Complainant Mrs Keya Das by filing this complaint has submitted that complainant has a NRI account in the HDFC Bank and when complainant have visited the India, then the op and their agents approached the complainant for opening a HDFC Standard Life Insurance and to avail of their policy with a promise that there is good prospect of her investment and for better service from the company in maintaining both the portfolios and being allured and having trusted of their good promise and being entrusted by the Standard Life Insurance and conducts of the representatives of the op, complainant compelled to take one policy vide Policy No. 14729742 for the complainant and op issued policy certificate dated 13.10.2011 for a premium of Rs.1,50,000/-.  Accordingly the complainant paid the first premium but all the documents regarding policy was in the custody of the op and it was kept by the op after execution of the same.

          Before opening of the policy complainant was informed by the op that it was one time premium of the complainant for Rs.1,50,000/- but after receiving the policy paper, complainant found that premium has been made annually in said two policies.  So soon after that complainant informed it and op suggested that nothing can be done but to continue as otherwise the entire amount shall be forfeited.

          After careful perusal and scrutinizing the policy certificate of the said two policies it was revealed that the said account statements are not fully correct and proper as per knowledge of the complainant and as per terms and conditions of the policy the complainant has started to pay the premiums in favour of the ops on due date and time and there was no delay on the part of the complainant to pay the premium in favour of the ops and tried her level best to rectify their account and complainant intimated to the agent that unless their account is rectified the complainant will not pay a single premium in their account.  But even after the request and intimation op did not rectify their mistake and company had showed defaulter of two premiums.  Thereafter complainant reported the op for rectification but op did not act.  But the ops are very much negligent in providing the insurance certificate and also liable for adopting  an unfair trade and in fact the entire conduct of the insurance company is illegal and by their act they have cheated the customer in so many ways and complainant suffers mental pain and agony for which complainant has prayed for compensation.

          On the contrary the op HDFC Standard Life Insurance Co. Ltd. by filing written statement submitted that on 11.09.2012 complainant and her husband sent letter for cancellation of the policy and refund of the premium and in that letter it was alleged that the agent misled the complainant about the premium terms of the policy.  But the allegations of the complainants  are baseless as she availed of the policy after reading the terms and conditions of the same and op in reply dated 21.09.2012 informed the complainant that as the request for cancellation is not made within free look period, so they are unable to process the refund of premium.

          Thereafter it has submitted that all allegations are false and fabricated and they are well aware of the contract and so parties are guided by the terms and conditions and so any question of sufferings and mental pain and agony of the complainant does not arise and in the above circumstances, the complaint should be dismissed.

                                                Decision with reasons

          Practically after hearing the argument of the Ld. Lawyers of both the parties and also considering the story as made out in the complainant including the written version of the op, it is found that undisputed fact is that complainant relying upon the version of the agents of the op company was satisfied that it is one time deposit, so he deposited it to open one policy as they trusted upon the version of the agent of the op and those policies were opened and it is also a fact that after receipt of the same that is document of the policy complainant reported the fact to the agent and agent made scrutiny and assured that the same shall be rectified and original document was in the custody of the agent and fact remains that complainant thereafter asked the op insurance company to rectify the said but op did not do that for which he prayed for cancellation for same and refund of the same amount but op refused to give any relief stating that during free look period that application was not submitted. But in this regard we have gathered from the written version that op has nothing to say except the fact that as because contract has been executed by the complainant so parties cannot go behind the terms and for which no amount can be returned.  In this regard we have gathered from the different regulations of IRDA that insurance company cannot forfeit the entire amount of premiums which is deposited by the insured.  But as per IRDA Rules if any complainant is willing to get back deposited amount from private or a Government insurance company they shall have to return the entire amount after cancellation the said policy and after deducting only 5% to 10% of the said amount.  But there is no scope on the part of the insurance company to grab the entire amount.  But nowdays it has become a practice of the private insurance company to cheat the consumer in so many manners through their well dressed agent who are nothing but a cheater in the society and they are practically running the business of the private insurance companies and the present private insurance company HDFC Standard Life Insurance Co. is no doubt a dishonest insurance company whose act is no doubt unfair trade practice in all cases and truth is that many poor insurers are being deceived by the private insurance companies in such a fashion through their dishonest agents and in this case also the agent allured the complainant and somehow or otherwise opened the policy and it is known to all in all that we are relying upon the agents because it is not possible for all the persons to attend insurance company for opening or for depositing the premium.

          But taking such weakness of the public at large agents are cheating at the advice of the private insurance companies and in this case this complainant was almost deceived by the agent of the op and no doubt it is the duty of the op for agents’ dishonest act as principal is also liable and fact remains in all respect for the unfaithful act of the op and their agents practically complainant was deceived and when complainant has prayed for refund of the said amount for cancellation the said policy we are of opinion that op ought to have considered the same and refund the entire amount deducting 5% as service charges.  But without adopting such social and moral theorization of IRDA op completely denied the relief.  It is no doubt unfair trade practice and practically for the deceitful act of the op and his agent complainant suffered much and till now he has been suffering from mental agony when Rs.50,000/- is going to be forfeited by the op and it is one kind of grabbing the money of the consumers that cannot be continued in future by the op insurance company.  Whatever it may be the complainant has proved the entire fact and circumstances and including the allegation as made by her and for which the complaint succeeds.

          Hence, it is

                                                         ORDERED

          That the complaint be and the same is allowed on contest with cost of Rs.10,000/- against the ops.

          Ops are directed to refund the entire premium of Rs.1,50,000/- after deducting Rs.10,000/- as service charge from the said amount.  So, they shall have to pay Rs.1,40,000/- at once and also to pay sum of Rs.15,000/- as compensation for harassing and deceiving the complainant by adopting unfair trade practice.  So op shall have to pay Rs.1,40,000 + Rs.15,000/- + cost of Rs.10,000/- i.e. in total Rs.1,65,000/- within one month from the date of this order failing which for each day’s delay a composite interest @ Rs.250/- per day shall be paid to the complainant till full payment by the ops.

          For adopting unfair trade practice and to deceive the complainant in such a manner and to protect the other consumers from the hands of this present op in future op shall have to pay a punitive damages of Rs.15,000/- to the State Consumer Welfare Fund within one month from the date of this order.

          Op shall have to comply the order very strictly within one month from the date of this order failing which for non compliance of this order and disobeyance of Forum’s order, penal measures shall be taken against them and even for implementation of the order penal action may be taken starting proceeding u/s 27 of C.P. Act 1986 in that case further penalty amount of Rs.10,000/- shall be imposed for which the op shall be liable for that.