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

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Prem Chand, #2165/2, Sector 45-C, Chandigarh – 160047.

                                                                   ---Complainant

Vs

[1]      HDFC Standard Life Insurance Company Limited, SCO No. 50-51, Sector 9-D, 2^nd Floor, Madhya Marg, Chandigarh-160017.

[2]      HDFC Standard Life Insurance Company Limited, 5^th Floor, Eureka Towers, Mindspace Complex, Link Road, Malad (West), Mumbai – 400064.

---- Opposite Parties

BEFORE:          SH.LAKSHMAN SHARMA                PRESIDENT

MRS.MADHU MUTNEJA              MEMBER

                    SH.JASWINDER SINGH SIDHU                    MEMBER

Argued By:       Complainant in person.

Sh. Sandeep Suri, Advocate for the Opposite Parties.

PER MADHU MUTNEJA, MEMBER

1.                 The Complainant is the holder of a Policy No. 11676994  issued by Opposite Parties for which he had been making regular payment of premium for the past three years. After making payment of Rs.90,000/- in all, the Complainant had requested the Opposite Parties vide letter dated 10/14.02.2011 that he be given back the surrender value of the policy as per the terms.

                    The Complainant has alleged that he had been informed by the Opposite Parties that the surrender value was about Rs.69,489/- or rs.67,017/- only, thereby giving him a capital loss of Rs.23,520/-. Still willing to accept the surrender value, the Complainant has not received the surrender value despite sending so many reminders to the Opposite Parties.

                    The Complainant has thus filed the instant complaint with a request that the surrender value along with interest be paid to him, along with compensation for harassment & mental agony, besides costs of litigation.

 2.                After admission of the complaint, notices were sent to the Opposite Parties.

3.                 Opposite Parties in their joint reply have stated that the Complainant had applied for surrender/ cancellation of the policy vide letter dated 16.09.2011. The Complainant was required to sign the discharge –cum- surrender of policy form which was valid till 22.07.2011. The Complainant did not sign the document, hence the same could not be considered and the Complainant was requested to apply for fresh surrender with the fresh request.

                    On merits, the Opposite Parties have reiterated that the Complainant was asked to fill in a fresh request form, so that the policy may be considered for surrender and the same has not been done. Denying all other allegations of the Complainant, the Opposite Parties have prayed for the dismissal of the complaint.

4.                 The Complainant in rebuttal has stated that even despite a later request on 8.8.2011 to know the surrender value, the Opposite Parties have not paid him the surrender value of the Policy. Reiterating all the contentions, as made in the complaint and alleging that the Opposite Parties were deficient in rendering proper service to him, the Complainant has prayed for payment of the surrender value along with interest.

5.                 Parties led evidence in support of their contentions.

6.                 We have heard the Complainant in person and learned counsel for the Opposite Parties and have perused the record. 

7.                 As per the averments of the Opposite Parties it seems that they wish that the Complainant comes forward and signs the discharge voucher, so that payment can be made to him as per the surrender value on the date of the request. The Complainant has stated that he has made the request as per letters at annexure. The averment of the Opposite Parties also cannot be ignored as Pg.No. 14 placed on record by the Complainant is a copy of the discharge voucher which he was to sign and return to the Opposite Parties. It seems there is a mis-communication between the Parties, but it has definitely left the Complainant harassed and confused about the good offices of the Opposite Parties. 

8.                 In view of the factual position, it is evident that the Complainant has a right to be paid back the surrender value as per his request, but the Opposite Parties have not done so because he has not signed the discharge voucher. However, the right of the Complainant still continues. Accordingly, we allow this complaint and direct the Opposite Parties to refund the surrender value of the policy to the Complainant. The surrender value on the date the policy became due for surrender i.e. 28/02/2011 be compared with the surrender value on the date of this order i.e. today 28/03/2012 and the higher of the two amounts be paid to the Complainant.  This amount be paid by the Opposite Parties to the Complainant within 30 days of this order, failing which they shall pay the amount due along with interest @10% p.a. from the date of this order, till the date of payment. Opposite Parties will also pay Rs.7,000/- as costs of litigation.

9.                 Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

28^th March, 2012.                                                

Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

Sd/-

(MADHU MUTNEJA)

MEMBER

Sd/-

 (JASWINDER SINGH SIDHU)