BEFORE THE DISTRICT CONSUMER’S FORUM: KURNOOL
Present: Smt. S.Nazeerunnisa, B.A., B.L., Lady Member, President (FAC),
And
Sri.M.V.R.Sharma, B.A., Member
Friday the 12th day of June, 2015
C.C.No.88/2013
Between:
Boya Shankaraiah,
H.No.15-129,
Shareen Nagar,
Kurnool -518002. …Complainant
-Vs-
1. The Branch Manager,
State Bank of India,
Treasury Branch,
H.No.46/1,
Kurnool-518002.
2. The General Manager,
State Bank of India,
Local Head Office,
Bank Street, Koti,
Hyderabad-500 095.
3. The Branch Manager,
SBI Life Insurance,
H.No.40/58, S.V. Complex,
Kurnool. …OPPOSITE PARTIES
This complaint is coming on this day for orders in the presence of Sri.P.Siva Sudarshan, Advocate for complainant and Sri.V.V.Krishnama Raju, Advocate for opposite party No. 1 and opposite party No.2 remained absent and set exparte and Sri.M.Syam Kumar Reddy, Advocate for opposite party No.3 and upon perusing the material papers on record, the Forum made the following.
ORDER
(As per Sri.M.V.R.Sharma, Member)
C.C. No.88/2013
1. This complaint is filed under section 11 and 12 of Consumer Protection Act, 1986 requesting this Forum to direct the opposite parties:-
- To refund the amount of Rs.12,000/- to the complainant with interest at 24% per annum from 07.02.2008 to till the date of realization with benefits.
- To pay a sum of Rs.10,000/- towards mental agony.
- To pay a sum of Rs.5,000/- towards cost of the complaint.
2. The case of the complaint in brief runs as follows:- The complainant availed loan a sum of Rs.1,61,595/- on 07.02.2008 from opposite party No.1 (for short herein called as OP) at the time of disbursement the loan. The OP.1 recovered Rs.12,000/- towards insurance premium saying that discharging the loan of the borrower dies his legal representative not to pay the loan amount. Later he paid entire loan amount but he did not receive insurance policy in this regard he approached several time OP 1 but the OP1 not issued policy and mis-appropriated the insurance amount without obtaining the policy. Hence the complaint.
3. Opposite parties 1 and 3 filed separate written versions.
The opposite party No.1 admitted that the complainant availed personal loan in a sum of Rs.1,61,595/- and also paid entire loan amount and closed the transaction and stated that the complainant paid insurance amount voluntarily and not by force, it is also stated that before discharging the loan if the borrower dies his legal representative not pay the loan amount.
Opposite party No.1 also stated that the opposite party No.2 is not at all is a necessary party and nothing to do with the transaction. The necessary party to the SBI Life Insurance Company it is established under a separate entity. Hence the complaint is liable to be dismissed with costs.
The OP 3 filed written version and admitted that the complainant had submitted a proposal bearing No.231012746 dated 07.02.2008 under Horizen II Plan a accordingly a policy bearing No.23025732304 was issued with its date of commencement as 29.02.2008 for assured of Rs.1,20,000/- with a annual premium of Rs.12,000/- and also denied that the insurance policy was taken with an assurance that before the discharging the loan if borrower dies his legal representatives do not have to pay the loan amount. This opposite party is not privy to what transpired between opposite parties 1 and 2 and the complainant and not aware of the loan transaction this OP had received the said proposal form and the policy was issued the same was dispatched to the complainant by speed post vide AWB NO.EMO44207370 IN on 07.03.2008. The same has never been returned undelivered if the complainant not received the policy documents he should have complaint to this Op and also acted as per the terms and conditions of the policy.
It is also stated that cause of action arisen when the premium was collected i.e., in February, 2008. Assuming but not admittedly that the cause of action as arisen in February, 2008, in the affidavit filed by the complainant along with the impleadment application the complainant has duly admitted the receipt of Rs.4,529/- which was paid towards surrendered value. The policy lapsed with effect from 28.02.2009 due to nonpayment of renewal premium. As per the terms and conditions of policy at the end of revival period the policy was terminated and surrendered value paid to the complainant hence it is humbly prayed that the Honourable Forum be pleased to dismiss the complaint with costs.
4. On behalf of the complainant Ex.A1 and Ex.A2 are marked and sworn affidavit of the complainant is filed. On behalf of the opposite parties Ex.B1 to Ex.B3 are marked by consent and sworn affidavit of opposite party No.3 is filed.
5. Both sides filed Written Argument.
6. Now the points that arise for consideration are:
- Whether there is deficiency of service on the part of opposite parties?
- Whether the complainant is entitled for the reliefs as prayed for?
- To what relief?
7. POINTS i and ii:- Admittedly the complainant availed a loan a sum of Rs.1,61,595/- on 07.02.2008 from OP1. The OP1 recovered a sum of Rs.12,000/- towards insurance premium. Later he paid entire loan amount he did not received the insurance policy and insurance premium amount which is recovered by OP1.
8. Per contra the contention of the OP1 is that the complainant paid insurance amount is voluntarily and not by force and also denied that before discharging the loan amount if the borrower dies his legal representative not to pay any loan amount. The OP2 is not at all necessary party and nothing to do with the transaction the necessary party is the SBI Life Insurance Company i.e., OP3.
9. On other hand the OP3 contended that the complainant submitted proposal under horizon II PLAN A accordingly the policy issued with a date of commencement and the same was dispatched to the complainant by speed post the receipt of Rs.4,529/- towards surrender value the policy lapsed with effect from 28.02.2009 due to nonpayment of renewal premium.
10. In the present case on hand there is no dispute the complainant an account holder of the OP1 bearing No.10937254174 as per Ex.A1. As seen from Ex.A2 it reveals that he availed personal loan a sum of Rs.1,61,595/- bearing loan account No.30323647200 on 07.02.2008. As seen from Ex.A1 OP1 received Rs.12,000/- towards insurance premium from SB Account on 07.02.2008. After recovery of insurance premium along with proposal from bearing No.231012746 on 07.02.2008 i.e., Ex.A1 the OP1 sent to the OP3 accordingly the OP3 issued the policy from the date of 29.02.2008 for a basic sum assured of Rs.1,20,000/- under horizon II PLAN A but the policy not received by the complainant. the contention of the OP3 the policy issued from the date of 29.02.2008 the same is dispatched to the complainant by the speed post vide AWB No.EM044207370 IN on 07.03.2008 the same has never been returned and delivered in this regard the OP3 not filed the speed post receipt to prove the contention.
11. The contention of the OP3 the complainant not paid renewal premium hence the policy terminated as per the terms and conditions. We paid to the complainant surrendered value under the policy Rs.4,529/- on 07.04.2014. But the OP3 not filed the policy to prove the invested the premium which is collected from the complainant of Rs.12,000/- in horizon II PLAN A also contended that the cause of action has arisen when the premium was collected in February, 2008 hence the complaint is barred by limitation the opposite parties not to say that the complaint barred by limitation the OP3 paid surrendered value to the complainant on 07.04.2014 hence the cause of action starts from 07.04.2014. Hence the contentions of the opposite parties not sustainable.
As per the above discussion we hold that the complainant proved deficiency of service on the part of opposite parties and the complainant is entitled for the remaining insurance premium amount after deducting surrendered value and also is entitled for compensation and costs. The Points are answered in favour of the complainant.
12. Point No.iii:-In the result, the complaint is allowed directing the opposite parties 1 to 3 jointly and severally to pay Rs.7,471/- with interest @ 9% per annum from the date of filing of the complaint and also to pay Rs.10,000/- towards compensation and to pay Rs.1,000/- towards costs of the complaint to the complainant. Time for compliance is one month from the date of receipt of this order.
Dictated to the stenographer, typed by her, corrected and pronounced by us in the open bench on this the 12th day of June, 2015.
MEMBER PRESIDENT (FAC)
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant: Nil For the opposite parties: Nil
List of exhibits marked for the complainant:-
Ex.A1 Loan Account Statement.
Ex.A2 Photo copy of Bank Pass Book.
List of exhibits marked for the opposite parties:-
Ex.B1 Photo copy of SBI Life Insurance Policy Proposal Form.
Ex.B2 Office copy of Policy Documents along with terms and conditions.
Ex.B3 Photo copy of Transaction cum Unit Statement.
MEMBER PRESIDENT (FAC)
// Certified free copy communicated under Rule 4 (10) of the A.P.S.C.D.R.C. Rules, 1987//
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Complainant and Opposite parties :
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