Punjab

Patiala

CC/19/307

Anil Kumar - Complainant(s)

Versus

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

Sh Amar Singh

24 Apr 2023

ORDER

 

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION

PATIALA.

 

                                     

Consumer Complaint No.	:	CC/ 307/2019
Date of Institution	:	14.8.2019
Date of Decision	:	24.4.2023

 

Anil Kumar Jain aged about 59 years son of Babu Ram Jain, resident of H.No.29, Engineers Enclave, Near 23 No.Phatak, Kaka Colony, St.No.1, Patiala.

 

                                                                   …………...Complainant

                                      Versus

 

1. HDFC Standard Life Insurance, Leela Bhawan, Ist and IInd Floor SCO No.114-115, New Leela Bhawan Market, Patiala through its Branch Manager.
2. HDFC Life Insurance Company Limited, Lodha Excelus, 13^th Floor, Apollo Mills Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400 011 through its Managing Director.

                                                                   …………Opposite Parties

 

Complaint under the Consumer Protection Act

 

QUORUM

                                      Hon’ble Mr.S.K.Aggarwal, President

                                      Hon’ble Mr.G.S.Nagi,Member         

 

 

PRESENT:                   Sh.Amar Singh, counsel for complainant.

                             Sh.Amit Bedi, counsel for OPs.

                              

 

                                     

 ORDER                                          

1. The instant complaint is filed by Anil Kumar Jain  (hereinafter referred to as the complainant) against HDFC Standard Life Insurance and another (hereinafter referred to as the OP/s) under the Consumer Protection Act ( for short the Act).
2. The averments of the complainant are as follows:
3. That complainant obtained an insurance pension plan policy No.120310 on 4.2.2003 from OPs for the sum assured of Rs.1,78,000/- with yearly premium of Rs.10,001/- for 16 years. Policy matured on 4.2.2019 for Rs.3,20,919/-.
4. OPs claimed to have issued an option letter dated 12.8.2018 to the complainant about 6 months before the date of maturity. Alleged letter was never received by the complainant and was only delivered to him when he visited the office of OP No.1.It is stated in the letter that 1/3^rd of maturity amount/benefit would be given cash and for the remaining amount i.e. 2/3^rd, complainant has to choose one option out of five options. The complainant was not willing to opt any option and preferred to get lump sum amount in one go. But the OPs neither accepted his request nor finalized maturity amount for 1 ½ years. In that situation complainant was left with no option but to choose under protest one  option of Life Annuity with return of  purchase price in parts i.e. 30% of purchase price will given at the 2^nd of seven years and remaining 70% to the nominee after the demise of annuitant. The OPs did not issue opted policy rather issued policy No.21269394 dated 15.3.2019. He was given refund of Rs.1,06,973/- i.e. 1- 3^rd of the maturity amount of the policy on 14.3.2019 and remaining amount of Rs.2,13,947/- was transferred to New HDFC Pension Guaranteed Plan policy No. 21269394, intimated vide letter dated 22.4.2019. Complainant raised objections in this regard vide letter dated 26.3.2019 but of no avail. There is thus deficiency of service on the part of the OPs. The act and conduct caused mental agony and harassment to the complainant. Consequently, prayer has, thus, been made for acceptance of complaint.
5. Upon notice, OPs appeared through counsel and filed written statement having raised various preliminary objections.
6. On merits, obtained of insurance plan by the complainant is admitted. It is submitted that complainant was issued letter dated 12.8.2018 about 6 months before maturity of policy so that he could opt for the option under the maturity of the previous policy. Complainant was issued New HDFC Pension Plan for the remaining amount of Rs.2,13,947/- and an amount of Rs.1,06,973/- was paid to the complainant on maturity of previous policy. Complainant did not refuse to sign the documents and gave his consent with his free will. Now he cannot questioned the same. There is no deficiency of service on the part of OPs. After denying all other averments, OPs prayed for dismissal of complaint.
7. In evidence ld. counsel tendered Ex.CA affidavit of the complainant,Ex.C1 copy of policy, Ex.C2 copy of letter dated 12.8.2018, Ex.C3 copy of chart of annuity, Ex.C4 copy of policy dated 15.3.2019, Ex.C5 copy of complaint, Ex.C6 copies of emails,Ex.C7 copy of benefits of survival and closed evidence.
8. Ld. counsel for OPs has tendered in evidence, Ex.OPA affidavit of Gurpreet Singh, Dy.Manager-Legal HDFC LIC, Ex.OP1 copy of authority letter,Ex.OP2 copy of application form, Ex.OP3 copy of premium receipt dated 6.2.2003, Ex.OP4 copy of pension plan No.000000120310,Ex.OP5 copy of letter dated 12.8.2018, Ex.OP6 copy of application for transfer of funds for issuance of new policy dated 12.3.2019,Ex.OP7 copy of NEFT mandate, Ex.OP8 copy of policy service request form, Ex.OP9 copy of customer consent document,Ex.OP10 copy of second policy No.21269394 alongwith terms and conditions and first premium receipt,Ex.OP11 copy of email dated 22.4.2019 and closed evidence.
9. We have heard ld. counsel for the parties and also gone through the record of the case, carefully.
10. The complainant had taken annuity pension plan policy from the OPs vide policy No.00120310, which was to mature on 4.2.2019, as per letter dated 12.8.2018,Ex.C2. The maturity amount admissible to the complainant  as on 23.7.2018 was to the tune of Rs.3,20,919/- approximately as per the said letter.  The complainant was asked to opt for any of the preferred annuity options mentioned in Ex.C3.The complainant was not willing to accept any of the options and instead preferred the amount due in lump sum. However, as the maturity claim was not settled by the OPs, the complainant was left with no other option but to choose option from any of the five options, as offered by the OPs. The complainant opted for Life Annuity with return of purchase price in part i.e. 30% of the purchase price will be given at the end of 7 years and remaining 70% to the nominee after the demise of the holder, as per option No.3 of the said option form. The complainant has argued that policy No.21269394 dated 15.3.2019, Ex.C4 was then issued to him as per option No.2 of the said option form against the option No.3 selected by the complainant. An amount of Rs.1,6,973/- i.e. one third of the maturity amount was credited to the complainant and balance amount of Rs.2,13,947/- was transferred to new policy No.21269394 against HDFC Pensiaon Guaranteed Plan. An objections to the same was raised by the complainant to OP no.1 vide letter dated 26.3.2019, Ex.C5 i.e. within 11 days of the issuance of said policy. However, the matter was not resolved and the same was taken up with OPno.2 vide e-mail dated 6.4.2019, Ex.C6 but without any fruitful result.
11. The complainant has argued that the amount of Rs.2,13,947/- deducted from the maturity amount of Rs.3,20,919/- on 4.2.2019 be refunded to him alongwith interest.
12. The OPs in the written statement has admitted that policy No.120310 was issued to the complainant and maturity amount of Rs.3,20,919/- was due on 4.2.2019.Ld. counsel for the OPs have argued that complainant had willingly opted for HDFC Pension Plan for an amount of Rs.2,13,947/- at the time of the maturity which was transferred to the new policy against total amount of Rs.3,20,919/- which was due to the complainant and the remaining amount of Rs.1,06,973/- was credited to the complainant.  The OPs have further argued that the complainant had signed and accepted the new contract of his own and have prayed for the dismissal of the complaint.
13. A perusal of the policy No.21269394 issued to the complainant on 15.3.2019 for an amount of Rs.2,13,942/- reveals that the policy could be returned within the Free Look In period of 15 days from the date of receipt of the policy.
14. Admittedly, the complainant had raised the issue with OP No.1 for correction of his option on 26.3.2019 i.e. within 11 days from the date of issue of the policy and also with OP No.2 on 6.4.2019. Even if the argument of the OPs that the complainant signed the new policy of his free will is accepted then too the OPs were required to cancel the said policy as a request for the same was made by the complainant within the Free Look-in Period of 15 days as per terms and conditions of the policy, Ex.OP10. As such, we are of the opinion that OPs were deficient in not accepting the conversion request raised by the complainant within the free look in period. The complainant had now pleaded for the refund of the total amount of Rs.2,13,947/- which became due to the complainant on 4.2.2019.
15. The OPs have placed on record a copy of the statement indicating that an amount of Rs.14,699/- each on 11.3.2020, 10.3.2021,10.3.2022 and 10.3.2023 have already paid to the complainant against the new policy No.21269394 issued on 15.3.2019. As such an amount of Rs.58796/- has already been paid to the complainant out of Rs.2,13,947/-. It is also a fact that life of the complainant remained insured during the currency period of the said policy.
16. A perusal of the above indicates that an amount of Rs.1,55,151/- (Rs.213947/- minus 58796/-)  is still lying with the OPs  out of total amount of Rs.2,13,947/-.As such, complaint is partly allowed and we direct the OPs to settle the refund of an amount of Rs.1,55,151/- to the complainant alongwith simple interest @ 6% per annum w.e.f.4.2.2019 till realization, within 30 days from the date of receipt of certified copy of this order failing with OPs shall pay interest @ 9% per annum on the said amount from 4.2.2019 till realization. The OPs are also burdened with Rs.5000/- to be paid to the complainant within the stipulated period.
17.           The instant complaint could not be disposed of within stipulated period due to Covid protocol and for want of Quorum from long time.
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                                              G.S.Nagi                           S.K.AGGARWAL

                                              Member                          President