Punjab

Patiala

CC/17/398

M/s Kohli Footwear - Complainant(s)

Versus

Punjab and Sind Bank - Opp.Party(s)

Sh. Sunil Verma

28 Apr 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION

PATIALA.

 

                                     

Consumer Complaint No.	:	CC/17/398
Date of Institution	:	16.10.2017
Date of Decision	:	28.4.2023

 

M/s Kohli Footwear, Gher Sodian, Patiala through its Proprietor Sandeep Kohli.

 

                                                                   …………...Complainant

                                      Versus

 

1. Punjab & Sind Bank, The Mall Road, Patiala through its Chief Manager.
2. Aviva Life Insurance Pvt. Ltd. First Floor, SCF-8, SST Nagar, Patiala through its Branch Manager.
3. Aviva Life Insurance Pvt. Ltd. having its registered office 2^nd Floor Prakashdeep Building , 7 Tolstory Marg, New Delhi-110001 through its Manager.

                                                                   …………Opposite Parties

 

Complaint under the Consumer Protection Act

 

QUORUM

                                      Hon’ble Mr.S.K.Aggarwal, President

                                      Hon’ble Mr.G.S.Nagi,Member         

 

 

PRESENT:                    Sh.S.K.Verma, counsel for complainant.

                             Sh.C.S.Kwatra, counsel for OP No.1.

                             Sh.Mayank Malhotra, counsel for OPs No.2&3.                   

 

                                     

 ORDER                                          

1. The instant complaint is filed by M/s Kohli Footwear through its Proprietor Sandeep Kohli (hereinafter referred to as the complainant) against Punjab & Sind Bank and others (hereinafter referred to as the OP/s) under the Consumer Protection Act ( for short the Act).
2. The averments of the complainant are as follows:
3. That complainant availed CC Limit of Rs.7,50,000/- vide account No.03511600000, in the year 2011 with the OP-Bank.At that time, OP No.1 issued insurance policy against proposal No.PSB014438 on 1.9.2011, on behalf of OPs No.2&3 by concealing the facts that policy was life insurance policy not general insurance policy. OP deducted premium of Rs.15,232/-on 30.8.2011 from the account of complainant and approved CC limit for the aforesaid amount. OP pledged property of the complainant but no insurance policy was issued by OPs till date. Complainant used CC Limit without any default .
4. On 9.1.2017 at about 9.30PM, shop of the complainant got burnt due to sudden fire as a result of which all furniture, footwear, LCD Samsung, AC make Whirlpool, inverter battery Exide, stock of shop, to the tune of Rs.12-13 Lakh was burnt. Complainant reported the matter to the Police and DDR No.021 dated 10.1.2017 was lodged. On 11.1.2017 complainant approached OPs about the incident and also requested for waiver of CC Limit and its interest as the limit was duly insured but Manager of the OP Bank did not do so. Complainant sent legal notice dated 3.7.2017 upon the OP through registered post but of no avail. There is thus deficiency of service on the part of OPs which caused mental agony, tension and harassment to the complainant. Consequently, prayer has, thus, been made for acceptance of complaint.
5. Upon notice, OPs appeared through their respective counsels and filed written statements having contested the complaint.
6. In the written statement filed by OP No.1 it raised certain preliminary objections. On merits, it is admitted that complainant availed loan facility from OP No.1 for doing the business of wholesale and retail of footwear under the name and style of M/s Kohli Footwear at Gher Sodian, Patiala. It is denied that OP No.1 issue any insurance policy to the complainant. However, it is submitted that OPs No.2&3 deal with health insurance whereas complainant is claiming losses for the damages occurred due to incident of fire. After denying all other averments, OP No.1 prayed for dismissal of complaint.
7. In the written statement filed by OPs No.2&3 they also raised various preliminary objections. On merits, receipt of first premium of Rs.15232/- is admitted. It is also admitted that policy was issued by the OPs. The certificate of insurance was issued when complainant filled the proposal form for the membership in the Group Insurance Policy of Punjab and Sind Bank.It is averred that complainant paid only first premium in the year 2011 at the time of proposal and after that had not paid any premium. As such, as per terms and conditions of policy, his policy was ceased due to non-payment of premiums. There is no deficiency of service on the part of OPs. After denying all other averments, OPs No.2&3 also prayed for dismissal of complaint.
8. In evidence complainant with his counsel produced, Ex.CA his affidavit, Ex.C1 copy of bill,Ex.C2 copy of DDR, Ex.C3 copy of certificate issued by Municipal Councilor ,Ex.C4 copy of legal notice, Ex.C5 copy of postal receipt and closed evidence.
9. Ld. counsel for OP No.1 has tendered in evidence, Ex.OPB affidavit of Harsimran Singh, Loan Officer, Punjab & Sind Bank, Ex.OP2 copy of deed of hypothecation, Ex.OP3 copy of loan sanction letter, Exs. OP4 to OP9 copies of insurance cover notes and closed evidence.
10. Ld. counsel for OPs No.2&3 has tendered in evidence, Ex.OPA affidavit of Ratnesh Keshi, authorized signatory, Ex.OP1 copy of policy and closed evidence.
11. We have heard ld. counsel for the parties and have also gone through the record of the case, carefully.
12. Admittedly, the complainant had availed a CC Limit of Rs.7,50,000/- from OP No.1 against account No.03511600000202 in the year 2011. The complainant has also produced on record the bank statement indicating that an amount of Rs.15232/- has been deducted as premium from his account on 30.8.2011 and was insured by OP No.2.
13. The complainant has alleged that although the proposal for the said insurance policy was signed on 1.9.2011 yet no policy was issued to him. The shop of the complainant caught fire on 9.1.2017 and a loss of Rs.12-13 Lakhs was reported by the complainant. The matter was reported to the police and DDR No.021 dated 10.1.2017 was lodged with Kotwali Police Station, Patiala. The complainant reported the matter to the OPs also and prayer has been made for settlement of the claim against the said insurance policy alongwith compensation.
14. OP No.1 in its written arguments has pleaded that CC Limit to the complainant was sanctioned by it. However, no insurance policy as alleged has been issued by OP No.1. He has also argued that the complainant was satisfied with the services provided by OP No.1 as he enhanced his CC Limit from Rs7.5Lakh to Rs.12Lakh on 30.1.2017, vide Ex.OP3 immediately after the incident of fire on 9.1.2017. He has also argued that it was the duty of the complainant to insure the goods/property against which CC Limit was sanctioned and has also relied upon the agreement of hypothecations,Ex.OP2, as per which the complainant was required to insure the goods/property for its full market value for the sole benefit of the OPs.
15. It is also argued that the complainant himself insured  the goods/property on his own and handed over the copy of the policy to OP No.1 and as such has pleaded that they are not responsible or deficient in providing any services to the complainant.
16. OPs No.2&3 have agreed to the fact that an amount of Rs.15232/- was received by them as the premium of insurance and a policy vide proposal No.014438 Ex.OP1 bearing Unique Membership No.16202 on 1.9.2011 in favor of Punjab & Sind Bank was issued by OP No.2&3.As per the said policy Mr. Sandeep Kohli was insured with his wife Mrs.Natasha being the beneficiary. The cheque for the premium of Rs.15232/- was issued by the complainant in favour of OPs No.2&3. The certificate of insurance was issued immediately to the complainant at the time of filling of proposal form.
17. It has further been argued that premium of insurance for the year 2011 was paid by the complainant and policy was never renewed by paying the premium for subsequent years and as such the policy lapsed on 31.8.2012 i.e. after one year from the date of issue of proposal form on 1.9.2011.As such, OPs have argued that goods/property of the complainant was not insured at the time of incident of fire on 9.1.2017.
18. A perusal of the facts above, indicates that the complainant was insured by OPs No.2&3 for the period 1.9.2011 to 31.8.2012. However, the property and goods against which CC Limit was sanctioned by OP no.1 was not insured. Furthermore, the complainant never renewed the insurance policy after 31.8.2012. Argument of the complainant that he was not aware of any such conditions i.e. nature of the policy being general insurance and not insurance against fire is not tenable as the complainant is an educated person and has signed the proposal form in English. A bare perusal of the insurance bond indicates that the name of the proposed member has been mentioned as Mr.Sandeep Kohli and property/goods were never insured. Moreover, said insurance policy lapsed on 31.8.2012 well before the date of incident of fire on 9.1.2017 as annual premium was not paid by the complainant.
19. As the policy issued was general insurance covering the life of the complainant and not the goods against fire and that too had lapsed on 31.8.2012 and well before the date of incident of time on 9.1.2017, was never renewed by the complainant, as such, we do not find any merit in the complaint and the same is dismissed accordingly. No order as to costs and compensation.       
20.           The instant complaint could not be disposed of within stipulated period due to Covid protocol and for want of Quorum from long time.
85109252238716.  
85109252238717.  

                                              G.S.Nagi                           S.K.AGGARWAL

                                              Member                          President