Before the District Forum: Kurnool
Present: Sri K.V.H. Prasad, B.A., LL.B., President
And
Smt C.Preethi, M.A., LL.B., Member
Sri R.Ramachandra Reddy, B. Com., LL.B., Member
Thursday the 16th day of September, 2004
C.D.No.59/2004
S.Laxmidevi,
W/o S.Jagan Mohan Reddy,
Nannoor Village,
Orvakal Mandal,
Kurnool District. . . . Complainants represented by their counsel
Sri.G.Madhu Sudhana Reddy.
-Vs-
- The Secretary,
The Nannoor Primary Agricultural Co-Operative Credit Society,
Nannoor Vilalge,
Orvakal Mandal,
Kurnool District. … Opposite party No.1 represented by his counsel
Sri.M.Syam Kumar Reddy
- The General Manager,
Kurnool District Co-Operative Central Bank,
Kurnool. . . . Opposite party
O R D E R
(As per Sri.R.Rama Chandra Reddy, Member)
1. This consumer dispute case of the complainant is filed under section 12 of the C.P. Act, 1986 seeking passing of an award of Rs.1,00,000/- (One Lakh) with interest @ 24% per annum from the date of demise of insured, Rs.25,000/- towards mental agony and Rs.10,000/- towards costs of this complaint which the complainant may be entitled in the exigencies of the case against the opposite parties for their payment to the complainant.
2. The brief facts of the complainant’s case are that as per her complaint are that Late S.Jagan Mohan Reddy who is the husband of the complainant was account holder and member in Kisan Credit Card scheme in the 1st opposite party bank at Narnoor which is under the control of the opposite party No.2. The account particulars of said S.Jagan Mohan Reddy are G.No.3841 and the loan account No.85. He became account holder in the year 1996 and continued as member in Kisan Credit Card Scheme until his death. In the year 2000 the opposite parties introduced Kisan Credit Card Scheme to the members of the Society and it covers the accidental benefit and the premium amount is Rs.21/- and the coverage period is one year and assured amount is Rs.1,00,000/- lakh and the policy will be renewed every year. The premium amount used to pay by the opposite party No.1 directly to the Insurance Company and the said amount will be deducted from the loan amount. The opposite party No.1 covered the risk of members through Oriental Insurance Company, Kurnool for the years 2000-2001. 2001-2002. In the year 2002 without the knowledge of complainant husband the 1st opposite party changed the Insurance Company and the Kisan Credit Card Scheme was changed from M/s. Oriental insurance Company to M/s. United India Insurance Company, Kurnool. The policy number of the deceased is 051100/47/02/00025 valid from 06-05-2002 to 05-05-2003. After that the opposite parties did not renew the policy of the deceased. On 25-12-2003 the deceased S.Jagan Mohan Reddy died in the accident. The complainant approached the opposite party no.1 for settlmetn of assured amount of Rs.1,00,000/- in turn the opposite parties sent a letter to the M/s.United India Insurance Company and the said company informed that the policy of the deceased was not renewed by the opposite parties 1 and 2 after 05-05-2003 and the policy was not in force by the date of death, hence they are not liable to pay any amount, after obtained the Xerox copy of the said letter the complainant got issued a legal notice to the opposite parties 1 and 2 and they did not choose to give any reply to the said notice. The negligence of the opposite party in not renewing the policy amounts to deficiency of service since the deceased was continued to be a member in Kisan Credit Card Scheme until his death for the said deficiency of service the complainant resorted to this Forum for redressal of her grievances.
3. The complainant in support of her case enclosed to the complaint (1) original Co-operative Kisan Credit Card-Cum-Pass Book issued by Narnoor Primary Agriculture Co-Operative Society to the deceased S.Jagan Mohan Reddy, husband of the complainant. (2) Office copy of the Legal Notice dated 10-03-2004 issued by the complainant’s counsel to the opposite parties 1 and 2. (3) Postal Receipt No.842 of the office copy of the legal notice which is sent through the registered post acknowledgment due to the opposite party No.2. (4) Postal Receipt No.843 of the office copy of the legal notice which is also sent through the registered post acknowledgement due to the opposite party No.1. (5) Postal acknowledgement of the opposite party No.1 as to the receipt of the legal notice sent by the complainant’s counsel. (6) Postal Acknowledgement of opposite party No.2 as to the receipt of the said legal notice. (7) The sworn affidavit of the complainant reiterates the complainant case and above documents and as per averments of the said sworn affidavit also filed Xerox copy of the registered acknowledgement due letter No.REF.051100/Misc, Cls.2003 dated 27-11-2003 of the United India Insurance Company Limited, which the opposite party No.1, when the complainant approached after the death of the complainant’s husband furnished said copy of the complainant and they are marked as Ex.A1 to Ex.A7 for their appreciation.
4. Inpursuance of the receipt of the notice as to this case of the opposite parties 1 and 2 remained exparte to the case proceedings without participating and contesting the matter by filing any of their written versions or documents.
5. Hence, the point for consideration is whether the complainant has made out any deficiency of the service on the part of the opposite parties 1 and 2 in the repudiation of the insured claim of her deceased husband’s policy by the United India Insurance Company Limited and thereby any of her entitleness to the reliefs sought.
6. The Ex.A1 is the Co-operative Kisan Credit Card-Cum-Pass Book issued by the Narnoor Primary Agriculture Co-Operative Society to the complainant deceased husband, the page 3 of the said pass book contains particulars such as general No.3841, name of the borrower (complainant’s deceased husband and Father’s name occupation (Agriculture), aged 42, Community-O.C. and the category of former (S.F.) as to this particulars, the Society Supervisor and the Secretary affixes their signatures with their official seals. The pages 4 and 5 (Ex.A1) contains particulars of holding. The pages 10 and 11 (Ex.A1) contains particulars of the share capital collected by the opposite party No.1 whenever sanctions the loan to the borrower (Complainant’s husband). The pages 22 and 23 (Ex.A1) contains disbursement of S.A.O. loans (seasonal Agriculture Operations) such as loan account No.85, declaration No.105/3299, declaration amount of Rs.20,000/- and the disbursement of loan amount and the repayment particulars. As seen from this, the complainant’s husband has obtained loan of Rs.11,000/- on 26-06-1999 and paid completely on 29-06-2000, on 01-07-2000 obtained loan of Rs.13,000/- and paid completely on 31-05-2002. On 01-06-2002 obtained loan of Rs.13,000/- and paid completely on 26-06-2002 and lastly obtained loan of Rs.13,000/- on 26-06-2003. This amount shown as outstanding balance which the complainant’s husband has to pay, since the complainant’s husband died on 26-12-2003, the said amount could not be paid as the said amount was due to pay on or before 26-06-2004 as seen from the above loan disbursements and repayments, which were the seasonal agriculture operation loans. This clearly shows the complainant’s husband was a borrower member who obtained loans whenever he needs and paid. As per the averments of the complainant in its sworn affidavit at para 3 page 2 after the death of the complainant’s husband, when she approached opposite party No.1 for settlement of assured amount the opposite party No.1 furnished the Xerox copy of the letter of United India Insurance Company Limited (Ex.A7) wherein it was stated that the claim lodged in respect of the complainant’s husband under the Kisan Credit Card Scheme that the opposite parties 1 and 2 have taken a policy with effect from 06-05-2002 to 05-05-2003, subsequently the said policy was not renewed, whereas the death of the Kisan Credit Card holder was occurred on 26-12-2003 i.e., after the expiry of the said policy which is not covered under the above policy, and expressed the United India Insurance Company Limited its in ability to entertain the claim of the complainant which was submitted by the opposite party No.1 though the opposite party No.2. The Ex.A2 is the legal notice dated 10-03-2004 issued by the complainant’s counsel to the opposite parties 1 and 2 which was sent to the opposite parties 1 and 2 under the registered acknowledgement due, the said postal receipts are also filed for their appreciation (Ex.A4 and Ex.A3 respectively). The said notice was also acknowledged by the opposite party No.1 under the Ex.A5 and the opposite party no.2 under Ex.A6. In spite of the receipt of the said notice (Ex.A2) by the opposite parties 1 and 2 have not shown any diligence to give reply, further the opposite parties 1 and 2 even after the receipt of the notices as to this case which are issued by this Forum, they never bothered or shown any prudency to contest the case and filed any written versions and documents in support and in defence to the complaint averments to contest the case and remained exparte to the case proceedings without participating in it. The complainant’s husband being a borrowing member as per Ex.A1 in opposite party No.1 Society which was under the administrative control of the opposite party No.2 and covered the complainant’s husband Insurance from 06-05-2002 to 05-05-2003 and failed to cover the subsequent period as per the Kisan Credit Card Scheme, which was evident from the United India Insurance Company Limited letter reference 051100, Misc, Cls.2003, dated 27-11-2003 which was sent through registered post with acknowledgement due to the opposite parties 1 and 2 (Ex.A7). This clearly shows is not covering the insurance to the complainant’s husband who was the borrowing member, by the opposite parties 1 and 2, this negligence amounts to deficiency of service and thereby liable, the opposite parties 1 and 2 jointly and severally to pay the insured amount.
7. Therefore, in the result of the above discussion the complaint is allowed directing the opposite parties 1 and 2 to pay Rs,1,00,000/- jointly and severally to the complainant towards the insurance claim covered under Kisan Credit Card Scheme policy with interest at 9% per annum from the date of the death of the deceased (Complainant’s husband) i.e., 25-12-2003 till the date of realization, Rs.5,000/- towards mental agony and Rs.2,000/- towards costs of this complaint within a month from the date of the receipt of this order.
Dictated to the Stenographer, Typed to the dictation, corrected by us, and pronounced in the Open Court, this the 16th day of September, 2004.
PRESIDENT
MEMBER MEMBER
APPENDEX OF EVIDENCE
Witnesses Examined
For the complainant:- Nil For the opposite parties :- Nil
List of exhibits marked for the complainant:-
Ex.A1 Original Co-operative Kisan Credit Card-Cum-Pass Book issued by Narnoor Primary Agriculture Co-operative society.
Ex.A2 Office copy of the legal notice dated 10-03-2004 issued by the complainant’s counsel to the opposite parties 1 and 2.
Ex.A3 Postal receipt No.842.
Ex.A4 Postal receipt No.843.
Ex.A5 Postal Acknowledgment.
Ex.A6 Postal Acknowledgment.
Ex.A7 Xerox copy of letter addressed by Divisional Office United India Insurance Company Limited, Kurnool under Ref.No.051100, Misc, Cls.2003 dated 27-11-2003.
List of exhibits marked for the opposite parties:- NIL
PRESIDENT
MEMBER MEMBER
