DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

Udyog Sadan, C-22 & 23, Qutub Institutional Area

(Behind Qutub Hotel), New Delhi-110016.

Case No.659/2010

Prof. Dr. G. L. Fotedar

R/o BA-3/G, DDA Flats

Munirka, New Delhi-110067                                       ……Complainant

Versus

1.       HDFC Standard Life Insurance Company Ltd.

          22, Community Centre, New Friends Colony,

          New Delhi-110025

2.       HDFC Bank Ltd.

          Through its Branch Manager

          B-6/9,  Safdarjung Enclave,

          New Delhi-110029                                      ……Opposite Parties

                                                          Date of Institution          : 29.10.10                                                            Date of Order        : 10.12.15

Coram:

Sh. N.K. Goel, President

Ms. Naina Bakshi, Member

O R D E R

Briefly stated, the facts of the present case are that on the assurance of the agent of OP No.2, the Complainant had  purchased an insurance policy in September, 2008 with a premium of Rs.1,50,000/- per annum and the agent assured that the  insurance policy (i) will continue till his attainment of 65 years of age, (ii) the return  value will have more than 19% of interest, (iii) the premium amount invested by him would be safely returned & (iv) pension of amount of Rs.18,000/- shall be granted after 65 years of age.  He paid the premium for the years 2008, 2009 & 2010.  He was to complete 65 years of age on 18.12.2010. On 18.12.2010,  on enquiry he was told by the OP No.2 that (i) OP No.1 is separate from OP No.2 (ii) no pension scheme (iii) the insurance policy is to continue upto 2018 (iv)  the accumulated amount was only Rs. 461128.34 after investing Rs.450000/- upto this date (v) OP No.2 does not take the responsibility. On 06.10.2010, he sent insurance bond alongwith form of surrendering the policy for total withdrawal to HDFC Standard Life Insurance through HDFC Bank Ltd.  On 27.10.2010 the bond was returned back without surrender form. He was in fear that the OP No.1 is going to deprive him of his invested money. The OP No.1 was taking the premium from his saving account. Hence, this complaint with the prayer that OPs be directed to return his hard earned money from salary alongwith interest @ 20% per annum and for the mental agony caused to him.

In the written statement OP No.1 has inter-alia stated that the Complainant applied to the OP for issuance of HDFC Unit Linked Pension Policy in his name vide duly filled in proposal form dated 09.09.2008. On 16.08.2008, the Complainant was issued an insurance policy i.e. HDFC Unit Linked Plus Policy bearing No. 12173662 with the following details:-

He was informed vide letter dated 17.09.2008 that in case the provisions of the policy were not  agreeable to him, he had an option to return the policy within 15 days period from the date of the policy. He did not opt for the same. Vide letter dated 06.10.2010 sent by the Complainant he requested that the policy sold to him be accepted for withdrawal. OP No.1 vide its letter dated 21.10.2010 informed the Complainant that “the policyholder can surrender the policy at any point of time after completion of three years during the term of contract. The amount payable will be unitized fund value as on date of surrender after applying additional charges, if any”.  As the three years from the date of commencement of the policy ends on 15.09.2011 he had submitted an application for surrender of policy at a premature stage. As the Complainant did not opt to return the policy within 15 days, now he cannot be allowed to trace back his step to anything contrary to the terms and the policy.  OP No.1 has prayed for dismissal of the complaint. 

OP No.2 in its written statement has stated that the Complainant has a saving bank account and they offered and explained the insurance policy which was accepted by him. After duly understanding and reading the policy he had signed the documents of the policy. As per the provisions of IRDA (Policy Holder Interest) Regulation 2002 the policy terms and conditions specifically provided for a free lock period of 15 days and  the customer can request for a cancellation if the customer is dissatisfied with the terms and conditions of the policy. But the Complainant did not raise any objection with regard to the policy either within the free lock period or thereafter. He enquired about the life insurance plans which were duly explained to him and it was made clear to him that the life insurance policy which is being offered is a separate product of HDFC Standard Life Insurance Company and other risks involved and the benefits were also made understood to him. OP No. 2 has denied the other averments made in the complaint. OP No.2 has prayed for dismissal of the complaint.

Complainant has filed rejoinder to the written statement of OP No.1.

Complainant has filed his affidavit in evidence while affidavit of Sh.Harsimran Singh, Zonal Legal Executive and affidavit of Sh. Dhruv Mathur have been filed in evidence on behalf of the OP No.1 & 2 respectively.

Written arguments have been filed on behalf of the parties. We have heard the arguments on behalf of the parties and have also gone through the file very carefully.

Parties have failed to mark exhibit nos. as per the exhibit nos.  given to them  in their respective affidavits.

It is clear that the Complainant had obtained a Unit Linked Insurance Policy through OP No.1. He had signed all the documents of the insurance policy.  The Complainant deposited an amount of Rs.4,50,000/- towards premium in three yearly instalments of Rs.150000/- each. The Complainant requested the OP No.1 for surrender of the policy and refund of the amount before 3 years of completion of policy. The OP No.1 vide letter dated 21.10.2010 informed the Complainant that the policy holder can surrender at any point of time after completion of three years during the term of the contract and that the amount payable will be unitized fund value as on date of surrender after applying additional charges, if any. Insurance is a long term contract and it is mutually advisable to continue the policy till the end of term to keep the full benefit of the plan. The Complainant surrendered the policy before the end of 3 years in contravention of the terms and conditions of the policy.  In the case of Gurvinder Kaur V/s HDFC Standard Life Insurance in Revision Petition No.4463/2014 decided by the Hon’ble National Consumer Redressal Commission vide order dated 23.02.15 it is held that “the Petitioner having failed to exercise her option within the stipulated free lock period of 15 days, it  cannot be held that there was any deficiency of service on the part of insurance company in declining to accede to the prayer for foreclosure of the policy.” The Complainant has failed to prove any deficiency in service on the part of OPs. Therefore, we dismiss the complaint with no order as to costs.

Let a copy of this order be sent to the parties as per regulation 21 of the Consumer Protection Regulations.  Thereafter file be consigned to record room.

Announced on 10.12.15.

NAINA BAKSHI)                                                              (N.K. GOEL)                                                                                             MEMBER                                                                        PRESIDENT