BEFORE THE DISTRICT FORUM: KURNOOL
Present: Sri K.V.H.Prasad B.A., LL.B., President
And
Smt C.Preethi, M.A., LL.B., Member
Sri R.Ramachandra Reddy B. Com., LL.B., Member
Thursday the 18th day of August, 2005
CD NO. 138/2003
K.Savithri,
W/o. Late K. Nagesh,
H.No. 1/45, Kalva Street,
Maddikera (Post and M),
Kurnool Dist. . . . Complainant.
-Vs-
The Branch Manager,
Syndicate Bank,
Maddikera (Post and M),
Kurnool Dist. . . . Opposite party
This complaint coming on 11.08.2005 for arguments in the presence Sri J.Laxminarayana, Advocate for complainant and Sri G.I.Ahmed, Advocate for opposite party and stood over for consideration till this day the Forum made the following.
O R D E R
(As per R.Ramachandra Reddy, Hon’ble Member)
1. This Consumer dispute complaint of the complainant is field under section 12 of C.P. Act 1986, seeking a direction on the opposite party Bank to pay the insured amount of Rs. 50,000/- with interest at 18% interest per annum from the date of death of the husband of the complainant till realization, to pay costs of the complaint and other relifs as a complainant may be entitled to be granted.
2. The gist of the complaint of the complainant is that the complainant is the wife of late K.Nagesh, who his a Kisan Credit Card holder and a member of “ Personal Accident Insurance Scheme for Syndicate Kisan Credit Card Holder” bearing No. SKCC No. 559/2001, the said credit card holder expired on 26.4.2002 in a road accident, leaving behind his wife (complainant) and three minor childrens. As per the terms of the above mentioned scheme, opposite party has to collect a sum of Rs.5/- from every borrower towards his share of premium and a sum of Rs.10/- is to be paid by the bank as its share of premium and debit the premium with “United India Insurance Company Ltd” in order to cover the risk of personal accident under Kisan Credit Card Holders Personal Accident Scheme” and on 18.3.2002 the opposite party deducted an amount of Rs.5/- from the account of Late K. Nagesh, and also paid its contribution amount of Rs.10/-. Then the complainant’s husband i.e., K.Nagesh was expired in an accident on 26.4.2002. The complainant is the wife and nominee of the Late K.Nagesh. And as per the terms of Personal accident Insurance Scheme, for Syndicate Kisan Credit Card Holders, the complainant is to be paid the insured amount of Rs.50,000/-. But the opposite party inspite of innumerable oral representations has not paid any amount to the complainant. And ultimately on 19.10.2002, the complainant issued an Advocate notice calling the opposite party and Insurance Company to pay the insured amount of Rs.50,000/- to the complainant and both the said parties received the notices and acknowledged by the opposite party. Then opposite party issued a reply notice dt 28.10.2002 through an Advocate. In the said notice all the facts stated above are accepted by O.P and in turn in the 3rd para of the notice it is stated that ” since the case is only in the process and since Insurance Policy is not yet issued either the Bank or the Insurance Company is not liable for payment of any amount under “Kisan Credit Card Holder Personal Accident Scheme”. As the premium has been collected more than one month age i.e on 18.3.2002 and the complainant husband died on 26.4.2002, duty casts on the opposite party to provide the benefits of the scheme as early as possible and opposite party simply can not escape the liability by saying that the said policy is under process even after one month of the deduction of the premium amount and further that in the reply notice, O.P has accepted that when the Head Office was processing the particulars of policies, the complainant husband died, and due to this admission made by opposite party, the insurance company is not added as a party though the notice was issued to them also. For the said latches on the part of opposite party they can not make the beneficiaries as victims. And it is humbly submitted that accident and death can not wait until their long and endless process is completed and that on account of Red Rapism dereliction of duty and negligence on the party of the opposite party, the complainant suffered loss and injury by not getting the insured amount. This attitude of the opposite party Bank in un necessarily delaying processing of the complainant’s claim and not submitting the said papers to the insurer to enable him to release the said insured amount of Rs,50,000/- to the complainant which covered under the (“ Personal Accident Insurance Scheme for Syndicate Kisan Credit Card Holder”) which is floated by OP Bank for welfare of Ryots and their families is certainly amounts to deficiency of service and liable to pay the said amount with interest from the date of the death of the beneficiary ( complainant’s husband) to the complaint / nominee .
3. The complainant in support of her case filed the documents besides her sworn affidavit in reiteration of her complaint averments, interrogatories of the complainant and answers for the interrogations of the OP and the above documents are marked as Ex A.1 to A.7 for its appreciation in this case.
4. In pursuance to the notice of this Forum as to this case of the complainant the OP Bank submitted its written version besides its sworn affidavit in reiteration of its averments, interrogatories dated 10.2.2004 and 24.3.2004 of the OP Bank to the complainant, reply of OP Bank to the interrogatories of the complainant and the above documents are marked as Ex B.1 to B.3 for its appreciation in this case.
5. The written version of the OP Bank is that the complaint of the complainant is neither just nor maintainable either in law or on facts except the allegations which are specifically admitted herein and denied all the allegations mentioned in the complaint as falls. The opposite party submits that the Personal Accident Insurance Scheme for Syndicate Kisan Credit Card holders (SKCC) covered under Circular No. 025-2002-BC-PSC dated 12.02.2002 under the guide lines issued by the General Manager. The Kisan Credit Card Holder has to pay Rs.5/- towards the premium amount and the opposite party has to pay Rs.10/- and a total amount of Rs.15/- has to pay to the Insurance Company and the policy will be inforce from the date of the Insurance Policy issued in the name of the Kisan Credit Card holder and the opposite party further submitted that the premium amount was sent to the Head Office immediately after deducting the premium amount of Rs.5/- from the deceased account without any further delay vide letter dated 23.3.2002 submitted to the Regional Manager, Syndicate Bank, Regional Office, Cuddaph a total sum of Rs.16,380/- of all the Syndicate Kisan Credit Card holder amount and the Head Office after receiving the premium amount and called for the Nomination of all the Kisan Credit Card holders and again the opposite party submitted the details collected from the credit card holders and submitted to the Head Office for further action vide letter dt 4.6.2002 to the Regional Office, Regional Manager, Syndicate Bank, Cuddapah with Form A. Before the issuing of the Insurance Police of United India Insurance Company, Kurnool the deceased K.Nagesh died on 26.4.2002. Hence, the opposite party is not held liable for any delay, latches, negligence and redtapism. The complaint is liable to be dismissed and further submitted that the opposite party gave a reply notice dt 28.10.2002 to the complainant by explaining all the details about the premium and policy of the deceased even then the complainant filed this complaint with an evil motive and malafide intention to harass the Bank officials when the opposite party paid Rs.10/- towards the Syndicate Kisan Credit Card holders for their benefits and welfare when the credit holder is to pay Rs.5/- only. The death of the deceased is unexpected and he met with an accident before the policy is issued as under process for that the opposite party is not held liable as per the circular issued by the G.M under the Syndicate Kisan Credit Card scheme. As the complainant knowingly about all the details about the procedure laid under the Kisan Credit Card holder scheme, this complaint filed to mislead the Court with baseless allegations. Hence, the complaint is liable to be dismissed with costs in the ends of justice.
6. Hence the point for consideration is whether the complainant has made out any deficiency of the opposite party Bank towards her and there by her entitleness to the reliefs sought?:-
7. The Ex A.1 is an xerox copy of legal notice of the complainant’s counsel dated 19.10.2002 addressed to the United India Insurance Company ltd, Kurnool and Branch Manager, Syndicate Bank, Maddikera (OP Bank), in which he mentioned the averments of his complaint and requested if the payment is not made within fortnight, his Client will be forced to seek her redress in an appropriate Forum. The Ex A.2 is the reply notice dated 28.10.2002 of the opposite party’s Bank counsel to the complainant’s counsel (Ex A.1) in which the OP Bank’s counsel informed that all the material papers submitted to the Regional Office and inturn the Regional Office send the amount to the Head office with all particulars of Policy holders etc., and the case is only in the process and since Insurance Policy is not issued either the bank (OP ) or the Insurance Company is not liable for payment of any amount under the Kisan Credit Card Holders personal accident scheme. The Ex A.3 is the certified copy of FIR, NO. 42 dated 26.4.2002 of Gooty Police Station. The Ex A.4 is the certified copy of inquest report. The Ex A.5 is the certified copy of postmortem certificate dated 27.4.2002. The Ex A.6 is an original death certificate of the complainant’s husband dated 27.4.2002 issued by the Secretary, Grama Sachivalayam, Gooty and the Ex A.7 is the certified copy of charge sheet of the Gooty police station in FIR No. 42 dated 26.4.2002. The facts of the Ex A.3 to A.7 being not disputed by the OP Bank, there remains any material to doubt their bonafidies for laying reliance.
8. The OP Bank relied is the case on the Ex B.1 to Ex B.3 and the same was got marked for their appreciation. The Ex B.1 is the circular No. 025-2002 –BC-PSC dated 12.2.2002 issued by the Head office of OP Bank on “Personal Accident insurance Scheme for Syndicate Kisan Credit Card Holder (SKCC) “ the material at para 7 (1) of the said circular (Ex B.1) in which it was clearly mentioned the Role of Branches “ “ Branches shall prepare a list of all existing SKCC holders and debit premium at the rate of Rs.5/- to the individual SKCC account insurance premium collection account”. The premium amount so collected (in SKCC personal accident insurance premium collection account) shall be remitted to the Nodal Office along with the list of SKCC holders within a week from the date of receipt of this circular. However, before debiting the insurance premium to SKCC account, the branches have to obtain and place on record necessary nominations from the existing SKCC holders. Any claim arising out of non remittance of premium in time will invite accountability and hence branches shall ensure prompt remittance of premium collected to RO as per procedure prescribed earlier. The Ex B.2 is the letter ref No. 3376/SKCC/PAIS dated 23.3.2002 of the opposite party Bank addressed to the Regional Manger, Regional Office, Cuddapah, which was in reply to the letter ref No. 374/ROC/RBC/F317/ 2002 dated 15/3/2002 of Regional Office in which the material reveals that the OP Bank has forwarded along with the said letter i.e Ex B.2, the Mail transfer No. 1/ 2002 dated 29.3.2002 for Rs. 16,380/- being the amount of premium (both borrowers’ share and Banks’ share) in respect of SKCC barrower and under SKCC, PAIS, Form A showing the details of borrowers will be submitted after getting information form the borrowers. In this connection the OP Bank requested Regional Office to send 600 copies of Form A for use of his (OP) office. The Ex B.3 is the letter Ref No. 3376/PAIS/ 2002 dated 4.6.2002 of the OP Bank addressed to the Regional Manger, Regional Office, Cuddapah which was in reply to the letter Ref No. 634/ROC/RBC/PAIS/ F317 /2002 dated 29.5.2002 of Regional Office in which the material reveals that the OP Bank has forwarded along with said letter i.e Ex B.3, the Form A in respect of SKCC holders who are covered under PAIS as on 31.3.2002 and further informed to the Regional Office that all the columns except nominations are filled and nomination particulars will be sent to Regional Office after obtaining the particulars from the SKCC holders.
9. It is clearly seen and observed from the above correspondence (Ex B.2 and Ex B.3) and the circular dated 12.2.2002 ( Ex B.1) that the OP Bank has blatantly violated the said instructions of the Heard office of OP Bank, which are mentioned at para 7 (1) i.e the premium amount so collected (in SKCC Personal Accident Insurance Premium collection amount) shall be remitted to the Nodal Office along with list of SKCC holders within a week form the date of receipt of the said circular ( dated 12.2.2002) however, before debiting the insurance premium to SKCC account, the branches (OP Bank) have to obtain and place on record necessary nominations from existing SKCC holders . Where as the OP Bank while acknowledging the receipt of letter No. 374/ROC/RDC/F317/2002 dated 15.3.2002 on 23.3.2002 (Ex B.2) forwarded the Mail Transfer No. 1/2002 dated 23.3.2002 for Rs. 16.380/- being the amount of premium, in respect of SKCC borrowers under SKCC PAIS. This act of OP Bank is in contrary to the circular instructions at para 7 (1) of the Head office (Ex B.1), wherein it was mentioned in clear terms that before debiting the insurance premium to SKCC account, the Branches have to obtain and place on record necessary nominations from the existence SKCC holders. Where as the Op Bank in the said letter requested the Regional Office to enable to send the said information, the OP Bank has to need six hundred copies of Form A papers for his office use and further the OP bank has sent the said papers on 4.6.2002 duly filling all the columns except nomination particulars and the same will be sent to the Regional Office after obtaining particulars form the SKCC holders as on 31.3.2002 (Ex B.3). This lethargic attitude of the OP Bank clearly establishes from the correspondence material in Ex B.2 and Ex B.3 which was contrary to the guidelines, instructions and sprit of para 7(1) of Circular dated 12.2.2002 of the Head Office which cogently requires the OP Bank (which is one of the Branch of the Head Office), before the debiting the insurance premium to SKCC account have to obtain and place on record necessary nominations form the existence SKCC holders, as the complainant’s husband also among one, utterly failed in not keeping the require Forms i.e Form A, readily to enable the OP Bank to follow the necessary formalities which are required tobe observed under the said Head Office circular (Ex B.1) Instead, if the opposite party Bank would have followed the circular instructions of para 7(1) ( Ex B.1) carefully, he would have send the required information in FORM A in time to the RO, for onward submission to H.O. There the H.O would have submitted the same to the United India Insurance Company for issual of policy to the concerned SKCC holders. Later on it was the look out of the said company to settle the claims of SKCC holders i.e complaint.
10. Therefore, in the circumstances discussed above as there appears a careless and lethargic conduct of the OP Bank with supine in difference to comply with the salient features of the “Personal Accident Insurance Scheme for Syndicate Kisan Credit Card Holders (SKCC)” and keeping up in its tall promises, the deficient conduct of the OP Bank and there by the deficiency of the service to the complainant is made out and hence there remains every bonafidies in the complainant cause of action and there by her entitleness for the reliefs sought.
11. Consequently, the complaint is allowed directing the OP Bank to pay the insured amount of Rs.50,000/- to the complainant with interest at the rate of 9% per annum from the date of the death of the complainant’s husband, K.Nagesh i.e 26.4.2002 and Rs.2,000/- as costs within a month of the receipt of this order. In default the OP Bank shall pay the supra awarded amount to the complainant with 12% interest per annum from the date of the said default till the date of realization.
Dictation to the Stenographer type to dictation corrected by us, pronounced in the Open Court this the 18th day of August, 2005.
PRESIDENT
MEMBER MEMBER
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant For the opposite parties
-Nil- -Nil-
List of Exhibits Marked for the complainant:-
Ex A.1 Xerox copy of legal notice dated 19.10.2002 notice addressed to the
Unite India Insurance Co., Ltd, Kurnool and Branch Manager, Syndicate
Bank, Maddikera.
Ex A.2 Reply notice dt 28.10.2002 of the opposite party’s counsel to the
complainant counsel.
Ex A.3 Is the certified copy of FIR, NO. 42, dt 26.4.2002 of Gooty Police
Station.
Ex A..4 Is the certified copy of inquest report.
Ex A.5 Is the certified copy of postmortem certificate dated 27.4.2002.
Ex A.6 Is an original death certificate of the complainant’s husband dated
27.4.2002
Ex A.7 Is the certified copy of charge sheet of the Gooty police station in
FIR NO. 42 dated 26.4.2002.
List of Exhibits marked for the opposite party:-
Ex B.1 The circular No. 025-2002-BC-PSC, dated 12.2.2002 issued by
Syndicate Bank.
Ex B.2 The letter Ref No. 3376/SKCC/PAIS dated 23.3.2002 of the opposite
party Bank addressed to the Regional Manager, Regional Office,
Cuddapah.
Ex B.3 The letter Ref No. 3376/PAIS/2002 dated 4.6.2002 of the opposite party
Bank addressed to the Regional Manager, Regional Office, Cuddapah.
PRESIDENT
MEMBER MEMBER
Copy to:-
1. Sri J.Laxminarayana, Advocate, Kurnool for the complainant.
2. Sri G.I. Ahmed, Advocate, Kurnool for the opposite party.
Copy was made ready on:
Copy was dispatched on:
Copy was delivered to parties:
