[Resolved]  HDFC Bank Life Insurance Policy — Mis-selling of policy

Address:

Gautam Buddha Nagar, Uttar Pradesh

Dt: September 7, 2011

Dear Sir,
Sub: Reporting mis-selling of policy (No.[protected]
This refers to a policy that I purchased from HDFC Standard Life in September 2009 from HDFC Bank in sector 50, Noida branch. Mr. Paritosh Gupta met me in the branch while I had gone for some banking since I hold a savings account with HDFC. Mr. Gupta saw that I had some spare funds and suggested me to invest them. I showed my willingness with the following brief:
1. I would not like to invest in high risk investment. Hence, please do not suggest any equity linked plan
2. My objective is investment and not insurance cover
3. I would need to invest for a short period – 3 to 5 years and no more. Hence I need an early exit option
4. I would like to invest a maximum of Rs. One lakh a year (annual option) even though I had some spare funds at that point of time
Mr. Gupta, alongwith Mr. Anoop Misra suggested me ‘HDFC savings Assurance plan’ with the following information:
a) It is primarily a savings plan and does not involve insurance. Hence, it does not deduct mortality charges
b) It is not equity linked, nor is it pure debt fund. Hence, I could safely assume a return of about 12 to 15%
c) The period of policy is 10 years. However, once I had paid 3 regular premiums, I could choose to withdraw / surrender the policy without any loss. But if done before that, most of my money would be forfeited
d) Since I had spare funds at that point of time, I was suggested to pay a premium of `2 lakhs for the first year for better gains while from second year onwards, I could pay a reduced premium of 50%, i.e. `1 lakh

Now, my first premium was paid on 28th Sept 2009. On 24th September 2010, I went with a cheque of `1 lakh to HDFC Bank branch, Sector 50, Noida. Mr. Anoop Misra met me and said that there was no provision to reduce the premium. Thereafter, he called up someone and said that the premium could be reduced to half only if I had come one month earlier. However, at this stage I have to pay `2 lakhs as premium. Having had no immediate option, I paid the premium of `2 lakhs.
Secondly, another bomb was exploded when he told me that I cannot surrender the policy after 3 premiums. In case I did, most of my money paid will be forfeited.
When asked about Mr. Paritosh Gupta, I was told that he had already resigned from the company, and hence, there is no way anything could be done.
This year, I went to the office of HDFC Life at Krishna Apra Plaza in Sector 18, Noida, well before time (One and a half month before the premium became due). Shock! I was told that this provision in my policy does not exist anymore. Therefore, I will continue to have to pay Rs. 2 lakh as premium. Even in spite of long argument, the persons at the counters refused to help since there was nothing that they could do.
I am beginning to wonder how many more surprises I am going to receive in the course of this policy period.
Let me take this opportunity to point out that I have been banking with HDFC bank and have this bank account with HDFC bank (sector 18, Noida branch) for the last over 8 years. Additionally, I also had a Housing loan of `22.1 lakhs running with HDFC, which I closed last year.
Sir, I demand to know why this mis-selling is being done by a reputed company like HDFC and that too, to an old, loyal and preferred customer. Do consumers have any rights in such matters or we are at the total mercy of such deceitful, fallacious, fraudulent and deceptive touts of respectable companies who for their personal short-term benefits, are willing to extend to any limits even at the cost of the reputation of the company which they are working for?
I hope to receive a practical resolution from you on the matter. I do not want to block my money for such a long period and I would certainly not pay 2 lakhs as the premium this year – which precisely were the premise of my accepting the policy.
Kindly revert urgently.
Thank you

Sincerely


Jayant Budhiraja
Mob: [protected]
e-mail: [protected]@rediffmail.com , [protected]@gmail.com