Order No. 14 dt. 09/01/2017
Fact of the case in brief is that the complainant in order to have the loan from the HDFC Bank in respect of Rs.4,00,000/- the complainant was asked to pay Rs.40,000/- in favour of the o.ps. and accordingly the complainant paid the said amount after some days the complainant received one Insurance Policy amounting of Rs.40,000/- premium payable per year for period of 10 years. After receiving the said policy the complainant contacted the o.p.no.1 but he was assured that this is the mandatory rule to issue insurance policy but he will not to be worried as the loan will be disbursed soon.
The complainant did not receive any loan and wanted to return the policy by cancelling the same but it was not cancelled. Subsequently the complainant sent several letters. In response to one of the letters the complainant was informed by the o.p.no.1 that there was no question of cancelling the policy since the free look period was over. Having no other alternative to resolve the grievance of the complainant, the complainant had to file this case seeking redressal of his grievance with the prayer for direction upon the o.ps to refund a sum of Rs.40,000/- and also for payment of Rs.10,000/- towards compensation.
O.ps contested the case by filing written version and denied all the material allegations of the complaint. It was stated that the complainant has claimed that the he wanted to take loan from HDFC Bank but the said Bank has not been made party in this case. The complainant after filling the form for obtaining policy handed over the same either by himself or through agent with a cheque written in the name of o.p.no.1 and after encashing the cheque the policy was issued. The o.p. denied that there was any misrepresentation on the part of the o.ps, the complainant wanted to cancel the policy after the lapse of several months of the receipt of the policy and he did not avail of the free look period during which time the complainant could have cancelled the policy. Since the policy was issued and the complainant knowing well that the annual premium to be paid by him manufactured a case that the o.ps committed misrepresentation. In view of such fact the o.ps has prayed for dismissal of the case.
On the basis of the pleadings of parties the following points are to be decided :
- Whether there was any talk of loan to be provided by the HDFC Bank or the o.ps;
- Where the form for obtaining was filled in and signed by the complainant;
- Whether there was any misrepresentation on the part of the o.ps;
- Whether the complainant will be entitled to get the relief as prayed for .
Decision with reasons
All the points are taken up together for the sake of brevity and avoidance of repetition of facts.
Ld. Lawyer for the complainant argued that complainant went to HDFC Bank for obtaining loan of Rs.40,000/- and o.ps assured that they will arrange for the loan on condition that the complainant will have to pay a sum of Rs.40,000/- Accordingly cheque was issued which was encashed but the complainant found that he received an insurance policy wherein it was mentioned that the premium payable to the tune of Rs.40,000/- per year for a period of 7 years. On getting such policy the complainant contacted the o.ps for cancellation of the said policy but the o.p.no.1 assured that he ought not to be worried and assured that this is their mandatory rule to issue insurance policy and also assured that loan will be disbursed in favour of the complainant within a short span of time. While the complainant found that loan was not sanctioned he sent a letter asking for cancellation of the policy which was denied by the o.p.no.1 since the asking for cancellation of the policy was not made within free look period. Since there was misrepresentation on the part of the o.ps the complainant prayed for the reliefs.
Ld. Lawyer for the o.p. argued that o.ps are engaged in issuance of insurance policy and the o.p.no.1 do not grant loan to any customer . The HDFC Bank had not be en made as a party in this case. Ld. Lawyer for the o.ps emphasized that the complainant himself filled in the form for obtaining insurance policy and being an educated person he read the terms and conditions of the policy and thereafter issued the cheque. There is no question of misrepresentation made to the complainant. After receiving the policy the complainant could have cancelled the policy within the free look period but the complainant did not avail of the said opportunity and in order to make false claim manufactured such story that misrepresentation was made by the o.ps and the policy was issued to him. Since there was no cogent ground to establish a prima facie case the complainant built up such story and accordingly Ld. Lawyer for the o.ps has prayed for dismissal of the case.
Considering the submission of the respective parties it is an admitted fact that the o.ps do not sanction any loan The person who is applying for life insurance policy he must put his signature on the form and he must provide his personal data namely his name, Father’s name, mailing address, contact no., mobile no. etc after getting all those information the application form is processed and after acceptance of the form and payment of the first premium, the policy is issued. Here in this case the complainant after compliance of all the formalities even issuing a cheque in favour of HDFC Life Insurance Company Ltd again took this plea that he issued the cheque for having an idea that he would get loan of Rs.4,00,000/-. Apart from the said fact that the complainant after receiving the policy could have cancelled the policy within the free look period. But he did not take any step in order to tide over the mandatory step he ought to have taken and on failure to do the same has taken this plea that misrepresentation was made by the o.p. The complainant failed to pay the premium for the subsequent period and as such the poliy has lapsed and with the lapsed policy status of the policy holder will not get any benefit of getting back any money from insurer. The claim of the complainant is totally based on manufactured story and as such the same is not believable. Accordingly we hold that the complainant will not be entitled to get any relief as prayed for.
Hence, ordered
That the case no.428/2014 is dismissed on contest without cost.
Supply certified copy of this order to the parties free of cost.
