Haryana

Karnal

CC/341/2020

Ishwar Sharma - Complainant(s)

Versus

HDFC Life Insurance Company Limited - Opp.Party(s)

Kuldeep Sharma

10 Jun 2024

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KARNAL.

                                                        Complaint No.341 of 2020

                                                        Date of instt.02.09.2020

                                                        Date of Decision:10.06.2024

 

Ishwar Sharma aged about 35 years son of Shri Ram Kumar, resident of village Sangroli, near Government High School, District Kaithal. Aadhar no.8341-3601-8962.

 

                                                                   …….Complainant.

                                              Versus

 

HDFC Life Insurance Company Ltd., SCO no.778-779, 1^st floor, opposite Mahabirdal Hospital, Kunjpura Road, Karnal. District Karnal, through its Manager.

                                                                   …..Opposite Party.

 

Complaint under Section 35 of Consumer Protection Act, 2019.

 

Before   Sh. Jaswant Singh……President.      

      Sh. Vineet Kaushik…….Member

      Dr.  Suman Singh…..Member

 

 Argued by: Shri Kuldeep Sharma, counsel  for the

   complainant.

                    Shri Vikas Bakshi, counsel for the OP.

 

                     (Jaswant Singh, President)

ORDER:   

                

                The complainant has filed the present complaint under Section 35 of the Consumer Protection Act, 2019 against the opposite party (hereinafter referred to as ‘OP’) on the averments thno.17729458, commence from 01.07.2015 and his annual premium amount was Rs.30,048/- and as per the policy schedule the maturity date of the policy is 01.07.2030. As per policy schedule, complainant paid the annual premium and last premium was paid by the complainant on 24.08.2018. As per the policy last and final premium be paid by the complainant on 01.07.2019 but due to financial problem, complainant could not paid the last premium. In the month of July 2019, complainant availed a loan of Rs.66,000/- against the said policy. The complainant after taking the loan paid the 1^st monthly installment of Rs.1402/- on 09.08.2019 to the OP from his saving account but the next monthly installment had not been deducted from his bank account whereas the saving bank account of complainant was having sufficient amount for deducting the monthly installment of Rs.1402/-. Thereafter, complainant visited to the office of OP and asked about the abovesaid policy regarding the installments of loan amount but the official of OP had not given the satisfactory answer to the complainant regarding the status of abovesaid policy and on repeated requests of complainant the official of OP told that the abovesaid policy was surrendered by the complainant. On hearing the said fact, complainant was in shocked because he never surrendered the policy and complainant is under impression that the said policy is running continuously. It is further alleged that at the time of availing the loan over the said policy, the complainant put his signature on some papers as per the direction of official of OP. Complainant received a letter dated 07.08.2019 from the OP about the continuation of abovesaid policy. On 09.07.2020, complainant moved an application regarding non-deducting the loan installments from his saving bank account since last few months and the complainant never ever surrendered his policy and requested to continue the abovesaid policy but OP did not pay any heed to the request of complainant. Then complainant sent a legal notice dated 20.07.2020 to the OP but it also did not yield any result. In this way there is deficiency in service and unfair trade practice on the part of the OP. Hence this complaint.

2.             On notice, OP appeared and filed its written version raising preliminary objections with regard to maintainability; jurisdiction; cause of action; locus standi and concealment of true and material facts. On merits, it is pleaded that complainant has himself applied for a loan against the policy, vide application dated 14.06.2019 and vide the said application form and asked for the surrender value of the policy. Vide letter dated 15.06.2019, as per the request of the complainant the surrender value of the policy was calculated and an amount of Rs.83,739/- was calculated as surrender value. The relevant form for the processing of the loan against the policy were filled by the complainant on 19.06.2019 i.e. payout and NEFT Checklist form, evaluation form, acceptance of surrender value etc. alongwith the KYC documents i.e. cancelled cheque, aadhar card, pan card. Accordingly, the loan was sanctioned against the surrender value of the policy, which was accepted by the complainant and vide document dated 12.07.2019 the terms and conditions of the loan were sent to the complainant, wherein it has been mentioned that the loan amount of Rs.60,000/-installment amount is Rs.1402/-rate of interest 10%, repayment commencement date 09.08.2019, tenure of loan 60 months and the loan disbursement date as 09.07.2019, that as per the terms and conditions of loan agreement dated 12.07.2019 clause 12 which is reproduced as under:-

“If the loan outstanding value including accrued interest exceeds the maximum per centage of the surrender value as is specified in the policy, then the policy will stand automatically forfeited, irrespective of whether such loan amount is recalled by HDFC life in such event the amount equivalent to the loan outstanding value plus the accrued interest shall be retained by HDFC Life and the remaining surrender value if any will be returned to the borrower. All cover and benefits under the policy will terminate immediately and the policy will be cancelled in accordance with the provisions specified in the policy.”

Accordingly, as per the letter dated 13.08.2019 which was sent to the complainant wherein it was mentioned that :

“The outstanding amount payable by you i.e. complainant as on August 13, 2019 is Rs.66,398/- which more than 80% of the surrender value of the policy.

Your policy will be surrendered if the outstanding payment is not made within the 15 days from the date of communication.

The outstanding amount was not deposited as the policy was surrendered. The complainant moved an application dated 09.07.2020, which was duly replied through email that the policy has been surrendered and the value has been got adjusted against the loan taken by the complainant from the company. The complainant has paid the premium of the policies which clearly goes to indicate and establish that the complainant/life assured had full knowledge about the premium, main features and the plan of the policy and also about the terms and conditions the loan obtained by the complainant. It is further pleaded that the complainant was informed vide letter dated 13.08.2019 about the balance outstanding in the loan account of the complainant, but inspite of reminder but the amount was not deposited and the outstanding amount was in excess of 80% of the surrender value as such as per the terms and conditions of the loan agreement the policy was surrendered and the amount was adjusted towards the outstanding loan amount. There is no deficiency in service on the part of the OP. The other allegations made in the complaint have been denied and prayed for dismissal of the complaint.

3.             Parties then led their respective evidence.

4.             Learned counsel for the complainant has tendered into evidence affidavit of complainant Ex.CW1/A, copy of policy bond Ex.C1, copy of first premium receipt Ex.C2, copy of acknowledgement regarding receiving of premium amount Ex.C3, cop of letter date 07.08.2019 regarding continuation of policy Ex.C4, copy of application dated 09.07.2020 Ex.C5, copy of legal notice dated 20.07.2020 Ex.C6, copy of aadhar card of complainant Ex.C7 and closed the evidence on 14.12.2021 by suffering separate statement.

5.             On the other hand, learned counsel for the OP has tendered into evidence affidavit of Gurpreet Singh, Manager Ex.PW1/A, copy of authority letter Ex.R1, copy of proposal form Ex.R2, copies of electronic proposal form Ex.R3 and Ex.R4, copy of Most Important Document Ex.R5, copy of policy document Ex.R6, copy of request letter dated 14.06.2019 regarding major alteration Ex.R7, copy of surrender value letter Ex.R8, copy of acceptance of surrender value letter Ex.R9, copy of payment and NEFT checklist Ex.R10, copy of terms and conditions of the insurance policy Ex.R11, copy of letter written by complainant to OP dated 09.07.2020 Ex.R12, copy of reply of letter dated 09.07.2020 Ex.R13, copy of letter dated 13.08.2019 Ex.R14 and closed the evidence on 13.03.2023 by suffering separate statement.

6.             We have heard the learned counsel of the parties and perused the case file carefully and have also gone through the evidence led by the parties.

7.             Learned counsel for the complainant, while reiterating the contents of complaint, has vehemently argued that on 01.07.2015 complainant purchased a HDFC Life Sanchay Policy from the OP. The annual premium of said policy was Rs.30,048/-. As per terms and conditions of the policy five premiums were to be paid i.e. tll 01.07.2019. In the month of July 2019, complainant availed a loan of Rs.66,000/- against the said policy but OP told that the abovesaid policy was surrendered by the complainant whereas he never surrendered the policy and he is under impression that the said policy is running continuously. Complainant requested the OP for continuation of the policy in question but OP did not pay any attention to the request of complainant and lastly prayed for allowing the complaint.

8.             Per contra, learned counsel for the OP, while reiterating the contents of written version, has vehemently argued that complainant applied for a loan against the policy. An amount of Rs.83,739/- was calculated as surrender value. The loan amount of Rs.60,000/-was sanctioned and installment amount is Rs.1402/-rate of interest 10%, repayment commencement date 09.08.2019, tenure of loan 60 months and the loan disbursement date was 09.07.2019. As per terms and conditions of the clause 12 of the loan agreement, the outstanding amount payable by complainant as on August 13, 2019 is Rs.66,398/- which more than 80% of the surrender value of the policy. The outstanding amount was not deposited as the policy was surrendered. The complainant moved an application dated 09.07.2020, which was duly replied through email that the policy has been surrendered and the value has been got adjusted against the loan taken by the complainant from the company. OP, vide letter dated 13.08.2019  informed the complainant about the balance outstanding in the loan account of the complainant, but inspite of reminder the amount was not deposited and lastly prayed for dismissal of the complaint.

9.             We have duly considered the rival contentions of the parties.

10.           Admittedly, on 01.07.2015, complainant purchased a HDFC Life Sanchay Policy from the OP and annual premium amount was Rs.30,048/- and maturity date was 01.07.2023.  It is also admitted that last premium was to be paid on 01.07.2019. It is also admitted that said premium had not been paid by the complainant.

11.           OP has alleged that on 14.06.2019, complainant applied for a loan against the surrender value of the policy and surrendered the policy. The onus to prove its version was relied upon the OP. To prove its version, OP relied upon the proposal form Ex.R2, request letter Ex.R7 dated 14.06.2019, copy of surrender value Ex.R8 dated 19.06.2019, copy of acceptance of the surrender value Ex.R9, copy of NEFT Checklist and copy of term condition of for loan against policy. On perusal of the said documents, it has been proved on record that complainant applied for loan against the policy in question and OP sanctioned the loan against the surrender value of the policy. The above documents bear the signature of complainant, thus it is  that complainant himself surrender the policy in question. To rebut the aforesaid documents complainant has not placed on file any documentary evidence.  Furthermore, complainant also failed to deposit the last premium amount. Thus, the complainant is not entitled for relief claimed by him.

12.           Thus, as a sequel to abovesaid discussion, the present complaint is devoid of merit and deserves to be dismissed and same is hereby dismissed. No order as to costs. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Dated:10.06.2024

                                                                    President,

                                                     District Consumer Disputes

                                                     Redressal Commission, Karnal.

 

                (Vineet Kaushik)                (Dr. Suman Singh)

                     Member                               Member