BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION:HYDERABAD
F.A.No.700/2005 against C.D.No.30/2000 , District Forum, Karimnagar
Between:
1.The Secretary, Primary Agricultural
Cooperative Credit Society , Kalleda
Sarangapur Mandal, Karimnagar District.
2. The Branch Manager, The District
Cooperative Central Bank Ltd.,
Jagityal Branch.
3. The District Cooperative Central
Bank Ltd., Head Office, Karimnagar rep. by its
General Manager. ....Appellants/
Opp.parties
1 to 3
And
1.J.Sujana , W/o.Madhusudhan Rao,
Age 22 years Occ:Household,
H.No.2-10-1500, Bhagyanagar,
Karimangar. .... Respondent/
Complainant
2.The Branch Manager,
Oriental Insurance Company Ltd.,
Opp:Collectorate, Karimnagar. ... Respondent/
Opp.party no.4
Counsel for the appellants : M/s. P.Srinivas
Counsel for the respondents : R1-served
Mr.M.Hari Babu –R2
CORAM: THE HON’BLE JUSTICE SRI D.APPA RAO, PRESIDENT
SMT.M.SHREESHA, HON’BLE MEMBER
AND
SRI G.BHOOPATHI REDDY, HON’BLE MEMBER.
THURSDAY, THE TWENTY FIFTH DAY OF JUNE
TWO THOUSAND EIGHT.
Oral Order: (Per Sri G.Bhoopathi Reddy, Hon’ble Member)
***
This is an appeal filed by the appellants/opp.parties 1 to 3 under Section 15 of the Consumer Protection Act ,1986 to set aside the order passed by the District Forum, Karimnagar in C.D.No.30/2000 dt.17.4.2004
The respondent no.1 herein is the complainant before District Forum. She filed complaint under Section 12 of Consumer Protection Act,1986 to direct the opp.parties 1 to 3 to submit claim of Rs.1 lakh towards the Janatha Personal Accident Scheme to opp.party no.4 and opp.party no.4 may be directed to pay the said amount to the complainant.
The case of the complainant is as follows:
The husband of the complainant was member of opp.party no.1 i.e. Primary Agricultural Cooperative Credit Society vide account .no.117. The opp.party no.2 is concerned with the opp.party no.1 and opp.party no.3 is the head office .Opp.party no.4 i.e. Oriental Insurance Company introduced Janata Personal Accident Scheme to various PACCS’ members including the first opp.party who obtained loans from Karimnagar District Cooperative Credit Banks vide PRC no.1117/A1/98-99 dt. 19.8.1998. As per the scheme premium amount of Rs.4.70 ps. per member totalling to Rs.3,17,945.60 ps. has been paid to the opp.party no.4 on 23.5.1998 . All the members of the Primary Agricultural Cooperative Credit Societies are eligible to get accident benefits under the scheme and the concerned PACCs should submit the claims and get the amounts of policy . The complainant’s husband died in a motor accident on 28.5.1999 at Hyderabad. The complainant submitted the claim along with necessary documents but the opp.parties failed to settle the claim . Hence the complainant approached District Forum to direct the opp.parties 1 to 3 to submit claim of Rs.1 lakh towards the Janatha Personal Accident Scheme to the opp.party no.4 and opp.party no.4 may be directed to pay the said amount to the complainant.
The opp.parties 1 and 2 filed counter alleging that the allegations made in the complaint are false. During the period ending by 31.3.1998 they did not collect any premium from the members of the society and hence they are not liable to pay the amount claimed by the complainant. The deceased was due an amount of Rs.16,000/- towards principal and Rs.7,000/- towards interest totalling to Rs.23,000/- . The opp.parties 1 & 2 stated that the complaint is not maintainable and prayed for dismissal of the complaint.
Opp.party no.3 remained exparte.
The opp.party no.4 filed counter contending that there was no privity of contract between it and the opp.parties 1 to 3 or the deceased in the matter and they did not issue any Group Janatha Personal Accident Insurance Policy in favour of the members of Primary Agricultural Cooperative Credit Society , Karimnagar. The opp.party contended that their Vijayawada Branch issued Group Janatha Personal Accident Insurance Policy in favour of 2,58,195 lonees of various Primary Agricultural Coop. Credit Societies valid from 13.4.1998 to 12.4.1999 for an amount of Rs.50,000/- in respect of accidental death of any loanee. The Dist.Coop. Credit Bank ,Karimnagar paid Premium of Rs.3,17,945/- on 26.5.1998 and requested to include their 67,648 loanees int he main policy schedule and accordingly their branch office, Vijayawada included their names and the effective period of coverage of the same is 26.5.1998 to 12.4.1999 and accordingly supplimentary policy was issued. The Group Janatha Personal Accident Insurance Policy issued by their Vijayawada Branch covering the risk of the deceased expired on 12.4.1999 but it did not receive any premium for renewal of the policy and therefore it is not liable to pay the amount claimed by the company . The opp.party prays for dismissal of the complaint.
The District Forum based on the evidence and pleadings , allowed the complaint partly directing the opp.parties 1 to 3 to pay an amount of Rs.50,000/- with interest @ 9% p.a. from the date of issuance of the legal notice till the date of realisation of the amount within on month from the date of receipt of the order. The complaint against the fourth opp.party is dismissed.
Aggrieved by the said order the opp.parties 1 to 3 preferred this appeal.
The point for determination arises in this appeal is whether the order passed by the District Forum is sustainable?
The appellant contended that on the date of death of the deceased on 28.5.1999 the policy was not in force as premium amount was not paid by the complainant’s husband for the year 1998-99 or for 1999-2000 covering the said insurance policy and the policy for the year 1998-99 expired by 12.4.1999. The respondent no.1 contended that it is the duty of the appellants to pay premium amount even though they have not collected from the members and all the members of the Primary Agricultural Co-operative Society are entitled for the Janata Personal Accident Insurance Policy benefits. There is no dispute with regard to the Janatha Personal Accident Insurance Policy was issued by the 4th opp.party insurance company after collecting the premium amount from the opp.party no.3 . The policy coverage is from 26.5.1998 to 12.4.1999 . After expiry of the said policy on 5.5.1999 a circular was issued by the District Cooperative Central Bank Ltd., Karimnagar according to which the premium amount was enhanced from Rs.4.70 to Rs.8.70 ps and requesting the Primary Agricultural Coop. Society members to contribute the said amount . The said circular was sent to all the branch offices of Primary Agricultural Coop.Society. The deceased member has not paid any premium amount for the year 1998-99 or for 1999-2000 covering the said insurance policy . The policy for the year 1998-99 expired by 12.4.1999. The complainant being the wife of Sri J.Madhusudhan Rao is the legal heir and she is claiming the benefits under the insurance policy . The insurance policy was not renewed and subsequently complainant’s husband died on 28.5.1999. The District Forum has passed an order on the basis of earlier policy which was already expired on 12.4.99. The District Forum has not marked any single document filed either by the complainant or opp.party . The complainant filed complaint alleging deficiency in service on the part of the opp.parties for not paying the Janata Personal Accident Insurance Policy amount. The complainant has filed only office copy of the legal notice for which opp.parties issued reply. Even though there is no documentary evidence , the District Forum held that there is deficiency in service in not paying the Janata Personal Accident Insurance policy amount. Order passed by the District Forum is not sustainable and is liable to be set aside.
In the result appeal is allowed . Order of the District Forum is set aside.
PRESIDENT LADY MEMBER MALE MEMBER
Dt.26.6.2008
Pm*
