BEFORE THE DISTRICT FORUM:KURNOOL
Present : Sri. P.V.Nageswara Rao, M.A.,LL.M., President (FAC)
And
Smt. C.Preethi , M.A., LL.B., Lady Member
And
Sri. M.Krishna Reddy, M.Sc.,M.Phil., Male Member
Thursday the 01st day of October , 2009
C.C. 02/09
Between:
T. Sundara Rao, S/o. Satyalu, Working as Assistant Engineer in Electricity Department ,
Resident of H.No.53, Chintalapalli Village, Kurnool.
…Complainant
-Vs-
1. Managing Director ,Bajaj Allianz Life Insurance Company Limited,
GE Plaza , Air Port Road, Yerawada Pune - 411006.
2. Regional Manager, Bajaj Allianz Life Insurance Company Limited,
303,304,3rd Floor, Mahvir Chambers (Stanz Building), Basheer Bagh, Himayat Nagar, Hyderabad - 500029
3. The Branch Manager, Bajaj Allianz Life Insurance Company Limited,
D.No.40/58,IInd Floor, S.V.Complex, R.S.Road, Kurnool - 518001. …Opposite Parties
This complaint is coming on this day for orders in the presence of Sri. P. Siva Sudharshan , Advocate, for the complainant , and Sri. B.Ravindra Reddy , Advocate for opposite party No. 3 and opposite party No. 1 and 2 is called absent set exparte and upon perusing the material papers on record, the Forum made the following.
ORDER
(As per Sri. P.V.Nageswara Rao,President (FAC)
C.C.02/09
1. Complaint filed under section 11 of the Consumer Protection Act 1986.
2. The brief facts of the complaint is as follows:- The complainant insured his life for Rs.1,00,000/- with opposite parties who issued a policy bearing No. 0016500924 commenced from 23-02-2006 . The complainant paid Rs.10,000/- towards premium due for the year 2008 by way of cheque bearing No. 862515 on 01-03-2008 to opposite party No. 3 who issued an acknowledgement receipt No. 2723751 dated 01-03-2008 . Surprisingly the complainant received default intimation letter on 30-06-2008 from opposite parties dated 21-06-2008 that due to non payment of premium the policy stands lapse . The complainant conducted the opposite party No. 3 who expressed that the matter would be finalize within a week . But it was not finalized . The complainant made representations on 06-10-2008 . The opposite parties received a letter of the complainant on
15-10-2008 . The complainant received a letter from the opposite parties stating that the policy lapsed due to non payment of premium . Due to negligent attitude of the opposite parties the policy was lapsed even though the complainant paid the premium amount. Hence the complainant was filed for Rs.1,00,000/- with interest at 24% p.a from the date of policy till date of realization and Rs.15,000/- towards mental agony and Rs.5,000/- towards costs.
3. The opposite parties 1 and 2 were set ex-parte on 24-02-2009 . The opposite party No. 3 filed the written version denying the complaint averments . The complainant had to prove that he was issued a policy commenced on 23-02-2006 and he paid Rs.10,000/- towards premium for the year 2008 by a way of cheque No. 862516 dated 01-03-2008 .The opposite party after due verification of non payment of premium issued a default intimation dated 30-06-2008 to the complainant . It was not correct that the complainant approached the opposite party the cheque bearing No. 862515 dated 01-03-2008 of Indian Bank of Revulapalle was handed over to the UTI Bank called later as his bank for collection on 03-03-2008 . On the same day the UTI Bank issued a slip bearing No. 264984 acknowledging the receipt of the said cheque . The opposite party had not received till then the credit nor returned instrument. It was not known to opposite party whether cheque was honoured. As the premium amount was not received an intimation letter was sent to the complainant about default of payment of premium and requested him to revive the policy by payment of premium dues. However the complainant neither paid the premium amount nor revive the policy. On 15-10-2008 policy lapsed intimation letter sent to the complainant. The opposite party had not received the premium amount and same was informed to the complainant . There was no negligence on the part of the opposite party . It was duty of the complainant to verify whether the cheque was honoured . It was the negligence of Axis Bank who neglected the cheque amount. The complainant issued a cheque for Rs.10,000/- bearing NO. 862515 of Indian Bank towards premium installment is not issued . A cheque bearing No. 862516 as alleged by the complainant the opposite party filed ‘’ Day end pay in slip , daily collection register copy and out station cheque slip cheque slip . On 03-02-2009 the opposite party sent e-mail to Axis Bank head office to knowing the status of the cheque No. 862515 and the said bank on the same day reply that the cheque was returned on 31-07-2008
with a reason lost in transit . It was the negligence of Axis bank who misplaced the cheque the non- joinder of necessary and proper party as one of opposite party is bad in law. Thus the complaint may be dismissed.
4. On the basis of the above pleadings the points for consideration are
(i) Whether there is any negligence or deficiency of service on part of the opposite parties.
(ii) Whether the complainant is entitled to the relief as prayed for?
(iii) To what relief ?.
5 On behalf of the complainant Ex.A1 to Ex.A7 were marked . On behalf of the opposite parties Ex.B1 to B5 were marked.
Both parties filed written arguments.
6. Point No. 1 & 2: The complainant took a policy from opposite parties for Rs.1,00,000/- commenced on 23-02-2006 bearing No. 0016500924 with premium of Rs.10,000/- . It was issued by opposite party No. 1 . Ex.A1 was the copy of the policy . He filed Ex.A2 a stamped receipt for Rs.10,000/- towards premium on 01-03-2008 . As per Ex.A1 the due date of premium was 23rd February every year. So the premium was only premium Ex.A3 dated 21-06-2008 regarding default intimation to the complainant that he filed to pay the premium amount of Rs.10,000/- . Even though the complainant paid the only premium on 01-03-2008 under Ex.A2 bearing receipt No. 2723751 . He received Ex.A3 a default intimation with regard to unfair trade premium due on 23-02-2008 . Later on 06-10-2008 the complainant addressed a letter to opposite party No. 2 that he paid premium for year 2008 by way of cheque No.862516 dated 01-03-2008 and a receipt was also issued. But the cheque was not placed out and instead of it a default intimation was received and hence the cheque may be traced out and credit the amount in this account . It was Ex.A4. Ex.A5 was the courier receipt. Ex.A6 was the delivery sheet of DTDC courier service. However the complainant received a lapse intimation under Ex.A7 dated 15-10-2008 that the first un paid premium due on 23-02-2008 was not paid.
7. The opposite party filed Ex.B1 that the cheque bearing No.862615 dated 01-03-2008 of Indian Bank , Revulapalle for Rs.10,000/- was handed over to UTI Bank Limited o 03-03-2008 for collection. On the same day the UTI Bank issued a slip No.264984 acknowledging the receipt of the said cheque the Xerox copy of the UTI Bank Limited slip was Ex.B1. Ex.B2 was copy of the email to the Axis Bank sent by the opposite party to know the status of the cheque No.862615 for Rs.10,000/- . It was informed by the Axis Bank on the same day i.e, 03-02-2009 that the said cheque was returned on 31-07-2008 that the reason lost in transit. Therefore the opposite parties contended that the axis bank was responsible the opposite party filed Ex.B3 a Xerox copy of the day end pay in slip which disclosed the cheuqe No.862515 dated 01-03-2008 of Indian Bank , Revulapalle for Rs.10,000/- so the cheque was deposited to UTI Bank by opposite party No. 3 for collection inview of Ex.B3. Ex.B4 xerox copy of daily collection register in which the cheque No.862515 of Indian Bank , Revulapalle for Rs.10,000/- was shown that it was received by opposite party No. 3 under daily collection. Ex.B5 was the Xerox copy of the cheque out station register with regard to the complainants cheque which was deposited with UTI Bank Limited, Kurnool on 03-03-2008 . Therefore the complainant had issued the
cheque for Rs.10,000/- under cheque No.862515 dated 01-03-2008 and same was received by opposite party No. 3 and sent to the UTI Bank for collection on 03-03-2008 . It was revealed under Ex.B1 to Ex.B5. It was the duty of the opposite party No. 3 to trace out the cheque deposited by the complainant . It was pure negligence on the part of the opposite party No. 3 . Even after receive the cheque for Rs.10,000/- and without tracing out the cheque the opposite party No. 3 lapsed the policy by way of intimation under Ex.A7. The complainant paid the premium amount by way of cheque and the opposite party NO. 3 issued receipt also on 01-03-2008 under Ex.A2. Therefore it was purely a negligent act towards the complainant .
8. Point NO.3 In the result , the opposite parties 1 to 3 are directed to revive the policy No. 0016500924 of the complainant immediately and pay Rs.10,0000/- towards mental agony and Rs.1,000/- towards cost within 30 days to the complainant. Since the policy is revived. The complainant is not entitled for refund of the policy amount.
Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 1st day of October , 2009.
Sd/- Sd/- Sd/-
LADY MEMBER PRESIDENT FAC) MALE MEMBER
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant : Nil For the opposite parties :Nil
List of exhibits marked for the complainant:-
Ex.A1 Copy of the policy dated 23-02-2006.
Ex.A2. Stamped receipt dated 01-03-2008.
Ex.A3 Letter of OP.No.1to the complainant dated 21-06-2008.
Ex.A4. Letter of complainant to the Ops dated 06-10-2008.
ExA5. Courier receipt
ExA6. Delivery sheet of DTDC courier service.
Ex.A7. Laps intimation letter dated 15-10-2008
List of exhibits marked for the opposite parties:
Ex.B1. Slip issued by the UTI bank dated 03-03-2008
Ex.B2. Copy of the email
Ex.B3. Copy of the day end pay in slip of Bajaj Allianz Insurance Company.
Ex.B-4 Daily collection register
Ex.B-5 Xerox copy of the cheque out station register
Sd/- Sd/- Sd/-
LADY MEMBER PRESIDENT (FAC) MALE MEMBER
// Certified free copy communicated under Rule 4 (10) of the
A.P.S.C.D.R.C. Rules, 1987//
Copy to:-
Complainant and Opposite parties
Copy was made ready on :
Copy was dispatched on :
