Consumer Cases

Consumer Forum imposes Fine on HDFC Bank for doing insurance without customer permission


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The District Consumer Disputes Redressal Commission has imposed a fine on HDFC Bank for insuring a consumer without his consent. The bank has been ordered to return the premium amount along with interest, as it was considered wrong to deduct the premium amount and transfer it to the insurance company. Additionally, both the bank and the insurance company have been asked to deposit Rs. 25,000 each in the Consumer Welfare Fund.

Background of the Case

Rajkumar Saini of Jagguka Wali Dhani had opened an account in the Nawalgarh branch of HDFC Bank. The bank insured him without taking his consent. When Rajkumar Saini found out about the insurance policy, he requested to cancel it within the allowed time frame. However, the bank and the insurance company did not pay attention to his request. After 48 days, even though there was only Rs. 49 in his account, the bank transferred Rs. 15,675 of the premium amount to Aditya Birla Capital Sunlife Insurance Company. As a result, the account holder’s balance went into the negative and the account was put on hold.

Decision of the Consumer Commission

Rajkumar Saini filed a complaint with the District Consumer Disputes Redressal Commission. The commission, presided over by Manoj Meel (District Commission President) and Neetu Saini (member), considered the bank’s actions unfair. They ordered HDFC Bank and the insurance company to deposit Rs. 25,000 each in the Consumer Welfare Fund. Furthermore, they directed the bank to return the premium amount of Rs. 15,675 with interest to Rajkumar Saini. Additionally, the bank was ordered to pay Rs. 7,500 for mental agony and Rs. 3,300 for complaint expenses.

Commission’s Directive for Compliance

The commission also directed HDFC Bank and the insurance company to clearly display the terms and conditions of insurance policies and the claim process in bold letters at their workplaces. This is to ensure that customers are well-informed and can easily understand the policies. The commission requested that a compliance report be sent to them within 15 days.