The New Delhi district forum also directed Kotak Mahindra to pay Rs one lakh as compensation to its customer, a retired Army officer for rendering deficient service to him and for allegedly "committing fraud and cheating" upon him.
It also asked the insurance firm to return him "entire premium or other sum received" from him.
The forum gave the order on the plea of Col (Retd) Iqbal Inder Singh who had alleged that the policy he was sold by Kotak, was for 10 years instead of the one opted by him for a three year period after a discussion with the company's agent.
"We are fully satisfied that agent of Kotak and the firm have colluded in change of data, record and indulged in fabrication for promoting business, to have wrongful gain, out of innocent complainant (Singh).
"We condemn this act and misconduct of the agent and the firm. This is a fit case for handing over to police. We direct the Delhi Police to record an FIR, based on complaint in this case and other facts and examine the matter to prosecute the two for various offences of cheating, forgery etc," the forum said.
Holding Kotak Mahindra also guilty of rendering deficient service, leading "to harassment of a senior citizen" the forum directed it to "return entire premium received from Singh with interest of 12 per cent from the date of acceptance of his reply and to pay him Rs one lakh as compensation for deficiency (in service and allegedly for) committing fraud and cheating."