Punjab

Rupnagar

CC/21/8

Amandeep Kaur - Complainant(s)

Versus

Shri Ram City Union Finance Ltd. - Opp.Party(s)

Sh. Shiv Kumar Kshatriya, Adv.

24 Jul 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, RUPNAGAR

                                               Complaint Case No. 08 of 2021         

                                                       Decided on : 24.07.2023

 

Mrs. Amandeep Kaur aged about 37 years Wd/o Avtar Singh son of Prem Singh resident of Village Fatehpur, Tehsil Chamkaur Sahib, Distt. Rupnagar.

                                                                                                            ..complainant

 

                                                  VERSUS

1.  Head Office of Shri Ram City Union Finance Ltd. 123, Angappa  Naichen, Street    Chennai 600001.

 

2. Shri Ram City Union Finance Ltd., SCO No. 34, First Floor Beant Singh Nagar, Near Bela Chowk, Rupnagar through its branch manager.

 

3. Shri  Ram Life Insurance Co. Ltd., Plot no. 31-  5th floor, Ramky Selenium, Financial District, Beside Andra Bank, Training Center, Gachibowli, Hyderabad-500032.

 

…..Opposite parties

QUORUM:

SMT.RANVIR KAUR, MEMBER

SH. RAMESH KUMAR GUPTA ,MEMBER

 

COUNSEL FOR THE PARTIES:

 

For complainant             :         Sh. Shiv Kumar Kshatriya Adv.

For OPs 1 & 2                          :         Sh. Mohinder Pal Singh Adv.

For OP 3                           :         Sh. Vikas Walia Adv.

 

ORDER

PER  RANVIR KAUR, MEMBER

1.     It is submitted that That Avtar Singh son of Prem Singh (husband of complainant) resident of village Fatehpur, Tehsil Sri Chamkaur Sahib, Distt.Rupnagar took the loan of Rs. 7 Lacs_from_the OP no. 1 and 2. The loan agreement/loan ID number is RPOARTF1808210001 and agreement dated 21.08.2018 and the EMI was Per month and the EMI was started on 05.10.2018 and the total tenure of loan was 60 months and the type of loan was EFLOAN.

2.   That OP no. 1 and 2 also did the insurance policy with the OP no. 3 of the above said loan and  the policy  number is  MN180920031243777 and the cover was commencement date of the policy was 21.08.2018 and cover termination date is 21.08.2023.

3.     That the OP No.1 & 2 mortgaged the landed property of the complainant as surety as complainant keep surety by the OP No.1 & 2 against the loan and the rapat no.525 dated 21.08.2018 was entered on the fard jamabbandi for the Rs. 7 Lacs.

4.   That the OP no. 1 and 2 deducted interest of Rs.8400/- on 05.09.2018 however the EMI was started to deduct from 05.10.2018 i.e. Rs. 21,420/- per month.

5.     That  unfortunately the husband of the complainant (Avtar Singh) was died   on 12.01.2020 .

6.     That thereafter complainant visited to the office of OP no. 2 and produce the death certificate of Avtar Singh then Op no. 2 assured to the complainant that remaining loan amount will recover  from the  insurance  policy i.e. OP no. 3 also said that you not need to pay any further EMI.

7.    That thereafter Op No.1  and 2 recover the insured amount from the  Op no. 3. It is pertinent to mention here that Op no. 1 and 2 recover the insured amount without the knowledge and Consent of the complainant. However the complainant was nominee in the insurance policy of her husband Avtar Singh.

8.    That the OP no. 1 and 2 use the unfair Trade practice because despite the  knowledge of death of said Avtar Sing the OP no. 1 and 2 continuesly deducting the EMI even after the death of the said Avtar Singh moreover the OP no. 1 and 2 also recover the insured amount in the month of july 2020 with the connivance of OP no. 3 however no intimation was given to the complainant by the OPs.

9.     That the complainant            approached and requested to the OP no. 1 and 2 many time to issue the clearance certificate/NOC for the purpose to redeem/clear the mortgage rapat no. 525 dated 21.08.2018 but the OP no. 1 and 2 putting the matter one pretext or the other and not give sufficient reply to the complainant.

10    That thereafter complainant issued the legal notice to the OP no. 2 on dated 12.11.2020 but Op no. 2 did not give any reply nor issue the  clearance certificate/NOC to the complainant.

11.      Complaint of the complainant may kindly be accepted and OPs may kindly be directed :-

 a. To pay Rs. 50,000/- for mental agony and un-necessary harassment to the complainant.

b.     And to pay Rs. 50,000/- as costs for filling the complaint.

c.    And OP no. 1 and 2 also directed to issue the clearance certificate/NOC to the   complainant,

The respondent No.1& 2submitted their written statements as under:-

1. That the Answering Opposite Party No.1 & 2 namely Shri Ram City Union Finance Limited, a company incorporated within the meaning of the Indian Companies Act 1956, having its registered office at Chennai-123, Angappanaicken, street Chennai 600001 is the holding company for the businesses dealing with financial services.To run the core businesses of LendingThat the Answering Opposite Party no. 2 Namely Shri Ram City Union Finance Limited, having its Branch Office at Rupnagar SCO 34 first Floor Beant Singh Nagar, Near Bela Chowk Rupnagar.
2. That the Opposite Party No. 1 & 2 are represented through Mr. Gurpreet Singh, at present serving as Senior Executive Legal and authorized representative before this Learned Commission.
3.  That the complaint filed by the complainant is totally baseless and deserves to be dismissed on the sole ground that no cause of action has occurred with regard to opposite party No.1 & 2. Further , it is worthwhile to mention here that the opposite party No.1 & 2 received the covered amount from insurance company OP No.3 as the OP No.1 & 2 has the first right in insurance claim from insurance policy . Moreover ,the balance amount of the loan was never paid by complainant.

 

4. The complaint is correct to extent that husband of the complainant took loan of Rs. 7 Lacs from OP No.1  & 2  dated 21.08.2018  , Agreement No. RPOARTF1808210001 which was to be paid in 60 monthly installments for Rs.21420/- each.
5.  It is pertinent to mention here that no verbal and written assurance for the remaining loan amount will be recovered from the Insurance Company OP No. 3 was ever made by the OP No. 1 & 2 as alleged in the present complaint, Further, the OP No.1 & 2 acts in a bonafide manner by corresponding with the complainant by recover the maximum loan amount from the insurance company.
6.   It is brought to the notice of Hon’ble  Commission that facts of the insurance policy are hidden  and concealed by the complainant. According to  the  insurance policy which is Annexed as O- in the simplified version of the terms and conditions of the policy contract clause No.3 (Payment and Death Benefits) is very clearly mentions that the nominee will be paid on an amount left after deducting the loan outstanding of the member to be made towards the Group Policy Holder. There after the fact that OP No.1 & 2 recover the loan amount from the insurance company OP No. 3 without the consent of complainant is false and frivolous. The consent was given by wife (complainant) of the deceased in written and signed consent letter is Annexed as 0 -2. It is also pertinent to mention here that the above mention contents of clause No.3 were, explained to complainant wife at the time of receiving Claim written consent from her
7.  The complaint are wroing and hence denied. Further, It is brough to the notice of the Hon’ble Commission theat facts are hidden and concealed by the complainant according to insurance policy by OP No.3 was covering  the loan amount of Rs. 448430/- against the pay of one time premium of Rs. 5932.19/- + GST  instead of whole loan  amount . It is pertinent to mention here that  the sam sum of Rs Rs. 448430/- paid by insurance OP No.3  in the shape of compensation to OP No.1 & 2 and thereafter deduction of Rs. 448430/- by Op No.1 & 2 from loan account rest of the loan amount was not paid by complainant moreover  after adjusting cover amount as per insurance policy a sum of Rs. 336835 is due and payable till date against the loan account. (SOA is Annexed  as O-3). The settlement amount will be varied at the time of settlement of account.

 

8. It is therefore most respectfully prayed that the present complaint be dismissed with exemplary costs also complainant be directed to pay the rest loan amount.

 

 

• The respondent No. 3 submitted their written statements as under:-

 

1.  The Opposite party No.3 denies all the allegations ,assertions and contentions as urged by the complainant in the present complaint individually ,save and except to the extent specifically admitted hereafter. Any allegation,averment and/or contention not specifically admitted ,though not traversed ,shall be deemed to have been denied individually and collectively.
2. The complainant's Husband late Avtar Singh during his life time had taken loan from the Shriram City Union Finance Ltd (hereinafter called as SCUF) and by virtue of the said loan, deceased life assured became a member Group Insurance Scheme named "Shriram Life Group Life Protector Plan SP" of SCUF , which was designed for the borrowers of SCUF.
3. It is submitted that after receipt of the requirements from the Master policyholder i.e. SCUF, the opposite Party No. 3 has issued policy against the loan ID RPOARTF1808210001, vide Member policy No. MN180920031243777, under Group policy No. GN011312000048, under the plan "Shri ram Life Group Life Protector Plan SP" for a cover amount of Rs.4,48,430/- with single base premium of Rs.5,932.19 risk commencing from 21.08.2018 to 20.08.2023 . A copy of the certificate of Insurance Schedule along with terms and conditions are filed herewith as Annexue No.1.
4. It is pertinent to mention here to take a note of the said Group policy whereby it is categorically mentioned that, "In the unfortunate event of death of the insured member during the tenure, SLIC will pay the cover amount as per the terms and conditions mentioned in the policy contract." It is further pertinent to note that the policy is a customized policy for the members (borrowers) of the Shri ram City Union Finance Ltd. It is significant to take into consideration the fact that in the case of death of the insured the amount payable towards the claim would first be adjusted towards the outstanding loan amount of the member and the balance amount would be payable to the nominee if any.

 

5. The Opposite party no. 3 insurance company received intimation from the master policy holder/SCUF that the member life assured died on 12.01.2020 and thus made a claim to settle the insurance amount as per policy terms and conditions.
6. That, on receipt of death intimation, this OP Insurance Company has investigated the said claim by verifying necessary documents and after assessment has admitted the death claim under member policy No. MN180920031243777. Accordingly, as per the terms and conditions of the policy contract, the Opposite party insurance company has paid the due claim amount Rs.4,48,430/-( the cover amount) to the Opposite party No. 1 towards full and final settlement and discharge of all liabilities arising out of the member policy No. MN180920031243777. The said amount of Rs. 4,48,430- transferred to the master policy holder's i.e. SCUF Bank account vide UTR No. N195201186224457 Dt: 13.07.2020.
7. It is pertinent here to note that as per the policy terms and conditions, the Opposite party insurance company has settled the claim amount by paying it to Opposite party No. 1/Master policyholder. It is noteworthy that the claim amount was less than the outstanding loan amount and thus The Opposite party insurance company was not liable to pay any further amount either to the OP No.1/SCUF or to the complainant. Thus, there was no deficiency in service by the Opposite party Insurance Company while settling the claim of the complainant and the same was intimated to Master policyholder and the Nominee/Complainant herein.
8.  In View of the above cited facts and circumstances the complaint filed by complainant  against this OP No.3 May be dismissed.

 

We have heard the learned counsel for the parties and have gone through the complaint file along with documents very minutely. From the pleadings of the parties and evidence led by them following  factual position has come on record:-

1. As regards OP No.3 ,it has discharged its liability by transferring the insured amount to OP No.1 with the consent of the complainant.
2. OP No.1 & 2 have proved the Rs. 3,36,835/- as balance amount toward the complainant, regarding which there being documentary  evidence the same can not be belied.
3. As regards, the   the death of the husband of the complainant on 12-01-2020, OP No.1 & 2 have denied their knowledge regarding the same and have justified  the deduction of the EMI’s even thereafter, here being a computerized  system regarding the same.However the same is controverted by  the written request  dated  June 2020  requesting the waiver of the loan due to death of the policy holder. The same proves on record ,deficiency on service by OP No.1 & 2.
4. In fact, on the death of the policy holder,it was the duty of the OP No.1 & 2  to specifically furnished  the speaking statement of the remaining loan  amount after adjusting the  insured amount received from OP No.3.
5. They should (OP No.1 & 2)  have further conveyed the complainant  the details of the amount and number of instalments to clear the remaining laon amount.
6. OP No. 1 & 2 have unequivocally have failed in their said duty which further  undoubtly   proves the deficiency in providing the required services under law.
7. As a result of afore-said discussion ,while complainant is liable to pay the remaining amount Rs. 3,36,835/-  along with interest  at rate of 6% per annum from the date of order.
8. On the other hand OP No.  1 & 2 are also liable for providing insufficient  services. Consequently, OP No.1 & 2 are jointly and severally  liable to pay Rs.20,000/-  due to harassment  and Mental agony , Rs.15000/- as litigation expenses.
9. Certified copy of this order be supplied to the parties, as per rules.
10.  The file be indexed & consigned to the Record Room.

Dated:-24.07.2023

 

 

 

              (RAMESH KUMAR GUPTA )                                 ( RANVIR KAUR)

144616126.                       MEMBER                                                                 MEMBER