Per Shri Dhanraj Khamatkar, Hon’ble Member

          This appeal takes an exception to an order passed by District Consumer Forum, South Mumbai in consumer complaint No.104/2009 dated 26/03/2010.

          The facts in brief leading to this appeal can be summerised as under :-

          This complaint is filed on behalf of deceased Kushal Prakash Angane by the org. complainant.  Deceased Kushal Prakash Angane had taken SBI Credit Card bearing No.4317575175889907 from org. O.P./appellant.  Credit Card holder was entitled for Credit Shield Cover of `1 Lakh and for a claim of `6 Lakhs for the accident.  Accordingly, org. O.P./appellant had issued certificate of insurance.  Policy was valid till October 2007.  Credit Card holder deceased Kushal Prakash Angane met with an accident on 12/06/2007 and he died.  Accordingly his father present complainant had informed to the O.P./present appellant and submitted an insurance claim along with death certificate, FIR registered with the Police Station, Postmortem report and requested the O.P. to sanction the claim.  O.P./appellant herein vide their letter dated 18/09/2007 had informed that deceased was not insured under the SBI Cards Group Insurance Scheme, Card No.4317575175889907 and repudiated the claim.  Hence, respondent/complainant had filed a consumer complaint claiming compensation of `7 Lakhs, `15,000/- for various expenses along with interest @ 18% p.a. and cost of `10,000/-.  Forum below after hearing both the parties have passed the order dated 26/03/2010 directing the O.P. to pay an amount of `7 Lakhs with interest @ 9% p.a. from 18/09/2007, `5,000/- for mental agony and `1,000/- as costs.  Aggrieved by this order, present appeal is filed.

          On behalf of both the parties their Advocates argued the case.  Advocate for the appellant submitted that the Credit Card was issued by the SBI Cards and not by the SBI Life Insurance Company.  There is no relationship between deceased and the appellant.  The privity of contract is between the SBI Cards and the SBI Life Insurance Company Ltd.  SBI Cards certified the validity of the claim, hence, necessary party to the proceeding.  Therefore, complaint filed is invalid for non-joinder of necessary party and mis-joinder of the party i.e. appellant.  Learned Counsel further contended that SBI Cards and SBI Life Insurance Company are two separate legal entities and one cannot bind the other by their act, commission or omission.  Relationship between appellant and SBI Cards is that of insurer and a master policy holder and if the premium is not received by the insurer, the insurer is well within its right to repudiate the claim. 

          In the instant case, it is clear from the account statement that no premium has been debited in the statement dated 03/06/2007.  Similarly, master policy holder i.e. SBI Cards have certified vide their communication that deceased Kushal Prakash Angane was not covered under the scheme for period 03/05/2007 to 02/07/2007.  Kushal Prakash Angane died on 12/06/2007 and hence, no insurance cover was in existence as on the date of death.  Advance payment of the premium under the policy is not only a contractual obligation but also a legal mandate for continued assumption of risk under the policy of insurance.  For covering risk, premium has to be paid in advance.  It is not disputed that mode of premium is monthly.  In the card statement dated 03/06/2007 it is clear that no premium has been paid.  No doubt, subsequent statements of account dated 03/07/2007 and 03/08/2007 showed deduction of premium.  However, these statements are after the death of the deceased.  Subsequent premiums have been deducted because appellants were not aware about sad demise of the deceased.  Without appreciating the aforesaid facts, Forum below has arrived at an erroneous conclusion and passed the impugned order.  Hence, Counsel prayed for allowing the appeal and setting aside the order.

          Learned Counsel for the respondent had contended that the order passed by the Forum below is as per the law and fact and may please be confirmed.

          Admittedly, deceased Kushal Prakash Angane was a SBI Credit Card holder bearing No.4317575175889907.  He was covered credit shield of `1 Lakh and accident cover of `6 Lakhs.  Card was valid up to October 2007.  Deceased Kushal Prakash Angane died on 12/06/2007 in an accident and his father/org. complainant submitted a claim along with necessary documents to the appellant.  Appellant had repudiated the claim vide their letter dated 18/09/2007, “As confirmed SBI Cards, Late Kushal P. Angane was not covered under the Protection plus Policy.  Hence, we regret our inability to settle the claim”.  From the certificate of insurer, it is seen that the accident cover was for `6 Lakhs and Cash Shield Cover was of `1 Lakh.  In the certificate of insurance protection, the premium was `24/- per month.  As deceased Kushal P. Angane died on 12/06/2007 statement dated 03/06/2007 would have been valid statement.  Forum below relied on the statement dated 03/07/2007 which is in appeal papers.  From perusal of same, it is clear that for the month of June 2007, premium has not been paid.  As far as policy is concerned, payment of premium is its pre-condition and on the date of death deceased Kushal P. Angane was not insured.  Forum below failed to take into consideration this important fact and arrived at a conclusion which is prima-facie erroneous and cannot be upheld in law.  We hold accordingly and pass the following order :-

                             -: ORDER :-

1.       Appeal is allowed.  The impugned order dated 26/03/2010 of the Forum below is hereby quashed and set aside and in turn, consumer complaint No.104/2009 stands dismissed.

2.       No order as to costs.

3.       Copies of the order be furnished to the parties.