Passed  by  Shri  Atul D. Alsi, Hon’ble President.

1. The complainant had filed the present Consumer case U/S 12 Consumer Protection Act., 1986 against O.P. as O.P. had failed to deposit the outstanding balance amount of loan along with interest amounted to Rs.1,80,000/- under insurance cover policy of policy of deceased husband and thereby claiming the balance loan amount of Rs.91,810/-  along with compensation with interest and  mental torture and harassment of Rs.5,00,000/- and Rs.10,000/- towards cost of litigation.

The story in short is as under :

2. The complainant deceased husband late Brejeebhushan Gupta had availed loan from O.P. No.1 Kotak Mahindra to purchase vehicle Volvo Eicher 110 Goods Truck bearing No. MH-40-N/4293 on dated 18.4.2011 for the price of  Rs.9,14,215/- and the complainant was guarantor for the said loan. The O.P.No. 2 and 3 issued insurance policy of Kotak Life Insurance policy to secure loan amount as a risk cover incase of death of complainant for the sum assured up to Rs.4,75,000/-. The complainant husband expired on dated 6.7.2014. The complainant approached O.P. to waive the balance loan amount but O.P.No.1 and 2 failed to waive the loan amount therefore the complaint has to pay the balance amount of Rs.91,810/- on dated 25.12.2014 vide receipt no.2861143. The complainant has issued legal notice on 6.7.2015 calling upon O.P.No.1 and 2 to repay the balance loan amount along with interest but O.P.No.2 vide its reply dated 10.8.2015 submitted that the O.P. has paid Rs.90,641/-as proportionate balance amount as per terms and conditions of policy in loan account against the outstanding amount of Rs.1,80,000/-.  The O.P.No.1 and 2 is liable to pay the entire amount of Rs.1,80,000/- against loan cover amount of Rs.4,75,000/-, as per terms and conditions of policy,  therefore non payment of Rs.91,810/- by O.P.No.1 and 2 to the compliant amounts to deficiency in service therefore the present complaint is filed.
3. The O.P.No.1 has filed their written statement and denied all allegation and submitted that on 18.4.2011 the deceased husband availed commercial loan of Rs.9,14,215/- along with insurance policy as life cover against balance amount of loan amount up to Rs.4,75000/- on 18.4.2011 after the death of complainant husband on dated 6.7.2014.The O.P.No.2 has credited Rs.90,641/-as a insurance claim to the extent of 1.1 times of outstanding principal loan amount as per loan repayment schedule assuming all monthly instalments are paid by adjusting in proportionate of cover amount as a % of loan amount at inception.  The principal loan amount outstanding on dated 10.6.2014, is Rs.1,56,516/- the 1.1 times comes to Rs.1,72,167/- and this amount has been adjusted in proportionate of  cover amount of Rs. 4,75,000/- which comes to 52% of loan amount of Rs.9,14,215/- and it works out as Rs.90,641/- has been rightly credited as per terms and condition of agreement by duly honouring the claim and statement to that effect has been given to the complainant. Therefore there is no negligence on the part of O.P.No.1.
4. The O.P.No.2 and 3 filed their written statement and denied the allegation and further submitted that the complaint has failed to demonstrate any deficiency of service fault and imperfection or in adequacy in performance of contract.  The claim of complainant has been honoured and the amount of Rs.90,641/- has been credited in the policy holder’s bank account in accordance to the terms and condition by calculating the amount of insurance cover which is lower than actually loan amount under loan cover.  The complainant is not entitled for further benefit under subject policy for further amount as claimed in complaint.  The sum assured is paid on the death as per terms and condition of contract where the loan amount and cover amount at inception is a same 1.1 times of outstanding principal loan amount as per original loan repayment schedule assuming all due of monthly instalment are paid and where the cover amount at inception is lower than loan amount  - above amount adjusted in proportion of cover amount as a % of loan amount at inceptions therefore the O.P. by calculation as per terms and condition of contract the amount of Rs.90,641/- as been paid by honouring claim of complaint. There is no deficiency on the part of O.P.No.2 and 3.
5. Counsel for complainant argued that the O.P.No.2  insurance company has not paid the balance outstanding amount of Rs.1,80,000/- but paid only part amount and fail to pay the balance amount of Rs.91,810/- for the sum assured under the policy as a insurance cover amount up to Rs.4,75,000/- amounts to deficiency of service on the part of  O.Ps.
6. The counsel for O.P.No.1 argued that the insurance amount as per calculation of and terms and conditions of policy paid by honouring insurance claim Rs.90,641/- replied to the legal notice of complainant therefore there is no deficiency on the part of O.Ps.

REASONING.

7. On dated 18.4.2021 the deceased husband of complainant Mr. Brejeebhushan Gupta availed commercial loan of Rs.9,14,215/- and to secure the loan amount O.P.No.2 has issued life cover policy up to Rs.4,75,000/- on dated 18.4.2011 for the loan amount of Rs.9,14,215-. The complainant husband died on dated 6.7.2014. After calculation of loan cover amount as a % of loan amount at inception applying the norms as per terms and conditions of the policy the amount of Rs.90,641/- has been calculated and credited in the loan account of insured by issuing letter dated 04.09.2014 that outstanding amount of Rs.90,641/- has been credited in loan account by NEFT towards full and final settlement of claim to policy holder. Therefore the calculation of insurance amount as per terms and conditions of contract of insurance by the O.P. amounted to Rs.90,641/-  does not amount to deficiency of service on the part of O.Ps. therefore complainant has no case on merit hence complainant case is dismissed as per following order.

ORDER

1. Complaint is dismissed.
2. No order as to costs.
3. Copy of order be furnished to both the parties, free of cost.