By : SRI  ASISH DEB, PRESIDENT,

The case has been filed by the complainant against the OPs. HDFC Standards Life Insurance, HDFC  Bank Ltd  and others with a prayer for the reliefs as stated in the complaint  regarding the insurance policy of the complainant.

The case of the complainant is that the complainant made an HDFC SL. Progrowth Super II Policy on 16.11.2013. The policy was for 15 years Premium Term and the yearly premium was Rs. 30,000/-.As per terms of the policy the complainant paid five premiums of Rs. 30,000/-each and got receipts for the payment. According to the complainant he paid premiums till 31.01.2018. After 15 years the sum assured will be Rs. 2,10,000/-. He has further stated that  as per assurance of the OP No. 2 that he would be entitled to get refund of entire sum assured after five years payment, on 28.05.2018 the complainant gave notice to the OP no. No 1 for receiving the insurance maturity amount of Rs. 2,10,000/-. The Ops refused to return the matured amount of Rs.2,10,000/-                .

Hence, this case with the prayer as made in the complainant.

Summons was duly issued upon all the Ops The Ops no. 1 and 3 and OP no 2  filed separate sets of  written version and contested the case. They denied all the material allegations of the complaint and claimed dismissal of the case. However in spite of receipt of summons, the OP no. 4 did not contest the case. So, the case is heard   ex parte against the OP no. 4.

 The specific defense of the OP no. 1 and 3 is that after having understood the terms and conditions of the policy, the complainant purchased one HDFC SL Pro Growth Super II policy being policy No. 16499854 on 17.01.2014 where a total sum assured is Rs. 2,10,000/ for 15 years (Premium paying terms for 15 years ).  As per the insurance policy IRDA Regulations all UNIT linked policies bought on or after 01.09.2010 have a lock in period for 5 years hence the payment on surrender  benefits will depend upon the year in which the surrender request has been made. More specifically once a person or a insurer can discontinue his policy after paying premiums of said five years he is entitled to get back only premium amount as per  the market value not the sum assured .In this case the complainant continued his policy by paying the premiums against the policy till date, so, his policy is still in force. He is not entitled to avail the lock in period facility  till date. If he avails  this facility of lock in  period then only he is entitled to get refund  of his premiums  as per the market value. So, there is no question to refund back Rs. 2,10,000/- which is the sum assured. These Ops also mentioned that According to the Cancellation of  the Free Lock Period  “ 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 thirty days from the date of receipt of the policy…”. This complainant never approached for such return of the policy. The policy was issued on 17.01.2014.

On the aforesaid grounds the OP no. 1 and 3 have prayed for dismissal of the complaint with cost.

The OP  no. 2  filed separate written  version and contested the complaint.,

It is the specific case of this OP no. 2 that the complaint is not maintainable against this OP no. 2 as there is no cause of action has arisen against this OP no. 2. This bank has no connection with the OP no. 1 Insurance Co. in any manner.  This OP admits that the complainant has an Account with their bank and the first four premiums of the  insurance were adjusted through cheque in the name of the complainant and the last one was credited via Credit card at the discretion of the complainant. This Op has prayed for dismissal  of the complaint against them.

The points need be considered here is (1) whether the case is maintainable and (2) whether the complainant is entitled to get the reliefs as prayed for.

                                                  DECISION WITH REASONS.

Both the points are taken up together for discussion for the sake of convenience and brevity.

Perused the complaint and the documents filed by the complainant in support of the  respective case of the parties very carefully and heard the submission of the ld. Advocates for the parties.  Also perused the questionnaires and   answers thereof filed by the respective parties  in this case. Considered.

The Ld. Advocate appearing for the OPs no. 1 and  3 submitted before this Forum that the complainant is a policy holder and according to the Scheme of the policy the  complainant paid premiums for five years at the rate of Rs 30,000/-  per year as per requirement of the policy. The tenure of the policy was for 15 years and so, the policy of the complainant is still running. There is no provision in the policy that after payment of five years the policy holder will get refund  of entire  sum assured i.e Rs. 2,10,000/- in the instant  case  without surrendering the entire policy. The ld advocate for the Op has further added that the complainant has claimed the sum assured without surrendering his policy completely. At best  the policy holder can get refund of the money he paid towards the premiums of the policy if he claims and that will  be paid  on the basis of the present unit link fund market value if the   said premiums already paid for  the expiry of the lock- in period.

Having gone through the materials on record and thoughtful consideration of the submission of both the parties, it appears that the complainant has already submitted the original policy  certificate    in this Forum with an intent to surrender the same before the OP Bank as the case is pending in this Forum. It further appears that in the meantime i.e from 17.01.2019 the lock-in period  has already expired. The Op with a view to settle the claim of the complainant would have paid the premium amount already paid taking into consideration of the present market value of the fund. But the OP has not paid the same as yet which is a deficiency  of service on the part of the OP Bank.

In the above facts and circumstances, we are of the view  that the complainant should get Rs. 1,50,000/- the amount of premiums paid in addition to the unit link benefit of Rs. 10,000/- i.e total amount of Rs. 1,60,000/- and compensation of Rs. 5,000/- along with litigation cost of Rs. 2,000/-. The complainant is also entitled to get interest @ 9% on Rs. 1,60,000/-  from the date of this order till realization.

As a  result the complaint case succeeds in part.

Both the points are answered accordingly.               

           Hence, it is

                                                       O R D E R E D

That CC  No.  271 of   2018 be and the same is allowed in part on contest against the OP no. 1 to 3 and dismissed ex parte against the OP no. 4.

The above OP nos. 1 to 3 are jointly and severally directed to pay the complainant a sumof Rs. 1,50,000/, the amount of premiums paid in addition to the unit link benefit of Rs. 10,000/- i.e total amount of Rs. 1,60,000/- and compensation of Rs. 5,000/- along with litigation cost of Rs. 2,000/-. The complainant is also entitled to get interest @ 9% on Rs. 1,60,000/-from the date of this order till realization.

The OPs are directed to issue a bank draft /bankers’ cheque for the said amount within 45 days from date of this order. The OPs are further directed to withdraw the original policy certificate from the case record through their appointed ld. advocate within 15 days from the date of this order for processingthe above matter.

Let copy of this judgment be supplied to the parties free of cost.