BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION :HYDERABAD
F.A.No.1582/2006 against CC.No.126/2005,Dist. Forum, KADAPA.
Between:
The Manager,
State Bank of India,
Agricultural Development Branch,
Rajampet, Kadapa District. …Appellant/
Opp.party no.2
And
1. Smt. Kollapaneni Suneetha
W/o.Late K.Eswaraiah, aged about 25 years,
R/o.at Apparajupeta, H/O. Kattavaripalli,
Penagalur Mandal, Kadapa District. …Respondent/
Complainant
2.M.Chandrabhanu Reddy ,
Managing Director, Penagalur Farmers Service,
Co-operative Society Limited,
Penagalur Post and Mandal,
Kadapa District.
3. The Divisional Manager,
United India Insurance Co. Limited,
Divisional Office, 2/194 (2) , Lakshmi Ranga
Road , Kadapa. …Respondents/
opp.parties 1 & 3
Counsel for the appellant : M./s. M.Narender Reddy
Counsel for the respondents : Sri.T.N.M. Ranga Rao-R1
Sri T.K.Sridhar – R3
F.A.No.387/2009 against CC.No.126/2005,Dist. Forum, KADAPA.
The Divisional Manager,
United India Insurance Co.Limited,
D.O.no 2/194 (2) , Lakshmi Ranga
Road , Kadapa-516 001
Rep. by its Regional Manager Hyderabad …. Appellant/
Opp.party no.3
And
1. Smt.Kollepaneni Suneetha
W/o.Late K.Eswaraiah, aged about 25 years,
R/o. Apparajupeta, H/O. Kattavaripalli,
Penagalur Mandal, Kadapa District. …Respondent/
Complainant
2.M.Chandrabhanu Reddy ,
Managing Director, Penagalur Farmers Service,
Co-operative Society Limited,
Penagalur Post and Mandal,
Kadapa District.
3.The Manager,
State Bank of India,
Agricultural Development Branch,
Rajampet, …Respondents/
Opp.parties 1 & 2
Counsel for the appellant : Sri T.K.Sridhar
Counsel for the respondents : Sri T.N.M. Ranga Rao-R1
Sri Mr.Narender Reddy-R3
CORAM ; SMT. M.SHREESHA ,HON’BLE MEMBER
AND
SRI K.SATYANAND , HON’BLE MEMBER
WEDNESDAY, THE THIRTIETH DAY OF SEPTEMBER
TWO THOUSAND NINE
Oral order (Per Smt. M.Shreesha, Hon’ble Member )
***
Aggrieved by the order in C.C.No.126/2005 on the file of District Forum, Kadapa opposite party no.2 preferred F.A. No. 1582/2006 and opposite party no.3 filed F.A.No.387/2009 . Since both these appeals arise out of C.C.No.126/2005 they are being disposed of by this common order.
The brief facts as set out in the complaint are that the complainant’s husband late Kollapaneni Eswaraiah was a Member in opposite party no.1 society vide membership number 5161 and was issued Kisan Credit Card for which he paid his share capital of Rs.330/- on 3.6.2003 and also an amount of Rs.2485/- on 4.11.2003 and insurance amount of Rs.15/- for which he was issued receipt nos.11354 and 12568. On 20.12.2003 he died in a road accident and the complainant who is wife and legal heir of the deceased approached opposite parties for payment of insurance amount and the Dist.Cooperative officer in his letter dt.23.3.2005 directed opposite party no.1 society to immediately pay the amounts without delay. Kisan Certificate Card Holder is entitled for insurance amount of Rs.2 lakhs payable through the responsible institutions. The complainant got issued a notice on 1.7.2005 demanding payment of insurance amount with interest for Rs.50,000/- apart from the miscellaneous expenditure of Rs.40,000/- totaling to Rs.2,90,000/-, but received no reply . Hence the complaint.
Opposite party no.1 filed counter admitting membership of late Eswaraiah and also payment of share capital and insurance premiums. The Society admitted certain Members as a group for Kisan Credit Cards and those Members should pay entrance fee, share capital and insurance premia. The total members are 164 under the scheme.The Insurance Company would checkup the papers and issue Group Insurance Policies to the Bank, from there it would sent to the society. The Group Insurance Policy was issued on 27.12.2003 . While so Mr.Eswaraiah died on 20.12.2003 prior to the commencement of the policy in a road accident and therefore insurance company repudiated the claim. Hence society has sent reply to the District Cooperative Officer, Kadapa with all details along with repudiation letter. The reply notice was sent on 19.7.2005 and was received by the complainant’s advocate. They further contend that the society should have been shown as represented by Managing Director and not in personal capacity and that there are no merits in the complaint and it is liable to be dismissed with costs.
Opposite party no.2 and 3 were impleaded as necessary and proper parties and opposite party no.1 was shown as Managing Director of the Society by way of amendment.
Opposite party no.1 filed additional counter after the amendment stating that if Kisan Credit Card Holder died, compensation is only Rs.50,000/- and that it covers card holder upto the age 70 years and then he would be entitled to Rs.2 lakhs towards insurance amount. In case of accident occurred between the collection of premium and remittance to the insurance company, the card holder is not entitled to any insurance amount.
Opposite party no.2 filed counter holding that under Kisan Credit Card Scheme the members have personal accident insurance scheme, under which each member would pay Rs.5/- per year towards his share and Rs.10/- per year to be paid by the Bank. It was a group policy and so the opposite party no.1 would send 1/3 share of premium amount of 3 years to the bank on 22.12.2003. After adding 2/3 share of premium amount the opposite party would send a total amount to its Zonal office, Tirupati, who in turn send it to the Insurance Company i.e. opp.party no.3. On 27.12.2003 opposite party no.3 issued policy commenced from 27.12.2003 to 26.12.2006. The complainant’s husband died on 20.12.2003 prior to commencement of the policy and 1/3 of premium of Rs.2,460/- was collected by opposite party no.1 and received by opp.party no.2 on 22.12.2003 and sent to opposite party no.3, by that time complainant’s husband died, hence there is no deficiency in service on behalf of opp.party no.2.
Opposite party no.3 Insurance Company filed counter stating that the policy was issued on 27.12.2003 wherein death took place on 20.12.2003 prior to commencement of policy and hence there is no deficiency in service on their behalf.
The District Forum based on the evidence adduced i.e. Exs.A1 to A10 and B1 to B26 allowed the complaint directing opposite parties to pay Rs.50,000/- towards insurance amount with interest @ 9% p.a. from 20.12.2003 till payment and Rs.1000/- towards costs payable by opposite party no.1 after collecting the amount from opposite parties 2 and 3 within three months from the date of receipt of the order .
Aggrieved by the said order opposite party no.2 preferred F.A.No.1582/2006 and opposite party no.3 filed F.A.No.387/2009
The complainant filed written arguments.
The facts not in dispute are that the complainant’s husband late Kollapaneni Eswaraiah was a Member in opposite party no.1 Society, Penagalur Farmers Service Cooperative Society Ltd. and he was issued Kisan Credit Card by the Society for which he had paid his share capital of Rs.330/- on 3.6.2003 and also an amount of Rs.2,485/- on 4.11.2003 towards share capital and also insurance amount of Rs.15/-. It is the also not in dispute that the complainant’s husband died in a road accident on 20.12.2003. It is the complainant’s case that the premium amounts paid in the month of November and the complainant died in December and inspite of issuance of legal notice on 1.7.2005 requesting for payment , there was no reply. It is the case of opposite party no.1 Society that the Society admits certain number of farmers as group for issuance of Kisan Credit Cards and those members would pay entrance fee, share capital and insurance premium and in this case total number of 164 members were brought under the scheme and necessary amounts were collected from them. After the amounts were collected, their applications were scrutinized and sent to Tirupati office and later sent to the insurance company at Kadapa where the insurance company thoroughly checksup the papers and the issues policy. In this case also the said procedure was followed and policy was issued on 27.12.2003, but the complainant’s husband died on 20.12.2003 and hence the amounts could not be paid . The Society submits that they sent a reply to the notice given by the complainant on 19.7.2005 . The learned counsel for the appellant/opposite party no.2 bank submits that there is no deficiency in service on behalf of the Society, since it is only after receipt of the premium amounts, the amounts were sent to opposite party no.2 bank and then the bank sends the amounts to the insurance company which issues the policy. It is the case of opposite party no.3 insurance company that the insurance policy was issued on 27.12.2003 and the complainant’s husband died on 20.12.2003 and there was no concluded contract. It is also not in dispute that the amount was remitted to appellant /opp.party no.3 on 22.12.2003 and the policy was issued on 27.12.2003 and there was no delay. We observe from the record that the Society i.e. opposite party no.1 has never stated as to when the premium amounts were collected from these 164 members and on which date these amounts were remitted to opposite party no.2 bank for their contribution. Even in their counter and affidavit they are silent with respect to the dates on which they have received these amounts and when they have remitted these amounts from the bank for their contribution, while the complainant established vide receipt no.11354 and 12568 that he paid share capital of Rs.330/- and 2,485/- and also insurance amount of Rs.15/-. It is the duty of the Society to state that as to when these amounts were collected from the rest of the members and when these amounts were remitted to the Bank. Opposite party no.2 bank in their counter submits each member would pay Rs.5/- per year towards his share towards insurance premium and Rs.10/- will be paid by the bank. It is a group policy and so opposite party no.1 would send 1/3 rd share of the premium amount to the Bank and this was sent in the instant case only on 22.12.2003. The bank after adding 2/3rd share of the premium amount sent this entire amount to opposite party no.3 on the very next day. It is also an admitted fact that opposite party no.3 issued policy on 27.12.2003 i.e. within 5 days of receipt of the premium amounts.
Hence we are of the view that opposite parties 2 Bank who has received the amount on 23.12.2003 and immediately remitted to the Insurance Company on 23.12.2003 and also insurance company (O.P.3) who has received amounts on 23.12.03 issued the policy on 27.12.03 without any delay cannot be held liable, therefore we hold that there is no deficiency in service on their part. However with respect to opposite party no.1 Society, we are of the considered view that there is deficiency in service, since there is absolutely no documentary evidence to substantiate that immediately after collection of premium amounts without any delay they have remitted the amounts to the Bank for their contribution. There is no material filed by them to evidence the dates on which the amounts were collected from the farmers and on which date these amounts were remitted to opposite party no.2 Bank for their felicitation. Hence we hold that opposite party no.1 Society alone is liable to pay this amount and we modify the order of the District Forum directing opposite party no.1 alone to pay Rs.50,000/- with interest at 9% p.a. from 20.12.2003 till the date of realization together with costs of Rs.1000/- . It is pertinent to note that opposite party no.1 Society did not prefer any appeal. Direction of the District Forum to collect these amounts from opposite parties 2 and 3 is set aside.
In the result appeal filed by opposite party no.2 bank i.e. F.A.No.1582/2006 and appeal filed by opposite party no.3 Insurance Company i.e. F.A.No.387/2009 both are allowed and the order of the District Forum is modified directing opposite party no.1 Society alone to pay the amount ordered by the District Forum and direction against opposite party no.2 and 3 is set aside.
MEMBER
MEMBER
Dt. 30.9.2009
Pm*
