Haryana

Bhiwani

CC/302/2019

Maha Singh - Complainant(s)

Versus

OIC - Opp.Party(s)

Ram Mehta

16 Aug 2024

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, BHIWANI.

                                                           

               Complaint Case No. : 302 of 2019

                                                                  Date of Institution    :  31.05.2019

                                                                        Date of Decision      :  16.08.2024    

 

Maha Singh son of Sh. Peerdaan R/o village village Garwa Tehsil Siwani, District Bhiwani.

          ..…Complainant.

 

  Versus

 

1.       Oriental Insurance Company Ltd., (Crop Cell), Head Office, New Delhi.

 

2.       Oriental Insurance Company Ltd., one of its Branch Office Ghanta Ghar, Near Nehru Park, Bhiwani through its Branch Manager.  

 

3.       Canara Bank Branch Office Barwa, Tehsil Siwani, District Bhiwani through its Branch Manager.

 

                                                                                .…Opposite Parties

   

Complaint under Section 12 of the Consumer Protection  Act, 1986.

 

BEFORE:     Mrs. Saroj Bala Bohra, Presiding Member.

Ms. Shashi Kiran Panwar, Member.

 

Present:        Sh. Ram Mehta, Advocate for complainant.    

                    Sh. Mukesh Jangra, Advocate for OPs No.1 & 2.

                    Sh. Avinash Sardana, Advocate for OP No.3.

 

ORDER

 

SAROJ BALA BOHRA, PRESIDING MEMBER.

 

1.              Brief facts of the present complaint are that complainant availed Kisan Credit Card facility loan from OP No.3 in his bank account No.1775840001681. Thereafter, crop of complainant in 4.8 hectare was insured against Rs.3,45,600/- by paying a premium amount of Rs.6912 debited on 31.07.2018. It is stated that standing crop of complainant during the season Kharif 2018 got completely damaged due to climatic effect. Complainant immediately informed OP No.2 and claim was lodged with it. But the claim of complainant was repudiated by OP No.2 on grounds that premium was sent by the bank on 16.11.2018 which was after the cut-off date 15.08.2022 and thus the amount would be remitted back to the OP bank. Complainant has submitted that due to gap between OPs, he has been suffering a lot about monetary loss as well as mental and physical harassment. Hence, the present complaint has been preferred alleging deficiency in service and direct them to settle the 100% claim of insured crop in 4.8 hectare and to pay Rs.3,45,600/- alongwith interest @ 18% per annum from the date of damage of crop till its realization. Further to pay Rs.50,000/- towards compensation for harassment. Any other relief, to which this Commission deems fit, has also been sought.

2.              Upon notice, OPs No.1 & 2 filed its written statement raising preliminary objections qua cause of action, maintainability of complaint and suppression of material facts. On merits, it is submitted that the OP bank was required to upload the data of farmer on NCIP before cutoff date and further to remit the premium payment to insurance company before the cut-off date 15.08.2018 and the premium of Rs.6912/- was deposited on 16.11.2018 that too without intimation to the answering OP. Hence, the premium was refunded to OP bank on 09.05.2021 being found excess amount at the end of financial year. Further, as per provisions of PMFBY premium received by insurance companies from banks/PACS after the cut-off date shall be summarily rejected and liability, if any for such proposals shall rest with the concerned bank. As such, denied for any deficiency in service and prayed for dismissal of the complaint with costs.

3.              OP No.3 filed written statement raising preliminary objections maintainability of complaint and suppression of material facts. On merits, it is submitted that complainant is co-sharer of the land in which the cotton crops was shown and he had sown the cotton crop in the area 44 kanal 16 marlas (around 2.26 hectare). Premium of insurance was remitted to the OP insurance company from the bank account of complainant. It is denied that crop of complainant had not been fully damaged. It is submitted that due to technical error in the portal, premium of the crop insurance was sent to SBI General Insurance Co. inadvertently whereas it should have remitted to OP insurance company and thereafter the premium under PMFBY was sent to OP insurance company on 15.11.2018. It is urged that OP insurance company kept the premium for about 7 months without any objections. It is submitted that the answering OP made every efforts to settle the claim of complainant but the OP insurance company did not pay any heed. It is stated in a meeting held on 02.07.2019 under the Chairmanship of Sh. Ajit Bala Ji Joshi, IAS, Director General, Agriculture & Farmers Welfare, Haryana, with the bank concerned and it was decided that where the farmer’s record mis-matched and premium paid by banks to the insurance company in time and the insurance company did not return/refund the premium to the banks in time, the insurance company will be liable to pay the claim to farmers as per farmer’s record. As such, denied for any deficiency in service on their part and prayed for dismissal of the complaint with costs.

4.              In evidence of complainant, affidavit of complainant Ex. CW1/A alongwith documents Annexure C-1 to Annexure C-4 were produced and closed the evidence on 29.03.2023.

5.              In evidence of OPs No.1 & 2, affidavit Ex. RW1/A  alongwith documents Annexure R-1 to R-6 were tendered and closed the evidence on 16.04.2024.

6.              In evidence of OP No.3, affidavit Ex.RW3/A of Sh. Vaibhav Trikha, Branch Manager alongwith documents Ex. R3/1 to Ex. R3/4 were tendered and closed the evidence on 16.04.2024.

7.              We have heard final arguments from both the sides and have gone through the entire case file minutely.

8.                 As per pleadings of OP insurance company, the premium amount was remitted by the OP bank to it after the cut off date for taking the premium i.e. 15.08.2018. It is pertinent to mention here that OP bank has not denied such date as cut off date to send the premium to OP insurance company.  Meaning thereby that the premium was to be sent by the OP bank by 15.08.2018.  Admittedly, the premium of Rs.6912/- so deducted from the bank account of complainant was remitted by OP bank to SBI General Insurance Company, inadvertently and only thereafter, the premium was sent to OP insurance company on 15.11.2018 which was thus late by the cut off date.

9.                 After hearing learned counsels for the parties and going through the record, we have observed that the OP bank has not sent the premium to OP bank within the cut-off date whereas the premium was deducted by it from bank account of complainant on 31.07.2018 (Annexure C-1). The OP bank has referred to Minutes of Meeting to discuss the matters pending under PMFBY held under the Department of Agriculture and Farmers Welfare, Haryana (Annexure R3/1) wherein at point no.3 it is mentioned that Cases where banks deposit premium after cut-off date, insurance companies will accept the premium with interest as per clause. But in this case the OP insurance company has not adopted such procedure rather remitted the premium to OP bank after about six months.

10.               In view of above discussion, we have come to conclusion that in this case both the OPs are deficient and negligent in providing proper services to the complainant. Firstly, the OP bank has remitted the crop insurance premium to OP insurance company after the cut off date. Secondly, as per Minutes of Meeting there was an option with the OP insurance company to take the premium from OP bank with interest. But it failed to comply with the such guidelines. As such, non-releasing of genuine claim to the complainant is a serious lapse and gross negligence on the part of OPs which caused him monetary loss as well mental pains and physical harassment. In such a situation, complaint must have suffered mental pain and agonies at the hands of OPs. As per document crop details (Annexure C-2), a sum of Rs.6912/- as premium was deducted from the bank account of complainant for the cotton crop sown in 4.8 hectare and sum insured for it was Rs.3,45,600/-. As per pleadings and affidavit of complainant his total cotton crop sown in 4.8 hectare got damaged. As such, we are of the view that the complainant is entitled to the insured amount for the crop. Accordingly, the complaint is allowed and OPs are directed to comply with the following directions within 40 days from the date of passing of this order:-

(i)       OPs No.1 & 2, to pay a sum of Rs.3,45,600/- (Rs. Three lac forty five thousand six hundred) to the complainant alongwith simple interest @ 9% per annum from the date of filing of this complaint till actual realization.

(ii)      OP No.3, to pay a sum of Rs.10,000/- (Rs.Ten thousand) as compensation  for harassment.

(iii)     OP No.3, to pay a sum of Rs.5500/- (Rs.Five thousand five hundred) as litigation expenses.

                    In case of default, the OPs shall liable to pay simple interest @ 12% per annum on all the aforesaid awarded amounts for the period of default.                     If this order is not complied with, then the complainant shall be entitled to the execution petition under section 71 of Consumer Protection Act, 2019 and in that eventuality, the opposite parties may also be liable for prosecution under Section 72 of the said Act which envisages punishment of imprisonment, which may extend to three years or fine upto rupees one lac or with both. Certified copies of this order be sent to parties concerned, free of costs, as per rules. File be consigned to the record room, after due compliance.

Announced.

Dated:16.08.2024