath approached the complainant and misguided to deposit an amount of Rs. 1,00,000/- in their bank which yield 24% interest per annum. He agreed to invest the same in the deposit of O.P.1 bank. The said staff of O.P.1 obtained signatures of the complainant in some filled papers. Except, putting sign in English he does not know English and the O.P.1 issued a receipt dt. 14-9-2012 for Rs. 1,00,000/- which is received by O.P.1.
3. After 3 months he approached O.P.1 to withdraw the deposit amount. Then only he came to know that the O.P.1 has invested his amount in HDFC Standard Life Insurance Co. for a period of 10 years and had to pay Rs. 1,00,000/- towards annual premium for a period of 5 years, which is sister concern to the O.P.1 bank. After 4 months in the month of April 2013, he approached O.P.1 and informed that he did not received policy bond and the O.P.1 directed him to approach 2nd and 3rd O.P’s and fulfilled all the requirements to get duplicate bond.
4. After the complainant knowing the information that the O.P.2 has received duplicate bond from O.P.3 on 29-4-2013 bearing No. 15442283 and the complainant collected the same and surrendered the policy bond to the O.P.2 for its cancellation on 3-5-2013 and the O.P.2 informed to the complainant that the O.P.3 send a letter to the complainant intimating that his policy cannot be cancelled. But till the date the complainant has not received any letter from the opposite parties. The complainant sent a notice dt. 11-7-2013 to the O.P.2 calling upon him to return his amount of Rs. 1,00,000/- having received the same the O.P.2 did not taken any steps. The services of opposite parties are deficient nature. Hence, this complaint.
5. The O.P.1 filed a counter and denied that the complainant saved Rs. 1,00,000/- for the purpose of his house construction that the staff of this opposite party smelt about the possessing the money by the complainant promised or misguided him to deposit amount of Rs. 1,00,000/- in their bank which will yield 24% of interest p.a. The complainant believed the same and agreed to invest the same in the deposit of this O.P.1 bank. That Mr. Sahadev and Mr. Sampath obtained signatures of the complainant in some filled papers, that he does not know English, except signing in English are false and invented it is quite unnatural to get information about the complainant possessing money and that is intention of depositing the same in bank.
6. It is also stated that the application enclosed to the complaint written by the complainant himself and he has got knowledge about the nature of policy taken from this opposite party that subsequently he requested the branch to cancel the same and pay money to him. When once the complainant taken policy from the opposite parties it would be only within the certain norms and conditions. At the time of taking policy the staff of this opposite party would enlighten or explain the terms and conditions of the policy.
7. The O.P.1 also denying that the complainant approached this O.P. to withdraw money that the complainant came to know from the staff of O.P.1 that it was invested in Life Insurance of HDFC Standard Life Insurance for a period of 10 years that complainant has to pay Rs. 1,00,000/- every year for period of 5 years. That it was done for the purpose of commission to achieve the targets that when questioned by the complainant the opposite parties gave evasive replies and invented for the purpose of this complaint. The complainant know about the policy that he needs to pay the amount of premium even at the time of taking policy and he intends to draw the amount. The terms of the policy did not permit the premature withdrawal and he has to pay regularly for 5 years and then he can enjoy the benefits of the same. If he fails to pay the same continuously for period of 5 years then after 5 years whatever the complainant paid he would be entitled for the same after deducting allocation charges etc., according to the norms of the policy and the bank.
8. The O.P.1 further stated that the complainant did not receive the policy is not correct. The original policy would be dispatched to the policy holder by registered post with acknowledgement due.
9. It is also stated that the complainant has already received necessary policy copy it is not at the option of the complainant that he can draw amount, if he can change his intention subsequent to taking the policy or if he express unwillingness or on his surrender of policy cancellation. Therefore, the cancellation or surrender of the policy much depends upon the terms of the policy taken by the complainant and not according to the whims or fancies of the policy holder. Hence, that the Hon’ble forum may be pleased to dismiss the complaint with exemplary costs.
10. After filing the complaint issued notices to opposite parties and same were served to the opposite parties. The O.P.2 & O.P.3 both did not appeared before the Hon’ble forum and they set exparte on 6-5-2014.
11. To prove the case the complainant filed an affidavit along with documents and got marked Ex. A1 to A4. There is no documents marked on behalf of opposite parties.
12. On the basis of the above pleadings the following points are settled for determination.
- Whether the complainant is eligible for withdrawal of policy amount and compensation as prayed by him?
- Whether there is negligence or deficiency of service on the part of opposite parties?
- To what relief?
13. Point Nos. 1 & 2. According to the complaint the complainant saved Rs. 1,00,000/- for the purpose of house construction, knowing the same O.P.1 staff Mr. Sahadev, (Branch Manager) and Mr. Sampath, approached the complainant and misguided him to deposit an amount of Rs. 1,00,000/- in their bank which yields 24%. Having believed the words of the O.P.1 he agreed to invest the same in the O.P.1 bank and the O.P.1 obtained the signature of the complainant in some filled papers. O.P.1 got issued a receipt dt. 4-9-2012, acknowledging for an amount of Rs. 1,00,000/-.
14. After three months the complainant approached to the O.P.1 to withdraw the deposit amount then only he came to know that the O.P.1 has invested his amount any HDFC Standard Life Insurance Co. for a period of 10 years and had to pay Rs. 1,00,000/- towards annual premium for a period of 5 years, which is sister concern to the O.P.1 bank.
15. After four months in the month of April 2013 the complainant informed to O.P.1 that he did not received the policy bond and the O.P.1 directed the complainant to approach O.P 2 & 3. The complainant approached to O.P.2 and fulfilled all the requirements to get duplicate bond. After that the complainant knowing the information O.P.2 has received duplicate bond from O.P.3 on 29-4-2013 bearing No. 15442283 and the complainant collected the same and surrendered the policy bond to the O.P.2 for its cancellation on 3-5-2013.
16. After that the O.P.2 informed to the complainant that the O.P.3 send a letter to the complainant intimating that his policy cannot be cancelled. But the complainant has not received any letter from the O.P.3. The complainant send a notice to the O.P.2 calling upon him to return his amount of Rs. 1,00,000/- on 11-7-2013 and the same is received by the O.P.2 and they did not taken any steps.
17. On the other hand the O.P.1 denied that the complainant saved Rs. 1,00,000/- for the purpose of his house construction that the staff of the O.P.1 smelt about possessing the money by the complainant promised or misguided to deposit amount of Rs. 1,00,000/- in this bank which will yield 24% interest p.a and the O.P.1 staff obtained signature of the complainant in some filled papers that the complainant does not know English except signing in English.
18. The O.P.1 contended that the application enclosed to the complaint written by the complainant himself and he has got knowledge about the nature of the policy taken from O.P’s. Subsequently, the complainant requested to the branch to cancel the same and pay money to him. When once the complainant taken policy from the O.P’s it would be only within the certain norms and conditions at the time of taking policy the staff of the O.P’s would enlighten or explain the terms and conditions of the policy.
19. The O.P.1 further contended that the complainant know about the policy that he needs to pay the amount of premium even at the time of taking policy and he intends to draw the amount the terms of the policy did not permit the premature withdrawal and also contended that the complainant has to pay regularly for 5 years then he can enjoy the benefits of the same. If the complainant failed to pay the same continuously for period of 5 years then after 5 years whatever the complainant paid he would be entitled for the same after deducting allocation charges etc., accordingly to the norms of the policy and the bank.
20. And also stated that the complainant change his intention subsequent to taking of the policy or if he express unwilling or surrender of the policy for cancellation. It is much depends upon the terms of the policy taken by the complainant and according to the whims or fancies of the policy holder and also stated that the original policy would be dispatched to the policy holder by Regd. Post with acknowledgement due.
21. We have gone through the contents of the both sides and affidavit and documents filed by the complainant. As seen from the Ex. A1 receipt issued by the O.P.1, it is clear that the complainant paid an amount of Rs. 1,00,000/.- As per Ex. A2 it clearly shows that the complainant made an application to the O.P.2 for cancellation of the policy bearing No. 15442283, dt. 3-5-2013.
22. The O.P.1 stated that the complainant unwilling on his surrender of the policy for cancellation it is much depends upon the terms of the policy. The complainant stated that in his complaint that he received policy bond on 29-4-2013 and he made an application for cancellation on 3-5-2013 as per Ex. A2 and also seen from Ex. A4 i.e. terms of the policy mentioned that “in case you are not agreeable to any of the provisions stated in the policy and the details in the proposal form. You have the option of returning the policy to us stating the reasons thereof within 30 days from the date of receipt of the policy”. As per the above policy condition the complainant made application for cancellation of the said policy within one month.
23. The another contention of the O.P. that the original policy bond would be dispatched to the policy holder by Registered post with acknowledgment due. In this regard the O.p.1 did not filed any documentary evidence to prove that the policy bond dispatched to the policy holder.
24. As discussed above the complainant proved deficiency in service on the part of the opposite parties. Hence, the complainant is eligible to cancellation of the policy bearing No. 15442283.
25. Point No. 3 In the result, the complaint is allowed, directing the opposite parties 1, 2 & 3 jointly and severally liable to pay Rs. 1,00,000/- policy amount with 18% per annum, from date of agreement to till realization, to pay Rs. 5,000/- for mental agony, to pay Rs. 2,000/- for cost of the complaint, within 45 days of date of receipt of orders.
Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open Forum, this the 8th July, 2014
MEMBER PRESIDENT FAC
APPENDIX OF EVIDENCE
Witnesses examined.
For Complainant NIL For Respondents : NIL
Exhibits marked for Complainant
Ex. A1 P/c of receipt dt. 14-9-2012 issued by the respondents in favour of the
complainant acknowledging the receipt of Rs. 1,00,000/-.
Ex. A2 P/c of acknowledgement copy dt. 3-5-2013 issued by the R2 indication the
receipt of policy bond bearing No. 15442283.
Ex. A3 P/c of letter dt. 11-7-2013 issued by the complainant to the R2.
Ex. A4 P/c of policy bearing No. 15442283.
Exhibits marked for Opposite parties : - NIL
MEMBER PRESIDENT FAC
Copy to :-
- Sri G. Trivikram Singh, Advocate for complainant.
- Sri M. Suresh Kumar, Advocate for O.P.1.
- HDFC Standard Life Insurance Co. Ltd., Rep. by its Branch Manager, D.No. 7/300, 1st floor, Angat Towers, Holmaspet, Proddatur, YSR District.
4) HDFC Standard Life Insurance Co. Ltd., Rep. by its General Manager, 11th floor, Lodha Excelus, Apollomill compound, N.M. Joshi Road, Mahalaxmi, Mumbai – 400 011
B.V.P.
