Orissa

Cuttak

CC/100/2016

Bhavesh Parekh - Complainant(s)

Versus

Managing Director,HDFC Bank Ltd - Opp.Party(s)

M Sinha

28 Oct 2016

ORDER

IN THE COURT OF THE DIST. CONSUMER DISPUTES REDRESSAL FORUM,CUTTACK.

                                                                                C.C No.100/2016

Bhavesh Parekh,

S/O:Late Dushant Parekh,Harkishandas

Madhavji Jewells,Nayasarak,

Cuttack.                                                                                         … Complainant.

 

Vrs.

1.          The Managing Director,

  H.D.F.C.Bank Ltd.,Ramon House,H.T.Parekh Marg-169,

 Back Bay,Reclamation,Church-Gate,

                     Mumbai

 

2.            The Senior Vice President,Smt. Metilda Stanley,

H.D.F.C Standard Life Insurance Company Ltd.,

Ramon House,H.T.Parekh Marg-169, Back Bay, Reclamation,

                 Church Gate,Mumbai

 

3.        Branch Manager,H.D.F.C Standard Life Insurance Company Ltd.,

Royal Tower,2^nd Floor,Link Road Square,

                 Madhupatana,Cuttack

 

4.         Sr. Manager,Corporate Office,H.D.F.C. Standard

Life Insurance Company Ltd., 12^th & 13^th Floor,

Lodha Excellus,Apollo Mill Compound,

N.M.Joshi Marg,Mahalaxmi,

Mumbai-400011.                                                                                                   … Opp. Parties.

 

Present:               Sri Dhruba Charan Barik,President.

Sri Bichitrananda Tripathy, Member.

Smt. Sarmistha Nath, Member (W).

 

Date of filing:   05.08.2016

Date of Order: 28.10.2016

 

For the complainant   :      Sri M.Sinha,Adv. & Associates.

For the O.Ps.1 & 2.       :   Sri B.M.Pattnaik,Advocate & Associates.

 

Mr. Bichitra Nanda Tripathy, Member.

1. Shortly the complaint is as follows:-

1. The complainant obtained one HDFC Standard Life Insurance Policy vide Policy No.14696221 dt.30.10.2011 for Rs.6,82,860/- for the term of ten years of which premium @ Rs.1,00,698/- was payable for seven years.  The due date for payment of final premium is 30.10.2017.(Annex-1).
2. There was grace period of 15 days for payment of premium w.e.f. the date of premium payable i.e. 30^th October each year.  On 12.11.2015 the complainant paid his premium by way of credit card payment with O.P.2 and obtained receipt No.X2910323 dt.12.11.2015 for the purpose. (Annex-2).  Such payment was made after the due date, but within the grace period of 15 days.
3. On 23.11.2015 the complainant received a message in his registered cell phone that the above HDFC Standard life insurance policy stands cancelled due to non-payment of insurance premium as payable on 30.10.2015 for the year 2015-16.
4. The complainant contacted O.P.2 but there was no positive response, hence deposited again the premium on 24.11.2015 amounting to Rs.1,00,198/- and obtained a fresh receipt No.X2913075 dt.24.11.15.
5. That for such an act on the part of O.Ps, the complainant intimated the mater to Insurance Ombudsman and the Ombudsman vide his letter dt.15.12.2015 instructed the complainant to make fresh application in compliance to the statutory provisions. (Annexure-4).
6. The complainant was aggrieved due to improper service of the O.Ps, hence served a legal notice dt.21.3.2016 on the O.Ps for deficiency in service for arbitrary cancellation of the policy.  He also wanted to finally settle the account and pay the full maturity value with all other perks by the O.P.Insurance Company. (Annexure-5).
7. The O.Ps through their Deputy Manager replied vide letter dt.4.5.2016 intimated that the cheque amount paid on 12.11.2015 could not be encashed due to low fund in the complainant’s bank account.  The policy was in paid-up status since the grace period was over for which the complainant was not entitled for any refund as per law of estoppels and provisions of Contract Act.(Annexure-6).
8. The complainant has further stated that since his credit card was having a limit up to Rs.3.00 lakhs vide “Regalia Credit Card”. Hence the reply of the O.ps vide their deputy Manager is false since as per Banks Account statement his credit limit of Rs.3.00 lakhs was not exhausted and as such there was no impediment to met the premium amount of Rs.1,00,198/-(copy of Bank statement- Annexure-7).
9. The complainant is dis-satisfied with the O.Ps for such deficiency in service and filed a case under this Hon’ble Forum.

He has prayed to direct the O.Ps to pay back fall up-to-date maturity value of the policy taking into A/c the premium paid up to 30.11.2015, to pay Rs.1,00,000/- towards mental harassment and to pay Rs.20,000/- towards cost of litigation.

2. O.P.1 i.e. HDFC Bank did not attend the hearing process, nor submitted any written brief for the purpose.
3. O.Ps 2,3 & 4 vide their written brief dt.25.10.2016 have intimated as follows:-

1. That during the year 2015 the premium payable was not credited to O.P Insurance Company A/c for which the policy has become paid up policy.  After payment of the premium by the complainant on 29.11.2015 the policy was regularized.
2. The O.Ps 2,3 & 4 have admitted the complaint lodged by the complainant vide     dt.21.3.2016 which was replied by the O.P,Insurance Company vide their letter dt.4.5.2016 wherein it was stated that the renewal premium for the said policy was due on 30.10.2015 which the complainant has paid through off line credit card mandate on 12.11.2015.  The receipt was passed vide receipt No.X2910323.  The said receipt was cancelled due to low fund in the accredit card.  Meanwhile the grace period of 15 days for the said policy was over and the policy was made in paid up status on 18.11.15 as per clause-5(i) of standard policy provision. “In the event that any premium remains unpaid, 15 days after the due date the policy has accrued a guaranteed surrender value, the policy will be altered to a paid up policy subject to any terms and conditions which the O.P, Insurance Company specified from time to time”.  Therefore the policy was in paid up status as the grace period was over for the payment of renewal premium.  The premium was paid on 24.11.2015 through offline credit card mandate and the receipt was passed vide receipt No.X2913075 and the paid up policy was reinstated on the same day as per the policy terms and conditions.  Further the complainant is not entitled to any refund as the insurance company has undertaken the risk of complainant’s life and invested the money so received as premium.  Now at this stage as per law of Estoppels, complainant is stopped from denying the fact of taking the policy as per the terms agreed and finalized strictly guided by Indian Contract Act,1872. (The said letter of the complainant i.e. legal notice dt.21.3.16 and reply thereon by the O.P,Insurance Company vide letter dt.4.5.2016 is annexed vide Annexure-D & E).
3. There was no deficiency in service by the O.Ps (2,3 &4) since the O.Ps(2,3 & 4) acted as per the policy terms and conditions.
4. The complainant’s Bank (O.P.1) denied payment to the answering O.Ps. (2.3 & 4) on the ground of low funds on complainant’s account for which answering O.ps are unnecessarily blamed.  If the payment was made in time no change in status of the policy would have happened at all.  The Insurance Ombudsman office, Bhubaneswar rightly denied entertaining the complaint of the complainant as there was no deficiency of service on the part of the O.P., Insurance Company as well as the dispute is mainly relating to non-receipt of premium by the Insurance Company from complainant’s end through his bank.

4. We have gone through the case in details and perused the documents/Papers/written briefs submitted by the complainant  as well as by the O.P,Insurance Company we have observed as follows:-

1. The complainant was regular in paying the premium for the said Insurance Company up to the year 2014.  During 2015, he paid the premium on 12.11.2015 and obtained receipt No.XZ2910323 dt.12.11.15.  The said receipt was cancelled since the complainant had not adequate balance in his Bank A/c with HDFC Bank.
2. Since the O.P.1 (HDFC) Bank has not attended the hearing process, nor has submitted any written brief, it is difficult to assess why the Bank did not send the proceeds to O.P,Insurance Company towards insurance premium and what was the exact balance available as on 12.11.2015 in the Bank A/c of the complainant.
3. From the Bank statement (as submitted by the complainant vide Annexure-7) it is also not clear that the bank has refused the payment in spite of adequate balance.
4. Since the payment towards insurance premium was again made by the complainant on 24.11.2015, we, presume that the balance in the bank account of the complainant was inadequate as on 12.11.15 for which the payment was refused by the Bank to O.P, Insurance Company.
5. As per point 5(1) of the said policy provisions it is stated that “In the event that any premium remains unpaid 15 days after the due date and your policy has acquired a guaranteed surrender value, your policy will be altered to a paid-up policy, subject to any terms and conditions which may specify from time to time.  These terms will involve a reduction in benefits and you will be informed accordingly.”
6. The complainant informed the matter to Insurance Ombudsman, Bhubaneswar vide letter dt.01.12.2015 and in turn the office of the Insurance Ombudsman has replied vide their letter No.BHU-L-019-1516-0348 dt.15.12.2015 and advised the complainant to take up the matter with O.P, Insurance Company. 
7. The O.P Bank and O.P, Insurance Company are two different institutions and not one and the same. 
8. The text of the Message send by the O.P, Insurance Company to the complainant on 23.11.16 was submitted by the O.ps on 25.10.2016 wherein it is stated that “status of your HDFC Life Policy No.14696221 is paid-up.  To reinstate, click http://goo.gl/beCgll or visit our Branch.  For details, call 18602679999  T & C apply” and not that the HDFC Standard Life Insurance Policy was cancelled as intimated by the complainant.

Hence, basing on the circumstances and facts of this case as stated above, we conclude that there was no deficiency in service on the part of O.P,Insurance Company.

 

ORDER

The complainant failed to prove the deficiency in service on the part of O.P, Insurance Company, hence the case is dismissed.

Typed to dictation, corrected and pronounced by the Hon’ble Member in the Open Court on this the 28^th   day of October, 2016 under the seal and signature of this Forum.

   (Sri B.N.Tripathy )

                                                                                                                  Member.

                                                                                                                (Sri D.C.Barik)

                                                                                                               President.

                                                                                                        (Smt. Sarmistha Nath) 

                                                                                                      Member(W).