IN THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, MURSHIDABAD AT BERHAMPORE.

                     CASE No.  CC/9/2021

 Date of Filing:                                    Date of Admission:                    Date of Disposal:

   10.02.2021                                            18.07.2021                                       13.03.2024     

Complainant:    Md. Entaj Ali,

                                S/o – Late Arman Ali,

Village Kadam Sharif,   P.O.- Rousanbagh,

P.O.- Rousanbagh,

P.S.- Murshidabad,

District- Murshidabad,

Pin-742164

                                                                -Vs-

Opposite Party  Manager,

                        State Bank of India,

                        Lalbagh Branch,

                        P.O.- Lalbagh,

                        P.S.- Murshidbad,

                        Dist-Murshidabad

                        Pin-742149.

Agent/Advocate for the Complainants                       :           Prabir Kr. Banerjee

Agent/Advocate for the Opposite Parties                  :            Satinath Chandra

           Present:   Sri Ajay Kumar Das…………………………..........President.    

                           Sri. Nityananda Roy…………………………………….Member.   

FINAL ORDER 

   SMT. ALOKA BANDYOPADHYAY,  member.

   This is a complaint under section 12 of the CP Act, 1986.

One Md. Entaj Ali (here in after referred to as the Complainant) filed the case against Manager, State Bank of India, Lalbagh Branch (here in after referred to as the OP) praying for compensation alleging deficiency in service.

 The sum and substance of the complaint case is as follows:-

The Complainant filed the instant petition stating that he has an account with the O.P. The Complainant made an application for Housing Finance Term Loan for construction of house and as such the Complainant had deposited valuable essential papers with the O.P. After perusing all documents the O.P. had sanctioned a term loan of Rs. 5,00,000/- + Rs. 33,965/- for SBI Life Insurance totaling Rs. 5,33,965/- and the same was availed with equal monthly installments and the  Complainant was never a defaulter. Accordingly, this Complainant and the O.P. made an agreement in between them. The house of this Complainant was insured covering fire, flood and other natural calamities. The O.P. had debited Rs. 33,965/- towards SBI Life Insurance but the O.P. denied to hand over the necessary papers to the Complainant. The Complainant had approached the O.P. for proper redress but the O.P. without any valid reason had denied. 

  Finding no other alternative the complainant filed the instant case before the District Commission for appropriate relief.   

Defence Case

O.P. is contesting this case by filing written version wherein all material allegations have been denied by him and moreover he stated that the Complainant claimed the amount of insurance premium as he repaid the loan amount but the claim is baseless one. Insurance is optional to the borrowers. As such the insurance covers a particular purpose such as if any borrower expired before repayment of loan then the entire dues till the date of death of the borrower as mentioned in the policy shall be repaid by the Insurance Authority but if the borrower repays the entire dues as per agreed terms then he cannot claim the amount of premium. Similarly, if the borrower likes to secure his house against earth quake, flood or any natural calamity then he also take insurance policy against premium and in that case he also cannot raise any claim for refund of premium as no such incident has been occurred. But it is admitted by the O.P. that the Complainant paid Rs. 33,965/- as insurance premium when he took house building loan of Rs. 500000/-.

On the basis of the complaint and written version the following points are framed for proper adjudication of the case:

Points for decision

1. Is the Complainant consumer under the provision of the CP Act, 1986?

2. Has the OP any deficiency in service, as alleged?

3. Is the Complainant entitled to get any relief, as prayed for?

Decision with Reasons:

Point no.1

 We peruse the complaint. The averments made in the complaint indicate that the Complainant is a consumer under the Consumer Protection Act, 1986 as well as Consumer Protection Act, 2019.

Point Nos. 2 & 3

Both these points are taken up together for the sake of convenience and brevity of discussion.

Ld. Advocate for the Complainant submits that he took house building loan of Rs. 500000/- from the O.P. Bank and he also paid Rs. 33965/- as insurance premium. As a result his loan amount became Rs 533965/-. On the basis of the said loan amount of Rs. 533965/- he is paying the installments accordingly. But it is a matter of regret that the O.P. Bank did not provide the Complainant with the necessary papers of Insurance Policy.

Ld. Advocate for the O.P. submits that due to mistake the O.P. Bank did not deposit the insurance premium of Rs. 33965/- of the Complainant with the insurance company. However, O.P. Bank is ready and willing to compensate the Complainant in case of any damage by fire earthquake etc.

Considering the facts and circumstances of the case and keeping in mind the submissions made by the Ld Advocates for the parties we are of the view that the theory of the mistake can be brushed aside as because the O.P. Bank has shown loan amount amounting to Rs. 533965/- instead of Rs. 500000/-. Here lies the great deficiency of service on the part of the O.P. Bank.

O.P. Bank is liable to return the insurance premium amount of Rs. 33965/- along with 10 per cent interest per annum for the period from the date of disbursing the loan amount till the realization of the said premium amount to the Complainant.

The Complainant is further entitled to receive Rs. 100000/- as compensation for harassment and mental pain and agony from the O.P. Bank.

Reasons for delay

The Case was filed on 10.02.2021 and admitted on 18.07.2021. This Commission tried its level best to dispose of the case as expeditiously as possible in terms of the provision under section 13(3A) of the CP Act, 1986. Delay in disposal of the case has also been explained in the day to day orders.

In the result, the Consumer case is allowed.        

 Fees paid are correct. Hence, it is                                                            

      Ordered

that the complaint Case No. CC/9/2021 be and the same is allowed on contest against the O.P. but under the circumstances without any order as to costs.

The O.P. is directed to return the insurance premium amount of Rs. 33965/-(Thirty three thousand nine hundred and sixty five only) along with 10 per cent interest per annum for the period from the date of disbursing the loan amount till the realization of the said premium amount to the Complainant.

The O.P. is further directed to pay Rs. 100000/- (One lakh only) as compensation for harassment and mental pain and agony to the Complainant.

O.P. is directed to comply with the said order within 120 days from the date of passing of this order.

The Final Order will also be available in the following Website:

    confonet.nic.in

Dictated & corrected by me.

    President

     Member                                                                                                                  President.