Chandigarh

DF-II

CC/641/2017

Mr. Vikasdeep Goyal - Complainant(s)

Versus

HDFC ERGO General Insurance Company Limited - Opp.Party(s)

Adv. Mohit Singla

28 Sep 2018

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Consumer Complaint  No	:	641 of 2017
Date  of  Institution	:	24.08.2017
Date   of   Decision	:	28.09.2018

 

 

 

 

Vikasdeep Goyal s/o Sh.Ranjit Goyal, R/o #1212, Progressive Co-op House Building Society, Sector 50, Chandigarh   

 

             ……..Complainant

Versus

 

1]  HDFC Ergo General Insurance Company Limited, having its Regd. Office Ramon House, H.T. Parekh Marg, 169, Backbay Reclamation, Mumbai 400020, through its Managing Director/Director.

 

2]  HDFC Ergo General Insurance Company Limited, SCO No.124-125, Sector 8, Madhya Marg, Chandigarh, through its Branch Manager/Office Incharge.

 

………. Opposite Parties

 

BEFORE:  SH.RAJAN DEWAN            PRESIDENT

SMT.PRITI MALHOTRA        MEMBER

            SH.RAVINDER SINGH         MEMBER

 

Argued By:     Sh.Mohit Singla, Adv. for complainant.

Sh.Nitesh Singhi, Adv. for Opposite Parties

 

 

PER RAVINDER SINGH, MEMBER

 

         The case of the complainant, in brief is that, he approached Opposite Party No.2 for getting insurance policy of his car make Toyoto Kirloskar Etios Liva bearing Engine No.2840214, Chassis No.359496 and paid an amount of Rs.11,733/- and accordingly, a policy cover note Ann.A was issued showing the validity of the insurance cover from 11.3.2016 to 10.3.2017.  It is also averred that the complainant was also issued No Claim Bonus Certificate by the previous insurer i.e. Bharti Axa General Insurance Company Ltd. (Ann.C & D).

         Thereafter, the complainant sold the said car to one Rajni, who went to OP No.2 for transfer of the said insurance policy of the car in her name, but was surprise when Opposite Party No.2 told her that the said policy has been cancelled.  It is stated that the OPs have cancelled the said insurance policy without any notice or information to the complainant. The complainant took the matter with the Opposite Parties and also requested them to refund the premium amount, but they did not pay heed.  It is also stated that due to said act of the OPs, the complainant suffered loss in selling car to Rajni. It is further stated that the complainant drived the car and sold it under the impression that it is duly insured, but Opposite Parties at their own without any notice or information cancelled his policy nor refunded the premium amount.  Hence, the complaint has been filed alleging deficiency in service and unfair trade practice on the part of OPs.

 

2]       The Opposite Parties have filed joint reply and while admitting the factual matrix of the case, stated that when the previous policy of the complainant was verified with previous insurer i.e. Bharti Axa for NCB confirmation, the said policy was found incorrect.  As such, a letter was sent to complainant asking him to provide correct policy of previous year within 7 days from receipt, but he did not submit any reply and hence, the own damage section of the policy was cancelled and the cancellation refund of Rs.9091/- was credited in the account from where the OPs received the premium against the policy of complainant.  It is submitted that the said fact is in the knowledge of the complainant. However, the policy to third party liability is continuing and the refund of Rs.9091/- was done through IVR on 30.4.2016.  Pleading no deficiency in service and denying rest of the allegations, the Opposite Parties have prayed for dismissal of the complaint.   

 

3]      Parties led evidence in support of their contentions.

 

4]       We have heard the ld.Counsel for the parties and have also perused the record.

 

5]       The complainant paid Rs.11,733/- for insurance of his Car bearing Regd.no.CH-01-AX-9293 on 9.12.2016.  The OPs accepted the said premium paid by the complainant and issued Private Car Package Policy No.2311100101332500000 (Ann.A Page 10), which was valid from 11.3.2016 to 10.3.2017. The OPs – HDFC Ergo General Insurance Company Limited without any justification and even without notice to the complainant, changed package of the said policy and issued a fresh policy bearing NO.2311100101332500001 (Ann.R-1) restricting the coverage of the policy only to the extent of third party liability.  The risk of insurance for own damage benefit was excluded from the insurance policy, which is wrong and cannot be acquiesced.

 

6]       The Opposite Parties alleged to have paid back Rs.9091/- out of Rs.11,733/- to the complainant through IVR on 30.4.2016, which the complainant has not received so far.  The OPs have issued Private Car Package Policy in respect of the vehicle of the complainant through Broker-D2C INSURANCE BROKING PVT. LTD. Broker Code: 200734909838 (Ann.R-1).

 

7]       The Opposite Parties were duty bound to ensure the refund of Rs.9091/- to the complainant, but they have miserably failed to produce any cogent & reliable evidence in proof of actual payment of this amount to the complainant. The Opposite Parties cannot circumvent the basics of law of jurisprudence, which requisite total transparency in financial transactions by commercial establishments, traders and firms.  The Opposite Parties suffers from grave deficiency in service and also indulged in unfair trade practice, firstly by changing the coverage of the policy at their own by excluding Own Damage Coverage without prior notice to the complainant and secondly by not refunding the alleged amount of Rs.9091/- to the complainant. 

 

8]       Keeping into consideration the facts in issue, as discussed in the preceding paragraphs, the complaint is allowed.  The Opposite Parties are jointly & severally directed to refund an amount of Rs.9091/- to the complainant and to pay an amount of Rs.25000/- as compensatory cost on account of mental agony and harassment suffered by the complainant along with litigation cost of Rs.10,000/-.

 

         The OPs shall comply with this order within a period of 30 days from the date of receipt of certified copy of this order, failing which they shall also be liable to pay an additional compensatory cost of Rs.15000/-, apart from the above relief.

         Certified copy of this order be sent to the parties, free of cost. File be consigned to record room.

Announced

28^th September, 2018                                                             Sd/-

 (RAJAN DEWAN)

PRESIDENT

                                                                                               

Sd/-

                                                                    (PRITI MALHOTRA)

MEMBER

 

Sd/-

(RAVINDER SINGH)

MEMBER