DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II
Udyog Sadan, C-22 & 23, Qutub Institutional Area
(Behind Qutub Hotel), New Delhi-110016
Case No.599/2013
Ms. Prem Kundra
B5/195, Safdarjung Enclave,
New Delhi-110029 ….Complainant
Versus
HDFC Standard Life Insurance Co. Ltd.
47 Ring Road Near Haldiram’s Lajpat Nagar-3,
New Delhi-110024 ….Opposite Party
Date of Institution : 12.12.13 Date of Order : 28.01.19
Coram:
Sh. R.S. Bagri, President
Ms. Naina Bakshi, Member
Naina Bakshi, Member
ORDER
Briefly stated, the case of the complainant is that the policy No.10328543 was sold to her on 19.07.05 by the agent of OP with hand and glove of HDFC’s Manager with high returns. It is stated that after signing some form, the complainant left the country and in her absence the certificate alongwith disclosure of policy was sent to her home which the complainant received on 14.01.06. During this period, the OP withdrew automatically Rs.20,000/- from her saving bank account from the branch of HDFC at Deer Park, Safdarjung Enclave, New Delhi. After finding the contract of policy, the complainant contacted the concerned agent to close the policy as she was not interested to continue the same. The sale agent of OP told the complainant that there was a locking period of 3 years and after expiry of three years the complainant can get paid value and benefits. Consequently, complainant further made payment of Rs.20,000/- per year for two more years through her saving bank account. During these three years i.e. 2005, 2006 and 2007 the complainant deposited a total amount of Rs.60,000/- with the OP. It is submitted that in the year 2007 the complainant again approached the sale agent of OP to refund the amount of Rs.60,000/- plus benefits by writing a letter but no paid value was received by her. It is stated that on 20.03.09 the complainant received a letter that a cheque of Rs.60,000/- has been dispatched to the complainant. Although Original Certificates of the policy are with her & without submitting the affidavit OP had cancelled the policy and told that OP had sent the cheque to the complainant. It is submitted that the complainant approached to various level HDFC officials and senior sales executives at HDFC Bank, OP advised her to take first Rs.60,000/- cheque and then asked for interest on the amount later. The complainant received of Rs.60,000/- on 13.02.13. Complainant has prayed that OP be directed to pay fix rate of compound interest @ 12% on Rs.60,000/- from July 2005 till the date of realizing of the cheque of Rs.60,000/- i.e. on 13.02.13. After filing of the complaint, complainant claimed Rs.1,00,000/- towards compensation for mental torture, agony and physical suffering by moving an application in this regard.
OP has inter-alia stated that the instant complaint has been filed by the complainant only after cessation of the contractual relationship and the same is also barred by limitation as the alleged cause of action arose in favour of the complainant in the 2008 whereas the complaint has been filed in the year 2013 i.e. much beyond the period of limitation, hence the complaint is liable to be dismissed. It is submitted that the complainant had herself shown her interest in taking insurance plan namely HDFC Saving Assurance Plan. It is submitted that on the basis of the request in form of the proposal alongwith requisite documents, the OP issued a policy No.10328543 having risk commencement date of 19.07.2005 for a term of 10 years. The premium of Rs.20,000/- was to be paid annually. The policy documents were dispatched and delivered to the complainant vide AWB No. 32138797272 on 05.08.05. It is submitted that the policy documents were duly delivered to the policyholder and she was given an option to cancel the policy within free lookin period of 30 days from the receipt of the same. But the complainant did not avail of the said option which itself demonstrates that she was fully satisfied with the terms and conditions of the said policy and had no dispute of any nature in the said policy. It is submitted that the complainant after paying three premium total amounting to Rs.,60,000/- approached the OP raising a concern and requested for cancellation of the policy and refund of the premium amount. Even though the concern raised by the complainant was not valid as the policy had a term of 10 years, the OP as a goodwill gesture cancelled the policy and sent the refund cheque of the whole premium amount paid by the complainant vide cheque No.70154 dated 20.03.2009 on mailing address provided by the complainant which was returned back to the OP on 10.04.09 due to non availability of the policy holder. The OP retried to deliver the cheque by making a fresh cheque No.848318 dated 16.12.11 amounting to Rs.60,000/- as the old cheque had got stale. Even in the second attempt also the cheque delivery could not be accomplished. It is further stated that finally the OP refunded the whole amount of Rs.60,000/- vide cheque dated 22.08.2013 which was duly received by the complainant. The OP cannot be penalized for absence of the complainant from India. It is submitted that the OP is not liable to pay any interest on the premium. It is submitted that the complainant was well satisfied with the terms and conditions of the plan and it is because of this she decided to take the policy. The complainant had herself duly signed the proposal form as well as the illustration in which the premium paying term of 10 years was explicitly mentioned. It is submitted that the complainant was issued cheque of refund in the year 2009 which returned back to the OP as the complainant was not contactable, therefore the OP is not liable to pay any interest on the premium amount. OP has prayed for dismissal of the complaint.
Complainant has filed a rejoinder to the written statement of OP and stated that she was kept in dark by concerned insurance agent and misrepresented her about high value and high returns of the policy after 10 years which is not correct and misled by the complainant by OP. It is submitted that an amount of Rs.20,000/- for three consecutive years was automatically withdrawn from the complainant’s saving bank account No.05031000043217 of OP Bank. The first installment of Rs.20,000/- was withdrawn on 14.07.05 but the complainant was not interested in paying the 2nd and 3rd installment after going through the policy disclosure which was misrepresented and incorrect sold by the insurance agent and was further misguided that there was a locking period of three years by stating that “you can taken the paid up value plus the benefit on your insured money otherwise the amount of Rs.20,000/- paid will be forfeited.
Complainant has filed her own affidavit in evidence. On the other hand, affidavit of Sh. Akash Singh, Deputy Manager-Legal has been filed in evidence on behalf of the OP.
Written arguments have been filed on behalf of the complainant.
None appeared on behalf of the OP to advance oral arguments despite opportunity given in this behalf.
We have heard the arguments on behalf of the parties and have also carefully gone through the record.
The complainant has filed copy of the HDFC Savings Assurance Policy bearing No.10328543 which was to be commenced from 19.07.05 which we mark as Annexure-1 for the purposes of proper identification. The complainant has filed copy of first premium receipt dated 20.07.05 which we mark as Annexure-2 for the purposes of identification. The complainant has filed copy of letter dated 12.12.08 sent to the complainant, in response to the letter dated 04.10.08 written by the complainant to the OP, by the OP regarding cancellation request for policy No.10328543. We mark the same as Mark B for the purposes of proper identification. The complainant has filed copy of letter dated 19.09.08 sent to the complainant, in response to the letter dated 13.09.08 written by the complainant to the OP, by the OP regarding clarification of the paid up value for policy No.10328543. We mark the same as Mark AA for the purposes of proper identification. The complainant has filed copy of return of refund cheque which we mark the same as Mark C wherein the OP had informed the complainant that “ the cheque was returned to us due to non contactable. Kindly visit any HDFC Life branch with the request to release the aforesaid cheque and will arrange to send it to your communication address. Alternatively, you may fill any of the mandate for direct credit in your bank account.” The complainant vide letter dated 04.06.11 requested the OP to pay the interest since 2005 till date which we mark as Mark D. The complainant vide letter dated 14.01.12 requested the OP for the interest since 2005 which we mark as Annexure-E for the purpose of identification. The complainant has filed the photocopy of DD for an amount of Rs.60,000/- dated 08.02.13. We mark it as Mark F for the purpose of identification. The complainant vide letter dated 12.02.13 informed the OP that she had received a cheque of Rs.60,000/- towards principal value and requested for interest which we mark as Mark G for the purpose of identification.
The OP has filed copy of letter dated 19.09.08 which we mark as Annexure-I for the purpose of identification wherein the OP has replied the queries of the complainant. The OP vide letter dated 12.12.08 informed the complainant which we mark as Annexure-II for the purpose of identification, wherein OP has stated as:-
“ We sincerely regret the delay and inconvenience caused to you due to the miscommunication by the Sales Executive. We have reported the matter with the concerned department and assure that necessary action will be taken.
We would like to inform you that we have accepted with regret your request to cancel the aforesaid policy. However, since we are not in receipt of the Original Policy Documents we are unable to unable to process the refund.”
It is evident from the record that the complainant has taken a policy No.10328543 having risk commencement date of 19.07.2005 for a term of 10 years from the OP. The complainant paid the annual three years premium i.e. 2005, 2006 & 20007 of Rs.20,000/-. The OP vide letter dated 12.12.08 themselves admitted that “we sincerely regret the delay and inconvenience caused to you due to the miscommunication by the Sales Executive. We have reported the matter with the concerned department and assure that necessary action will be taken (Annexure-II). It means that the policy was sold to the complainant with miscommunication by the sales executive. The OP send the cheque of Rs.60,000/- on 08.02.13 to the complainant but the complainant deposited the first premium on 20.07.05 & 2nd and 3rd premium on 2006 & 2007. It is clear that after paying premium for 3 years of Rs.20,000/- each i.e. Rs.60,000/- and after completion of 3 years the complainant requested the OP to refund the amount in the year 2008. It means that the OP had paid the principal amount which was due in the year 2008 but the complainant received an amount of Rs.60,000/- on 08.02.13 i.e. after five years of locking period of 3 years. Non refunding the amount of interest to the complainant amounts to unfair trade practice and deficiency in service on the part of the OP.
In view of facts and circumstances of the present case, the OP is entitled to pay the amount towards interest after completion of three years till the issue of the cheque i.e. 08.02.13. Accordingly, we allow the complaint and direct the OP to pay interest @ 9% from the date of completion of three years of policy till 08.02.13 on the amount of Rs.60,000/-. OP is further directed to pay Rs.5,000/- to the complainant as compensation for causing mental agony and harassment.
The order shall be complied within 30 days of receipt of copy of this order failing which OP shall become liable to pay interest @ Rs. 10% per annum on the amount of Rs.60,000/- from the date of above said period till its realization.
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 28.01.19.
