IN THE COURT OF DISTRICT CONSUMER DISPUTES REDRESSAL FORUM,DEOGARH.

                                                                                        C.C.No.12/2017.

Present:-      Sri Dipak Kumar Mahapatra, President, Smt. Jayanti Pradhan, Member(W) and Smt. Arati Das, Member.

Sri Pramod Kumar Pradhan,aged about 55 Years,

S/O-Late Rabi Chandra Pradhan.

R/O.-Bhitiriasahi,Ward No-1,

Po/P.S/Dist/-Deogarh.                                                     …                     Complainant,

Versus

1. The Branch Manager, H.D.F.C. Bank Ltd.,

          Deogarh Branch,

           At/PO/PS/Dist-Deogarh.

2. The Branch Manager,

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

          C/O- Hotel Nidhi,Ground floor,

         Power House Road, Rourkela-79001.

3. The Zonal Manager,

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

         At-Ramon House,H.T Parekh Marg,

        169,Backbay Reclamation,Churchgate,

         Mumbia-400020, India.

For the Complainant:-Sri S. Mishra, Sri S. Dehury, Advocate.

For the Opp.Party No.1:-Sri T. Dhala, Advocate.

For the Opp.Party No.2 & 3:-Sri B.Dash. & J.K. Nanda, Advocate.

DATE OF HEARING : 26.06.2018,DATE OF ORDER: 11.07.2018.

SMT .JAYANTI PRADHAN, Member(W)- Brief facts of the case is that the Complainant has availed an Insurance policy from the O.P-2 being motivated by the agent of the O.P-1 & O.P-2.That the complainant has signed on a blank proposal form in a good faith and the form was filled up by the said agent  later. The Complainant has opted for a policy period for 5 years but the O.P-2 has converted the proposal for 10 years which made the complainant disappointed after receiving the Policy Bond. He made contact with the O.P-1 but he suggested him to continue the said policy failing which the initial premium amount will not be refunded to him. Hence the Complainant did not raise any objection towards the policy. On completion of 1 year, the Complainant made request to the O.P-1 & 2 to break the policy and refund the amount paid till now, as he needs money for his business. But they denied the request and conveyed their inability to go against the Guidelines of IRDA as one the policy has been started it will end after the Completion of term and the policy is locked-in. So being aggrieved on this matter the Complainant has filed this Complaint petition.

Points of Determination-

1. Whether the Complainant is a Consumer & comes under the purview of Consumer Protection Act-1986?
2. Whether the O.Ps has committed Deficiency in Service & Unfair Trade Practice to the Complainant?

From the above discussion it is clear that, the Complainant is a Consumer of the OP-1 & 2 who has availed an HDFC Life Insurance Policy from the O.P-2 through O.P-1 but as the O.P-2 is bounded by the Guidelines of the IRDA and shows his inability to terminate this before term and suggested the Complainant to wait till completion of term or expiry of lock-in period. There is a provision in the Policy Guidelines that “A policy holder can take the option to discontinue the policy by complete withdrawal from the policy without any risk cover before the end of the Lock-in period of 5 years, specified in the policy  schedule. If the discontinued policy is not revived, then the amount will be allocated to the discontinued policy fund, with accrued interest, will be paid out on completion of lock-in period specified in the policy schedule. Also the same procedure should be followed on request for surrender according to Provision-3(i) with immediate effect. The amount allocated to discontinued policy fund with accrued interest, will be paid out to the person entitled to receive the payment, on completion of the Lock-in period.

There is an another provision in the Policy Guidelines under the clause Obligation of the Insurer upon complete withdrawal of the policy-6(1)-“where the policy holder exercise the options available at sub-regulation (ii)of Regulation 4 or does not exercise  the option available in terms of the proviso to sub-regulation (i)of regulation 5 ,the fund value of the policy shall be credited to the Discontinued policy Fund .The proceeds of the discontinued policy shall be refunded only upon completion of lock period .The income earned on the fund value shall also be appropriated to the discontinued policy fund and shall not be made available to the shareholders. Again under Regulation 6(2)-The insurer shall refund the amount by means of a cheque ore demand draft, to be delivered to the insurer or the nominee, at his last known address or by any electronic mode of payment. However the insurer may deduct discontinuance charges onthe date of discontinuance on such policies, which shall not exceed the charges stated in sub-regulation (v) of regulation 7 of these regulations. As, HDFC Bank Limited ("HDFC Bank") is a corporate insurance agent of HDFC Standard Life Insurance Company Limited ("HDFC Life") under Corporate Agent's license no.933982 issued by Insurance Regulatory & Development Authority and does not underwrite the risk or acts as an insurer. The insurance is underwritten by HDFC Life. This policy is issued to the Complainant by HDFC Lifeand is subject to the terms and conditions governing such policy. The contract of insurance is between HDFC Life and the insured only, and not between HDFC Bank and the insured .HDFC Bank is acting merely as the corporate agent of HDFC Life and there is no direct or indirect linkage between the provisions of the banking services offered by HDFC Bank. Hence the O.P-2 & 3  has committed Deficiency in Service U/S-2(1)(g) of Consumer Protection Act,1986. and liable to be penalized. No allegation against the O.P-1 is made out. Accordingly we allow the case of the complainant and pronounce our order as under.           

ORDER.

In the above circumstances, we allow the complaint petition filed by the complainant. The Opp. Parties No.-2 & 3 are  jointly and severally directed to return the deposited amount of Rs,15,000/-(Rupees Fifteen Thousand)  to the complainant with up to date interest by cancel the aforesaid policy within 30 days from the receipt of this order. Further they are directed to pay a sum of Rs.20,000/- (Rupees Twenty Thousand) only towards the compensation for mental pain and agony along with pay Rs.5,000/- (Rupees Five Thousand) only towards the cost of litigation expenses within 30 days of receipt of this order, failing which the O.Ps shall have to pay in addition, an interest of 9% per annum till actually the amount is paid in course of law.

Office is directed to supply the free copies of the order to the parties receiving acknowledgement of the delivery of thereof.

Order pronounced in the open court today i.e. on 11th day of July, 2018 under my hand and seal of this forum.

I   agree,                                            I agree,

MEMBER.                                         PRESIDENT                                     MEMBER(W)

                                                  Dictated and Corrected

                                                                by me.

                                                       MEMBER(W).