The present case is filed by one Sri Haradhan Dey against HDFC Standard Life Insurance Co. Ltd., praying for a direction upon the OP Insurer to refund the deposited amount of Rs. 1,00,000/- and further payment of compensation to the tune of Rs. 2,00,000/- and another sum of Rs. 10,000/- towards litigation cost.
Briefly narrated, case of the Complainant, is that, he took a policy being no. 13558872 from the OP Insurer on 19-03-2010. The policy was for a period of eleven years with annual premium of Rs. 49,999/-. The Complainant, as per terms and conditions, paid the first and second premiums in time. However, as he suffered cerebral attack in the year 2012, the policy could not be renewed in time. After recovery, he wrote a letter to the OPs on 27-01-2014 stating the entire facts and as per the instruction of the concerned office of the OP, paid Rs. 50,000/- with extra charges for renewal of the policy and on 30-01-2014, OP sent a letter to the Complainant stating that necessary complaint has been registered. Unfortunately, by its letter dated 07-02-2013, the OP expressed its inability to renew the policy. However, what caught the Complainant by surprise that the OP issued another policy in the name of his wife although no such prayer was made from his side. So, the Complainant wrote a letter to the OP Insurer on 17-06-2014 asking it to cancel the new policy being no. 15795929 and in reply, the OP vide its letter dated 19-06-2014 stated that it would withdraw the disputed newly issued policy and transfer the said amount to the existing policy of the Complainant being policy no. 13558872 and the policy would be continued subject to payment of Rs. 745/-. The Complainant, as per the instruction of the OP, visited its office on 19-06-2014 itself, but the OP refused to accept the amount till it received due instruction from its Mumbai office. Subsequently, the OP suo motu deposited Rs. 50,000/- to the account of the Complainant and closed the newly issued policy. Feeling aggrieved by the arbitrary conduct of the OP Insurer, Complainant filed this case.
OPs contested the case by filing WV, whereby it denied all the material allegations of the complaint. It is further stated that although the Complainant paid the premiums for the year 2010 and 2011 in time, but he failed and neglected to pay subsequent premiums which fell due in March, 2012 onwards. On 29-01-2014, after passing of more than two years from the date of due premium, the OP received a letter dated 27-01-2014 from the Complainant stating therein that due to his alleged illness, he could not pay 3rd and 4th premiums. The Complainant also raised various allegations in the said letter. The Complainant further asked for cancellation of policy and refund of premium. The OP, vide its letter dated 07-02-2014 rebutted the allegations and stated that they were unable to process the request for cancellation of policy and refund of premium as the cancellation was not received within free look period. The OP further called upon the Complainant to pay the outstanding premium together with service tax, execution cess, revival charge and interest as mentioned in the said reply. Some times in the year 2014, the OP received a duly filled up proposal form along with premium payment cheque through agent for issuance of a policy being HDFC Standard Life Classic Assurance Plan from Manasi Dey, wife of the Complainant. Upon receipt of the same, the OP issued a policy bearing no. 15795929. Subsequently, the OP received a letter on 17-06-2016 from said Manasi Dey seeking cancellation of her policy and transfer of the premium amount to the policy stood in the name of the Complainant, being Policy No. 13558872. The OP, vide its reply dated 19-06-2014 informed that such request had been processed and once the original policy document was received by the OP, the policy would be cancelled and due amount would be transferred to the policy of the Complainant. It is stated by the OP Insurer that in order to revive the policy of the Complainant, a further sum of Rs. 745/- was required to be paid. However, no such amount has been deposited as of date. Due to non-payment of premium, the policy got lapsed as per terms and conditions of the policy. Accordingly, this OP prayed for dismissal of the case.
Point for determination is whether the Complainant is entitled to the relief(s), as prayed for, or not.
Decision with reasons
Undisputedly, the Complainant took a policy from the OP Insurer bearing Policy No. 13558872 and successfully paid the first two premiums in respect of this policy. Also undisputed is the fact that the Complainant did not pay 3rd and 4th premiums in respect of this policy.
The dispute, as it appears, revolves over non-revival of Policy No. 13558872. It is claimed by the OPs that since the Complainant did not pay the sum of Rs. 745/- being late fee and other incidentals, the policy could not be renewed. On the other hand, it is claimed by the Complainant that upon receipt of a letter dated 19-06-2014, he rushed to the office of the OP No. 1 on the very same day, but the latter refused to accept the said sum for want of necessary instruction from its Mumbai office. In order to substantiate such claim, Complainant filed photocopy of a letter dated 04-12-2014 that was submitted to the office of the OP No. 1 on 06-12-2014. Most surprisingly, OP No. 1 has not refuted such allegation by sending any communiqué to the Complainant.
Another allegation made from the side of the Complainant is that the OPs issued a second policy in the name of his wife being Policy No. 15795929 although no such application was made from their side. Although OPs vehemently denied any wrongdoing and claimed that on receipt of duly filled up proposal form, it issued the policy in the name of Complainant’s wife, for the reasons best known to it, the OP has not furnished the concerned proposal form to substantiate its claim.
Keeping in mind the aforesaid conduct of the OP Insurer and there being no reason to believe that a policyholder, who could pay yearly premium worth Rs. 50,000/-, would hesitate to pay a meager sum of Rs. 745/- to revive his policy, we are inclined to direct the OPs to return the entire deposited amount of Rs. 1,00,000/- to the Complainant.
Hence,
O R D E R E D
that CC/105/2015 be and the same is allowed in part on contest against the OPs. The OPs are directed to pay Rs. 1,00,000/- to the Complainant within two months from this date, i.d., the amount shall carry interest @ 10% p.a. after expiry of aforesaid two months till full payment is made.
