Tamil Nadu

South Chennai

CC/356/2014

Mr.C.S.Divakar - Complainant(s)

Versus

M/s.HDFC Standard life Insurance Company Ltd., - Opp.Party(s)

M/s.B.Sundar

10 Jan 2018

ORDER

                                                                                                                           Date of Filing  : 07.08.2014

                                                                          Date of Order : 10.01.2018

DISTRICT CONSUMER DISPTUES REDRESSAL FORUM, CHENNA (SOUTH)

2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L,                    : PRESIDENT

                 TMT. K. AMALA, M.A. L.L.B.                                :  MEMBER-I

CC. NO.356/2014

WEDNESDAY THE 10^th DAY OF JANUARY 2018

Mr. C.S. Divakar,

S/o. Mr. S.Chandrasekhar,

Rep. by his power agent Mr.S.Chandrasekar,

B-12, Pratigina Apts.,

New No.8, Old No.22/23,

Dr. B.N. Road, 2^nd Street,

T.Nagar,

Chennai 600 017.                                          .. Complainant.

 

                                      ..Vs..

 

1. M/s. HDFC Standard Life Insurance Company Ltd.,

Rep. by its Managing Director,

At its Corporate office at 11^th Floor Lodha Excelus,

Apollo Mills Compound, N.M. Joshi Road,

Mahalaxmi, Mumbai 400 011.

 

2. M/s. HDFC Standard Life Insurance Company Limited,

Rep. by its Manager,

At Branch Office at 2^nd Floor,

37/38, Venkatnarayana Road,

T.Nagar, Chennai 600 017.                         .. Opposite parties.

 

 

Counsel for complainant         :  M/s. S. Sundar

Counsel for opposite parties   :  M/s. M.B.Gopalan

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section  12 of the Consumer Protection Act 1986 seeking direction to pay a sum of Rs.99,999/- towards refund of the premium with interest and to pay a sum of Rs.3,20,000/- towards compensation for mental agony to the complainant.

1. The averments of the complaint in brief are as follows:

          The complainant submit that  he  availed HDFC life Insurance.   The complainant also submit that he is the customer of  HDFC Bank for the past several years.    During the month of July 2013 the HDFC life Limited Marketing Division called the complainant  and explained good features and yield on investments with HDFC Life Insurance.    The opposite party HDFC representative Mr. Srikanth who indicated  that the scheme which he called as Sampoom, Samridhi which yield immediate minimum guarantee return at 11%  on annual investment with additional benefits declared every year, besides the insurance cover.    Hence the complainant decided to take a policy for 10 years with annual premium of Rs.1 lakh for 7 years.   The complainant also signed necessary papers and made payment of Rs.99,999/- on 10^th July 2013 in favour  of HDCF bank.  On 13.7.2013   the complainant came to understand from various sources that the opposite party plan would offer a guaranteed return of only 3% alone and not 11%.   So when the complainant received the 2^nd confirmation call told the caller that he wanted to cancel the proposal and he informed the caller not to issue the policy and to refund the payment made.   The complainant also telephoned the sales representative and requested to cancel the policy.   In the mean time the policy dated 24.7.2013 was issued by HDFCL Mumbai.  On 9.8.2013  the complainant wrote a letter to HDFCL Mumbai including  a original policy referring the discrepancy and requested to cancel the proposal and refund of the amount paid, Despite of repeated request and demands  made by the complainant the opposite parties did not response.     As such the act of the opposite parties amounts to deficiency in service which caused mental agony and hardship to the complainant. 

2. The brief averments in the written version filed by the opposite parties is as follows:

The  opposite parties deny each and every allegations except those that are specifically admitted herein.   The opposite parties submit that  the policy No.16175764 dated 25.7.2013 was issued to the complainant  on the basis of duly signed proposal form dated 11.7.2013 submitted  by complainant reflects  the installment premium as Rs.97,002/-, the term is 7 years for the policy.     The complainant without any valid reason requested the opposite parties to cancel the policy.   Further the opposite party is that there was no willful delay in dealing with the request for cancellation of the policy since the policy  documents was dispatched to the Head office of the opposite parties which did not directly handle  the same.   The Branch office is not able to verify the details.  As a gesture of good will and  in good faith the opposite party cancelled the policy and offered to refund a sum of Rs.98,973.87  by cheque dated 31.1.2015 less administration charges.   But the complainant refused to accept the offer.    Hence there is no deficiency in service on the part of the opposite  parties and the complaint is liable to be dismissed.

3.     In order to prove the averments of the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A16 marked.  Proof affidavit of the opposite parties filed and Ex.B1 to Ex.B3  marked on the side of the opposite parties.

4. The points for consideration is :

1. Whether the complainant is entitled to refund a    sum of Rs.99,999/- paid towards insurance premium with interest as prayed for?

2. Whether the complainant is entitled to a sum of Rs.3,20,000/- towards compensation for mental agony with cost as prayed for ?

5. POINTS 1 & 2:

        Heard both sides.  Perused the records (viz) complaint, written version, proof affidavit and documents.   Admittedly the complainant  availed HDFC Life Insurance Policy.  The learned counsel for the complainant

 contended that he is the customer of  HDFC Bank for the past several years.    During the month of July 2013 the HDFC life Limited Marketing Division called the complainant  and explained good features and yield on investments with HDFC Life Insurance.    The opposite party HDFC representative Mr. Srikanth who indicated  that the scheme which he called as Sampoom, Samridhi which yield immediate minimum guarantee return at 11%  on annual investment with additional benefits declared every year, besides the insurance cover.    Hence the complainant  decided to take a policy for 10 years with annual premium of Rs.1 lakh for 7 years.   The complainant also signed necessary papers and made payment of Rs.99,999/- on 10^th July 2013 in favour  of HDCF bank.  On 13.7.2013   the complainant came to understand from various sources that the opposite party plan would offer a guaranteed return of only 3% alone and not 11%.   So when the complainant received the 2^nd confirmation call told the caller that he wanted to cancel the proposal and he informed the caller not to issue the policy and to refund the payment made.   The complainant also telephoned the sales representative and requested to cancel the policy.   In the mean time the policy dated 24.7.2013 was issued by HDFCL Mumbai.  On 9.8.2013  the complainant wrote a letter to HDFCL Mumbai enclosing the original policy referring the discrepancy and requested to cancel the proposal and refund of the amount paid.    Even after the acknowledgment  by the opposite parties; reminder dated 27.8.2013 &

16.9.2013 was sent to IRDA , Mumbai.    Further there was another letter dated 14.10.2013 from HDFCL Mumbai stating that the complainant contact number not available  and requested  to provide  the contact number.    On 16.10.2013  a call  was received from one Raghavan from HDFCL, Chennai seeking clarification for cancellation, even after explained  the reason  right from the beginning through letter dated 9.8.2013.  The complainant further contended that he sent letter dated 26.10.2013 to HDFCL Mumbai stating all the details of letter dated 9.8.2013 & 13.8.2013 enclosing the original policy.   Thereafter on 9.8.2013  the complainant  was sent another letter  also which was delivered on 12.8.2013.   Another letter dated 27.8.2013 was duly delivered on 30.8.2013.      The opposite party has not responded any of the letters at long lost.    On 8.4.2014 the complainant  received a message in his mobile and letter dated 9.4.2014.   But there was no response.   Hence the complainant was constrained to issue legal notice dated 10.7.2014 and filed this case.

6.     The contention of opposite parties  is that the policy No.16175764 dated 25.7.2013 was issued to the complainant  on the basis of  the duly signed proposal form dated 11.7.2013 submitted by the complainant reflects  the installment premium as Rs.97,002/-, the term is 7 years for the policy.     The complainant without any valid reason requested the opposite party to cancel the policy.   Further the contention of the opposite party is that there was no willful delay in dealing with the request for cancellation of the policy since the policy  documents was dispatched to the Head office of the opposite parties which did not directly handle  the same.   The Branch office is not able to verify the details.  As a gesture of good will and  in good faith the opposite party cancelled the policy and offered to refund a sum of Rs.98,973.87  by cheque dated 31.1.2015 less administration charges.   But the complainant refused to accept the offer.  There is no deficiency in service as alleged by the complainant.    But it is apparently clear that right from the beginning  (i.e.) immediately the confirmation call the complainant requested to cancel the policy and refund the premium amount paid.  However the allegation of 11% interest return alleged by the complainant is imaginary,  no promise  made by the opposite parties for such returns.  The compensation claimed by the complainant is exorbitant and imaginary.  Considering the facts and circumstances of the case this forum is of the considered view that the opposite parties 1 & 2 are jointly and severally liable to refund a sum of Rs.98973.87  with interest at the rate of 9% p.a. from the date of complaint i.e. 7.8.2014 to till the date of this order i.e. 10.1.2018 and shall pay compensation of Rs.25,000/- (Rupees twenty five thousand only) towards mental agony with cost of Rs.5,000/- 

In the result the complaint is allowed in part.  The  opposite parties 1 & 2 are jointly and severally liable to refund a sum of Rs.98973.87  (Rupees Ninety eight thousand nine hundred and seventy three and eighty seven paisa only) with interest at the rate of 9% p.a. from the date of complaint i.e. 7.8.2014 to till the date of this order i.e. 10.1.2018 and shall pay compensation of Rs.25,000/- (Rupees twenty five thousand only) towards mental agony with cost of Rs.5,000/-  (Rupees five thousand only) to the complainant.    

The above  amounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a to till the date of payment.    

Dictated  by the President to the Assistant, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 10^th day of January 2018. 

MEMBER –I                                                                           PRESIDENT.

COMPLAINANT’S SIDE DOCUMENTS:

Ex.A1- 10.7.2013  - Copy of Customer Ack. By HDFCL Chennai.

Ex.A2- 12.7.2013  -  Copy of receipt.

Ex.A3- 25.7.2013  - Copy of letter from HDFCL enclosing policy.

Ex.A4- 9.8.2013    - Copy of letter from the complainant to HDFCL.

Ex.A5- 27.8.2013  - Copy of reminder.

Ex.A6- 16.9.2013  - Copy of letter to IRDA.

Ex.A7- 4.10.013    - Copy of letter from HDFCL

Ex.A8- 14.10.2013         - Copy of letter from HDFCL.

Ex.A9- 26.10.2013         - Copy of letter from HDFCL.

Ex.A10- 6.12.2013         - Copy of complainant letter to HDFCL.

Ex.A11- 19.2.2014         - Copy of reminder letter by complainant.

Ex.A12- 12.3.2014   Copy of complainant’s letter to MD & CEO HDFCL.

Ex.A13- 9.4.2014  -  Copy of letter from HDFCL to complainant.

Ex.A14- 10.7.2014         -  Copy of legal notice issued by the complainant’s counsel. 

Ex.A15- 19.7.2014         -  Copy of Ack. Receipt

Ex.A16-       -        -  Copy of Power of attorney issued by complainant.

OPPOSITE  PARTIES SIDE DOCUMENTS: 

Ex.B1-  11.7.2013 - Copy of Proposal form submitted by the complainant.

Ex.B2- 25.7.2013  - Copy of policy document.

Ex.B3- 30.1.2015  - Copy of cancellation cheque towards refund of premium.

 

MEMBER –I                                                                           PRESIDENT.