BEFORE THE III ADDITIONAL BANGALORE URBAN

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

                                  BENGALURU – 560 027.                              

DATED THIS THE 31^st DAY OF JULY, 2021

CONSUMER COMPLAINT NO.97/2020

PRESENT:                                                          

Sri.C.V.Maragoor, B.com, LL.M.               ….      PRESIDENT

Smt.L.Mamatha, B.A., (Law), LL.B.                   ….     MEMBER

(Krishnamoorthi Nanjundeswaran),

Aged about 64 Years,

Flat No.T 4, 3^rd Floor,

SGS Dreamland Apartment,

60ft, Road, BEML Layout 5^th Stage,

Rajarajeswari Nagar,

V/s

OPPOSITE PARTIES:

1. The HDFC Standard Life Insurance Company Limited,

Lodha Excelus, 13^th Floor,

Apollo Mills Compound,

N.M.Joshi Marg,

2. The Managing Director & Chief Executive Officer,

 HDFC Standard Life Insurance Company Limited,

Lodha Excelus, 13^th Floor,

Apollo Mills Compound,

N.M.Joshi Marg,

(Rep by Sri.J.S.Advocates and legal consultants)

******

//ORDER//

SRI.C.V.MARGOOR, PRESIDENT

This complaint is filed by the complainant K.Nanjundeswaran to direct the opposite parties HDFC Standard Life insurance Company Limited to make payment of premium paid between 23.05.2009 to 23.01.2010 a sum of Rs.67,500/- + revisionary, terminal, interim bonus benefits as no break in the policy and payments continued in the same policy number.

2. It is the case of the complainant that he had taken HDFC Savings Assurance Policy no.12923675 on 23.05.2009 from the opposite party branch at Vashi, Navi Mumbai for a monthly premium of Rs.7,500/- for a period of 10 years till 23.05.2019.  After payment of monthly premium till January 2010 for a period of 9 months due to financial difficulties the complainant has approached the opposite parties for surrendering the policy, but the officials of opposite parties informed that he would lose the premium amount paid till January-2010 if he surrenders the policy.  The officials suggested to go for reduced premium to retain and continue the policy and accordingly the complainant has reduced the premium amount from Rs.7,500/- to Rs.500/- per month and paid the premiums regularly till April 2019.  After the maturity period, the opposite parties have paid only sum assured amount on the payment of premium amount of Rs.500/- + other benefits.  The opposite parties have not paid the premium amount paid between 23.05.2009 to 23.01.2010 and its benefits.  The opposite parties have not paid in spite of the correspondence and approaching the Insurance Ombudsman.    Hence this complaint.

3. The opposite party no.1 & 2 in response to the notice appeared through their learned counsel and filed written version admitting that the complainant had availed HDFC Savings Assurance Policy on 23.05.2009 and the policy was issued subject to terms and conditions as mentioned therein.  When the complainant approached in the month of January 2010 then it was informed to the complainant that surrendering of the policy will lead to loss of premium sum already paid.  Subsequently, the complainant reduced premium from Rs.7,500/- to Rs.500/- per month with effect from 23.01.2010 onwards.  After considering the partial surrender request made by the complainant, the opposite parties revised the sum assured under the policy from Rs.7,00,414/- to Rs.54,602/- and this revised sum assured was effective from 23.01.2010 onwards.  There is no clause in the policy for refunding of the premium paid by the complainant.  However, the opposite parties have paid bonus as per the award passed by Ombudsman on pro-rata premium of 8 months.  On the above grounds, the opposite parties asked to dismiss the complaint.

4. The complainant filed his affidavit evidence and got marked EXs.P1 to 12 documents in support of his case. On behalf of opposite parties Mr.Amt A Badaskar, Deputy Manager filed affidavit evidence and produced EXs.R1 to R3. 

5. We have heard the oral arguments of complainant and also learned counsel for opposite parties in addition to written brief submitted by them and the points that would arise for determination are as under;

1. Whether the complainant proves the deficiency in service and unfair trade practice of opposite parties ?
2. Is complainant entitled to the reliefs sought in the complaint?

6. Our findings on the above points are as under:-

1. POINT NO.1  : In the affirmative
2. POINT NO.2  : In the affirmative for

                       the following;

REASONS

7. Point No.1 & 2: The complainant urged that there is no clause for surrendering the policy.  The opposite parties have not paid the premium paid between 23.05.2009 to 23.01.2010 a sum of Rs.67,500/- and other benefits.  As against this, the learned counsel for opposite parties argued that the opposite parties had paid bonus even on the premium amount paid between 23.05.2009 to 23.01.2010.

8. The opposite parties contention is that the complainant has agreed for partial surrender of the policy, as such the opposite parties revised the sum assured under the policy from Rs.7,00,414/- to Rs.54,602/- and this revised sum assured was effective from 23.01.2010 onwards.  On perusal of EX.P3 policy produced by the complainant and EX.R1 produced by the opposite parties there is no clause in respect of partial surrender of the policy.  If the policy was surrendered new policy number was given to the complainant.  But the opposite parties had continued the same policy and revised sum assured in the same policy number.  EX.P6 is material document which says in respect of change policy benefits request form.   This is printed form issued by opposite parties for reduction in premium amount from Rs.7,500/- p.m to Rs.500/- p.m.  In this complainant has made declaration but nowhere it is mentioned that the complainant has agreed for partial surrender of the policy.  The opposite parties have produced EX.R2 for revising the sum assured amount dt.08.02.2010.  The complainant has given acceptance with regard to changes in the policy parameters and its subsequent effect on future benefits based on the alteration request.  The complainant nowhere given consent for partial surrender of the policy.  As already observed that even after revised in premium the same policy number continued with effect from 23.01.2010.  Even for the sake of arguments, the complainant had given consent for partial surrender, then opposite parties would have given surrender value to the complainant on the date of surrender i.e., in the month of January-2010.  Therefore, there is no force in the contention of opposite parties that the complainant has agreed for partial surrender of the policy with effect from 23.01.2010.

9. The opposite parties had paid sum assured amount after revised premium and its benefits which is in the below table.

10. The general clause number one of policy condition of opposite parties reads as your policy will participate in the profits of the participating policyholders fund of HDFC Standard Life Insurance Company Limited and providing premiums continue to be paid, reversionary and interim bonus, as applicable will be added to your policy.  The object of taking policy from the public by opposite parties is to invest the premium amount in the profits of the participating policy holders fund of HDFC Standard Life Insurance Company Limited.  It means the Opposite Parties have invested higher premium of Rs.7,500/- per month paid by Complainant for a period of 9 months for the purpose of profit. The opposite parties have not returned the said premium that it being used for continuously for a period of 10 years.  This amounts to unfair trade practice on the part of the opposite parties.  Therefore, the complainant is entitled for refund of the premium amount of Rs.67,500/- paid between 23.05.2009 to 23.01.2010 along with bonus which has paid on the revised premium amount.  The complainant is entitled for maturity benefits for the premium paid between 23.05.2009 to 23.01.2010 as under;

The complainant admitted that already the opposite parties have paid Rs.14,632/- and after deducting that amount in maturity benefit amount of Rs.1,18,357/- the opposite parties shall liable to pay Rs.1,03,725/- + interest.  Accordingly, we proceed to pass the following;

ORDER

The complaint is allowed directing the opposite party No.1 & 2 shall pay a sum of Rs.1,03,725/- to the Complainant with interest at the rate of 8% p.a. from 01.06.2019 till the date of payment.

It is further ordered that the opposite parties shall pay litigation cost of Rs.10,000/- to the complainant within 30 days from the date of order otherwise, it carries interest at the rate of 8% p.a. from the date of filing the complaint till the date of payment.

Supply free copy of this order to both the parties and return extra copies of the pleadings and evidence to the parties.

     (Dictated to the Stenographer, typed by her, the transcript corrected, revised and then pronounced in the open Commission on 31^st day of July, 2021)                                            

          (L.MAMATHA)                    (C.V.MARAGOOR)                  

             MEMBER                            PRESIDENT     

//ANNEXURE//

Witness examined for the complainants side:

1. Nanjudeshwaran K, the complainant has filed his affidavit.

Documents marked for the complainant side:

1. Copy of application form of HDFC Savings Assurance Plan.
2. Copy of HDFC Savings Assurance Policy No.12923675, Unique identification No.101N014V01.
3. Copy of standard policy provisions.
4. Copy of policy at a Glance.
5. Copy of first premium receipts.
6. Copy of change in Policy Benefits Request Form.
7. State Bank of India Account Statement.
8. Copy of award of office of the insurance ombudsman, Bengaluru.
9. Copy of letter dt.20.12.2019 for payment of ex-gratia and HDFC Bank cheque details.
10. Copy of SBI statement on receipt of maturity benefits and               Ex-gratia payment on award of insurance ombudsman Bengaluru.
11. Copy of letter submitted to insurance Ombudsman for maturity benefit for 23.05.2009 to 23.01.2010 and response from insurance ombudsman.
12. Calculation sheet.

Witness examined for the opposite party side:          

Sri.Amit A Badaskar, Deputy Manager of opposite party company has filed his affidavit.

Documents marked for the Opposite Parties side:

1. Copy of the policy bearing No.12923675 dt.26.05.2009.
2. Copy of the revised policy.
3. Original copy of calculation details of HDFC Life. 

      (L.MAMATHA)                  (C.V.MARAGOOR)    

               MEMBER                          PRESIDENT

 BEFORE THE III ADDITIONAL BANGALORE URBAN

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

                                  BENGALURU – 560 027.                              

DATED THIS THE 31^st DAY OF JULY, 2021

CONSUMER COMPLAINT NO.97/2020

PRESENT:                                                          

Sri.C.V.Maragoor, B.com, LL.M.          ….      PRESIDENT

Smt.L.Mamatha, B.A., (Law), LL.B.….     MEMBER

(Krishnamoorthi Nanjundeswaran),

Aged about 64 Years,

Flat No.T 4, 3^rd Floor,

SGS Dreamland Apartment,

60ft, Road, BEML Layout 5^th Stage,

Rajarajeswari Nagar,

V/s

OPPOSITE PARTIES:

1. The HDFC Standard Life Insurance Company Limited,

Lodha Excelus, 13^th Floor,

Apollo Mills Compound,

N.M.Joshi Marg,

2. The Managing Director & Chief Executive Officer,

HDFC Standard Life Insurance Company Limited,

Lodha Excelus, 13^th Floor,

Apollo Mills Compound,

N.M.Joshi Marg,

(Rep by Sri.J.S.Advocates and legal consultants)

******

//ORDER//

SRI.C.V.MARGOOR, PRESIDENT

This complaint is filed by the complainant K.Nanjundeswaran to direct the opposite parties HDFC Standard Life insurance Company Limited to make payment of premium paid between 23.05.2009 to 23.01.2010 a sum of Rs.67,500/- + revisionary, terminal, interim bonus benefits as no break in the policy and payments continued in the same policy number.

2. It is the case of the complainant that he had taken HDFC Savings Assurance Policy no.12923675 on 23.05.2009 from the opposite party branch at Vashi, Navi Mumbai for a monthly premium of Rs.7,500/- for a period of 10 years till 23.05.2019.  After payment of monthly premium till January 2010 for a period of 9 months due to financial difficulties the complainant has approached the opposite parties for surrendering the policy, but the officials of opposite parties informed that he would lose the premium amount paid till January-2010 if he surrenders the policy.  The officials suggested to go for reduced premium to retain and continue the policy and accordingly the complainant has reduced the premium amount from Rs.7,500/- to Rs.500/- per month and paid the premiums regularly till April 2019.  After the maturity period, the opposite parties have paid only sum assured amount on the payment of premium amount of Rs.500/- + other benefits.  The opposite parties have not paid the premium amount paid between 23.05.2009 to 23.01.2010 and its benefits.  The opposite parties have not paid in spite of the correspondence and approaching the Insurance Ombudsman.    Hence this complaint.

3. The opposite party no.1 & 2 in response to the notice appeared through their learned counsel and filed written version admitting that the complainant had availed HDFC Savings Assurance Policy on 23.05.2009 and the policy was issued subject to terms and conditions as mentioned therein.  When the complainant approached in the month of January 2010 then it was informed to the complainant that surrendering of the policy will lead to loss of premium sum already paid.  Subsequently, the complainant reduced premium from Rs.7,500/- to Rs.500/- per month with effect from 23.01.2010 onwards.  After considering the partial surrender request made by the complainant, the opposite parties revised the sum assured under the policy from Rs.7,00,414/- to Rs.54,602/- and this revised sum assured was effective from 23.01.2010 onwards.  There is no clause in the policy for refunding of the premium paid by the complainant.  However, the opposite parties have paid bonus as per the award passed by Ombudsman on pro-rata premium of 8 months.  On the above grounds, the opposite parties asked to dismiss the complaint.

4. The complainant filed his affidavit evidence and got marked EXs.P1 to 12 documents in support of his case. On behalf of opposite parties Mr.Amt A Badaskar, Deputy Manager filed affidavit evidence and produced EXs.R1 to R3. 

5. We have heard the oral arguments of complainant and also learned counsel for opposite parties in addition to written brief submitted by them and the points that would arise for determination are as under;

1. Whether the complainant proves the deficiency in service and unfair trade practice of opposite parties ?
2. Is complainant entitled to the reliefs sought in the complaint?

6. Our findings on the above points are as under:-

1. POINT NO.1  : In the affirmative
2. POINT NO.2  : In the affirmative for

                       the following;

REASONS

7. Point No.1 & 2: The complainant urged that there is no clause for surrendering the policy.  The opposite parties have not paid the premium paid between 23.05.2009 to 23.01.2010 a sum of Rs.67,500/- and other benefits.  As against this, the learned counsel for opposite parties argued that the opposite parties had paid bonus even on the premium amount paid between 23.05.2009 to 23.01.2010.

8. The opposite parties contention is that the complainant has agreed for partial surrender of the policy, as such the opposite parties revised the sum assured under the policy from Rs.7,00,414/- to Rs.54,602/- and this revised sum assured was effective from 23.01.2010 onwards.  On perusal of EX.P3 policy produced by the complainant and EX.R1 produced by the opposite parties there is no clause in respect of partial surrender of the policy.  If the policy was surrendered new policy number was given to the complainant.  But the opposite parties had continued the same policy and revised sum assured in the same policy number.  EX.P6 is material document which says in respect of change policy benefits request form.   This is printed form issued by opposite parties for reduction in premium amount from Rs.7,500/- p.m to Rs.500/- p.m.  In this complainant has made declaration but nowhere it is mentioned that the complainant has agreed for partial surrender of the policy.  The opposite parties have produced EX.R2 for revising the sum assured amount dt.08.02.2010.  The complainant has given acceptance with regard to changes in the policy parameters and its subsequent effect on future benefits based on the alteration request.  The complainant nowhere given consent for partial surrender of the policy.  As already observed that even after revised in premium the same policy number continued with effect from 23.01.2010.  Even for the sake of arguments, the complainant had given consent for partial surrender, then opposite parties would have given surrender value to the complainant on the date of surrender i.e., in the month of January-2010.  Therefore, there is no force in the contention of opposite parties that the complainant has agreed for partial surrender of the policy with effect from 23.01.2010.

9. The opposite parties had paid sum assured amount after revised premium and its benefits which is in the below table.

10. The general clause number one of policy condition of opposite parties reads as your policy will participate in the profits of the participating policyholders fund of HDFC Standard Life Insurance Company Limited and providing premiums continue to be paid, reversionary and interim bonus, as applicable will be added to your policy.  The object of taking policy from the public by opposite parties is to invest the premium amount in the profits of the participating policy holders fund of HDFC Standard Life Insurance Company Limited.  It means the Opposite Parties have invested higher premium of Rs.7,500/- per month paid by Complainant for a period of 9 months for the purpose of profit. The opposite parties have not returned the said premium that it being used for continuously for a period of 10 years.  This amounts to unfair trade practice on the part of the opposite parties.  Therefore, the complainant is entitled for refund of the premium amount of Rs.67,500/- paid between 23.05.2009 to 23.01.2010 along with bonus which has paid on the revised premium amount.  The complainant is entitled for maturity benefits for the premium paid between 23.05.2009 to 23.01.2010 as under;

The complainant admitted that already the opposite parties have paid Rs.14,632/- and after deducting that amount in maturity benefit amount of Rs.1,18,357/- the opposite parties shall liable to pay Rs.1,03,725/- + interest.Accordingly, we proceed to pass the following;

ORDER

The complaint is allowed directing the opposite party No.1 & 2 shall pay a sum of Rs.1,03,725/- to the Complainant with interest at the rate of 8% p.a. from 01.06.2019 till the date of payment.

It is further ordered that the opposite parties shall pay litigation cost of Rs.10,000/- to the complainant within 30 days from the date of order otherwise, it carries interest at the rate of 8% p.a. from the date of filing the complaint till the date of payment.

Supply free copy of this order to both the parties and return extra copies of the pleadings and evidence to the parties.

     (Dictated to the Stenographer, typed by her, the transcript corrected, revised and then pronounced in the open Commission on 31^st day of July, 2021)                                            

//ANNEXURE//

Witness examined for the complainants side:

1. Nanjudeshwaran K, the complainant has filed his affidavit.

Documents marked for the complainant side:

1. Copy of application form of HDFC Savings Assurance Plan.
2. Copy of HDFC Savings Assurance Policy No.12923675, Unique identification No.101N014V01.
3. Copy of standard policy provisions.
4. Copy of policy at a Glance.
5. Copy of first premium receipts.
6. Copy of change in Policy Benefits Request Form.
7. State Bank of India Account Statement.
8. Copy of award of office of the insurance ombudsman, Bengaluru.
9. Copy of letter dt.20.12.2019 for payment of ex-gratia and HDFC Bank cheque details.
10. Copy of SBI statement on receipt of maturity benefits and               Ex-gratia payment on award of insurance ombudsman Bengaluru.
11. Copy of letter submitted to insurance Ombudsman for maturity benefit for 23.05.2009 to 23.01.2010 and response from insurance ombudsman.
12. Calculation sheet.

Witness examined for the opposite party side:          

Sri.Amit A Badaskar, Deputy Manager of opposite party company has filed his affidavit.

Documents marked for the Opposite Parties side:

1. Copy of the policy bearing No.12923675 dt.26.05.2009.
2. Copy of the revised policy.
3. Original copy of calculation details of HDFC Life.