Haryana

Ambala

CC/251/2015

Rajiv Aggarwal - Complainant(s)

Versus

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

Prashant gupta

10 Nov 2017

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

                                                           Complaint No.:251 of 2015.

                                                           Date of Instt.: 07.09.2015.

                                                           Date of Decision: 10.11.2017.

Rajiv Aggarwal aged about 52 years son of Shri Prithi Lal, resident of house No.8976/5, Mohalla Naya Bans, Ambala, Haryana-134002.

 

                                                                             …Complainant.

                             Versus

 

1.HDFC Standard Life Insurance Company Limited Sudarshan Tower Cross Road No.01,Nicholson Road, 1^st Floor, Ambala Cantt. Haryana Pincode-133001, through its authorized signatory.

2.HDFC Standard Life Insurance Company Limited, Regd. Office: Lodha Excelus, 13^th Floor, Apollo Mills Compound, N.M.Joshi Marg, Mahalaxmi Mumbai-400011, through its authorized signatory.

                                                                             …Opposite Parties.

 

             Complaint U/s 12 of the Consumer Protection Act, 1986

                                                                  

BEFORE:             SH. D.N. ARORA, PRESIDENT.

                             SH. PUSHPENDER KUMAR, MEMBER.                                                           

                             MS. ANAMIKA GUPTA, MEMBER.

 

Present:                Sh.Prashant Gupta, counsel for the complainant.

                             Sh.Rajiv Sachdeva, counsel for the OPs.

 

ORDER:

 

                             Brief facts of the present complaint are that complainant got himself insured with OPs on 20.03.2003 for 12 years vide policy No.00165357 with date of maturity on 20.03.2015. On 16.03.2015 the complainant approached OPs qua producing the necessary documents but he was asked to visit on 20.03.2015 with one photo, pan card, address record, original policy and cancel cheque. The complainant visited OP No.1 alongwith the desired documents for taking the maturity amount but he was intimated about investment of the entire maturity amount in pension plan by OP No.1 and that too has been done without the consent of the complainant. The OPs knowingly and intentionally did not release the maturity amount and further invested the same without the consent of the complainant which is clear cut deficiency in service and unfair trade practice on their part. The complainant got served legal notice upon the OPs for making the payment of maturity amount but all in vain.  In evidence, the complainant has tendered affidavit Annexure CX and documents Annexure C1 to Annexure C6.

2.                          On notice, OPs appeared and filed their joint reply   wherein it has been submitted that there is no deficiency in service on the part of OPs as the complainant had voluntarily applied for an insurance policy Personal Pension Plan Regular Premium vide proposal form bearing No.0016165357 for a period of 12 years with annual premium of Rs.10,000/- and the date of maturity of said policy was 20.03.2015. Said policy was having feature i.e. benefits on survival to the vesting date  that the policy will attain a notional cash value if the life insured survives upto the vesting date. The notional cash value consists of the basic sum assured plus any attaching bonuses declared from time to time by us during the period prior to vesting subject to the prevailing legislation and regulations, part of this can be taken as a lump sum and the rest converted to an annuity. This very feature if the policy means that the policy holder has to invest the part of the said sum assured into an annuity plan and as per the present legislation as well as annuity policy, the life assured can take 1/3^rd as lump sum and will have to invest 2/3^rd in the annuity plan of the total sum assured. Before the date of maturity date of the said policy, the OPs had informed vide letter dated 01.12.2014 about the said condition followed by the letters dated 01.06.2015 & 01.07.2015. There is no deficiency in service on the part of OPs and prayer for dismissal of the complaint has been made. In   evidence, the OPs have tendered affidavit Annexure RA and documents Annexure R1 to Annexure R7.

3.                          We have heard learned counsel for the parties and have gone through the evidence and documents on the file carefully.

4.                          It is admitted fact that complainant has got his life insured with the OPs on 20.03.2013 for 12 years for plan which is known as Personal Pension Plan and it is also not disputed that the complainant has deposited the regular installment and the amount was matured on 20.03.2015 of the policy in question. However, as per the policy, the complainant had to invest the part of the sum insured into an annuity plan as per the present legislation as well as the annuity policy and life assured can take 1/3^rd of the lump sum and will have to invest 2/3^rd in the annuity plan of the total sum assured. In this regard the complainant has been served a notice Annexure R3, Annexure R4 qua Non receipt of Annuity Option Form- Annuity Policy No.00165357 in June, 01.2015 as well as 01.12.2015 but the complainant failed to give the choice as mentioned in Annexure R6 and the relevant policy conditions are as under:

* Take up to 1/3 of the benefit as tax-free cash lump sum as per the current tax regulations. The residual of the amount must be converted to an annuity. You have to buy the annuity from us as per the prevailing regulation.

*Or you can use entire policy proceeds at vesting to purchase an annuity from HDFC Life.

*Alternatively, you can utilize the entire proceeds to purchase a single premium deferred pension plan from us.

If you choose to convert the vesting or the Surrender Benefit to an annuity. It will be through the purchase of a new policy from as under our than available annuity product.                                                     

                             After hearing both the parties and going through the material available on the case file, it is clear that the complainant had deposited whole of the amount as the policy had become matured on 20.03.2015 and he is entitled for the bonus declared from time to time by the Ops. If the complainant has not complied with the terms and conditions by not opting any of the choice then it does not give any right to the Ops to retain the matured amount of the complainant. It is not disputed that the matured amount alongwith the bonus etc. is still lying with the OPs/bank. So in the interest of justice and equity the complainant is entitled for the maturity amount alongwith the bonus etc. So we allow the present complaint and the Ops are directed to pay the matured amount alongwith bonus etc. The OPs are utilizing the amount of the complainant without any right, therefore, the complainant is also entitled for the interest @ 9 % per annum. Accordingly, the Ops are further directed to pay the interest @ 9 % per annum from the filing of the complaint till realization of the amount. Compliance of this order be made within a period of 30 days. Copy of this order be supplied to both the parties free of cost.  File be consigned after due compliance.

Announced in open Forum.                                                                 Dated: 10.11.2017

                                                                   

(D.N.Arora)

 President

Distt.Consumer Disputes      

Redressal Forum, Ambala                                

                                                                                        Pushpender Kumar

                                                                                                 Member  

                                                                                          Anamika Gupta

                                                                                                  Member