DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II,

U.T. CHANDIGARH

Mr. Ravinder Kumar s/o sh. Rishipal singh aged 31 years resident of House No.378, Kachchi colony, village Dhanas, Near Market, Chandigarh 160014.   

             …..Complainant

Versus

1.  Bharti AXA Life Insurance Company Ltd. Registered office: Unit No. 1904, 19^th floor Parinee Crescenzo, ‘G’Block, Bandra  Kurla Complex, BKC Road,  Behind MCA Ground, Bandra East Mumbai 400051, through its authorized person.

2.  Bharti AXA Life Insurance Company Ltd. Branch Office SCO 208-209, 2^nd Floor, Sector 34A, Chandigarh 160034, through its authorized person.

     3. HDFC Life Insurance Company Ltd., Registered office Lodha Excelus, 13^th Floor, Apollo Mills Compound ,  N.M. Joshi Marg, Mahalaxmi Mumbai 400011 through its authorized person.

4.  HDFC Life Insurance Company Limited Branch Office: SCO 149-151, Ground floor, 1^st &2^nd floor Sector 43B, Chandigarh 160043 through its authorized person.  Email service@HDFCLife.com

    ….. Opposite parties

BEFORE:  SMT.PRITI MALHOTRA        PRESIDING MEMBER 

                    SH.B.M.SHARMA                 MEMBER

For Complainant : Sh. R.P. Sharma, Adv. for the complainant.  

For Ops          : Sh. Gaurav Bhardwaj, Adv. for Ops No.1&2

                 : Ops No. 3&4 given up  

PER PRITI MALHOTRA, PRESIDING MEMBER

     Briefly stated the complainant is electrician by profession and not well educated and the case of the complainant is that allured with the commitment of the agents of Ops to get him sanctioned interest free personal loan, he purchased two different policies with very high annualized premium of Rs.50,000/- each. It is alleged that after issuance of policies  the agents of the Ops without letting the complainant to see the policy documents taken away the original policy documents from him on ground that the same is required for the purpose of verification and also for processing loan cases.  The complainant under good faith handover the policy documents to the agents of the Ops.  It is averred  that  thereafter when the complainant approached the Ops to raise the interest free loan as promised by their agents, the Ops refused the same stating that there is no such scheme of interest free loan against the policies in question. It is alleged that the Ops mis-sold the policies in question to the complainant in the name of interest free loan. The complainant requested the Ops to refund the premium amount  but to no effect. Ultimately the complainant sent legal notice  dated 26.8.2019 to the OPs but to no avail. Alleging the aforesaid act of the Ops as deficiency in service and unfair trade practice on their part this complaint has been filed.

2.  In their written statement the Ops No. 1&2 stated that after receipt of duly filled proposal form alongwith other requisite documents and the amount of first yearly premium, the policy in question was issued to the complainant.  It is asserted that the complainant himself opted for  annual premium which is clearly indicated in the proposal form. The policy term was 12 years  as per proposal form submitted by the complainant. It is pleaded that all the relevant terms and conditions of the policy were  duly explained to the complainant  and no fraudulent  misrepresentation was played upon the complainant. It is submitted that for procuring the policies in question the complainant had availed the services of an independent insurance broker namely ‘Authentic Insurance Brokers Limited’ who are licensed with the IRDA and function independently of any insurance company under the ambit of the IRDA and sources policies of all insurance companies. It is further pleaded that OPs No.1&2 are Life Insurance Company which issues life insurance policies and does not provide any loan or bonus. It is asserted that the policy holder had not approached the answering Ops during the free look period with any grievance regarding the policy or its terms and conditions. Meaning thereby the policy holder was agreed to the policy terms and conditions.  Further stated that the policy document does not contain benefits as have been alleged by the complainant. Denying all other allegation made in the complaint  it is pleaded that there is no deficiency in service on the  part of Ops No.1&2 and  a prayer for dismissal of the complaint has been made.

3. During the pendency of complaint the matter was settled between the complainant and Ops No. 3&4. On 17.12.2019 the counsel for OPs NO. 3&4 has handed over a cheque of Rs.50,000/- to the counsel for the complainant and as such the counsel for the complainant suffered a statement that he has no grievance against OPs No. 3&4 and he gives up OPs NO. 3&4.

4.  The contesting parties led evidence in support of their contentions. 

5.  We have gone through the record and heard the arguments advanced by both the sides.

6.  The present complaint initially got filed against OPs No. 1 to 4 alleging mis-selling of two policies in question against premiums paid Rs.50,000/- for each policy. During the pendency of the complaint OPs No. 3&4 have refunded the premium amount i.e. Rs.50,000/- to the complainant, thenceforth the complainant gave up OPs No. 3&4 from the array of parties.   Now the complainant is only agitating refund of the policy premium paid to Ops No.1&2 who, as per allegation  mis-sold the policy in question under the allurement of sanctioning of a loan for purchasing the house which the complainant was in necessity to buy. It is argued by the counsel for the complainant that after issuance of policy in question when the complainant tried to avail the loan as was promised, soon realized that he has been enticed away to avail the policy under the garb of getting loan sanctioned.  It is further stated that after having knowledge of trick played upon him by the OPs the complainant applied for refund of the premium and requested for the cancellation of the policy and also the complainant sent legal notice but all in vain.

7.  It is so claimed on behalf of complainant that the complainant is a daily wage worker and has no means to pay the premium amount for the continuous 12 years  as per requirement of the policy issued by Ops No.1&2.  

8.  On the other side it is argued by the counsel for OPs No.1&2 that complainant after having gone through the terms and conditions of the policy duly filled the proposal form and proposed the policy in question whereby he was also given free look period of 15 days to reconsider from the date of issuance of the policy, but he never turned up within the free look period. Thus, no question for refund arise.

9.  After having considered all the submissions made and giving meticulous reading to the record we are of the concerted view that the policy in question was in fact mis-sold  to the complainant by the Ops NO.1&2 as the Ops NO.1&2 had badly failed to place on record any document to prove that the complainant is capacitated to pay the hefty premium amounting to Rs.50,000/-  annually. No record in the shape of income proof has been appended by the OPs to justify. Also it has been observed that the complainant very diligently after having realized about his being trapped for mis-selling of the policy in question, complainant rightly within a reasonable period approached the OPs NO. 1&2 for the cancellation of the policy  and  sought refund of his premium  amount paid, which till date has not been refunded.

10. From the record we safely conclude that the present case is purely a case of mis-selling of policy for which the OPs NO. 1&2 are liable and thus, there is deficiency  in service coupled with unfair trade practice on the part of OPs No.1&2.

11.    In view of the above discussion, the consumer complaint deserves to succeed and the same is accordingly allowed qua OPs 1 & 2 only. OPs 1 & 2 are directed as under :-

1. To refund premium amount of                 Rs.50,000/- to the complainant.
2. To pay Rs. 15,000/- as compensation for mental agony and harassment suffered on account of deficiency in service coupled with unfair trade practice.
3. To pay Rs.7,000/- as costs of litigation.

12.     This order be complied with by OPs No.1&2 within 30 days from the date of receipt of its certified copy, failing which, they shall be liable to pay additional amount of Rs.20,000/- to the complainant.

13.     Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.