BEFORE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)

                                  Consumer Complaint No.182 of 2015

                                 Date of institution:          17.04.2015

                                              Date of Decision:            11.09.2015

Lakhwinder Singh son of Naib Singh, resident of village Batauli, Tehsil Derabassi, District SAS Nagar (Mohali).

                                     ……..Complainant

                                        Versus

The National Insurance Company Ltd., Branch Office, Ropar through its Branch Manager.

                                                                ………. Opposite Party

Complaint under Section 12 of the

Consumer Protection Act, 1986.

CORAM

Mrs. Madhu. P. Singh, President.

Shri Amrinder Singh Sidhu, Member

Mrs. R.K. Aulakh, Member.

Present:    Shri Devinder Kumar, counsel for the complainant.

Shri Madan Singh, counsel for the OP.

(Mrs. Madhu P. Singh, President)

ORDER

                The complainant has filed the present complaint seeking following direction to the Opposite Party (for short ‘the OP’) to:

(a)    pay him Rs.50,000/- the sum insured of dead buffalo with interest @ 18% per annum from the date of death of buffalo i.e. 12.09.2014.

(b)    pay him compensation of Rs.25,000/- for mental agony and  harassment.

(c)    pay him Rs.10,000/- as litigation expenses.

                The case of the complainant is that he purchased 20 buffaloes through bank loan from SAS Nagar Cooperative Bank, Lalru, Tehsil Derabassi, District SAS Nagar (Mohali) for earning his livelihood. The complainant got these buffaloes insured with the OP vide cover note No.4012062909 valid from 30.12.2013 to 29.12.2014.  Dr.YPC Mehta alongwith a representative of the OP visited the farm of the complainant and inspected the buffaloes. The representative of the OP inserted ear tags in the ears of the buffaloes and Dr. YPC Mehta prepared health certificate and recorded number of ear tags in the health certificate against each buffalo.  Out of the insured buffaloes, one buffalo bearing tag No.56110/NIC died suddenly on 12.09.2014 at about 3.00 PM.  The complainant gave the information about death of one buffalo to the OP through the bank, however, the OP did not depute anybody to verify the identity the dead buffalo. Post mortem of the dead buffalo was got conducted by the complainant from the Govt. Veterinary Doctor who verified the presence of ear tag No.56110/NIC in the ear of the buffalo. Thereafter the complainant submitted the claim papers and post mortem report of the dead buffalo to the OP. The OP has not settled the claim of the complainant despite service of legal notice dated 12.03.2015 by the complainant upon the OP. with these allegations; the complainant has filed the present complaint against the OP.

2.             Upon notice the appeared and filed written reply in which it took preliminary objections that the complaint is bad for non joinder of necessary parties as the SAS Nagar Central Cooperative Bank Ltd. Lalru has not been impleaded as party to the complaint. The bank has already been given full and final satisfaction and discharge voucher in favour of the OP. The complainant is guilty of suppression of material facts. The claim of the complainant’s died buffalo has already been paid by the OP without any delay  The complainant has not given immediate intimation to the OP about the death of the insured buffalo and the banker has given information to the OP after 2 ½ months of death of the buffalo. Due to this the OP could not get inspected the dead body of the buffalo from expert doctors and investigators. It shows that the complainant intentionally concealed the material facts and had not given opportunity to the OP for inspection of the dead body of the buffalo. The OP asked the Branch Manager of the Bank and the complainant vide letter dated 23.01.2014 for not providing proper opportunity to the OP for inspecting the dead body.  The complainant in his reply dated 09.02.2014 admitted that the dead body of the insured buffalo was cremated without any inspection of the company officials and experts. Thus the complainant violated terms and conditions of the insurance policy.  After receipt of this reply, the OP deputed investigator Dr. H.K. Chauhan who submitted his report dated 15.05.2015 after recording the statements of the Branch Manager of the Bank and neighbourers of the complainant. After receipt of this report the cheque amounting to Rs.50,000/- bearing No.007572 dated 21.05.2015 was issued in favour of the banker of the complainant  and the Branch Manager of the bank signed the full and final satisfaction and discharge voucher with the consent of the complainant. The amount of Rs.50,000/- has been transferred in the loan account of the complainant and the complainant has also given his full and final satisfaction regarding claim of his dead buffalo and also gave his own written statement dated 21.05.2015 and also assured that he would withdraw his present complaint on 27.05.2015. On 27.05.2015 the complainant did not appear in the Forum and his counsel informed the Forum that no payment has been received by the complainant.  Thus, denying any deficiency in service on its part, the OP has sought dismissal of the complaint. 

3.             To succeed in the complaint, the complainant proved on record affidavit Ex.CW-1/1, Ex.CW-2/1 and tendered in evidence documents Ex.C-1 to C-6.

4.             Evidence of the OP consists of affidavit of Gurnam Singh its Senior Branch Manager Ex.OP-1/1 and copies of documents Ex.OP-1 to Ex.OP-13.

5.             We have heard learned counsel for the parties and have also gone through written arguments filed by them.

6.             The insurance of deceased buffalo vide cover note No.4012062909 is not disputed. The death of the insured buffalo on 12.09.2014 is also not disputed. As per the complainant since the buffalo was purchased through bank loan from Cooperative Bank Lalru, he has informed about the incident of death to his banker. He got the post mortem of the dead buffalo conducted from Govt. Veterinary Doctor who identified the insured animal from ear tag bearing No.56110/NIC. Thereafter, the complainant has submitted the claim papers with the OP alongwith all documents and the OP has not honoured the claim despite having received the legal notice on 12.03.2015. Thus, the complainant has alleged deficiency in service and unfair trade practice.

7.             The OP on the other hand denied deficiency in service in the written statement and further taken a preliminary objection that the complaint is bad for non joinder of necessary parties as the bank i.e. financer has not been impleaded as a party. There is no delay on its part in entertaining and honouring the claim as the complainant himself has informed about the death of the animal after a delay of      2½ months and thus deprived the OP to inspect the body of the deceased animal from experts and investigators and the complainant himself has admitted in his letter dated 09.02.2015 to the OP that he has cremated the animal without any inspection of the company official and expert.  Therefore, the OP requested the complainant vide Ex.OP-5  dated 23.01.2015 to explain his position within 15 days positively otherwise claim file will be closed as no claim presuming that the complainant was not inkling. The said letter has been duly acknowledged by the complainant on 28.01.2015. The complainant without complying with the requisites mentioned in Ex.OP-5 has filed the present complaint. Still the OP has deputed the investigator Dr.H.K.Chohan who has submitted his report on 15.05.2015 after recording the statement of the bank Manger and the neighbourer of the complainant and upon receipt of his report the OP has honoured the claim and issued the cheque amount of Rs.50,000/- dated 21.05.2015 in favour of the banker of the complainant and the Branch Manager has issued the receipt in token thereof which is Ex.OP-10 in full satisfaction and discharge of the claim upon it under policy in question in respect of Lakhwinder Singh. So much so the complainant himself has written to the OP vide Ex.OP-12 that he has received the cheque of Rs.50,000/- and, therefore, he will withdraw his case pending in the Forum. Hence, as per the OP, there is no delay in honouring the claim on its part.

8.             The complainant on 01.06.2015 during the course of proceedings has admitted receipt of Rs.50,000/- from the OP  vide cheque issued by the OP through his banker but has reserved his right for claiming the compensation for delay in processing and honouring his claim.

9              Therefore, now the limited question to be determined is whether there is any delay on the part of the OP to release the claim amount to the complainant and if so whether that amounts to unfair trade practice and deficiency in service.

10.           The perusal of the record shows that the complainant for the first time informed on 12.09.2014 about the demise of the animal (date of death) to the financing bank who is not a party before us. The said intimation is Ex.C-3. The bank on the same day has forwarded the intimation of the incident of death to the OP as is evident from the endorsement on the body of Ex.C-3. However, the bank for the first time has forwarded the claim documents on behalf of the complainant to the OP on 17.11.2014 as is evident from Ex.OP-2.  The said document has been duly acknowledged by the OP on 02.12.2014 with remarks late intimation, deputed Shri H.K. Chohan for investigation.  Thus, it is evident that on receipt of the claim document, the OP has deputed Shri H.K. Chohan, the investigator who has submitted his investigation report dated 15.05.2015 Ex.OP-7 wherein he has categorically stated that the insured was non cooperative and after verifying the record of the Cooperative Bank Lalru and recording the statement of Dr. Kuldeep Singh, Veterinary Doctor and neighbourer of the complainant submitted his report. On the basis of report of the investigator the OP has honoured the claim of the complainant despite receiving no response from the complainant to the letter dated 23.01.2015 Ex.OP-5, released the payment on 21.05.2015 through the banker of the insured to be credited in the account of the complainant as per Ex.OP-9 and the banker has issued receipt in full satisfaction and discharge of the claim under the policy. Thus, there is no willful delay on the part of the OP and the OP after following the due process, honoured the claim. We are fully satisfied with the chronology of events explained by the OP duly supported by documentary evidence on record to show the bonafide act of the OP in honouring the claim of the complainant without any delay attributable to it. Thus, we do not find anything amiss on the part of the OP.

11.           In view of above discussions, the complaint is dismissed with no order as to costs.    Certified copies of the order be furnished to the parties forthwith free of cost and thereafter the file be consigned to the record room.

Pronounced.                           

September 11, 2015.    

                          (Mrs. Madhu P. Singh)

                                                                        President

(Amrinder Singh Sidhu)

Member

(Mrs. R.K. Aulakh)

               Member