JUDGMENT

                                                22.1.2010

Justice Pritam Pal, President

1.       This appeal by  opposite parties No.1 & 2   is directed  against  the order dated 25.7.2001 passed by District Consumer Forum – Narnaul   whereby    complaint  filed by respondent No.1 (complainant)     was allowed  in the following terms ;

“Hence, the complaint is dismissed against opposite party No.3 and it is accepted against opposite parties No.1 and 2 i.e. Pears Green Forests Limited and Branch Manager, Pearls Green Forests Limited and the said opposite parties No.1 and 2 are directed to pay the amount of Rs.17600/- i.e. maturity value to the complainant with interest @ 9% p.a. from the date of filing the complaint till realization as the death of depositor was due to accident. ”

2.    The parties   hereinafter shall be referred to as per their ranking before the District Forum.      

3.        In nutshell,  suffice it to say that  Sh.Ramji Lal father of the complainant  had  invested Rs.8000/- under  Investment Plan No.1  floated by the Pearls Green Forests Limited and he had been issued certificate No.303812 dated 30.12.1989.  Complainant  was nominated as beneficiary under the scheme  by his father. The said deposit was for  six years with maturity value of Rs.17600/-.  The opposite party No.1 simultaneously provided accidental cover to the investor equal to the amount of maturity value of Rs.17600/-. It was alleged that  father  of the complainant  while mending the defects of his electric motor by going inside the well  fell down on account of slip  and died  on 17.10.91.  The complainant being nominee of his father Ramji Lal informed the opposite parties No.1 & 2 about his death and lodged claim seeking the payment of maturity amount. OP No.3 was made a party as OPs No.1 & 2 were getting their depositors insured with United India Insurance Co. Ltd. in order to cover the accidental risks under the Group Insurance Scheme.  The amount of Rs.8000/- which was originally deposited by the father of complainant was refunded  in March,1992 but other benefits were illegally denied.  Hence, alleging deficiency in service complainant filed complaint before the District Consumer Forum seeking refund of  Rs.17600/- with interest  and  compensation.  

4.      On the other hand,  the case of OPs No.1 & 2  before the District Consumer Forum was that  the Pearls Unit certificate did not ordinarily cover the life risk but with a view to render better services to the unit holders the company had arrangement in collaboration with the United India Insurance Company  to extend some coverage on their accidental risk, if death occured due to some accident. Consequent to the arrangement with the said insurance company, the OPs had extended insurance coverage to the deceased Ramji Lal, so, it was the insurance company with whom the deceased was covered  was liable to make the payment of insured sum. It was pleaded that OPs were not liable to make the payment of sum assured to the complainant.  However, United Insurance Company- OP NO.3  in its  written reply  before the District Forum stated that Ramji Lal was not insured  with it and as such it was not liable to make the payment. 

5.      The District Consumer Forum after  going through the material brought on record and  hearing the  counsel for the parties, allowed the complaint   as indicated in the opening part of this judgment.   This is how feeling aggrieved, opposite  parties had filed   appeal before  the Haryana State Consumer Commission which has   been transferred to this Commission under  the directions of Hon’ble National Commission.

 6.     We have heard learned counsel for the appellants and have gone through the file carefully. The only noticeable point of arguments put forth on behalf of the appellants is that the Pearls Green Forests Limited had sent  draft dated 4.9.91 worth Rs.2685/-  to the insurance company and alongwith the said draft the list of depositors who were to be insured under the Group Insurance Scheme  was also sent.   The said draft was got encashed by the insurance company and as such the persons mentioned in the list  annexed alongwith the draft were covered automatically under the Group Insurance scheme and the insurance company was liable to make the payment of the compensation as the encashment of draft in itself was a acknowledgement showing the payment of premium for Ramji Lal.

7.      We have given our thoughtful consideration to the entire matter and found that the factual aspect of the case with regard to accidental death of Ramji Lal is not in dispute. The only dispute in this case is with regard to liability to pay the   claim amount. The   branch Manager of United India Insurance Company Sh.Y.P.Miglani had filed his affidavit  before the District Forum  stating therein that Ramji Lal was never got insured by OPs No.1 & 2 with the insurance company. OPs NO.1 & 2 failed to produce any receipt about the payment of premium having been made to the insurance company with regard to granting of insurance cover to Ramji Lal.  In the absence of any insurance cover granted to Ramji Lal, United India Insurance cannot be held liable to pay the claim.  Therefore, the District Consumer Forum had rightly ordered appellants/ OPs No.1 & 2 to pay the claim amount of Rs.17600/- alongwith interest @ 9% p.a. from the date of filing the complaint till realization. 

 8.      In view of the foregoing discussion,  we   find no illegality in the  impugned  order dated 25.7.2001  passed by the District Consumer Forum  which  is well reasoned and justified in  the given facts and circumstances.   Consequently, this appeal  fails and same  is hereby dismissed , leaving the parties to bear their own costs. 

            Certified Copies of this order be sent to the parties, free of charge. The file be consigned to record room.