BEFORE THE  DIST. CONSUMERS DISPUTES REDRESSAL FORUM;  DHARWAD.

DATE: 8^th March 2016        

PRESENT:

1) Shri B.H.Shreeharsha       : President

2) Smt.M.Vijayalaxmi             : Member 

Complaint No.: 291/2015  

Complainant/s:       Praveen Chandrashekhar Amingad,              Age: 37 years, Occ: Business, R/o. Nadiger Compound, Saptapur, Dharwad 580001.

(By Sri.B.S.Hoskeri, Adv.)

v/s

Respondent/s:         Bharati Axa General Insurance Co. Ltd., II Floor, Reliance Digital Building, Opp: Vidyanagar Police Station, Hubli 580021. R/by its Branch Manager.

(By Sri.S.S.Karigoudar, Adv.)

O R D E R

By: Smt.M.Vijayalaxmi: Member

1.     The complainant has filed this complaint against the respondent for deficiency in service. Hence the respondent direction to pay Rs.33,291/- with interest @12% P.A., from 22.05.2014 to till payment and Rs.50,000/- as compensation for loss, harassment and mental agony along with cost of the proceedings.

Brief facts of the case are as under:

2.     The case of the complainant is that, the complainant is owner of Toyota Innova car bearing registration No.KA 25 Z 9162. The respondent is an insurance company. The complainant has been insuring his said car with the respondent under comprehensive insurance policy since 2013. The insurance representative of respondent came to the complainant for making insurance for 2014-15. Therefore  in order to make insurance the complainant gave a Cheque for Rs.33,291/- as per the say of the representative. The said chaque has been encashed by the respondent. Later, a cover note bearing no.33296817 has been issued by the respondent. Thus the complainant was under the impression that the respondent has insured his car for the coming tenure hoping to receive the policy copy later. It is submitted that the complainant did not receive the policy copy. However the complainant was astonished to receive a letter from the respondent date not mentioned in the letter stating that during their annual reconciliation process they have identified that an amount of Rs.33,291/- is refundable to him. In this regard to refund the said amount respondent sought the bank details of the complainant. On going through the letter and enquiry the complainant came to know that respondent has insured the complainant’s car for the period on encashing the Cheque and that is why the amount is lying with the respondent and same has been detached in the annual reconciliation process. As an insurance conscious and law abiding person the complainant had promptly responded to the respondent representative’s call for insurance. However looking to the respondent’s negligent act of not underwriting complainant’s insurable interest, he felt that his efforts have gone in vain. Thus respondent had kept the complainant’s family in a totally jeopardized situation, during the previous year fortunately nothing untoward had happened during that period. Had it been situation would have been disastrous. Further the complainant immediately response to respondent on 19.05.2015 mailed his bank details to enable the respondent to refund the amount. However the respondent without refunding amount as per its own stand has tried to misutilize the said amount under the false pretext that the policy for the previous period was issued. The respondent issued in order to justify non refund sent back dated / letter generated policy copy (after the insurance period was totally over) with a covering letter dtd.21.05.2015. Thus it is clear that the respondent without insuring vehicle as per its assurance had kept money under suspense & on finding annual non reconciliation wrote a letter intending to refund the amount. But as an afterthought the respondent has played deceptive practice of showing false insurance to make unlawful gain to the company by causing wrongful loss to the complainant. Hence complainant filed this complaint against respondent to pay the premium amount of Rs.33,291/- with interest from the date of deposit till realization.

3.     The respondent appeared and filed written version contending that the complaint filed by the complainant is illegal, it is not maintainable as per law and facts. The present complaint involves complicated questions of law and disputed questions of facts. Hence Hon’ble Forum no jurisdiction  to adjudicate the case. The respondent admitted that complainant is owner of insured vehicle. Complainant had insured the vehicle with this respondent under the policy no.FPV/11918607/E6/05/002296 with account no.E60000501 valid from 22.05.2014 to 21.05.2015. Further contended that he has suppressed material facts before this Hon’ble Forum. The insured vehicle has been purchased from financial assistance from Canara Bank, Hubli and same is hypothecated to Canara Bank, Hubli hence Canara Bank, Hubli is necessary party to the present complaint. Further contended that the complainant has issued Cheque no.709409 & the cover note no.33296625 and policy no.11268043 has been issued & as the complainant’s account has no sufficient balance to honour the Cheque the Cheque has been bounced and the policy issued has been cancelled due to Cheque bounce. That the complainant has made another payment with new Cheque no.168364 & another cover note no.33296817 in branch only receipt was created and the case was pending in QC2 fail. That while doing client reconciliation on May 2015, the present respondent found only credit balance in complainant’s account and the respondent did not get any uptodate on QC fail case. Hence the letter has been sent to the complainant for refund. After getting letter from respondent the complainant has visited the respondent branch at Hubli with related cover note and respondent has found case in QC2, later the same has been cleared and sent to ABS for & the policy got issued on 20.05.2015 & the official of the respondent had spoken with complainant and sent an apology letter to the complainant. Hence there is no deficiency in service & negligence on the part of the respondent. Therefore it is humbly prayed the complaint be dismissed with cost.

4.     On the said pleadings the following points have arisen for consideration:

1. Whether complainant has proved that there was deficiency in service on the part of respondents ?
2. Whether complainant is entitled to the relief as claimed ?
3. To what relief the complainant is entitled ?

Complainant and respondent filed sworn to evidence affidavit along with documents.  Heard. Perused the records.

Finding on points is as under.

1. Affirmatively 
2. Accordingly  
3. As per order

Reasons

Points 1 and 2

5.     On perusal of the documents, the complainant insured the vehicle Toyota Innova car bearing registration no.KA 25 Z 9162 with respondent since in the year 2013 and he issued the cheque in the year 2014-15 insurance amount, is admitted. But according to complainant, complainant issued Cheque of Rs.33,291/- insurance amount Cheque to respondent lateron respondent issued cover note bearing no.33296817 has been issued by the respondent but respondent not paid the policy copy. Thereafter he received letter from respondent during their annual reconciliation process they have identified that an amount of Rs.33291/- is refundable to him. Hence respondent seeking complainant bank accounts and other details. Therefore the complainant response the said intimation of respondent immediately dt.19.05.2015 mailed his bank details. But thereafter respondent sent the generated policy copy with the covering letter on 21.05.2015. Main allegation of the complainant is, respondent received amount in the year 2014 only cover note was issued but policy copy issued in the year 2015 i.e. dtd.21.05.2015. Before that respondent sent a letter to complainant, stating that, your amount is refundable. But after verification respondent given previous year policy copy and at that time nothing was happened. Respondent has used said amount but given a policy copy in the year 2015 i.e. after the insurance period was totally over. Hence this act of respondent shows negligence and deficiency in service. Respondent argued that complainant issued cheque no.709409 and the cover note no.33296625 and policy no.11268043 has been issued but Cheque  was bounced, hence another new Cheque was issued that Cheque no. 168364 and another cover note no.33296817 in branch only receipt was created and case was pending in QC 2 (querry calling sheet failed.) fail. Hence reconciliation on May 2015, the respondent found only credit balance in complainant’s account and the respondent did not get any up-to-date on query calling sheet. Hence the letter has been sent to the complainant for refund the amount. Thereafter the complainant has visited the branch office with related cover note and the respondent branch has found case query calling sheet later, the same has been cleared and sent to ABS for (Asset-Backed Security) and the policy got issued on 20.05.2015 & the official of the respondent had sent an apology letter to the complainant. First Cheque was bounced, another Cheque was issued by complainant. Hence no deficiency in service against the respondent. But complainant produced documents i.e. covering note shows that it was issued on 22.05.2014 cover note no.33296817, respondent wrote a letter to complainant on 12.05.2015 your amount refundable to you & another letter dt.21.05.2015 stating that your policy was enclosed. Policy copy i.e. cover note shows that policy was issued by respondent on 20.05.2015. In the policy copy complainant’s phone number is there but respondent not enquired immediately about Cheque bounce. After approaching the complainant, immediately complainant approaching the respondent on 19.05.2015 his account number, bank name, IFSC code mentioned and he paid amount Rs.33,291/- Cheque number, date also mentioned, thereafter respondent searched the reference number of Cheque copy. Respondent has produced documents it shows that complainant paid 2^nd Cheque No.168364 in the year 2014 i.e. 22.05.2014, cover note also issued on 22.05.2014. Hence complainant paid within time but 1^st Cheque no.709409 issued on 10.05.2014. Hence complainant paid premium amount on 22.05.2014 but respondent not entered the in his account, it is its fault, not complainant. Complainant argued that the said policy was issued in the year 2015 i.e. 20.05.2015 end of the policy period. Hence he refund the policy amount but respondent issued cover note to the complainant in the year 2014 i.e. 22.05.2014, but policy copy issued in the year 2015, it is deficiency in service on the part of the respondent. Hence complainant is entitled only deficiency in service of respondent not for policy amount, because respondent filed an apology letter and issued a policy copy but before that he issued cover note. Hence complainant is entitled to Rs.10,000/- as deficiency in service of respondent and Rs.3,000/- as compensation for mental agony and Rs.2,000/- as cost of the proceedings from the respondent because, not paying the policy copy in time. Respondent further contended that Canara Bank is necessary party in this proceedings but complainant not made a party. It is true financier is necessary party. But respondent issued policy copy, it means complainant issued Cheque amount is encashed. Hence negligence of bank is not shown in this case. Hence complainant not made party in this case.

6.     In view of the above discussions we have arrived and proceed to held issue.1 in affirmative and 2 accordingly.

7.     Point.3: In view of the finding on points 1 and 2 proceeded to pass the following 

Order

        Complaint is allowed in part. The respondent is directed to pay Rs.10,000/- for deficiency in service and Rs.3,000/- as compensation for mental agony and Rs.2,000/- as cost of the proceedings within 30 days from the date of receipt of copy of this order. Failing to comply the same, the said amount shall carry  interest @9% P.A. from thereon till realization.

(Dictated to steno, transcribed by him and edited by us and pronounced in the open Forum on this day on 8^th day of March 2016)

(Smt.M.Vijayalaxmi)                                      (Sri.B.H.Shreeharsha)

Member                                                           President

Dist.Consumer Forum                                    Dist.Consumer Forum

MSR