Punjab

Patiala

CC/15/188

Bachan Singh - Complainant(s)

Versus

HDFC Standerd LIC - Opp.Party(s)

Sh Karanvir Singh

23 Sep 2015

ORDER

                                                Complaint  No.CC/15/188 of 1.9.2015

Bachan Singh Vs. HDFC

23.9.2015:Present: Sh.Karanvir Singh, counsel for the complainant.

1. The complainant purchased HDFC SL Pension Champion Policy No.13676794dated 20^th May,2010 from the Ops through their agent   Ms. Ruby Vashisht having made the payment of the premium of Rs.75,000/-. He also made the payment of the second premium of Rs.75000/-vide cheque No.709720 dated 5.9.2011.
2. When the complainant got the Life Insurance Kit , it was transpired that the Ops had invested Rs.65,941.61 and thus the Ops failed to account for the balance of Rs.9059/- out of Rs.75,000/- deposited by him towards the premium. When the complainant enquired from the Ops about the same, it was disclosed that the same will be invested at the time of the deposit of the second installment of the premium and therefore, he had deposited the second premium but again the Ops failed to give any satisfactory reply regarding the non investment of Rs.9059/-.
3. Then, it is the case of the complainant that after a lapse of five years, he approached the Ops for surrender the policy and to collect the total amount of Rs.1,50,000/- alongwith interest and the benefits under the policy but he was made the payment of Rs.65941.61 only while the amount of Rs.54984/- as also the interest having accrued thereon was withheld.
4. The complainant made the representations to the Ops for getting the said amount of Rs.94684/- and the interest having accrued thereon refunded but to no effect. Accordingly the complainant has brought this complaint against the Ops under Section 12 of the Consumer Protection Act,1986(for short the Act) for a direction to the Ops to pay him Rs.94985/- with interest @18% per annum and further to award him Rs.2lac by way of compensation.
5. The complainant has produced on file the copy of the insurance policy No.13676794. The term of the policy is found to be 10 years and the mode of payment of the premium apparently appears to be annual as the complainant deposited the second premium of Rs.75000/-vide cheque No.709720 dated 7.9.2011 drawn on HDFC Bank Limited, Rajpura as would appear from receipt No.AZX27455 dated 6.9.2011 produced on file. The grievance of the complainant is that the Ops invested only Rs.55016.10 out of the premium amount of Rs.75000/- and failed to account for the balance amount of Rs.9059/-. The other grievance of the complainant is that when he approached the Ops after a gap of five years from the date of the issuance of the policy so as to surrender the policy, he was paid only Rs.55016.10 and the Ops withheld the amount of Rs.94984/- as also the interest having accrued thereon.
6. Admittedly the complainant had purchased the policy on 25^th May,2010 and he deposited the second premium of Rs.75000/- on 6.9.2011 and he failed to deposit any other premium thereafter. Clause 5 of the policy given on page no.12 of the policy document pertains to surrendered, lapsed and paid up policies. Clause 5(ii) pertains to Premium unpaid for the first 3 years of the policy. Said clause(ii) a,b and  c provide as under:

a.       If any premium remains unpaid as described in Provision 4 during the first 3 years’ of the Policy, the policy will lapse and be automatically surrendered. A surrender charge as specified in the Schedule of Charges will be deducted by cancellation of units. On automatic surrender due to a lapse, all benefits other than those described under Provisions 5(ii)(c) will be cancelled,Policy servicing will cease, all units will be de-allocated and will cease to be invested in the Unit Linked Funds. The value of the units less Surrender Charges will be held by us as described in Provision 5(ii)(c ).

b.      A Policy automatically surrendered due to a lapse can be revived anytime during the period of two years from the date of lapse of the Policy or till the end of 3 years from inception, whichever is later. Revival will be subject to any terms and conditions which we may specify from time to time. These terms will include payment of all outstanding regular premiums. A revival charge as specified in the Schedule of Charges, may be levied. The Revival Charge will be deducted by cancellation of units. We will collect the policy administration charge for the entire period between the date upto which it was last paid and the revival date. The Revival Charge will be determined by us at our sole discretion from time to time with prior approval from the Insurance Regulatory and Development Authority, subject to the maximum as stated in the Schedule of Charges. On revival the Unit Fund Value at the date of Lapse and the outstanding premiums will be used to allocate units to the Policy in accordance with Provision 9(xi).On Revival, the Surrender Charges taken on automatic surrender due to a lapse are reversed.

c.       If a policy automatically surrendered due to a Lapse is not revived, the Unit Fund Value at the date of lapse less the Surrender Charge as specified in the Schedule of Charges would be paid to the Policy holder at the end of 2 years from the date of lapse or at the end of 3 years from inception whichever is later. In case of your unfortunate death before this payment has been made we will make the payment immediately on receipt of all relevant documents in support of the claim.

Once a policy is lapsed and automatically surrendered and the resulting payout has been made, the Policy terminates, no further benefits are payable and the policy cannot be revived.”

7. It was for the complainant  to have shown that the fund value of Rs.55016.10 paid to him on account of the automatically surrendered policy because of the lapsation of the policy has not been worked correctly but the complainant has failed to allege even a single word about any such deficiency on the part of the Ops. There are no provisions contained under the Policy that on a policy getting lapsed and there being automatic surrender thereof because of the policy not being got revived, the policyholder is entitled to the refund of the entire amount of the premiums deposited by him. The complainant has made out a case on hypothetical basis ignoring the terms and conditions of the policy and we cannot make out a case for the complainant beyond the terms and conditions of the policy. The complainant has not made any correspondence with the Ops expressing any resentment against the fund value of Rs.55016.10 paid to him by the Ops ,in respect of which he was informed by the Ops vide letter dated 28.6.2015 vide which he was informed that the payment of Rs.55016.10 regarding policy No.13676794 on account of lapse termination had been credited in his bank account. We are, therefore, of the considered view that no prima-facie case whatsoever regarding any deficiency of service in respect of the terms and conditions of the policy qua any unfair trade practice is made out and therefore, the complain is hereby rejected. Copy of the order be supplied to the complainant free of cost.

File be consigned to the record room.

 

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