Date of filing:- 01/03/2023.

Date of Order:-30/04/2024.

DISTRICT CONSUMER DISPUTE REDRESSAL COMMISSION

B A R G A R H (ODISHA).

Consumer Complaint No. 26 of  2023.

            Gopa Kanta, W/o. Late Subal Kanta, aged about 43(forty three) years, R/o. Kudapali, Po/Ps. Bheden, Dist. Bargarh(Odisha)-768104.

                                                                                    .....       .....     .....         Complainant.

-: V e r s u s :-

1. The Branch Manager, Cholamandalam Investment & Finance Co. Ltd., Near- N.H. 6, 2^nd Floor, Bandutikra Chowk, Bargarh, Po/Ps/Dist. Bargarh-768028.
2. Cholamandalam Investment & Finance Co. Ltd, Registered Office at Dare house, 1^st Floor, No.2, N.S.C. Bose Road, Parrys, Chennai-600001.
3. HDFC Life Insurance Company Limited, Head Office at 12^th Floor, Lodha Excelus, Apollo Mills Compound, N.M. Joshi Road, Mahalaxmi, Mumbai, Maharastra-400011.                                               .....       .....       .....   Opposite Parties.

Counsel for the Parties:-

For the Complainant :-                        Sri S.K.Panda, Advocate with associates.

For the Opposite Party No.1 & No.2 :-           Sri B.Panda, Advocate.

For the Opposite Party No.3(three):-               Sri B.S.Mishra, Advocate with associates.

                                                            -: P  R  E  S  E  N  T :-

Smt. Jigeesha Mishra               .....       .....       .....       .....       .....       P r e s i d e n t.

Smt. Anju Agrawal             .....            .....       .....       .....       .....       M e m b e r (W).

Dt.30/04/2024.                                 -: J   U  D   G  E  M  E  N  T:-

Presented by Smt. Jigeesha Mishra, President:-   

1)         The case of the Complainant is that the husband of the Complainant late Subal Kanta was a farmer and had taken tractor loan financed by the Opposite Party No.1(one) and No.2(two) to the extent of ₹4,25,255/-(Rupees four lakh twenty five thousand two hundred fifty five)only vide agreement No.XRRABGH00002339795 Dt.28-06-2018. The quarterly installment towards clearance of loan was fixed for ₹32,500/-(Rupees thirty two thousand five hundred)only for a maximum tenure of 66(sixty six) month i.e. from 28-06-2018 to 28-09-2023. The tractor purchased by the husband of the Complainant has been duly registered in the office of RTO, Bargarh vide Regd. No. OD-17-N-3856. The loan amount as well as the life risk of Late Subal Kanta was duly insured with the Opposite Party No.3(three) company on  payment of the required premium thereof by the deceased husband of the Complainant through Opposite Party No.1(one) and No.2(two) against which the Opposite Party No.3(three) issued Policy Certificate bearing No. PP0001510AS3X00 Dt.27-03-2018 and the effectiveness of the policy was from 27-03-2018 to 26-03-2022 wherein the Opposite Party No.1(one) and No.2(two) are the Master Policy Holder and the Complainant is the nominee of her deceased husband. Unfortunately the deceased loanee died on 18-07-2018 i.e. after payment of first installment and before the date of due for the second installment. The matter of death of the deceased was duly informed to the Opposite Parties by the Complainant along with all connecting papers including the postmortem report and other relevant documents as instructed by the Opposite Parties. The Opposite Party No.1(one) and No.2(two) in collusion with the Opposite Party No.3(three) have extracted the total loan amount along with applicable interest thereof till 15-10-2022. The Opposite Parties have extracted a huge amount from the Complainant and suppressed about the benefit of insurance policy. After intervene by the relative and friends of the Complainant, the Opposite Parties adjusted a sum of ₹1,15,751/-(Rupees one lakh fifteen thousand seven hundred fifty one)only towards insurance benefit after one year four month i.e. On 28-11-2019. On perusal of the account statement issued by the Opposite Party No.1(one) and No.2(two) respectively it clearly shows that some of the installment amount paid by the loanee has not been entered in the loan account. If the insurance benefit should have provided by the Opposite Parties immediately after the information of death of the loanee, the Complainant would have saved from the burden of unnecessary extra financial loss. But the Opposite Parties intentionally avoided to comply the same within the stipulated time in order to extract financial gain for their business. The Complainant served pleader notice to the Opposite Party No.1(one) and No.2(two) through registered post asking the Opposite Parties to refund the excess amount taken from the Complainant towards settlement of loan amount along with closing of loan account and return of the documents taken from the loanee at the time of sanction of loan along with NOC. The notice has been duly received by the Opposite Party on 03-03-2023 and 06-02-2023 respectively but the Opposite Parties remained silent. Hence the Complainant filed this case before this Commission.

2)         The case of the Opposite Parties is that the Opposite Party No.1(one) and No.2(two) and No.3(three) filed their version. The Opposite Party No.1(one) and No.2(two) is the financer i.e. Cholamandalam Investment and Finance Co Ltd. The Opposite Party No.3(three) is the insurance company i.e. HDFC Life Insurance Company Limited.

            The Opposite Party No.1(one) and No.2(two) submitted that the husband of the Complainant Subal Kanta and Complainant approached the Opposite Party for availing loan to finance a Goods vehicle, the tractor loan and the Opposite Party finance Company agreed to sanctioned ₹4,25,256/-(Rupees four lakh twenty five thousand two hundred fifty six)only to the Complainant for commercial purpose. The vehicle loan cum hypothecation agreement was executed between the Complainant and Opposite Party vide contract No. XTRABGH000023339795 and the loan was disbursed. As per agreement the petitioner had agreed to liquidate the entire loan amount of the vehicle in total 60(sixty) month. Further the Opposite Party No.1(one) and No.2(two) submitted that the Complainant and her husband were both applicant to the loan. The loanee Subal Kanta (husband of Complainant) had taken insurance from HDFC Life Insurance Company on his life for one time payment of ₹3,500/-(Rupees three thousand five hundred)only and the Complainant is the nominee and sum assured is ₹1,15,741/-(Rupees one lakh fifteen thousand seven hundred forty one)only. The loanee is a chronic defaulter and he has to pay outstanding of ₹1,24,364/-(Rupees one lakh twenty four thousand three hundred sixty four)only. The Complainant has not come to the court with clean hand and suppressed material facts. Hence Opposite Party No.1(one) and No.2(two) prayed for dismissed of the case.

            The Opposite Party No.3(three) submitted that the husband of the Complainant Late Subal Kanta had obtained an group insurance Policy HDFC LIFE GROUP CREDIT PROTECT PLUS INSURANCE PLAN and master policy holder Cholamandalam Investment and Finance Company Ltd. having Policy No. PP00151 Certificate No. XTRABGH00002339795 for a period policy term commercing from Dt.27-03-2018 to termination Dt.26-03-2022 on installment premium payment of ₹3,500/-(Rupees three thousand five hundred)only with a sum assured amount of ₹1,15,741/-(Rupees one lakh fifteen thousand seven hundred forty one)only. The Complainant/nominee submitted the death claim form for Late Subal Kanta. After received the death claim on 21^st January-2019 the Opposite Party No.3(three) as per the terms of the policy immediately processed the claim and an amount of ₹1,15,741/-(Rupees one lakh fifteen thousand seven hundred forty one)only has been credited in the account of the master policy holder Cholamandalam Investment and Finance Company Ltd. The Opposite Party No.3(three) has immediately forwarded the claim and made the payment in right time. Hence there is no any deficiency on the part of the Opposite Party No.3(three).

3)         After perusal of complaint petition, version and documents filed by the Parties  following issues are framed.

Issues

1. Whether  the Opposite Parties are deficient in service ?
2. Whether the Complainant is entitled to get relief ?

Issue No.1(one)

4)         After perusal of documents it reveals that Subal Kanta had taken a loan from Cholamandalam Investment and Finance Company Ltd. for an amount of ₹4,25,256/-(Rupees four lakh twenty five thousand two hundred fifty six)only. Again it is revealed that the Complainant is the co-applicant in that account. The Complainant filed death certificate of Subal Kanta. As per death certificate Subal Kanta was died on 18-07-2018. The Complainant Gopa Kanta on 24-09-2018 informed Opposite Party No.1(one) Cholamandalam Finance Company to provide the insurance amount as her husband Subal Kanta had died on 18-07-2018. The Opposite Party Cholamandalam Finance received the letter. As the Opposite Party No.1(one) Cholamandalam Investment and Finance Co. Ltd is the Master Policy holder, it was the duty of the Opposite Party No.1(one) to intimate the mater to the insurance company Opposite Party No.3(three). As per documents the Opposite Party No.3(three) received claim form on 21^st January 2019. After received claim form the Opposite Party No.3(three) paid the sum insured amount of ₹1,15,741/-(Rupees one lakh fifteen thousand seven hundred forty one)only to the master policy holder Cholamandalam Investment and Finance Company Ltd on  26-11-2019. The Opposite Party No.3(three) received claim form on 21^st January 2019, but payment was made after 10(ten) month on 26-11-2019. As per Insurance Regulatory and Development Authority of India Protection of Policy Holders Interests Regulations, 2017 a death claim under the life insurance policy shall be paid or be rejected or repudiated giving all the reasons within 30(thirty) days from the date of receipt of all relevant papers and required clarifications. However, where the circumstances of a claim warrant an investigation in the opinion of the insurer, it shall initiate the same at the earliest and complete such investigation expeditiously, in any case not later than 90(ninety) days from the date of receipt of claim intimation and the claim shall be settled within 30(thirty) days thereafter. In the instant case after received of claim form the Opposite Party No.3(three) had not paid the insurance amount within stipulated time. The Opposite Party delayed in payment for a period of ten month. The delay was made by the Finance Company also. After received intimation on 24-09-2019 the finance company or the master policy holder of the insurance policy did not intimate the insurance company. Due to the latches of finance company the insurance company received claim form on 21-01-2019 after four month from the intimation of the Complainant. The negligence on the part of Opposite Parties is proved. The Opposite Parties fails to provide service to the Complainant. All the Opposite Parties are deficient in service. The issue answered accordingly.

Issue No.2(two)

5)         For deficiency in service of the Opposite Parties the Complainant is entitled to get relief. The issue is answered accordingly.

            As per supra discussion the following order is passed:-

                                                            O  R  D  E  R

6)         The Complaint is allowed on contest against the Opposite Parties. The Opposite Party No.1(one) and No.2(two) i.e. the financier is directed to pay ₹30,000/-(Rupees thirty thousand)only compensation and Opposite Party No.3(three) is directed to pay ₹30,000/-(Rupees thirty thousand)only compensation for deficiency in service to the Complainant within one month of this Order. Again the Opposite Parties are directed to pay ₹10,000/-(Rupees ten thousand)only for litigation expenses to the Complainant. Failing which the entire amount will carry 12%(twelve percent) interest per annum till realization.

            Order pronounced in the open court on 30^th January of April 2014

                                                                                             Typed to my dictation

                                                                                              and corrected by me.                                                                                                     

                                    I agree,                                              ( Smt.Jigeesha Mishra)

                                                                                                    P r e s i d e n t.

                       (Smt. Anju Agrawal)

                             M e m b e r(w).