Delhi

East Delhi

CC/496/2016

NARENDER SINGH - Complainant(s)

Versus

SBI LIFE INS - Opp.Party(s)

10 Oct 2018

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM (EAST)

GOVT. OF NCT OF DELHI

CONVENIENT SHOPPING CENTRE, FIRST FLOOR,

SAINI ENCLAVE, DELHI – 110 092

 

C.C. NO. 496/16

 

Shri Narender Singh Bisht

S/o Late Shri Narayan Singh Bisht

R/o House No. 36/355

Trilok Puri, Delhi – 110 091                                        ….Complainant

Vs.    

1. SBI Life Insurance Co. Ltd.

507, 5^th Floor, DDA Building

Plot No. 4, Laxmi Nagar Distt. Centre

Delhi – 110 092

 

2. The Branch Manager

State Bank of India

Mother Dairy Branch

Patparganj, Delhi – 110 092                                                      …Opponents

 

Date of Institution: 21.09.2016

Judgement Reserved on: 10.10.2018

Judgement Passed on: 18.10.2018

 

CORUM:

Sh. Sukhdev Singh (President)

Dr. P.N. Tiwari (Member)

Ms. Harpreet Kaur Charya (Member)

 

Order By: Sh. Sukhdev Singh (President)

 

 

JUDGEMENT

          This complaint has been filed by Shri Narender Singh Bisht against SBI Life Insurance Co. Ltd. (OP-1) and the Branch Manager, State Bank of India, Mother Dairy Branch (OP-2) under Section 12 of the Consumer Protection Act, 1986 with allegations of unfair trade practice and deficiency in service. 

2.       The facts in brief are that the complainant Shri Narender Singh Bisht, who was maintaining a saving bank account no. 10015412629 with State Bank of India, Mother Dairy Branch (OP-2) got an insurance policy for 10 years which was launched by SBI Life Insurance Co. Ltd. (OP-1), known as ‘Swadhan Group’ in the year 2006.  He paid yearly installment of Rs. 1,351/- per annum. 

          State Bank of India (OP-2), on 30.11.2006, credited a sum of Rs. 1,792/-, the first installment from the account of the complainant for the first premium of the said insurance policy.  State Bank of India (OP-2) debited Rs. 441/- on 24.01.2007 in the account of the complainant (Rs.1,792 - 441=1,351/-).  Thus, OP-2 deducted a sum of Rs. 1,351/- for the first premium from the salary account of the complainant.  The complainant made further payment in regard to the premium of insurance policy and OP-2 have deducted Rs. 1,351/- as per table below:-

S. No.	Yearly Installments	Date of payment	Amount (Rs.)
	First installment	30.11.2006	Rs. 1,792/- (later on returned       Rs. 441/-
	Second installment	13.02.2008	Rs. 1,351/-
	Third installment	31.03.2008	Rs. 1,351/-
	Fourth installment	27.01.2009	Rs. 1,351/-
	Fifth installment	20.02.2010	Rs. 1,351/-

     

          It is stated that he has not paid the 6^th, 7^th and 8^th installment of group insurance policy as wife of the complainant badly suffered from Cancer.  On 24.09.2013, he paid an amount of Rs. 4,762/-, the balance three installment of said insurance policy with penalty and late fee charges through cheque no. 542253 of Rs. 4,762/- (Principal amount Rs. 1,351 x 3 = 4,053/- and Rs. 709/- for penalty and late fee charges). 

          It has further been stated that at the time of depositing the balance three installments of group insurance policy, OP-2 stated that till September, 2013, the complainant has paid only 7 yearly installments to OP-1.  OP-2 further stated that his premium has started since 01.03.2007 and on 01.03.2017 the said policy would be matured.  He tried to made him understand that he has paid           Rs. 1,792/- on 30.11.2006 as a first premium of the said group insurance policy and later on Rs. 441/- has been returned by OP-1 through OP-2, but all in vain.  Finding no alternative, he made a complaint dated 24.09.2013 to OP-1, but they did not take any action.  The complainant requested many a times to OP-2 to sort out his grievance, but on one pretext or the other, they avoided.  He specially requested on 13.05.2015, but they have not returned his extra yearly premium nor adjusted in the installment.  The complainant in the meanwhile paid 9^th installment/premium of said policy on 03.03.2014 of Rs. 1,358/-.  He paid 10^th installment on 0.303.0215 of Rs. 1,358/- and the 11^th installment of Rs. 1,362/- on 03.03.2016. 

          It has been stated that the complainant has paid 11^th installment in place of 10^th installment of the said group insurance policy.  He made a complaint to the banking ombudsman, but he did not get any reply.  He filed a RTI to the Public Information Officer of OP-2, but have not got any reply so far.  It has been stated that OP-1 has debited Rs. 1,358/- for 9^th installment of the said insurance policy in place of Rs. 1,351/-.  They have debited Rs. 1,358/- for 10^th installment in place of Rs. 1,351/-.  OP-1 has debited Rs. 1362/- for 11^th installment instead of Rs. 1,351/-. 

          When OP-2 deducted Rs. 1,362/- from his account for 11^th installment, he approached the officials of OP-2, but they advised him to go to OP-1.  On 16.03.2016, he approached OP-1 and narrated the entire story, but they have made lame excuses.  Thus, it has been stated that OPs have not returned his extra yearly premium of        Rs. 1,351/-.  This act of OPs amounts to deficiency in services and he has prayed for directions to OPs to refund of Rs. 1,351/-, amount deducted extra on account of yearly premium; to pay insurance claim according to the policy upon its maturity; compensation of               Rs. 2,00,000/- towards loss of reputation, mental trauma, social embarrassment and cost of litigation.

3.       In the reply filed on behalf of SBI Life Insurance Co. Ltd.     (OP-1), it has been stated that the amount which has been debited pertain to the year 2008 and the complainant have filed the present complaint in the year 2016 after 8 years.  Thus, the complaint was barred by limitation.

          It has further been stated that premiums were not deducted by OP-1, but by OP-2, as per their arrangement.  They have received the premiums till March 2016, though, did not deduct the premium directly, but it is only OP-2, who deducted premium from all members and consolidated amount was sent to them.  They were not aware of the deductions made from the individual member’s account.

          They have further stated that as per their record, they have received only 10 annual premiums and there was no excess premium received by them.

          They have further stated that mere amount debited from the account of the complainant by the bank does not mean that it has been received by them.  The complainant has failed to prove details of the remittance of the said amount by bank or by complainant to SBI Life Insurance Co. Ltd.  Thus, they have stated that there was no deficiency on their part. 

          They have also stated that complainant was insured under the master policy with date of commencement from 01.03.2007.  He was to pay annual premium of Rs. 1,351/- on first March every year during the 10 years’ term of policy.  He has paid all the 10 premiums.  He paid the initial premium in 2006, but the date of commencement for the insurance cover was 01.03.2007.  Thus, they have denied that the complainant became member of the said ‘Swadhan Group’ policy in the year 2006.  They have accepted that an amount of Rs. 1,792/- was received by them on November 2006, out of which Rs. 441/- was refunded towards excess premium.  The balance amount of            Rs. 1,351/- was adjusted towards the premium and the insurance cover granted from 01.03.2007. 

          They have stated that they have received only 4 annual premiums till 2010.  His version that bank has debited premium twice from his account i.e. on 13.02.2008 and 31.03.2008, however, as per their record, the premium was received once i.e. in April 2008.  They have no knowledge about any amount deducted by his bank during February 2008.  They have admitted that they received a cheque for Rs. 4,762/- towards premiums due on 01.03.2011, 01.03.2012 and 01.03.2013 and interest for delay payment which was adjusted against the insurance cover. 

          They have further admitted that the complainant had paid the renewal premiums due in the year 2011, 2012 & 2013 in September 2013.  Term of the policy was 10 years.  The commencement of the policy was 01.03.2007 and maturity as 01.03.2017.  They have stated that they have received 7 annual premiums till September 2013.  They have denied that they have received any letter which was sent by the complainant to OP-2.

          They have admitted that they have received an amount of     Rs. 1,792/- on 30.11.2006 which was adjusted towards the initial premium and the insurance cover was granted with date of commencement as 01.03.2007.  After adjusting Rs. 1,351/- towards risk premium, balance of Rs. 441/- was refunded to the complainant.  They have admitted that they have received 8^th installment/premium in March 2014, 9^th in March 2015 and 10^th in March 2016.  There was no excess premium received by OP.  They have received total         10 annual premiums.  They have admitted that they have received an amount of Rs. 1,358/- for 8^th and 9^th premium and Rs. 1,362/- towards 10^th premium which was due to change in the service tax.  They have denied the other pleas. 

          In the reply filed on behalf of State Bank of India (OP-2), they have stated that they are not the necessary party as there was no contract with them.  They have deducted the premium amount as per the mandate of the complainant automatically and they have no role during this process.  Whatever amount the complainant has paid to OP-1, have due credit entries in his statement of account.  They have denied that they were under obligation to return the amount as there has been no privity of contract between them.  They have denied other facts also.         

 4.      The complainant has filed rejoinder to the WS of OP-1, wherein he has controverted the pleas taken in the WS and reasserted his pleas.

5.       In support of its case, the complainant have examined himself.  He has deposed on affidavit.  He has narrated the facts which have been stated in the complaint.  He has got exhibited documents such as copy of Aadhar Card of the complainant (Ex.CW-1/1), copy of group insurance policy cover note “Swadhan Group Protection cum Saving Plan” (Ex.CW-1/2), copy of certificate of insurance       (Ex.CW-1/3), copy of bank passbook of complainant (Ex.CW-1/4), copy of complaint dated 24.09.2013 (Ex.CW-1/5), copy of complaint dated 28.04.2014 to Banking Ombudsman (Ex.CW-1/6), copy of RTI letter dated 20.08.2014 (Ex.CW-1/6) and copy of complaint dated 16.03.2016 (Ex.CW-1/7).

          In defence, SBI Life Insurance Company Limited (OP-1) have examined Ms. Neelam Singh, authorized representative of OP.  She has also deposed on affidavit.  She has narrated the facts which have been stated in the written statement.  She has also got exhibited documents such as copy of master policy to the State Bank of India bearing no. 86000054808 (Annexure A) and copy of certificate of insurance (Annexure B). 

          State Bank of India (OP-2) have examined Shri Inderjit Kumar, Branch Manager of OP.  He has deposed on oath and have narrated the facts which have been stated in the written statement.  

6.       We have heard Ld. Counsel for the parties and have perused the material placed on record.  From perusal of the record, it is evident that State Bank of India (OP-2) have deducted an amount of Rs. 1,351/- twice in the year 2008 which has been sent to SBI Life Insurance Company Limited (OP-1).  The plea taken by SBI Life Insurance Company Limited (OP-1) that they used to receive the consolidated amount from State Bank of India (OP-2) cannot be accepted as the amount has been deducted by State Bank of India (OP-2) twice. 

          Further, the plea taken by SBI Life Insurance Company Limited (OP-1) that the complaint was barred by limitation cannot be accepted as the policy matured in the year 2016 which made the cause of action as a continuing one.  Though, both SBI Life Insurance Company Limited (OP-1) and State Bank of India (OP-2) have shifted their liability on each other, but the fact remains that an amount of Rs. 1,351/- have been deducted from his saving bank account.  Therefore SBI Life Insurance Company Limited (OP-1) and State Bank of India (OP-2) are jointly and severally liable. 

          In view of the above, it is ordered that SBI Life Insurance Company Limited (OP-1) and State Bank of India (OP-2), jointly and severally, refund an amount of Rs. 1,351/- alongwith 6% interest to the complainant from the date of filing i.e. 21.09.2016.  We further award Rs. 5,000/- towards compensation on account of mental pain and agony. 

          This order be complied within a period of 45 days, if not complied, the amount of compensation of Rs. 5,000/- shall also carry 6% interest from the date of order.  

          Copy of the order be supplied to the parties as per rules.

          File be consigned to Record Room.                         

 

 

 

(DR. P.N. TIWARI)                                              (HARPREET KAUR CHARYA)

       Member                                                                             Member    

 

            (SUKHDEV SINGH)

                   President