My uncle invested an amount of 1 lac in HDFC Bank as Fixed deposit. An employee in the capacity of Asst. Manager later talked him to invest that amount in a security market based nvestment plan and collected cheque and an application form to transfer this amount from the FD to the new plan. He was told that it is a sort of Systematic Investment Plan where you have to invest an annual amount of 1 lac. for 5 years. Being an NRI, he visited the branch for his next vaccation and found that the amount was reduced to around 68000. On enquiry it was explained that the scheme was a ULIP based Pension Plan, the rest are several charges. Moreover, he didnt even receive a document for that untill he made this enquiry. Very soon they sent him a 'reprinted' copy of this document stating that the original was sent before and furnished was a docket number of Speed Post Service. So he wanted to cancel the investment. Gave a complaint in the HDFC Bank branch to cancel the plan, surrendered the documents, stating the whole story, that though it happened through misrepresentation, atleast cancel it in Free look period. They fowarded it to their Insurance dept. They rejected the request by stating that the free look up period is over as soon as they sent the documents. But as per their covering letter it will be over only after 15 days after the customer receives it. Now the bank employees says that it cannot be handled by them since it is an insurance matter and we need to go to the grievance cell of the HDFC Standard Life Insurance. We did with same result. Some thing I dont understand is that how come an employee of the Bank can sell/force an insurance product to his customer but has no liability to service it.
Now, we are not sure whether we need to move this issue to Banking Ombudsman or Insurance Ombudsman. Do we have any other choice other than this? Please advise me how to deal with this case in this scenario. If we need them, then shall we need to be present for hearing or can it be done through our Advocate? Or atleast can I represent him as he is an NRI.
Thanks and Regards,