JUDGEMENT

1. This Case is arisen of the petition filed under Section 12 of the Consumer Protection Act, 1986 wherein the Complainant has prayed for a decree of the sum amount insured of Policy No. 820001486104 amounting to Rs. 50, 000/- (Rupees Fifty Thousand only) along with interest accrued thereon at the rate of 12% per annum with effect from July 2010 till realization as compensation and cost of the proceeding of Rs. 20,000/-.

2. The Case of the Complainant in brief is that the State Bank of India is carrying on its banking business having various branches including OP No.2. OP No. 1 is the sister concern of State Bank of India which carries on insurance business through the OP No. 2. His wife Badami Devi since death assured her life under Group Insurance Scheme vide Policy No. 82001486104 – SBI Depositor Group Insurance Scheme A/C No. 1170070161 dated 16-09-2005 for a sum of Rs. 50,000/- with OP No. 1 through the OP No. 2 . SB A/C No. 01170070161 has been converted as CBS A/C No. 11857142235. Mode of payment of insurance premium was yearly which was agreed to be paid from the saving account of his wife. Accordingly the OP No. 2 used to debit the yearly premium from aforesaid Saving Account regularly. He was the nominee of his wife in respect of aforesaid policy who died on 08-02-2010. After death of his wife, he submitted duly filled prescribe Claim Form before the OP No. 2 along with all relevant documents to be forwarded to the OP No. 1. The OP No. 1 intimated him that the claim was settled as the policy became lapsed for non-payment of premium due on 15-09-2009. There after again he requested the Ops to sttle his claim submitted but they denied to do so vide letter dated 08-10-2010. The policy became lapsed due to fault of the Ops. Hence this case.

3. On receipt of summon the OP No. 1 appeared and filed written statement denying allegation brought against them.

4. The case of the OP No. 1 in brief is that the Group Insurance Policy is one year renewal group term assurance policy. Renewal of policy is not automatically made but it has insurer. The premium due on 16-09-2009 was not received and at the time of death its policy holder was not in force. Hence this case is liable to be dismissed.

5. The OP No. 2 upon receipt of notice appeared and submitted written statement . The case of the OP No. 2 is that if there is any Standing Instruction, the premium can be debited from the account on the date fixed. No standing instruction was given by the account holder to the OP No. 2. The Policy in question was renewal policy but not automatic. Hence the case is liable to be dismissed.

6. Upon pleadings of the parties and documents submitted the following issues were framed:-

1. Whether the Master Policy No.82001486104 was in force till the death of Badami Devi?
2. Whether the Master Policy No. 82001486104 became lapsed with effect from 16-09-2009 due to negligence on the part of Ops?
3. Whether the Complainant is entitled to get relief (s) as prayed for?

7. During trial the Complainant has examined only himself and exhibited some documents.

Decisions and reasons there of

8. We have very carefully gone through the argument duly advanced by the learned lawyers appearing on behalf of parties. The Complainant has submitted written argument copy of which was supplied to the Ops. Let issue wise discussion be made.

Issue Nos. 1 & 2

9. PW – 1 is the Complainant who has stated in his evidence that the premium due on 15-09-2009 came lapsed due to negligent of OP No. 2 because as per pre – condition, OP No. 2 did not remit premium from the account of his deceased wife. Ext – 1 is certificate of Master Policy No. 820014866104 which shows that only account holder of SBI and Associate Banks of State Bank Group can purchase insurance policy under Group Life Insurance Scheme covering risk period from date of commencement of policy and till Annual Renewal Date. There is no dispute that the policy holder had an account in the SBI, Zerikingding Branch. Ext – 3 is passbook of SB A/C 11857142235standing in the name of Badami Devi. It shows that there were two withdrawals, one was on 15-09-2005 amounting Rs. 331/- towards Insurance Policy and another was on 11-10-2006 amounting Rs. 337/- towards insurance policy. Ext – 3 was replaced by Ext – 2 which shows that an amount of Rs. 340/- was debited from the account of the wife of the Complainant Badami Devi on 13-09-2008 towards SBI Life Insurance.
10. It is admitted by the OP No.2 that 3 Nos of the premium were debited from the account of the policy holder towards OP No. 1. The written statement of OP No. 2 is silent whether for aforesaid each premium was debited on each separated Standing Instruction.
11. It appears that the policy in question was purchased by the wife of the Complainant under initiative of OP No. 2. The nature of the policy indicates that both Ops are working on similar footing in doing business of Insurance and that the OP No. 2 needs to take initiative in payment of premium for renewal. Accordingly, the OP No. 2 took initiative in payment of 3 Nos of premiums earlier. While renewal became due on 16-09-2009 there was available fund in the account of wife of the Complainant Badami Devi maintained with OP No. 2. It has been submitted by the learned advocates appearing on behalf of the Complainant that the policy holder was under impression that the OP No. 2 would debit the premium due on 16-09-2009 towards OP No. 1 as it did so earlier. There is no evidence adduced by the OP No. 2 showing that it debited the premium towards OP No. 1 from the account of Badami Devi in respect of Insurance Policy as stated above. Taking all aspects into consideration, I also find negligence on the part of the OP No. 2 in payment of premium due on 16-09-2009 towards OP No. 1 in respect of Master Policy No. 82001486104. As OP No. 2 was the initiative banks of insurance policy in question, the OP No. 1 ought to have made inquiry as to why the premium due on 16-09-2009 was not debited from the account of Badami Devi by the OP No. 2. PW-1 has stated in his evidence as well as in his petition filed under section 12 of the Consumer Protection Act that Badami Devi died on 08-02-2010 leaving behind her the Complainant as her husband. Ext-4 is death certificate which shows that on 08-02-2010. Ext-1 shows that the Complainant Rajendra Chauhan is the nominee of the insurance policy being No. MP 82001486104.
12. In view of the discussion made above the Issue Nos. 1 & 2 are answered positive in favour of the Complainant.

Issue No. 3

13. In view of our discussions and observations made in foregoing issues, we are of the opinion that the Complainant is entitled to get relief.

14. In the result, the petition filed under section 12 of the Consumer Protection Act. Accordingly the OP No. 1 is directed to pay the sum insured amounting Rs. 50,000/- along with interest at the rate of 10% thereon per annum with effect from 16-09-2010 ti;ll realization and the OP No. 2 is directed to pay Rs. 15000/- as compensation and cost of the proceeding. Prepare decree accordingly. Accordingly this case is disposed of on contest.
15. Given under our hand and seal of the Court on this 8^th April, 2019 at Diphu, Karbi Anglong.

               Dictated and corrected by us.