Haryana

Ambala

CC/72/2019

Bhanwar Lal - Complainant(s)

Versus

HDFC Standard Life Insurance Co Ltd - Opp.Party(s)

Abhishek Sharma

18 Feb 2020

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

 

                                                                      Complaint case no.         :  72 of 2019

                                                          Date of Institution           :  08.03.2019

                                                          Date of decision     :  18.02.2020.

 

Bhanwar Lal son of Shri Mansa Ram, resident of 5GGM, Gogameri, Tehsil Nohar, District Hanumangarh, Rajasthan.

          ……. Complainant.

Versus

 

1. HDFC Standard Life Insurance Company, Ltd. 13^th floor, Lodha Excelus, Appolo Mils Compound N.M. Joshi Road, Mahalaxmi, Mumbai-400011.
2. HDFC Standard Life Insurance Company, Ambala Nicholson Road, Branch, 1^st Floor Sudarshan Towers Cross Road No.1, Nicholson road, Ambala Road, Cantt. 133001.

               ….…. Opposite Parties.

         

Before:        Ms. Neena Sandhu, President.

                   Ms. Ruby Sharma, Member,

Sh. Vinod Kumar Sharma, Member.          

                            

Present:       Shri Abhishek Sharma, Advocate, counsel for the complainant.

Shri Puneet Sirpaul, Advocate, counsel for the OPs.

 

Order:        Smt. Neena Sandhu, President

Complainant has filed this complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as ‘the Act’) against the Opposite Parties (hereinafter referred to as ‘OPs’), praying for issuance of following directions to them:-

1. To pay Sum Assured amount of Rs.5,51,363/- and the other benefits under the policy  alongwith interest @ 18% per annum to complainant being nominee of late Shri Devi Singh.
2.  

 

Any other relief which this Hon’ble Forum may deem fit.

 

Brief facts of the case are that the complainant is nominee of late Shri Devi Singh son of Mansa Ram, who during his life time had obtained a life insurance policy “HDFC Life Sampooran Samridhi Plus Plan” No.20710698 dated 21.09.2018, from the OP No.2, wherein in case of death of the policy holder,  his nominee will receive a sum of Rs.5,51,363/-. Complainant being real brother of the policy holder was the nominee/legal heir of the deceased Devi Singh on 21.9.2018, at the time of taking of insurance policy  Late Shri Devi Singh during his life time had paid the annual premium of Rs.25,080/- under client ID No.01588713. Panel of Doctor’s of the OPs, checked the health condition of late Shri Devi Singh and thereafter Ops issued the insurance policy. The official of the  OPs  filed the proposal form but late Shri Devi Singh, who was an agriculturist and was under Metric, did not signed the said proposal form.  The official of the OPs filled up the electronic proposal form, without disclosing the contents mentioned therein and detail in the proposal form. On 10.10.2018, late Shri Devi Singh went to his relative at Ferozpur, Punjab and Unfortunately, in the evening he suffered  a severe attack and died. Complainant duly informed the OPs regarding death of his brother and requested for clearance of death claim in his favour, but the OPs demanded certain documents to issue the death claim. Complainant supplied all the requisite documents within the stipulated period, but OPs lingered on the matter, on one pretext or the other and ultimately, vide  letter dated 10.01.2019,  Ops cancelled the policy on account of “non disclosure of insurance policies taken other companies and insurance on no-existent of life assured at proposal stage”. The aforesaid reason for declining the death claim by the OPs, is totally wrong and illegal. By not releasing the death claim, OPs have committed deficiency in service. Hence, the present complaint. 

2.                Upon notice, OPs appeared through counsel and filed written version, taking preliminary objections with regard to maintainability, concocting and distorting the facts, no jurisdiction, complainant is not the consumer within the meaning of consumer Protection Act, 1986.  On merits, it is stated that the electronic proposal form was submitted online by the deceased life assured and the contents of the proposal form are not verified by the OPs at that stage because the customers are believed to be honest and they are presumed to have been given correct and true information qua their health and other material information. OPs are not concerned with the cause of death of the DLA. Since, the policy was cancelled by the OPs, due to concealment of factum of existence of other policies therefore, they are not liable to pay any amount to the complainant. The Ops have not committed any deficiency in services. Hence, the present may be dismissed with costs.

3.                Ld. Counsel for the complainant tendered affidavit of the complainant as Annexure CW1/A along with documents as Annexure C-1 to C-6 and closed his evidence. On the other hand, learned counsel for OPs tendered affidavit of Shri Arpit Higgins Manager (Legal), HDFC Standard Life Insurance Company Ltd., SCO No.149-151, Sector 43-B, Chandigarh as Annexure OP-A alongwith documents Annexure OP1 to OP7 and closed the evidence on behalf of the OPs.

4.                We have heard the learned counsel for the parties and have carefully gone through the case file.

5.                From the policy document, Annexure C-1, it is evident that the Life Assured, late Shri Devi Singh had purchased the policy in question from the OPs on 21.09.2018, for sum assured of Rs.5,51,363/-, for the term of  20 years, having maturity date 11.09.2038 and half yearly premium of Rs. 24,000/- was to be paid for 15-years i.e. upto 11.3.2033. From the policy document it is also evident that the Life Assured appointed his brother, Bhanwar Lal as his nominee. Life Assured died on 10.10.2018, due to heart attack as is evident from the death certificate Annexure C-4. Complainant being nominee had lodged the claim with the OPs. The Ops vide letter dated 10.01.2019, Annexure OP-6, declined to pay the claim amount and cancelled the policy by declaring it as null and void, on the ground that untrue information was provided by the Life Assured at the time of taking of the policy. The Ld. counsel for the OPs, submitted that before taking the policy in question, life assured had purchased several other policies from the other insurance companies. To corroborate this fact, the OPs have placed on record Annexure OP-5. The said document has not been controverted by the complainant. From the Annexure OP-5, it is quite clear that the Life Assured had taken two policies from PNB Met Life, one each from MAX and ET Life, prior to taking the policy in question from the OPs. From the perusal of proposal form Annexure C-1/OP-2, It is apparent that the Life Assured had given answer in negative to the question No.2, mentioned under the heading “Personal Details of Life to be Assured”,  whether do you have any existing insurance cover of premium paying and/or paid-up policies. Meaning, thereby Life Assured had taken the policy in question by misrepresentation. In the case of Reliance Life Insurance Co. Ltd and others Versus Rekhaben  Nareshbhai Rathod,  decided on 24.04.2019,  the Hon’ble Supreme Court of India, has held that the appellant was justified in repudiating the claim within two years from the commencement of the insurance cover as the insured failed to disclose the policy of the insurance obtained earlier from other companies. Admittedly, Life Assured had obtained the policy from the OPs on 21.09.2018 and the OPs cancelled the policy on 10.01.2019, i.e. within about 3½ months from the date of inception of the policy. In view of the law lay down by the Hon’ble Supreme Court of India in the above noted case, we are of the view that OPs have not committed any deficiency in service by cancelling the policy in question. The present complaint filed by the complainant is devoid of merits consequently, we dismiss the same without any order as to costs. Certified copies of this order be supplied to the parties concerned, forthwith, free of cost as permissible under Rules. File be indexed and consigned to the Record Room.

Announced on : 18.02.2020.

(Vinod Kumar Sharma)            (Ruby Sharma)               (Neena Sandhu)

           Member                            Member                            President

                                                                                      DCDRF, Ambala