DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION

PATIALA.

                                      Consumer Complaint No. 222 of 27.6.2019

                                      Decided on:   13.8.2021

Dr.Hemant Bansal, 42B Khalsa College Colony, Patiala.

                                                                   …………...Complainant

                                      Versus

1. Manager SBI HNI Leela Bhawan Branch, Patiala.
2. Manager SBI Life, 1^st floor, SCB-7, Chhoti Baradari, Patiala.
3. RBO-1, SBI Head Office , Mall Road, Patiala.

                                                                   …………Opposite Parties

Complaint under the Consumer Protection Act

QUORUM

                                      Sh. Jasjit Singh Bhinder, President

                                      Sh.Vinod Kumar Gulati, Member    

ARGUED BY              

                                      Sh.S.P.Bansal, authorized representative

                                      of the complainant.

                                      Sh.B.S.Sodhi, counsel for OPs No.1&3.

                                      Sh.Puneet Gupta, counsel for OP No.2.                       

 ORDER

                                      JASJIT SINGH BHINDER,PRESIDENT

1. This is the complaint filed by Dr.Hemant Bansal (hereinafter referred to as the complainant) against Manager SBI HNI and others(hereinafter referred to as the OP/s) under the Consumer Protection Act (for short the Act).
2. The brief facts of the case  are that the complainant took house building loan vide account No.35885972752 of Rs.20 lakh from OP No.1 on 2.7.2016 in the joint name of his mother namely Saroj Gupta and in the name of the complainant.
3. It is averred that  the OP No.1 at the time of releasing 4^th instalment of loan on 10.3.2017 asked the complainant to take SBI Rin Raksha Insurance cover in the absence of which bank will not disbuse any further installment of loan and accordingly the complainant opted for SBI RINB Raksha Insurance policy covering the risk of his life to the extent of outstanding amount of loan.It is further averred that the OP No.1 debited from the saving account of the complainant a sum of Rs.13087/- as premium on 14.3.2017 and insurance policy No.70000011107 was issued in the name of the complainant.
4. It is further avered that entire amount of loan was repaid on 28.9.2018 and NOC was issued by OP No.1 and after the closure of loan account original registration deed of house was also handed over to the complainant. It is further averred that all auto debit instructions were withdrawn at the time of closure of loan account and no further EMI was debited from the savings account thereafter.
5. It is averred that he received a phone call  2-3 times from the OPs asking for premium amount against insurance policy with 30 days grace period and the complainant informed the concerned official that the loan account stands closed on 28.9.2018 and premium amount against the policy is not required to be paid.It is further averred that surprisingly on 14.3.2019, premium amount of Rs.13428/- was debited from the saving account No.20076691647 with OP No.1 without any consent. At this the complainant approached the Manager of office of OP No.1 who advised to contact SBI Life for refund of premium amount.Accordingly complainant contacted SBI Life on 25.3.2019 and submitted request for refund  of premium amount of Rs.13428/- ans surrender value of policy.
6. It is averred that on 6.5.2019 surrender value of Rs.15271/- was credited to the saving account No.20076691647 but the SBI Life did not refund the premium amount of Rs.13428/-.It is averred that the complainant vide letter dated 21.5.2019 requested Manager HNI Branch for the refund of premium amount.It is averred that on 28.5.2019 the complainant received a letter from SBI Life showing their inability to accede to the request of the complainant on the plea that the concerned SBI branch did not intimate SBI Life regarding withdrawal of auto debit instructions. It is further averred that again on 31.5.2019 the complainant requested SBI life for surrender value from the date of closure of loan account and refund of wrongly debited amount as premium but his request was turned town vide letter of OPs dated 11.6.2019.The complainant also brought the matter in the knowledge of AGM on 28.5.2019 but nothing has been done.There is thus deficiency in service on the part of the OPs which caused mental agony and physical harassment to the complainant. On this back ground of the facts the complainant has filed this complaint with the prayer to accept the same by giving direction to the OP to refund the amount of Rs.9644/- more taking into account the payment due to him ( Rs.13428/-+Rs.10497/-) less payment of Rs.15271/- made by SBI Life and also to pay Rs.30,000/- as compensation.
7. Notice of the complaint was duly given to the OPs, who appeared through their respective counsels and contested the complaint by filing written reply.
8. In the written reply filed by OPs No.1&3 it is pleaded that the complainant was being apprised of the benefits of insurance policies for covering their life and their loans.It was the borrower who had opted for the insurance cover and submitted duly filled and signed form for insurance policy after fully understanding the terms, conditions and rules govering the insurance policy in question and the complainant has given mandate to SBI Life for directly debiting the premium for the said insurance policy. It is further pleaded that the complainant was having right to surrender or terminate the insurance cover by making a written request to the SBI Life insurance Co. Ltd.It is further pleaded that the policy is a contract between the complainant and OP No.2.It is admitted that letter dated 21.5.2019 was received by the OP No.1.It is pleaded that premium of policy in question was debited by OP No.2 from the saving bank account of the complainant. It is further pleaded that OPs No.1&3 and OP No.2 are two different legal entities and are independently working as per their respective rules and regulations.After denying all other averments, the OPs No.1&3 have prayed for the dismissal of the complaint.
9. In the written reply filed by OP No.2 it is averred that the SBI Life Insurance Co. Ltd. has a Group Insurance Scheme, for the borrowers of home loans from State Bank of India where under th borrower-member is offered insurance subject to the terms and conditions incorporated in the Master Policy.The privity of contract is between the Master Policy Holder (State Bank of India) and the Insurer(SBI Life) and in terms of the said Group Scheme, SBI Life has issued a Mater Policy to the State Bank of India. Preliminary have also been raised by OP No.2 to the extent that the complaint is barred by limitation under the Act and is thus liable to be dismissed.
10. Further it is avered that the complainant had applied for insurance cover on 6.3.2017 under Rinn Raksha Group Insurance Scheme under Master policy No.700000011107 issued to State Bank of India and the risk commenced on 14.3.2017 for a sum assured of Rs.20 lakh.An amount of Rs.13087/- was received for the insurance cover towards premium and the periodicity of payment of premium was yearly and the premium paying term was 5 years.It is further avrred that the insuance cover was granted on the basis of declaration in the membership form and thereafter certificate of insurance was issued to the complainant.It is further averred that the complainant gave authorization to debit renewal premium from account No.20076691647 held with State Bank of India and in the present case the OP received 3 annual premiums.It is further averred that a request for surrender was received on 30.4.2019 for closure of said insurance cover and surrender value of Rs.15,231/-was paid vide direct credit to his account on 6.5.2019.
11. It is pleaded that the OP has not received any written request from the complainant to deactivate auto debit mandate given by him under the policy,hence the renewal premium due in March,2019 was deducted from the account of the complainant and subsequently the complainant applied for surrender of insurance cover vide letter dated 30.4.2019 which was received by the OP on 4.5.2019.Accordingly the insurance cover was surrendered ans surrender value of Rs.15231/-was paid to the complainant.It is further pleaded that the renewal premium received on 14.3.2019 was also considered while calculating the surrender value as per the terms and conditions of the Master Policy and the demand of the complainant for the refund of entire premium amount of Rs.13428/- is not tenable. It is further averred that on surrender of policy, the insurance contract comes to an end and all the rights under the policy get extinguished.
12. On merits the OP No.2 reiterated the facts as raised in the preliminary objections  which are not need to be repeated for the sake of brevity.After denying all over averments the OP has prayed for the dismissal of the complaint.
13. In support of the complaint, the authorized representative of the complainant has tendered in evidence Ex.CA affidavit of the complainant alongwith documents Exs.C1 to C8 and has closed the evidence.
14. On the other hand, the ld. counsel for OP No.2 has tendered in evidence Ex.OPA affidavit of Ms.Dhanya K.P.Manager Legal Deptt alongwith documents Exs.OP1 to OP6 and has closed the evidenc.
15. On behalf of OP No.1 Anil Kumar, Branch Manager SBI has tendered his affidavit OPB  and vide order dated 9.10.2019 the ld. counsel for OPs No.1&3 has submitted that they did not want to lead any further evidence and the same may be closed by order. Accordingly the evidence of OPs No.1&3 was closed by order on 9.10.2019.
16. The parties filed the written arguments. We have gone through the same, heard the representative of the complainant and the ld. counsel for the OPs and have also gone through the record of the case, carefully.
17. The representative of the complainant has argued that the complainant  took loan of Rs.20 lakh from SBI Leela Bhawan HNI branch on 2.7.2016 in name of his mother Saroj Gupta. It is further argued that on 10.3.2017 at the time of giving 4^th loan installment the OP No.1 asked him to take SBI Rin Raksha Insurance cover and for taking policy amount of Rs.13087/- was debited from his account. It is further argued that he had repaid the entire loan amount on 28.9.2018 and registered sale deed was handed over to the complainant.It is argued that on 14.3.2019, the premium amount of Rs.13428/- was debited from the account of the complainant which is wrong as entire loan had already been repaid and has prayed that the complaint be allowed and the amount be got refunded.
18. On the other hand, the ld. counsel for the OP No.2  has argued that bank has never informed them that they have received the entire amount , as such the amount was debited and as they have never been informed, so the complaint be dismissed.
19. To prove the case Sh.Hemant Bansal, has tendered his affidavit, Ex.CA and he has deposed as per the complaint,Ex.C1 is the account statement, Ex. C2 is the important document of SBI HNI Branch  in which it is mentioned that  , “certified that Smt.Saroj Gupta and Sh.Hemant Bansal, residence of 42-B, Khalsa College Colony, Patiala Distt. Patiala has House Loan account No.35885972752 on 2.7.2016 with our branch which stand closed on 28.9.2018.”So it is clear that the entire loan was settled on 28.9.2018.Ex.C3 is letter written to SBI Life Insurance, Patiala by the complainant with the request that as the entire loan amount has already been paid but the annual premium of Rs.13366/- has been debited and the same be refunded, Ex.C4 is letter written to SBOI HNI Branch by the complainant, Ex.C5 is letter by SBI Life to the complainant wherein it is stated that on the basis of insurance policy amount of Rs.13087/- was debited,Ex.C6 is another letter written by the complainant to SBI Life,Ex.C7 is the letter written by SBI Life to the complainant,Ex.C8 is statement of account.
20. On the other hand Ms. Dhanya has tendered in evidence her affidavit Ex.OPA on behalf of OP No.2 and she has deposed as per the written statement, Ex.OPB is the affidavit of Anil Kumar Branch Manager, tendered on behalf of OPs No.1&3. In para No.5, he has deposed that the entire loan was repaid on 28.9.2018,Ex.OP1 is the SBI Life Insurance policy.
21. It is the admitted case that housing loan of Rs.20lakh was taken by Saroj Gupta and Hemant Bansal from SBI HNI branch Leela Bhawan, Patiala. It is also admitted that the insurance policy was taken by the complainant from SBI Life and annual premium of Rs.13087/- was paid. It is also admitted that entire loan was repaid on 28.9.2018 and NOC was issued but on 14.3.2019 after repayment of loan again SBI Life debited Rs.13428/- .This deduction is totally illegal as entire loan amount has been paid by the complainant and his mother as per the certificate on the file which is Ex.C2 and this certificate has not been rebutted by the OPs. So as stated above and as per this certificate, the whole amount was paid by the complainant and his mother and account was closed on 28.9.2018 .When the account was closed on 28.9.2018 then there was no occasion for OP No.2 i.e. SBI Life to deduct the amount of Rs.13087/- from the account of the c omplainant. It was the duty of the SBI to intimate SBI Life that entire amount has been paid so that the amount could not be deducted. This policy was taken to safeguard the right of SBOI that in case the complainant fails to deposit the loan amount then it would be the responsibility of the SBI Life to pay the amount. So the amount has been deducted illegally. There is thus deficiency in service on the part of the OPs.
22. So due to our aforesaid discussion, the complaint is partly allowed and the OP No.2 is directed to refund the amount of Rs.13428/- deducted illegally to the complainant alongwith interest @6% per annum from the date of deduction till realization. The OPs No.1 and 3 are also directed to pay Rs. 10,000/- as compensation  and Rs.10,000/- as costs of litigation in equal shares.  

Compliance of the order be made by the OPs within a period of 45 days from the date of the receipt of the certified copy of this order.

ANNOUNCED

DATED:13.8.2021       

                                        Vinod Kumar Gulati   Jasjit Singh Bhinder

                                               Member                           President