A.P.STATE CONSUMER DISPUTES REDRESSAL COMMMISSION: AT HYDERABAD
FA 890/2009 against C.C.No.124/2008 on the file of the District Consumer Forum III, Hyderabad.
Between:
Smt. A. Bhagyalaxmi
W/o A.Prakash, age 47 years,
Occ: Household, R/o Flat no.208,
Sheetal Avenue, Near Koundilya club
Jeedimetla, Hyderabad – 055, A.P. … Appellant/Complainant
And
1. The Manager
SBI Life Insurance Co., Ltd.,
Ground Floor, Parishram Bhavan,
Basheerbagh, Hyderabad, A.P.
2. The Manager (claims)
SBI Life Insurance Company Limited,
2nd Floor, Turner Morson Building
G.N.Vaidya Marg,
Mumbai 400023, Maharashtra,
3. The Manager
SBI Cards & Paymnets Services Pvt Ltd
Reg. Office: SBI Local head office
11 Parliament Street,
New Delhi 110 001. … Respondents/opposite parties
Counsel for the Appellant : M/s. M.Haribabu
Counsel for the Respondent : Mr.Gosala Srinivasa Rao for R1 and
R2 R-3 served
Coram : Sri. Syed Abdullah … Hon’ble Member
And
Sri R.Lakshminarasimha Rao … Hon’ble Member
Thursday, the Nineteenth Day of August, Two Thousand Ten
Oral Order : (as per Sri Syed Abdullah, Hon’ble Member)
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Being not satisfied with the order dated 17th September, 2008 passed in CC 124/2008 by the District Forum III, Hyderabad is not allowing interest on the insured amount, this appeal is filed.
The facts of the case are that the complainant’s son by name A Rajesh obtained a Group Insurance Policy bearing No.8300 1000105 by having SBI Credit card no. 4317 5756 0441 4202 from SBI Life Insurance Company Limited. He was assured for a sum of Rs.6 lakhs under personal accident coverage and a sum of Rs. One lakh under credit shield coverage. That the complainant’s son was murdered on 10.1.2005 at Banglore which was informed to the OP on 28.01.2005. The complainant was made as a nominee to the insurance policy. So she preferred a claim by submitting all the replant documents. But the OP did not settle the claim. The OP sent a letter dated 31.01.2005 informing that the insured was not covered under the protection plus policy as the credit card was invalid at the time of the occurrence of the murder. A legal notice was also sent. The act or omission is attributed as deficiency in service against OPs.
OPs 1 and 2 have taken the objection that the complainant is not a consumer. It is also sated that the Insurance ombudsman has dismissed the complaint as such it is barred by resjudicata. It is stated that the Rajesh was enrolled as a member under SBI Cards Group Insurance scheme under Master Policy No. 83001000105. As per the clause 6.2(i) of Master policy the present card holder was invalidated, so the coverage was terminated automatically. Thereby the benefit under the policy cannot be claimed by the policy holder or the nominee. OP 3’s stand is that OP 1 and 2 are concerned with the insurance policy. A statement was sent to OPs 1 and 2 informing that a sum of Rs.673 – 23 was outstanding which was asked to clear off by 26.10.004. The other statement dated 6.12.2004 was issued showing outstanding dues of Rs.1250.77 ps and an immediate payment was notified. As per clauses in Master policy the personal accident coverage ceases to existence if the card holder at default for two billing cycles. As the complainant’s son was at default of two bills the policy had lapsed.
During the enquiry the complainant filed Ex.A1 to A-18 and similarly the opposite parties filed Ex.B1 to B-3 along with their respective evidence affidavits.
After going through the evidence on record, the District Forum held that the complainant being a nominee is entitled to claim protection plus policy covered by the credit card. It is also held that the life assured cannot be made to suffer of the error committed by Ops and on the basis of the error Ops 1 and 3have repudiated the claim though the complainant’s son cleared off all the outstanding dues. The District Forum directed Ops 1 to 3 with joint and several liability to pay to the complainant an amount of Rs.6 lakhs towards the claim under the policy and Rs.50,000/- towards mental agony with costs of Rs.2000/-. None of the Ops have preferred an appeal against the order as such it has become final.
The appeal is filed by the complainant stating that the interest was not awarded from the date of death of the insured till the filing of the complaint i.e., from 10.1.2005 for a period of three years @ 18% which comes to Rs.3,78,000/-.
Short point for consideration is whether the complainant is entitled for the interest on the assured amount when the insurance claim was allowed in favor of the appellant?
In para 2 of the complaint. It is stated that the complainant had addressed letters to Ops on 7.3.2005 and 10.3.2005 making a claim along with all relevant documents for setting the claim who received a letter on 14.5.2005 from the Ops requiring to furnish some more information with documents for which another reply was sent on 29.5.2005 Ex A9 to A13 are the letters exchanged between the complainant and Ops in respect of the claim. Ex. A12 is the letter dated. 30.12.2005 addressed by the OP1 requiring the complainant to furnish DNA test report, Chemical analysis report and final order passed by the Magistrate U/s 174 of Cr.P.C. It can be said that these reports are unnecessary when the complainant had produced the FIR and the PN certificate to establish the death of her son which was an accidental and homicidal death. The Ops ought not to have delayed or prolonged it in settling the claim making her to approach the ombudsman and there after to the District Forum complaining of deficiency in service. When the complainant had complied with the requirements but the settlement was delayed she is entitled to claim for interest there on.
The District Forum had directed payment of the insurance claim of Rs.6 lakhs along with compensation of Rs.50,000/- but not awarded interest thereon. The complainant cannot seek both for interest and compensation.
In the result, the appeal is disposed of modifying the order of the District Forum with a direction to opposite parties 1 to 3 with joint and several liability to pay interest on a sum of Rs. 6 lakhs with interest at 9 % from the date of legal notice, i.e., Ex. A17 i.e., 5.5.2007 till the date of realization with costs of Rs.2000/- as ordered and the relief for payment of compensation of Rs.50,000/- is set aside. In case, the opposite parties have already paid Rs.6,50,000/- if there is any differential amount of interest to be paid by opposite parties. Compliance to be made within four weeks. No costs in the appeal.
MEMBER
MEMBER
DATED: 19.08.2010
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