Haryana

Karnal

CC/82/2020

Savander Singh - Complainant(s)

Versus

HDFC Standard Life Insurance Company Limited - Opp.Party(s)

Gagan Shegal

13 Aug 2024

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KARNAL.

 

                                                        Complaint No. 82 of 2020

                                                        Date of instt 06.02.2020

                                                        Date of Decision: 13.08.2024

 

Savander Singh son of Shri S.P. Singh, permanent resident of H.No.662, Block-B, Phase-II, Omex City Palwal at present residing C/o Shriram Transport Finance Company Limited, Branch Office SCO No.10, HSIIDC, Sector-3, Namestey Chowk, Karnal.

 

                                                                        …….Complainant.

                                              Versus

 

1. HDFC Life Insurance Company Limited, Branch Office, Opposite Mahabir Dal Kunjpura Road, Karnal, through its Branch Head.
2. HDFC Standard Life Insurance Co. Limited, Branch Office, First Floor Block No.5 R-1A, NIT B.K.Chowk, Above Bharti Gupta Eye Clinic, Faridabad through its Branch Head.
3. HDFC Sales Private Limited, 4^th Floor, Ansal Plaza, Sector-15A, Mathura Road, Faridabad 121001.
4. HDFC Bank Limited, The Capital Court Office OLCF Palm Marg, Munirka, Outer Ring Road, Olof Palme Marg, New Delhi 110067 Sangrur 148001 through its Branch Manager/Authorized Officer/authorized representative.

                                                                …..Opposite Parties.

 

Complaint under Section 35 of Consumer Protection Act, 2019.

 

Before   Shri Jaswant Singh……President.     

      Smt.Sarvjeet Kaur……..Member

 

 Argued by: Shri Gagan Sehgal, counsel for the complainant.

    Shri Vikas Bakshi, counsel for the OPs No.1 & 2

    OP No.3 ex-parte (VOD 12.05.2022).

    Shri Parveen Kamboj, counsel for the OP NO.4.  

 

                   (Jaswant Singh, President)

               

ORDER:   

                

                The complainant has filed the present complaint under Section 12 of Consumer Protection Act (now Section 35 of the Consumer Protection Act, 2019) against the opposite parties (hereinafter referred to as ‘OPs’) on the averments that on 01.11.2019, the complainant had obtained Housing Loan of Rs.25,00,000/- from the OPs No.3 & 4 on 01.11.2019 for the period of 15 years on a monthly EMI of Rs.25,061/-. At the time of sanctioning of loan, the OPs No.3 & 4 obtained signature of complainant on various papers and advised the complainant to get insured the loan amount and as per policy of the bank, if a loan is more than Rs.20,00,000/- then it must be insured with a nominal installment, and also guided the complainant that the home loan of complainant would be insured with a nominal installment not more than Rs.1000/- per month which can be go simultaneously with the main installment i.e. Rs.25,061/- per month, on the advised of the officials of the OPs No.2 & 3 the complainant agreed to get insured his home loan with a nominal installment. First installment i.e. Rs.25,061/- of the aforesaid loan was deducted on 16.12.2019 from the salaried account of complainant and simultaneously Rs.931/- was also deducted and complainant was under impression that the installment of Rs.931/- was deducted for insured policy. Thereafter, on 23.12.2019, Rs.40,000/- was deducted from the salaried account of complainant by ACH/HDFC Life. Then, the complainant approached OPs No.3 & 4 and they told the complainant to cancel the policy. One representative of OPs N.3 & 4 namely Abhishek, assured the complainant that they will cancel the policy as early as possible but they did not cancel the same. Then complainant inquired about the matter and came to know that one insurance policy No.20987616 of Rs.10,00,000/- with a premium of Rs.40,000/- per annum under the name HDFC Life Grow Worth Plus (Policy) was made at the time of aforesaid home loan and the complainant has to pay Rs.40,000/- per annum for the next 15 years. It is pertinent to mention here that the complainant also came to know that as far as the first installment of Rs.40,000/- is concerned, the OP made separate loan account of Rs.40,000/- and its installment shown as Rs.931/- per month and this fact did not bring into the knowledge of complainant and is a gross violation on the part of OPs. Without informing and consent of complainant, the OPs made insurance policy which is deficiency in service and unfair trade practice.  Hence this complaint.

2.             On notice, OPs appeared. OPs No.1 & 2 filed their separate written version raising preliminary objections with regard to maintainability; locus standi; cause of action and concealment of true and material facts, etc.. On merits, it is pleaded that Life Assured had submitted to the OPs an application dated 21.12.2018 for purchase of Life Insurance policy, the proposal was accepted on the standard rates based on the information provided by the LA and consequently policy was issued. The policy document were sent by the OPs No.1 & 2 through speed post which was received by the complainant on 01.01.2019. The complainant is a well educated person and himself working with a financial institution, therefore, after going through the relevant information and benefits attached with the policy and ultimately got himself insured through life insurance policy with the OPs No.1 & 2 through OPs No.3 & 4. There is no deficiency in service and unfair trade practice on the part of the OP. The other allegations made in the complaint have been denied and prayed for dismissal of the complaint.

3.             OP No.4 filed its separate written version raising preliminary objections with regard to territorial jurisdiction, maintainability, misrepresentation, etc. On merits, it is pleaded that the complainant availed Home Loan and insurance premium funding by the complainant from the OP. However, it is clarified that the OP never asked the complainant to get the insurance as there was no compulsion for complainant to avail the loan and the insurance, rather the complainant in order to secure his loan got the insurance from the OPs No.1 & 2 and the answering OP had no role in settlement of insurance claim. On the asking of complainant, the answering OP only financed the insurance loan. The complainant after accepting the conditions availed the insurance from the OPs No.1 & 2. Further the OP has only provided financial assistance to avail the insurance policies upon request from the borrower. There is no deficiency in service and unfair trade practice on the part of the OP. The other allegations made in the complaint have been denied and prayed for dismissal of the complaint.

4.             OP no.3 did not appear despite service and opted to be proceeded against exparte, vide order dated 12.05.2022 of the Commission.

5.             Parties then led their respective evidence.

6.             Learned counsel for the complainant has tendered into evidence affidavit of complainant Ex.C1, copy of statement of account Ex.C1, copy of e-mails dated 27.12.2019 and 26.12.2019 Ex.C2 and Ex.C3 and closed the evidence on 31.01.2023 by suffering separate statement.

7.             On the other hand, learned counsel for the OPs no.1 & 2 has tendered into evidence affidavit of Gurpreet Singh, Manager, Legal HDFC Life Insurance Co. Ltd. as RW1/A, copy of proposal form Ex.OP1, copy of addendum to proposal form Ex.OP2, copy of account statement Ex.OP3, copy of assignment form Ex.OP4, copy of application for an insurance policy Ex.OP5,  copy of letter of authority Ex.OP6, copy of notice of assignment Ex.OP7, copy of delivery report of postal department Ex.OP8, copy of e-mail Ex.OP9 and closed the evidence on 19.07.2023 by suffering separate statement.

8.             Learned counsel for the OP no.4 has tendered into evidence affidavit of Aditya Kochar, Deputy Manager Ex.RW1/A, copy of loan agreement Ex.R1, copy of loan agreement Ex.R2, copy of outstanding loan amount sheet Ex.R3, copy of acceptance Ex.R4, copy of acceptance Ex.R5 and closed the evidence on 01.05.2023 by suffering separate statement.

9.             We have heard the learned counsel for the parties and perused the case file carefully and have also gone through the evidence led by the parties.

10.           Learned counsel for the complainant, while reiterating the contents of complaint, has vehemently argued that the complainant has obtained a home loan of Rs.25,00,000/- from the OPs and the OPs without the consent of the complainant and in order to secure the loan amount issued an insurance policy in the name of complainant and also prepared a loan account of Rs.40,000/- and started deducting monthly installment of Rs.931/- of the loan account of Rs.40,000/- . He further argued that on 23.12.2019, Rs.40,000/- was deducted from the salary account of the complainant. On enquiry, it is transpired that one insurance policy of Rs.10,00,000/- has been issued in the name of the complainant whereas complainant has not purchased the alleged policy and lastly prayed for allowing the complaint.

11.           Per contra, learned counsel for the OPs No.1 & 2, while reiterating the contents of written version, has vehemently argued that on the application dated 21.12.2018, duly signed by the complainant, for purchase of Life Insurance policy, the proposal was accepted and accordingly, the policy documents were sent to the complainant on 01.01.2019. There is no deficiency in service and unfair trade practice on the part of the OPs and lastly prayed for dismissal of the complaint.

12.           Learned counsel for OP No.4, while reiterating the contents of written version, has vehemently argued that complainant availed Home Loan and insurance premium funding by the complainant from the OP. OP never asked the complainant to get the insurance as there was no compulsion for complainant to avail the loan and the insurance, rather the complainant in order to secure his loan got the insurance from the OPs No.1 & 2 and the answering OP had no role in settlement of insurance claim. On the asking of complainant, the answering OP only financed the insurance loan and lastly prayed for dismissal of the complaint.

13.           We have duly considered the rival contentions of the parties.

14.           Admittedly, the complainant has availed the Housing Loan from the OPs No.3 & 4 for Rs.25,00,000/- for the term of year 15 years. It is also admitted that monthly EMI was Rs.25061/-.

15.           The complainant has alleged that at the time of obtaining home loan of Rs.25,00,000/-, the OPs have obtained his signature on various blank papers and without his consent, the OPs in order to secure the loan amount issued an insurance policy without his consent and started deducting EMIs of Rs.931/- from his salary account and complainant requested to cancel the alleged insurance policy.

16.           On 01.11.2019, complainant obtained Housing Loan of Rs.25,00,000/- from the OPs, for the period of 15 years on a monthly EMI of Rs.25061/-. Insurance policy alongwith documents were sent to the complainant on 28.12.2018 through speed post and same was received by the complainant on 01.01.2019. It is not a case of the complainant that he has not received the policy documents. If the complainant has any grievances with regard the insurance policy, he would have approached the OPs within freelook period of 15 days. The complainant has placed on file copy of part account statement Ex.C1. The complainant himself submitted that OPs have deducted the thirteen EMI of Rs.931/- from his account. Meaning, thereby, it was the knowledge of the complainant that OPs have issued the insurance policy. It was the duty of the complainant to approach the OPs within free look period to cancel the insurance policy but he did not do so.

17.           Thus, in view of the above discussion, the present complaint is devoid of merits and deserves to be dismissed and same is hereby dismissed. No order as to costs. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

 

Announced

Dated: 13.08.2024

                                                                  President,

                                                     District Consumer Disputes

                                                     Redressal Commission, Karnal.

        (Sarvjeet Kaur)

                                    Member