BEFORE THE DISTRICT CONSUMER FORUM AT NALGONDA
PRESENT: SRI MAMIDI CHRISTOPHER,
PRESIDENT.
SMT.S.SANDHYA RANI,
FEMALE MEMBER.
. . .
FRIDAY, THE THIRD DAY OF JANUARY, 2020
CONSUMER COMPLAINT No. 01 OF 2019
Between:
Rachuri Ganesh S/o Venkaiah, Age: 41 years, Occ: Business,
R/o H.No.3-1/19, Om Sai Colony, Nalgonda Town and District.
…COMPLAINANT.
]
AND
State Bank of India, represented by its Branch Manager,
H.No.5-7-1, Prakasham Bazar, Nalgonda Town and District,
Pin: 508 001.
…OPPOSITE PARTY.
This complaint coming on before us for final hearing, in the presence of Sri P.Narsimha, Advocate for the Complainant, and Sri D.Amarendar Rao, Advocate for the Opposite Party, and on perusing the material papers on record, and having stood over for consideration till this day, the Forum passed the following:
ORDER OF THE FORUM DELIVERED
BY SRI MAMIDI CHRISTOPHER, PRESIDENT
1. The Complainant filed this complaint Under Section 12 of Consumer Protection Act, 1986 to direct the Opposite Party to pay Rs.5,00,000/- towards compensation along with premium amount of Rs.36,528/- for the year 2016 with interest @ 24% p.a. from the date of the complaint till realization, Rs.20,000/- towards mental and physical agony and Rs.5,000/- towards costs.
2. The facts leading to the filing of this complaint as follows:
The Complainant obtained house loan from the Opposite Party bank for an amount of Rs.14,00,000/- on 05/03/2012. The loan was
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granted jointly, i.e. first person is his wife and the second one is the Complainant. The Opposite Party bank insured the loan amount of Rs.14,00,000/- with SBI Life Rinn Raksha and as per the policy condition, the Opposite Party bank has to pay the premium amount for every year up to 5 years. The Complainant cleared his loan amount on 26/11/2018 and the Opposite Party bank issued him NOC. On his enquiry, the Complainant found that the Opposite Party bank did not pay premium amount of Rs.36,528/- for the year 2016. The Complainant paid the entire loan amount including premium amount of Rs.36,528/- for the year 2016, but the said amount was not credited into the account. As such, the Complainant suffered and he is entitled to seek compensation of Rs.5,00,000/- along with premium amount of Rs.36,528/- for the year 2016. The Complainant approached the Opposite Party many times for the non-payment of the premium amount for the year 2016, but the Opposite Party did not settle his claim. On 04/12/2018 the Complainant sent a legal notice to the Opposite Party through his Advocate Sri G.Kishore Kumar, demanding to pay the compensation of Rs.5,00,000/- along with premium amount of Rs.36,528/- for the year 2016 with interest @ 24% p.a. and the same was served on the Opposite Party on 10/12/2018, but there was no response. As the Opposite Party failed to render the service to the Complainant, there is deficiency of service on the part of the Opposite Party. Hence, the complaint.
3. The Opposite Party filed his written version by denying all the averments of the complaint. The Opposite Party admitted that the bank sanctioned a housing loan bearing No.62222361453 for Rs.14,00,000/- on interest @ 11.75% p.a. to the Complainant and
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Smt.Boddu Laxmamma. The said loan was repayable in 240 monthly installments of Rs.15,500/- with moratorium period of six months. The Complainant and B.Laxmamma paid installments regularly up to November, 2018 and closed the account on 26/11/2018. Apart from the housing loan, at the request of the borrower on 30/03/2012 the Opposite Party bank has also sanctioned a Rinn Raksha Loan (Life Insurance) of Rs.1,07,545/- to both the borrowers which is to be released in five yearly installments of Rs.21,509/- payable towards insurance premium for both the Complainant and B.Laxmamma for Rs.12,377/- and the Complainant for Rs.9,132/-, which is payable in 186 installments of Rs.2,437/- commencing from March, 2017, i.e. after completing five years. The Complainant paid the Rinn Raksha installments regularly up to November, 2018 and closed the account on 26/11/2018 by paying the balance amount of Rs.1,23,352/- including loan released of Rs.1,00,418/- plus interest. At the time of insurance proposal, the age of Smt.Laxmamma was shown as 37 years date of birth being 08/05/1973 and accordingly, the Insurance Company has calculated the premium amount for five years and fixed the premium of Rs.12,377/- towards Smt.B.Laxmamma and Rs.9,132/- towards the Complainant. At the time of issuance of insurance policy, the age of Smt.B.Laxmamma was increased to 38 years and as such the insurance premium was also increased by Rs.401/-, i.e. from Rs.12,377/- to Rs.12,778/-. Therefore, the Rinn Raksha loan amount sanctioned to the borrowers was not sufficient to pay all the installments of both the borrowers. In the last year, i.e. 2016, total insurance premium payable by the borrowers was Rs.21,910/-. Due to increase in the premium of Smt.B.Laxmamma, balance available in the Rinn Raksha Loan Account was Rs.19,905/-,
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out of which Rs.12,778/- being highest premium, the system has paid the premium of Smt.B.Laxmamma and failed to pay the premium of the Complainant. The bank paid premiums to the Insurance Company regularly for four years. However, in the year 2016 the system could not pay the premium of both the borrowers due to insufficient funds as the premium of Smt.B.Laxmamma was increased by Rs.401/-. As the loan amount sanctioned by the bank is Rs.1,07,545/- only, it was not sufficient to cover all the premium of the borrowers. The bank has sanctioned Rs.1,07,545/-, it has released only Rs.1,00,418/- and accordingly the interest is charged on the released amount only. The Opposite Party denied that the Complainant approached the bank so many times regarding the non-payment of premium amount of Rs.36,528/- for the year 2016. Actually, the Complainant came to know about the fact only after closure of loan on 26/11/2018 and the actual premium not paid by the bank for the year 2016 is only Rs.9,132/-, i.e. towards the premium of the Complainant as there was no sufficient balance available in the loan account. Since the borrower has closed the account and did not sustain any loss in any manner, the Complainant for compensation is not sustainable. As such, the complaint is liable to be dismissed.
4. The Complainant filed his proof affidavit and marked Exs.A-1 to A-6. The Opposite Party did not file his affidavit. Ex.B-1 was marked on behalf of the Opposite Party.
5. The points for consideration are:
1) Whether there was deficiency in service on the part of the
Opposite Party?
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2) Whether the Complainant is entitled for the premium amount
of Rs.36,528/- for the year 2016 along with other reliefs
sought for?
3) If so, to what extent?
6. POINT No.1:
It is evident that the Complainant obtained house loan from the Opposite Party bank for an amount of Rs.14,00,000/- on 05/03/2012. The loan was granted jointly, i.e. the Complainant and his wife B.Laxmamma, and the Opposite Party bank insured the loan amount of Rs.14,00,000/- with SBI Life Rinn Raksha and as per the policy condition, the Opposite Party bank has to pay the premium amount for five years. The Complainant cleared his entire loan amount on 26/11/2018 and the Opposite Party bank issued him NOC. On his enquiry, the Complainant found that the Opposite Party bank did not pay the premium amount of Rs.36,528/- for the year 2016. The Complainant approached the Opposite Party many times, but the Opposite Party did not settle his claim. Therefore, the Complainant is entitled to seek compensation of Rs.5,00,000/- along with premium amount of Rs.36,528/- for the year 2016. To prove his contention, the Complainant filed Exs.A-1 to A-6. Ex.A-1 is the Home Loan Category, wherein the Complainant and his wife were insured for premium of Rs.8,127/- and Rs.11,372/- respectively for five years. Ex.A-3 is the Certificate of Insurance and Ex.A-4 is the Statement of Account of the Complainant showing the transaction and transfer of amount with interest debited for premium. Ex.A-3 further shows the total premium amount debited for insurance is Rs.9,132/- of the Complainant. Ex.A-5 is the legal notice issued to the Opposite Party.
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7. The Opposite Party as per the conditions paid the Rinn Raksha installments regularly up to 2016 @ 12,377/- towards Smt.B.Laxmamma and Rs.9,132/- towards the Complainant. The Opposite Party increased the premium by Rs.401/- as the age of the said Laxmamma increased from 37 to 38 years, i.e. Rs.12,778/- from Rs.12,377/-. The Opposite Party did not pay the installments of the Complainant due to insufficient funds. Due to increase in premium of Smt.B.Laxmamma, the balance available in Rinn Raksha loan amount was only Rs.19,905/-, out of which Rs.12,778/- being highest premium, the system has paid the premium of Smt.B.Laxmamma and failed to pay the premium of the Complainant. As per the contract and conditions, the Opposite Party is liable to pay the entire premium amount and cannot escape from the liability showing that the amount cannot be adjusted towards premium due to insufficient funds. There was no negligence on the part of the Complainant in clearing the loans and also admitted by the Opposite Party that the Complainant cleared the loan amount on 26/11/2018 promptly and regularly. The amount payable towards the insurance premium of Smt.B.Laxmamma is Rs.12,377/- and for the Complainant is Rs.9,132/- which is payable in 186 installments of Rs.2,437/-, commencing from March, 2017, but the Complainant has not given the correct figure and shown the premium amount as Rs.36,528/- and he has not explained how the figure of Rs.36,528/- for the year 2016 to be paid. As per Ex.B-1, the Opposite Party had paid an amount of Rs.21,509/- [i.e. Rs.12,377/- of Smt.B.Laxmamma and Rs.9,132/- of the Complainant] on 30/03/2012 towards SBI Life Insurance Premium and paid an amount of Rs.21,910/- [i.e. Rs.12,778/- of Smt.B.Laxmamma and Rs.9,132/- of
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the Complainant] on 09/05/2013. Further, the Opposite Party further paid an amount of Rs.21,910/- [i.e. Rs.12,778/- of Smt.B.Laxmamma and Rs.9,132/- of the Complainant] on 13/05/2014 and paid an amount of Rs.21,910/- [i.e. Rs.12,778/- of Smt.B.Laxmamma and Rs.9,132/- of the Complainant] on 19/05/2015. The Opposite Party paid an amount of Rs.12,778/- of Smt.B.Laxmamma on 26/05/2016 towards SBI Life Insurance, but did not pay the amount of the Complainant, i.e. Rs.9,132/-. In total, the Opposite Party paid an amount of Rs.63,890/- of Smt.B.Laxmamma towards SBI Life Insurance for five years, i.e. from 2012 to 2016 and paid in total Rs.36,528/- of the Complainant towards SBI Life Insurance for four years, i.e. from 2012 to 2015. Hence, the Opposite Party failed to pay the premium amount of Rs.9,132/- of the complainant for the year 2016 only due to insufficient funds. Therefore, the Opposite Party failed to render prompt service to the Complainant in not adjusting the premium amount for the year 2016 and, therefore, there is deficiency in service on the part of the Opposite Party.
8. POINTS No.2 & 3:
As per the material available on record and as per the Statement of Account, it is clearly established that the Opposite Party have not deducted the premium amount of Rs.9,132/- of the Complainant just for the reason ‘insufficient funds’ and as there was increase of age of Smt.B.Laxmamma and increase of premium amount of Rs.401/-. As the Opposite Party failed to pay the premium amount of the Complainant, he is liable to pay Rs.9,132/- towards the premium amount to the Complainant with interest @ 9% p.a. from the date of
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the complaint till realization, Rs.5,000/- towards compensation for mental agony along with costs of Rs.1,000/- towards costs. Accordingly, both the Points No.1 and 2 are answered accordingly in favour of the Complainant and against the Opposite Party.
In the result, the complaint is allowed in part, directing the Opposite Party to pay to the Complainant, an amount of Rs.9,132/- (Rupees Nine Thousand One Hundred and Thirty Two only) towards premium amount of the Complainant for the year 2016 with interest at the rate of 9% p.a. from the date of the complaint, i.e. 08/01/2019 till realization and a sum Rs.5,000/- (Rupees Five Thousand only) towards compensation and a sum of Rs.1,000/- (Rupees One Thousand only) towards costs, within one month from the date of receipt of this order.
Dictated to Steno-Typist, transcribed by him, corrected and pronounced by us in the open Forum on this 3rd day of January, 2020.
FEMALE MEMBER PRESIDENT
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Complainant: For Opposite Party:
Affidavit of the Complainant. None.
EXHIBITS MARKED
For Complainant:
Ex.A-1: Dt.05/03/2012 Xerox copy of Home Loan Category,
Premium Calculator for State Bank Group.
Ex.A-2 Xerox copy of Cashier Entry Details,
Proposal Details, Member Details etc.
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Ex.A-3 Dt.30/05/2012 Original Certificate of Insurance, issued by
Opposite Party.
Ex.A-4 Dt.26/11/2018 Statement of Account pertains to the
Complainant, vide Account No.62347373182.
Ex.A-5 Dt.04/12/2018 O/c of Legal Notice, issued by the counsel
for the Complainant to the Opposite Party.
Ex.A-6 Dt.10/12/2018 Postal Acknowledgement.
For Opposite Party:
Ex.B-1: Dt.25/04/2019 Statement of Account pertains to the
Complainant, vide Account No.62222366235.
PRESIDENT
DISTRICT CONSUMER FORUM
NALGONDA
