CONSUMER DISPUTES REDRESSAL FORUM – X
GOVERNMENT OF N.C.T. OF DELHI
Udyog Sadan, C – 22 & 23, Institutional Area
(Behind Qutub Hotel)
New Delhi – 110 016
Case No.146/2008
SH. BRAHMANAND
S/O SH. KISHAN LAL
11835/7, 2ND FLOOR, SAT NAGAR,
KAROL BAGH, NEW DELHI-110005
…………. COMPLAINANT
VS.
HDFC STANDARD LIFE INSURANCE COMPNAY LTD.,
22 COMMUNITY CENTRE, NEW FRIENDS COLONY,
NEW DELHI-110065
…………..RESPONDENT
Date of Order: 03.03.2016
O R D E R
A.S. Yadav – President
It is admitted fact that complainant has taken “HDFC Saving Assurance Plan” bearing policy No.10103950 on 14.10.2004 for a total period of ten years with the starting date being 25.10.2004 and the premium amount being Rs.1,088/- payable on monthly basis. The sum assured for the said policy was Rs.1 lakh which became payable to complainant on maturity of the policy. It is also an admitted fact that complainant paid premium upto three years i.e. total amount paid by him Rs.39,168/-.
The case of complainant is that due to some unavoidable circumstances he could not deposit further instalments and surrendered the policy and requested OP to pay the amount of Rs.39,168/- alongwith interest.
OP agreed to cancel the policy and also agreed to return a sum of Rs.27,447/- only instead of Rs.39,168/- alongwith interest. The same was not acceptable to complainant as the contention of the complainant is that at the time of taking of the policy it was informed to him that in case policy is surrendered prior to its maturity, the deposited amount alongwith interest shall be returned to insured. It is prayed that OP be directed to pay the deposited amount of Rs.39,168/- alongwith interest and also to pay Rs.4,90,000/- towards compensation.
OP in the reply took the plea that in fact there was no deficiency n service on the part of insurer. It is further stated that insurance is matter of solicitation and complainant was provided with the detailed and adequate information in respect of the policy. Complainant was apprised all the policy provision and it was made clear to him that a guaranteed surrender value will be offered after three years of regular paying the premium and it was informed that the guaranteed minimum surrender value will be zero in respect of the premiums paid in the first year and 50% of the premiums paid subsequent o the first year. It is stated that OP has agreed to pay the amount as per policy provision and no cause of action arose in respect of OP. It is prayed that complaint be dismissed.
We have heard Ld. Counsel for the parties and carefully perused the records.
It is not in dispute that complainant has paid premium for three years and complainant has surrendered the policy and asked for the payment of the amount deposited alongwith interest. Ld. Counsel for OP has relied upon clauses 4 and 5 of Standard Policy Provisions which are reproduced as under:-
“4. Guaranteed minimum surrender value
If you pay premiums for a continuous period of 3 years, the guaranteed minimum surrender value of your policy, including the value of any attracting bonuses, will be zero in respect of premiums paid in the first year and 50% of premiums paid subsequent to the first year in respect of the basic benefit.
5. Lapsed Policies, Paid up polices and Reinstatement
i) Lapsed and paid up policies
In the even that any premium remains unpaid 15 days after the due date and your policy has either at our discretion, acquired a surrender value or has acquired a guaranteed minimum surrender value, your policy will be altered to a paid up policy, subject to any terms and conditions which we may specify from time to time. These terms will involve a reduction in benefits and you will be informed accordingly.
Once your policy is made paid up it will cease to participate in profits.
If however any premium remains unpaid 15 days after the due date and your policy does not have a surrender value, the basic benefit will lapse and no benefit will be payable to you.
ii) Reinstatement of paid up policies
If your policy has been paid up, it may be reinstated subject to our consent and such terms and conditions as we may specify from time to time. “
It is further submitted by Ld. Counsel for OP that vide letter dated 21.02.2009 complainant was issued the policy and in that letter there was an “option to return” which is reproduced as under:-
“In case you are not agreeable to any of the provisions stated in the policy and the details in the proposal form, you have the option of retuning the policy to us stating the reason thereof, within 15 days from the date of receipt of the policy. On receipt of your letter alongwith the original policy documents, we shall arrange to refund the premium paid by you, subject to deduction of the proportionate risk premium for the period on cover and the expenses incurred by us on medical examination and stamp duty charges. A policy once withdrawn shall not be revived, reinstated or restored at any point of time and a new proposal will have to be made for a new policy.”
It is submitted by Ld. Counsel for OP that complainant has not withdrawn policy and has continued the same knowing very well the terms and conditions of policy.
A bare perusal of this letter shows that the terms and conditions of the policy were not sent alongwith the policy. Insurance is a matter of contract and a contract is required to be duly signed by the parties. In this case, only the application form for policy bears the signature of complainant and there is nothing in this application form to suggest that the terms and conditions of the policy have been explained to the insured and the same has been duly signed by him. In fact there is nothing on the record to suggest that the terms and conditions were got signed form complainant. There is no reason to disbelief the complainant when he says that he was assured that at the time of surrender of policy the entire amount deposited by him alongwith interest shall be returned. We are of the considered view that it is a clear cut case of deficiency in service on the part of OP.
OP is directed to refund the amount of Rs.39,168/- alongwith interest @ 10% interest from October 2007 and also directed to pay Rs.5,000/- towards compensation and Rs.3,000/- towards litigation expenses.
Let the order be complied with within one month of the receipt thereof. The complaint stands disposed of accordingly.
Copy of order be sent to the parties, free of cost, and thereafter file be consigned to record room.
(D.R. TAMTA) (A.S. YADAV)
MEMBER PRESIDENT
