Court issues bailable warrant against HDFC Life Branch Head for non-compliance; directs investigation into policies issued to terminally ill individuals.
In a significant development, the Allahabad High Court has issued a bailable warrant against Pulkit Agarwal, the Branch Head and Operation Manager of HDFC Life Insurance Ltd., Moradabad, for failing to comply with the court's orders. The court has also called for an inquiry into allegations of fraudulent issuance of life insurance policies to individuals on their deathbeds in the Moradabad region.
The case, presided over by Justice Arun Kumar Singh Deshwal, revolves around the suspicious issuance of a life insurance policy by HDFC Life Insurance. The applicant, Nawab Ali @ Nawabuddin, is accused of taking half of the maturity amount of Rs. 9,60,000, meant for the first informant after her husband’s demise, citing high processing charges as the reason.
Previously, the court had directed the Branch Manager of HDFC Life Insurance in Moradabad to appear and clarify whether any charges were levied under the guise of processing or service fees. However, on the scheduled date, the Branch Head did not appear, prompting the court to view his absence as contemptuous and warranting a bailable warrant for his appearance.
The court expressed its displeasure over the deliberate avoidance by the Branch Head and the failure of the Senior Superintendent of Police, Moradabad, to ensure the correct person appeared in court. Instead, Ashish Agarwal, the Head of Sales Department at the branch, appeared, claiming he was instructed by the senior management.
Furthermore, the court noted an alarming trend of insurance policies being issued to terminally ill individuals, reportedly facilitated by intermediaries. To address this, the court has directed the Vice President of the Risk Management Committee Unit (RMCU) in New Delhi to conduct a thorough investigation into these allegations and the involvement of HDFC Life Insurance officials.
The court has scheduled the next hearing for March 11, 2026, and has instructed the Registrar (Compliance) to communicate the order to relevant authorities for enforcement. The SSP, Moradabad, has been admonished to ensure future compliance and the presence of Pulkit Agarwal in court.
This development raises critical questions about the ethical practices within the insurance industry and highlights the judiciary's proactive stance in safeguarding consumer rights and ensuring corporate accountability.
Bottom Line:
Court directs issuance of bailable warrant and show-cause notice against Branch Head of HDFC Life Insurance for non-compliance with court orders and seeks investigation into alleged issuance of life insurance policies to persons on death bed.
Statutory provision(s): Criminal Procedure Code (issuance of bailable warrant), Contempt of Court, Insurance Regulations (implied).
Nawab Ali @ Nawabuddin v. State of U.P., (Allahabad) : Law Finder Doc id # 2860180
