To,
The Officer,
Insurance Ombudsman
Office of the Insurance Ombudsman,
2nd Floor, Ambica House,
Near C.U.Shah College,
5, Navyug Colony, Ashram Road,
Ahmedabad – 380014.
Dt.11.06.2010
SUB: Policy No.12661871 of HDFC
Dear Sir,
I am a salaried person drawing an annual salary of not more than Rs. 2, 50, 000/-. With reference to the subject policy I have received an unfair approach and a very casual decision from HDFC in lieu of which I solicit assistance from your good office.
1. In Feb.2009 I was sold the subject policy for Rs.50, 000/- from Mr. Hitesh Patel (ex HDFC sales man) with a very clear understanding as per my financial capacity at that time and had agreed to a single premium policy and Mr. Hitesh sold the same by telling me that it is a single premium policy that will yield Rs. 2, 50, 000 after 3 years.
2. Initially I intended to invest Rs.1, 00, 000.00 for single premium which would be Rs, 5, 00, 000 after three years as confirmed by Mr. Hitesh Patel.
3. Though I was busy with my work and I was forced to make a decision on that day only as according to Mr. Hitesh the plan was to change the very next day (which I think today, was not the case. It must be something related to his personal benefit) which will not give the desired benefit if not purchased on that very day.
4. Mr. Hitesh had come through some reference and unlike other agents I did not doubt his intentions and signed on the relevant blank forms produced by him in hurry.
5. Mr. Unni who accompanied him surprisingly stopped me suggesting me to invest only Rs.50, 000/- instead of Rs.1, 00, 000.00 . Ironically I am thankful to Mr. Unni to have reduce my trouble in half. I suspect that he knew Mr. Hitesh’s plan of missale and kindly obliged me by his advice.
6. Without arguing further, as I was busy with my work, I signed a Cheque of Rs.50, 000.00 from my CITI Bank - my salary account and handed over to him as a single premium and Mr. Hitesh was supposed to fill in the blank form which was signed by me. There was not enough balance in the CITI Bank, so I had requested him to wait till I transfer the required amount from my Post Office account.
7. On the next day, Mr. Hitesh said that it will be delayed if I wait till the amount to be transferred, so he insisted that instead of Citi Bank, I should give him a Post Office cheque only. So on the next day I gave him a Post Office cheque of the same amount.
8. I don’t know if mr. hitesh intentionally filled the form as ‘yearly’ premium plan, or was it a mistake made in a hurry, but one thing that I know is that I had only wanted a single premium policy. I came to know about this only after one year when the same amount bounced in my salary account with Citi Bank (even if it was to be an ECS, I wonder how did hdfc tried to fetch the amount from CITI bank instead of Post Office?), then came to know that this policy is being processed as yearly payable and not as a single premium.
9. I was confused with this as it was difficult to manage for such a big amount without any idea before and meanwhile Mr. Manish Patel of HDFC called me up as a premium due reminder whom I narrate the said story.
10. As per his advice I logged on the said complaint through an email to the Grievance Cell.
11. Meanwhile also spoke to Mr. Hitesh Patel who firstly told over telecom that he has done this false selling to fulfill the targets (according to him, Mr. Hiren Solanki, the sub agent could not reach targets that’s why it automatically becomes his [mr. hitesh’s] responsibility which I doubt that in turn of this ‘help’ he collected double commission from HDFC as well as from Mr. Hiren) and he will try his level best to arrange to refund my money back and to protect my interest.
12. Mr. Hitesh also suggested that I should give a hand written complaint to HDFC SLIC and then he will do something to take me out of this trouble.
13. I gave written complaint to HDFC SLIC and they forwarded the complaint to HO – Mumbai and after 15 days the Manager and Mr. Manish visited my house to listen to the complaint as a part of verification once again from my end. 20.05.2010
14. I received a letter on 5th June saying my complaint has not been treated as missale and hence I was left with only two options either to continue the policy by paying regular premium of Rs.50, 000 Rs.250 revival charges or the same will be refunded to me
‘after deduction of stamp duty, decrease in the value of units and proportionate risk premium for the period on over and expense incurred on medical examination.”
I am surprised with the above arrangement also where it is not clarified what would be stamp duty amount, why only decrease in the value of units and why not increase, and what sort of expenses on medical examination when its not done at the time of taking the policy?
I do agree that after receiving the policy on 03032009 I needed to have a look at it, but at the same time it was not done as the person came through some good reference and being this is a regular investment practice, I did not even think such missale would have taken place.
Due to the trust on the agent and my faith in HDFC, I had never imagined that such misconduct can ever occur by someone from HDFC. I demand a solution where I don’t have to bear financial loss due to the policies of HDFC. Mr. Hitesh Patel has either done this deliberately to gain more commission, or to reach his monthly target whatever the case is, I see the policies of HDFC is the reason behind this and for which I neither have to bear any financial loss nor any mental stress.
With this letter, I am also asking details, if you can get it from HDFC, of my case. I feel it necessary to know what target and commission mr. patel achieved out of the policy sold to me and I am sure there is either a lucrative commission or a sizeable loss of income to Mr. Patel involved here for which the sales policies of HDFC is responsible.
In my own interest as well as in public interest, I feel responsible to get to the root of this matter. Through some sources I get information which I am not sure if they are right, but the agent like Mr. Hitesh gets as much more commission on selling a yearly premium policy and on single premium policies, this amount is very less. I think it’s my right to know the truth and if I find any truth in it I feel even more cheated that my hard-earned money is distributed like a birthday cake.
More than that, the three conveniently inserted reasons for decrease of the value are the most surprising elements for me today even if I withdraw or ask for refund within the 15 days free-look period, i.e. Stamp duty, Medical examination and ‘decrease’ of the unit price. What is the exact amount of the stamp duty HDFC is not mentioning. Medical Exam – there has never been any examination – neither for this policy, nor for any other policies from HDFC that I have taken in the past. The most amusing clause describes only the ‘decrease’ in value, I wonder why appreciation cannot be taken into account in such cases. In the light of the things narrated above, this clearly becomes a one-sided agreement.
By inserting such wordings into the policy and letter HDFC harms public interest who put trust into them and invest the money once, - its either gone or decrease whenever they trap with such missale by their agent. I also wish to know do they have any rule guide or disciplinary action policy against their agent who do such missale.
Also it is said if I did not contact them for cancellation within free look period of 15 days now they are unable to process any refund of premium towards this policy, I solicit for my money where I have put trust on the agent and faith on brand HDFC gives such a negative reply of not refunding back my own money!!!
I have never come across any ombudsman so far, so I don’t know how much you’ll be able to get HDFC to give me a fair treatment as the documents don’t reveal the matters behind the scene.
Thanking you.
[Ami Desai]
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