BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

    09^th DAY OF DECEMBER 2019

ORDER

SRI. S.L PATIL, PRESIDENT

Since the complaint in CC.No.988/2015 and CC.No.989/2015 arising out of the same policy named as ‘Critical insurance policy’ availed by the Complainant bearing no.16336005 from the agent of OP/HDFC on 24.10.13. The condition was payment of annual premium of Rs.21,558/-. In this context, the Complainant has made the payment of the said amount and obtained the policy. As per ECS mandate said to have been given by the Complainant to the OP/HDFC an amount of Rs.21,558/- has been credited to OP/HDFC from the SB a/c of the Complainant maintained in OP/Indian Overseas Bank. In both the cases, the Complainant is one and the same. The claim in CC.No.988/2015 is against OP/HDFC and the claim in CC.No.989/2015 is against OP/Indian Overseas Bank for refund of Rs.21,558/- which has been credited to OP/HDFC from the SB account of the Complainant maintained in OP/Indian Overseas Bank. Hence these complaints are taken together for disposal recording common order.

1a: CC.No.988/2015: The Complainant has filed this complaint U/s 12 of Consumer Protection Act 1986, seeking direction against the Opposite Party no.1 & 2/HDFC SL (herein after called as OPs/HDFC) to refund Rs.21,558/- with interest at 18% p.a.; to pay Rs.25,000/- towards compensation; to pay Rs.5,000/- towards notice charges; to pay costs and to award such other reliefs.

1b: CC.No.989/2015: The Complainant has filed this complaint U/s 12 of Consumer Protection Act 1986, seeking direction against the Opposite Party (herein after called as OP/Indian Overseas Bank) to refund Rs.21,558/- with interest at 18% p.a.; to pay Rs.25,000/- towards compensation; to pay Rs.5,000/- towards notice charges; to pay costs and to award such other reliefs.

CC.No.988/2015:

2. The brief facts of the complaint are as under:

The Complainant submits that, he has purchased a ‘Critical insurance policy’ from OPs on 24.10.13 bearing no.16336005 by paying annual premium of Rs.21,558/-. Since, he wanted to keep his option open for deciding whether to continue the policy in future, he did not want to pay the premium by ECS and also not signed the requisite ECS form. Thereafter he decided to discontinue the policy and did not pay the premium. Though he has not opted for ECS facility and not keen on continuing with the policy, OP sent SMS on 17.10.14 stating that will collect the premium through ECS. Immediately, he intimated his stand to OP through email. Later, as informed by the OP, the Complainant filled up a deactivation mandate and sent. Inspite of it, OP has collected an amount of Rs.21,558/- from his bank account illegally on 05.11.14. Inspite of repeated request as well as emails to OP and grievance cells for refund of the amounts collected unlawfully, the same has not been done. Thereafter also he received email dtd.06.12.14 from OP stating that, they have not received the payment and the policy is in lapse status. When the Complainant again checked with his bank pass book bearing a/c. no….8020 of ‘Indian Overseas Bank’, wherein it reflects withdrawal of Rs.21,558/- on 05.11.14 as ‘ECS ILECS-H’. The said acts amount to deficiency of service and caused loss, mental harassment. In this context, he issued legal notice, to which, OP neither paid nor replied. Hence this complaint.

2a. After issuance of notice, OP.1 & 2/HDFC SL did appear and filed version.  OPs in their version submits that, they issued the said policy subject to policy terms and conditions. The Complainant has given inputs regarding ECS mandate form/Doc.B1 on 29.09.13 from his account maintained at Indian Overseas Bank, wherein he has agreed/authorizing the OP to debit a sum of Rs.21,558/- from his SB a/c towards annual premium payable to the said policy. Thereafter, on 31.10.14 he filled up the deactivation of ECS. The turnaround time for the process of deactivation and to cancel the ECS is 15 days from the date of request and no ECS can be stopped from hitting the account of the policy holders within 15 days from the request. As such, the ECS amount of Rs.21,558/- has been debited from his account. OP further submits that, as per clause 5 of the terms and conditions of the policy “10% extra of the premium will be charged for non/SI/ECS premium amounts”. As such Rs.2,156 is due from the Complainant, hence the said policy stands lapsed/paidup. Further as per the clause 3 “there is no benefit payable on the surrender of the policy”. As such premium amount cannot be refunded and the Complainant is not entitled for any benefit of return of premium as claimed in the complaint. Hence on these grounds and other grounds OPs pray for dismissal of the complaint.

CC.No.989/2015:

3. The brief facts of the complaint are as under:

The Complainant submits that, he has purchased a ‘Critical insurance policy’ from HDFC Life bearing no.16336005 by paying annual premium of Rs.21,558/-. At the time of taking the policy he had not opted for ECS as he wanted to keep the option of renewal open. Thereafter he decided to discontinue the said policy, hence he did not pay the premium. But to his surprise, he received email dtd.17.10.14 from HDFC life insurance office stating that will collect the premium through ECS. He immediately intimated them that he has not opted for ECS. The Complainant immediately on 21.10.14 itself intimated the OP bank that he had not given any ECS instructions to HDFC and requested the OP to stop payment to HDFC through ECS. Thereafter, his account itself was blocked by OP and his cheques issued to BSNL and Kotak insurance were returned inspite of there being sufficient balance in his account. When he contacted the OP, he was informed that it was a mistake of the computer. On 05.11.14 it was found that the amount of Rs.21,558/- was debited from his account and paid to HDFC life. The Complainant further submits that, inspite of several letters and emails not to make payment by ECS to HDFC life, OP paid the same. Inspite of specific instructions of not making payment to HDFC, OP has gone ahead and done so and caused loss to the Complainant. In this context, he issued legal notice, to which OP neither paid nor replied. Hence this complaint.

3a. After issuance of notice, OP/Indian Overseas Bank did appear and filed version.  OP in its version submits that, the Complainant is having savings account with the OP. The Complainant specifically admits in respect of having secured ‘Critical insurance policy’ from HDFC life with annual premium of Rs.21,558/-. Further, he has voluntarily submitted ECS mandate so as to ensure realization of annual premium payable to the said insurer/HDFC. RBI approved agency has forwarded the said ECS mandate form to the OP bank for the purpose of authentication. The said ECS is dtd.29.09.13 signed by the Complainant authorizing the OP to debit his savings account, the annual premium of Rs.21,558/- payable to the said policy on 24^th October every year starting from 24.10.14 to 24.10.32. On 21.10.14, the Complainant served a letter to the OP bank claiming that, he never issued ECS mandate to HDFC life and requested to stop clearance of Rs.21,558/- if the ECS is invoked on 24.10.14. Accordingly, OP has put a hold on the said amount as ‘debit block’ in the account from debiting as per ECS mandate. Since, the block was not lifted to the said money in the Complainant’s account; the instruments which he issued favouring BSNL or Kotak insurance have been returned as there was no other balance/funds available to honour the same. OP further submits that, the Complainant in his letter who categorically claimed that he never issued ECS mandate to HDFC life; later failed to clarify the same. As rightly admitted by him, he was informed to revoke the ECS mandate issued by him from the beneficiary but he failed to take any steps. Since he later upon request to release the debit block to honour his other cheques, the OP has release the debit block which was otherwise blocked to prevent honouring ECS and as and when the beneficiary invoked the ECS mandate, the OP has honoured the same on behalf of the Complainant as per his own mandate in writing. The OP is having no contract with HDFC life and it is the Complainant who transacted with them has issued ECS mandate directing the OP to honour the ECS request as and when invoked until 24.10.32. The Complainant who secured the insurance policy with HDFC has admittedly failed to cancel the same and it is between himself and insurer to allow the policy to lapse or to continue; but fact remains that, the Complainant failed to revoke the ECS mandate, the Complainant cannot find negligence or lapse in the services of OP for his negligence. Further refund of premium amount is on account of contract between the Complainant and HDFC and OP is a third party having no privities; cannot get refund. The Complainant cannot maintain the case in the HDFC life and the complaint is liable to be dismissed for want of necessary party. Hence on these grounds and other grounds OP pray for dismissal of the complaint.

4. The Complainant to substantiate his cases filed affidavit evidence and produced the documents. Respective OPs also filed their affidavit evidence and produced the documents.  Both filed written arguments. Heard. We have gone through the available materials on record.

5. The points that arise for our consideration are:

1. Whether the Complainant proves the deficiency of service on the part of OPs/HDFC SL in CC.No.988/2015, if so, entitled for the relief sought for?

2. Whether the Complainant proves the deficiency of service on the part of OP/Indian Overseas Bank in CC.No.989/2015, if so, entitled for the relief sought for?

3. What order?

        6. Our answer to the above points are as under:

Point No.1:- Partly in the affirmative

Point No.2:- In the negative

Point No.3:- As per final order

REASONS

7. Point No.1: We have briefly stated the contents of both complaints as well as the version filed by OPs therein. For just disposal of these complaints, the facts of CC.No.988/2015 are relevant since the facts in CC.No.989/2015 are very limited in respect of the amount deducted from the SB account of the Complainant in OP/Indian Overseas Bank.  It is not in dispute that, the Complainant has purchased the ‘Critical insurance policy’ bearing no.16336005 from the OP/HDFC agent on 24.10.13. The condition was payment of annual premium of Rs.21,558/-. In this context, the Complainant made the payment of the said amount and obtained the said policy as per Doc.A1 produced in CC.No.988/2015.

8. It is also the specific case of the Complainant that, he was informed by the OP/HDFC that, there were various manners in which the premium could be paid. One of them was by way of ECS. In this context, the Complainant specifically instructed to OP/HDFC agent that he did not want to pay the premium by ECS, as he wanted to keep his option open for deciding whether to continue the policy in future, hence did not sign the requisite ECS form. As he decided to discontinue the said policy, hence he did not pay the premium. But to his surprise, he received an SMS from OP/HDFC office on 17.10.14 that it will collect the premium through ECS. Immediately, he wrote an email to OP/HDFC intimating them that firstly he has not opted for ECS facility and secondly he was not keen on continuing with the said policy.

9. But the say of the OP/HDFC is that, the policy was properly explained to the Complainant and at the same time, the Complainant was also well educated to read and understand the proposal form, illustration and the policy documents. But he failed to understand the clause ‘Option to Return’ contained in the said policy document which gives policy holder the option to return the policy to OP/HDFC stating the reasons thereof, within 15 days of receipt of the policy in case he is not agreeable to any of the provisions stated in the policy and the details in the proposal form. Hence, the Complainant has waived his right to return the policy as per the stipulated time mentioned above.

10. Further contended that, the Complainant has given inputs regarding Electronic Clearing Service (ECS) mandate form on 29.09.13 from his account maintained in OP/Indian Overseas bank, wherein he has agreed/authorizing the OP/HDFC to debit a sum of Rs.21,558/- from his SB account maintained at OP/Indian Overseas bank towards his annual premium amount which can be seen on going through the ECS mandate/Doc.B1 produced in CC.No.988/2015. The OP/HDFC admits that, the Complainant has completed the requisite formalities by filling up the deactivation of ECS on 31.10.14. The turnaround time for the process of deactivation and to cancel the ECS is 15 days from the date of request and no ECS can be stopped from hitting the account of the policy holders within 15 days from the request. As such, in the instant case, the ECS amount of Rs.21,558/- has been debited from the Complainant account and the OP/HDFC accept the receipt of the said ECS amount of Rs.21,558/- credited on 05.11.14. As per clause 5 of the terms and conditions of the policy provisions “10% extra of the premium will be charged for non/SI/ECS premium payments. As such Rs.2,156/- (10% of the premium amount) is due from the Complainant towards the said policy and for the reasons stated above the policy stands lapsed/paid-up. Further the clause 3 of the terms and conditions of the policy provisions “there is no benefit payable on the surrender of the policy”. As such premium amount cannot be refunded and the Complainant is not entitled for the relief.

11. In our considered view, though the Complainant has signed in the ECS form to deduct the annual premium, but he did not continue the said policy. In this context, he has intimated to the OP/HDFC for deactivation/Doc.A5 dtd.31.10.14 (produced in CC.No.988/2015) of the said policy. According to the OP/HDFC, the turnaround time for the process of deactivation and to cancel the ECS is 15 days from the date of request and no ECS can be stopped from hitting the account of the policy holders within 15 days from the request. In the meantime, as per the ECS mandate an amount of Rs.21,558/- has been debited from the Complainant’s SB account maintained in the OP/Indian Overseas Bank. As the Complainant voluntarily opted for deactivation of the premium to be paid in respect of the said policy by way of ECS, the process of deactivation was 15 days is the procedural aspect. Under such circumstances, even after submitting the deactivation form to deactivate the policy, OP/HDFC has sent ECS request to the OP/Indian Overseas Bank. Accordingly, the premium amount of Rs.21,558/- has been debited and forwarded to OP/HDFC. When such being the fact, the amount so debited from the SB account of the Complainant maintained in the OP/Indian Overseas Bank and the OP/HDFC accepts the receipt of ECS amount of Rs.21,558/- credited on 05.11.14 is to be refundable to the Complainant with interest at 8% p.a. from the date of deactivation i.e.31.10.14 till the date of realization. Litigation cost is fixed to Rs.5,000/-. With regard to award of compensation of Rs.25,000/- is negated, since there is no any evidence on record as to how the mental agony caused to him. Accordingly we answered point No.1 partly in the affirmative.

12. Point No.2: Since, we have already recorded our findings on point no.1 fixing the liability on OP/HDFC to refund the amount of Rs.21,558/- which has been debited from his SB account maintained in OP/Indian Overseas Bank, as the said OP/Indian Overseas Bank acted only as per the instructions sent by the OP/HDFC. Hence, we do not find fault with the OP/Indian Overseas Bank. Hence, the claim against the said OP bank/Indian Overseas Bank is negated. Accordingly we answered point No.1 in the negative.

          13. Point No.3: In the result, we passed the following:         

  O R D E R

The complaint filed by the Complainant in CC.No.988/2015 is allowed in part. OP.1 & 2/HDFC SL are directed to refund the amount of Rs.21,558/- to the Complainant with interest at 8% p.a. from the date of deactivation i.e. 31.10.14 till the date of realization within six weeks from the date of receipt of this order. OP.1 & 2/HDFC SL are also directed to pay litigation cost of Rs.5,000/- to the Complainant.

2. The complaint filed by the Complainant in CC.No.989/2015 is dismissed in view of allowing the complaint filed in CC.No.988/2015. Looking to the circumstances of the case we direct both the Complainant and OP/Indian Overseas Bank to bear their own costs.

Supply free copy of this order to both the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Forum on this 09^th day of December 2019)

        MEMBER                                             PRESIDENT

CC.No.988/2015:

Witnesses examined on behalf of the Complainant dated.08.01.16, 24.11.18

Sri.Harisha Rao.A

Copies of Documents produced by the Complainant:

Witnesses examined on behalf of the OPs dated.26.04.16

Sri.Kumar Belwadi, Legal Manager    

Copies of Documents produced by OPs

CC.No.989/2015:

Witnesses examined on behalf of the Complainant dated.24.11.15

Sri.Harisha Rao.A

Copies of Documents produced by the Complainant:

Witnesses examined on behalf of the OP dated.24.03.16

Sri.Xaveir.T.A, Branch Manager    

Copies of Documents produced by OP

            MEMBER                                           PRESIDENT