Banamali Tandi , aged about 64 years,

 S/O- Late Arakhata Tandi , At: Sanadungri ,PO; Saria,

P.S. Narla, Dist-Kalahandi,Odisha.  

                                                                 …….…Complainant     

Vrs.

1. Union of India, represented through the Commissioner-cum-Under Secretary, Department of Agriculture, Co-operation farmer’s Welfare (DAC & FW), Ministry of agriculture and Farmer Welfare, Govt. of India, New Delhi.
2. Commissioner-cum,-Secretary. Department of Agriculture and Farmer Welfare, Ministry of Agriculture and Farmer Welfare, Govt. of Odisha, Bhubaneswar.
3. Chief District Agriculture Officer, Kalahandi, Bhawanipatna, Odisha.
4. State Bank of India, Rupra Road Branch, Represented through its authorized Officer, At/Po Rupra, P.S. Narla, Dist. Kalahandi, Odisha.
5. Agriculture Insurance Company, Office Block-1,5^th Floor, Flat B & C,

    East Kidwai Nagar, Ring Road, New Delhi,110023. ,

                                                               …….Opps Parties

For the Complainant:  Self .

       For the O.P 1:  Not appeared

       For the O.P 2 & 3: Self

       For the O.P 4: Shri G.K.Mohanty,Advocate

       For the O.P 5:  Shri P.K.Bhoi,Advocate

JUDGMENT

 Sri A.K.Patra, President

1. The captioned Consumer Complaint is filed by the complainant named above inter alia alleging negligence & deficiency in service on the part of Opposite Parties for non release of crop insurance benefit under Pradhan Mantri Fasala Bima Yojana (PMFBY) on account of loss of paddy crop grown in Kharif 2021.
2. The complainant seeks for an order directing the Ops to release the   crops insurance benefit under PMFBY for the loss @ 58% of sum assured of Rs. 67,649.23 of paddy crop grown in Kharif 2021 and further pray for an award of compensation towards mental agony and harassment with litigation cost.
3. The factual matrix leading to the case of the complainant as emerged from the case record is that, the complainant is a farmer by occupation. He had cultivated paddy crop over his agriculture land vide  Plot No.72,87,88,100 measuring an area of Ac. 3.2000 dcl i.e  1.0097 Hect, under Khata No.77 of village/mouza- Sanagundgri under Gadebandha Gram Pachyat , P.S./Tahasil- Narla during Kharif 2021 and insured his crop with AIC/OP 5 under PMFBY for a sum assured of Rs.67,649.23 and accordingly paid insurance premium of Rs.1,352.96 to the insurance company/AIC through CSC, Rupra Road of SBI, Rupra Road vide Code No.457727760027 which was debited from his SB A/c No.30677812374 of SBI, Rupra Road vide Money Receipt  No.0401212100106056369 dt. 17.07.2021. It is contended that, the complainant has submitted required documents and have collected the above said money receipt as a token of successful payment of insurance premium to the insurer /AIC. It is further submitted that, due to low rain fall,  the crop grown in Kharif 2021 got damaged  for which  Government of Odisha has declared  58% loss of paddy crop  during Kharif year 2021 in the locality of the complainant, however no claim is settled by the insurance company i.e.  Agriculture Insurance Company of India Ltd./OP 5 even after several approaches to the concern authorities though co-farmers have already received their insurance benefits . Hence, this complaint.
4. To substantiate his claim the complainant has filed the copy of Money Receipt  No.0401212100106056369 dt. 17.07.2021 vide Annexure 1. Copy of self declaration meant for non-lonee farmers dt.17.07.2021 vide Annexure -2 series ,Copy of ROR vide Khata No 77 of mouza/village- Sanadungri ,PS-Narla,Dist-Kalahandi vide Annexure -3,  Copy of Aadhar Card of the complainant vide Annexure-4, Copy of SB Account No. 30677812374 vide Annexure-5,
5. On being notice, the Op 2 & 3 appeared through their authorized representative and filed their written version. The OP 4 appeared through their Learned Counsel Shri G.K.Mohanty and filed their written version. The OP 5 appeared through their Learned Counsel Shri P.K.Bhoi but failed to file their written version within the stipulated period of time as prescribed under C.P.Act, 2019 for which written version filed by the OP 5 in belated stage has not been accepted in view of Judgment of the Honorable Supreme Court of India   dt.4.3.2020 passed in New India Assurance Company Ltd. Vrs. Hilli Multi Purpose Cold Storage . However, the AIC/OP 5 is allowed to participate in the further proceeding of this case without written version.  Opp.Party No.1 did not choose to appear in this case though notice has been properly served on 22.8.2022 through registered post vides Consignment No.RO 961106509 IN available there in the record.
6. The OP 2 & 3 have filed their written version which contended  that, the application of the farmer/complainant could not be approved due to lack of required documents, so his application got reverted by insurance company i.e. AIC of India Ltd. to the bucket of Common Service Centre. Later on the requered documents were submitted by the farmer /complainant along with his application for crops insurance during Kharif 2021 which was received before the cut-up date i.e 30.06.2022 . It is admitted in their written statement that, the application along with the required documents were received before the cut-up date i.e before 30.6.2022 as such it is approved and the complainant is enrolled under PMFBY during Kharif 2021 as per Annexure 1 and that, the complainant is entitle for getting insurance benefit as per the notified actual yield (AY&TY) with respect to his enrolled GP- Gadebandha, Block –Narla,District-Kalahandi. It is further submitted that, the claim percentage of GP- Gadebandha  is 59% as per Annexure-II of their written version. Further and that ,, the insurance company AIC/op 5 was instructed by the State Level Technical Committee (SLTC) to consider the application which had been submitted on or before 30.06.2022 accordingly the claim of the complainant Banamali Tandi is under process and will be release soon as per decision of the State Level Technical Committee (SLTC) vide Annexure –III of the written version.
7. The Op 4 /SBI Rupra Road filed their written version admitting the facts that, the complainant has SB A/c No.32062270172 maintained at SBI, Rupra Road branch .It  is further submitted that, the bank has no knowledge  about the deposit of alleged premium for insurance of his  crop grown in Kharif 2021. The alleged transaction was not made in the SBI, Rupra Road branch. It is further submitted that, the SBI Rupra Road has not received any deposit in respect of crop loss from any agriculture company in favour of the complainant. The loss in  agriculture insurance  was determine by the process as per the guideline of the government and the compensation also paid by the Central Government and State Government through Agriculture Insurance company where SBI, Rupra Road has no role to pay the compensation for loss of agricultural income. The account statement of the complainant does not show any such transaction in respect of the deposit of alleged insurance premiuṃ .The present OP, SBI, Rupra Road  has been falsely implicated in this case . With this submissions the OP 4/Bank urged to drop this complaint against the OP 4/Bank. To substantiate their pleading the OP 4/Bank has filed the account statements vide A/c No.32062270172 of the complainant for the period of 1.4.2021 to 31.8.2021.
8. Heard. Perused the material available on record. We have our thoughtful consideration on the submission of parties present.
9. After perusal of the complaint petition, written version and all the documents relied on by both the parties placed in the record, the points for consideration before this Commission is whether the complainant is entitled for the alleged crops insurance benefit under (P M F B Y) for the loss of crops grown Kharif 2021 and whether the Ops have deficient in service to settled the insurance claim of the complainant?
10. Learned Counsel for OP 5 /AIC draw our attention on the revised guideline of PMFBY and most specifically on the clause /Para 17 of revised PMFBY which casts a duty on the Bank that, the Bank are required to upload the details of insured farmers’ data mandatorily on the National Crop Insurance Portal . The concern branches of the Bank and Nodal Banks/DCCB in case of PACS will upload the details of the individual insured famer (Both Loanee & Non-Loanee) like farmers’ name, Fathers name ,Account Number, Aadhar Number ,Village ,Categories-Small & Marginal /SC,ST /Women insured area , details of insured land , insured crop(s) etc. as prescribed in online application on National Crop Insurance Portal and CBS integration mandate and submit the same within stipulated cut-off-date as per the seasonally discipline/The Banks /PACS must also ensure the premium amount is remitted to the concerned insurance company electronically within the stipulated time . Here in this case, there is no dispute that insurance premium is accepted by the insurer AIC/ OP 5.
11. Learned Counsel for OP 5 /AIC further draw our attention on Para 17.6.4 of the revised guideline  that “in case of application submitted through CSCs, the farmer will be required to authenticate herself/himself using Aaadhar for filing of online application form . Having a bank account is essential for such case. In this case CSC-VLE will upload all requisite /desired supporting documents on portal while filing of the application form on behalf of the farmer. Application without requisite documents would not be considered for insurance coverage and CSC-VLE is responsible for proper filing of application form.” It is also contended there in the said guideline that : “Insurance Company should also reconcile the details of individual insured farmers uploaded on the portal  with the premium/consolidated  declaration receipt from each branch/nodal branch within the stipulated date and any deficiency/mismatch may be reported to the concerned bank branch/nodal bank. The bank branch/nodal bank should further send /upload the requisite information in respect of such farmers for whom clarification has been sought immediately within seven days.” There is also a duty cast in Para 17.12 of the revised guideline of PMFBY that:-“insurance company should verify and satisfy themselves about the coverage of farmers/crop and give acceptance to the application submitted by bank electronically through National Crop Insurance Portal.”  Para 17.13 of the said guideline contended that:-“ all insurance companies will compulsorily verify and take necessary action including approval/rejection of proposal or policy of any farmer through crop insurance portal within stipulated date.”
12. Learned Counsel for OP 5/AIC further submitted that, admittedly the complainant has insured his crop under PMFBY in Kharif -2021 for the crops grown in village Sanagundari under Gadebandha Gram Panchyat of Narla Block , District-Kalahandi through CSC. However, no documents were attached in NCIP which were relevant and mandatory for crop insurance. Repeated reminder were sent to the CSC for submission of documents of the petitioner but it was not responded for which OP 5/Insurance Company was bound to reject the application of the complainant/farmer explaining the reason there with that,  due to non attachment & non submission of required documents, the insurance policy was rejected.
13. Learned counsel for the AIC/Op 5 further submitted by admitting the facts that, subsequently, the petitioner farmer submitted his application for crops insurance under PMFBY during Kharif 2021 with relevant documents which were received by the OP/Insurance Company before cut –up date of 30.06.2022 and that , as per the order received from state Govt.of Odisha to check & approve application received before cut-up date i.e 30.06.2022 ,this OP/AIC have approved the application of this complainant and that, the claim of the complainant will be release shortly and with this submission the Learned Counsel for OP 5/AIC urged to dismiss this complaint as there is no negligence and deficiency of service on the part of OP 5/Insurance Company.
14. Learned counsel for the  Op 4/Bank draw our attention on Para 8 (6)  & (7) of Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests) Regulations, 2017 as follows :-“ 8. PROPOSAL FOR INSURANCE: (6). Insurer shall process the proposals with speed and efficiency and the decision on the proposal thereof, shall be communicated in writing to the proposer within a reasonable period but not exceeding 15 days from the date of receipt of proposals or any requirements called for by the insurer. (7). Where a proposal deposit is refundable to a prospect under any circumstances, the same shall be refunded within 15 days from the date of underwriting decision on the proposal.”
15. Here, in this case the facts that, the complainant has paid premium of Rs.1,352.96 for sum insured of Rs. 67,649.23 to the AIC/OP 5 vide money receipt No.0401212100106056369  dt.17..07.2021 towards insurance of paddy (dhan) crops grown over agriculture land  vide  Plot No.72,87,88,100 measuring an area of 1.0097 Hect, under Khata No.77 of village/mouza -Sanadungri under Gadebandha Gram Panchyat , P.S./Tahasil- Narla,Dist – Kalahandi  during Kharif 2021 through CSC ,SBI, Rupra Road under Non-loanee category  is not disputed. The acknowledgement of premium receipt vide Annexure-1 of the complaint petition placed on record remain unchallenged/un- rebutted. It is also admitted that, the insurer AIC /OP 5 has checked the application along with the documents submitted there with and found it in order and that ,the  OP 5/AIC has already approved the application of the complainant received before the cut up date  i.e. 30.06.2022 and  that, the claim of the complainant will be release shortly as per decision of the State Level Technical Committee (SLTC).
16. The OP No.3, here the representative of Government of Odisha, has admitted the fact that:- 59% of paddy grown over the agriculture land situated within the in village Sanagundari GP- Gadebandha, Block –Narla, District-Kalahandi got damaged during  Kharif -2021 remain un-challenged /un-rebutted and as per the decision of the State Level Technical Committee (SLTC) the complainant is entitled to get insurance benefit under PMFBY ..
17. Here, the complainant /farmer have suffered crop loss of 59 % grown over his agriculture land during Kharif 2021 and he is entitling for insurance benefit is not disputed but not yet release to the insured farmer /here the complainant .
18. The PMFBY is a beneficial scheme of the government to protect the interest of the poor farmer.  The insurer AIC/OP 5 is sitting over the claim of the complainant for an uncertain period of time at the peril and  enjoying the premium received from the farmer/complainant is found to be unfair trade Practice & deficient  service on the part of Op 5/AIC .Nothing cogent evidence placed on the record to hold that, there is any such “force majeure event” may excuse liability for  performance of the obligation of AIC/OP 5 rather , such an act of non realize of crops insurance benefit to the complainant /farmer certainly frustrated the very purpose of PMFBY meant for the poor farmers of the nation is a great concern, certainly caused financial lose & mental agony to the complainant need to be compensated by awarding interest over the accrued insurance benefit payable to the complainant. 
19. We are of the opinion that, the complainant is entitled for crop insurance benefit as claimed   in this complaint but not yet released by the insurer AIC  /Op 5 is an act of unfair trade practice & deficient in providing service on the part of Op 5/insurance company towards  the complainant for which  there is sufficient cause continue to brought this complainant and it is found in time  well maintainable under C.P .Act 2019.
20. There is nothing pleaded or proved that, the complainant/insured farmer has misrepresented any fact or have played fraud to obtained crop insurance under PMFBY for loss of his paddy crop grown during Kharif 2021 and there is nothing fault  proved against the complainant, as such we are of the opinion that, when the genuine claim of the complainant is not yet settled, the complainant is entitled to heavy compensation with punitive damages, so that, in future they/insurance company would not dare to sitting over the claim of any insured farmer under PMFBY for uncertain period of time without assigning reason there for or   on such a ground that is beyond the control of the insured .Accordingly we are of our opinion that, the AIC/OP 5 is liable to pay Rs 1,00,000/-(one  lakh) as punitive damages to the complainant . Reliance may also be placed on the judgment recently passed on dt. 08.07.2022 by the Hon’ble State Commission, Odisha, Cuttack in C.C No. 19 of 2018, Ranjan Mahapatra Vs. Star Health & Allied Insurance Co.Ltd reported in 2020(II) OLR (CSR) Page 326.
21. Based on the above facts & circumstances and as per revised guideline we are of the opinion that, enjoying the premium received from the farmer/complainant and sitting over the claim of complainant for an uncertain period of time at the peril is  nothing but an unfair trade practice & deficient service on the part of insurance company AIC/OP 5 as such the AIC/op 5 is liable to compensate the complainant by way of releasing the insurance benefit to the complainant as claimed under PMFBY with interest @9% from the date of filing of this complaint i.e. 20.07.20211 till its realization and further the AIC/OP 5 is liable to pay Rs 1,00,000/-(one  lakh) as punitive damages along with  litigation cost of Rs 5,000 to the complainant . Hence it is ordered.

O R D E R

   This consumer complaint is allowed in part on contest against the OP 5/AIC  & dismissed against the other  Opp.Parties with the  following direction :- (i) The Agriculture  Insurance Company of India Ltd/ Opposite Party No. 5  is here by directed to release the  crops insurance benefit of Rs.39,913/ i.e. @ 59% of the sum insured Rs.67,649.23  under Pradhan Mantri Fasala Bima Yojana (PMFBY) with interest @ 9% p.a from the date of filling of this complaint i.e. from dt.20.07.2022 till its realization and to pay  Rs 1,00,000/-(one lakh) as punitive damages along with  litigation cost of Rs 5,000/-to the compliant.

(ii) It is further directed to comply  the aforesaid order within four weeks from the date of receipt of a copy of this order falling which the AIC/OP 5 shall be liable to pay Rs.500/-(five) per day as compensation to the complainant till compliance of this order and the C.E.O of the AIC/Op 5 shall be liable to be prosecuted under penal provision of Section 72 of C.P. Act 2019 on his own cost.

Dictated & corrected by me.

President

I agree.

Member

   Pronounced in open forum today on this 21^st June  2023 under the seal and signature of this Commission .The pending application if any is also stands disposed off accordingly.

   Free copy of this order be supplied to the respective parties or they may download the same from the Confonet to treat the same as copy of the order receipt from this Commission. Order accordingly.