HDFC penalised for issuing insurance policy without consent

Tribune News Service

Amritsar, September 28

The District Consumer Disputes Redressal Forum has directed HDFC Bank and HDFC Ergo Insurance Company to refund the entire amount deducted from the account of a local resident on the pretext of an insurance policy premium issued without his consent. It has also directed the two companies to pay Rs 10,000 as compensation and Rs 2,000 as litigation expenses to the complainant.

Earlier, Hare Ram Singh, a Chheharta resident, had filed a complaint against HDFC Bank and HDFC Ergo General Insurance Company stating that he opened his salary account with the bank and never applied for issuance of a credit card.

He alleged that later on, the bank in collusion with HDFC Ergo Insurance Company issued one health insurance policy on his name without his consent and knowledge. He added that the premium of the said policy was deducted by the HDFC Ergo Insurance from the credit card issued by the HDFC Bank.

He alleged that despite his request to HDFC Bank not to deduct any amount from his account HDFC Ergo continued to do so on regular basis.

The opposite parties in its reply stated that the credit card and insurance policy was issued with consent of the complainant and there was nothing wrong on their part. The forum observed that the complainant was never informed of such policy as it was issued without getting any proposal or application form or details of the complainant and even without his medical checkup. It rejected the plea that the consent was acquired verbally on the ground that there was no such evidence.

The forum stated that the opposite parties were not only guilty of deficiency of service towards the complainant, but has also indulged in unfair trade practice just to deprive the complainant from his hard earned money.