"An award is passed with a direction to the insurance company to make payment of Rs five lakh with interest at rate of eight per cent from the date of complaint that is March 2, 2010," said Insurance Ombudsman (Chandigarh), Manik Sonawane in his order.
Mis-selling means deliberate, reckless or negligent sale of products or services in circumstances where the contract is either misrepresented, or the product/service is unsuitable for the customer's needs.
The complainant, Satnam Singh Randhawa, who is working as a driver in USA, had said in his complaint filed in 2010 that he bought life insurance policy from HDFC Standard Life Insurance under single premium mode in 2006 during his visit to India.
He said the agent of the company told him that it was a single premium policy but later on it was found that it was a yearly premium policy with Rs five lakh to be paid annually.
Even the company representative acknowledged during the proceedings that the proposal form was not for single premium policy and Rs five lakh was an annual premium under the said policy.
When Randhawa approached HDFC Standard Life Insurance, he was told that only Rs 2.70 lakh was payable which was not acceptable to him.
Complainant also accused the company of not delivering the policy bond despite several reminders. (MORE)