Judgment- Hon’ble Mr. Rajendra Kumar Panda
(President)
Brief facts of the Case :-
Concisely put, the Complainant who is the guardian of the nominee Sudarsana Bhuyan S/o Late Budu Bhuyan filed the Complaint U/s 35 of C.P Act,2019 against the Opposite Parties (in short Ops) Branch Manager (in short BM) Central Bank of India Paralakhemundi alleging deficiency in service and unfair trade practice. The Complainant stated that Late Budu Bhuyan subscribed the Govt. of India sponsored scheme “Pradhan Mantri Jeevan Jyoti Bima Yojana” (in short PMJJBY) after operating a passbook bearing Account No-3547518474 under the Op. The Op deducted Rs.330 as premium on dtd: 25.05.2021. But the Policy Holder was expired on 29.10.2021 by natural death leaving behind only one son cum nominee as legal heir cum successor during the subsistence of the said PMJJBY Policy. The Complainant averred that after the said unfortunate demise of Policy holder Budu Bhuyan, the facts of the said demise intimated to Op in the month of February 2022 by submitting claim form duly filled for release of death claim benefits under the scheme. It is alleged that the Op intentionally and deliberately avoid to release the claim benefits for which this Complaint for a direction to the Op to settle and release the death claim amount in favour of the Complainant who is the guardian of the nominee, to pay an amount of Rs.50,000/- as compensation for mental agony and harassment besides to pay an amount of Rs.5000/- towards the cost of litigation and such other reliefs.
Upon notice, the Op no-1 the Central Bank of India Paralakhemundi appeared through their Counsel and contested the Complaint by filing written replies. The Op BM Central Bank of India in its written reply, took preliminary objections that there is no deficiency in service on his part on any point of time. The Complainant has suppressed the material facts from this commission, as such they are not entitled to get any relief. It is further pleaded that PMJJBY is a scheme floated by Govt. of India in collaboration with the Life Insurance Corporation of India (in short LIC). Under the scheme the Govt of India directed all the Banks to facilitate the public to subscribe the PMJJBY by opening saving bank accounts. In the instant case, the deceased Budu Bhuyan of village Arsi Sahi Jeerango opened a saving bank account in the Op bank bearing No-3547518474 from which a particular amount towards the premium under the said policy was deducted and remitted to the account of the LIC of India and the LIC of India is solely liable under the said scheme to pay the death benefits to the nominee of the policy holders. It is also pleaded that after receipt of death claim cum discharge form from the nominee Sudarsana Bhuyan through his guardian Ajay Badamundi on 13.04.2022, this Op forwarded the death claim of Budu Bhuyan along with all relevant documents of the nominee to the Chief Manager, RD, Regional Office Sambalpur for onward submission to LIC of India for settlement vide its letter dtd:16.04.2022. The Op no-1 also furnished copies of all those papers to support his pleading. The Op Central Bank of India further submitted that it is the duty of the LIC of India being the insurer to release the insured amount in favour of the nominee under the said policy by entertaining the claim. The Op Central Bank of India also suggest the Complainant in his pleading that the Complainant ought to have to made a party to the LIC of India in this case as without whom, it is impossible to pass an effective judgment as this Op is only a facilitator to help the account holder to subscribe the policy from the LIC of India.
The Complainant on 6.11.2023 filed a amended petition by making BM LIC of India Paralakhemundi as Opposite Party no-2. This Commission by allowing the petition with amended Complaint issued notices along with copy of the amended petition to the Ops which were duly served.
The Opposite Party no-2 BM LIC of India Paralakhemundi appeared through their counsel filed reply by admitting the factual matrix stating western zone Mumbai -LIC of India have received the death claim intimation from the Central Bank of India and the said claim is under process. But LIC of India has not yet received the discharge receipt duly signed by the claimant and duly attested by the bank and Bank Statement with regard to auto debit of premium of the deceased account and Bank account details of the nominee as such LIC of India sought all those supra through e-mail dtd:15.03.2024 & 18.03.2024 from the Central Bank of India. In other way the LIC of India objected the allegations of the petition made by the Complainant on the ground of maintainability.
We heard the parties and have perused the entire record including the documents led evidence by the parties in support of their contentions.
Before any finding or going to pass any order it would be better mentioned here the details of Pradhan Mantri Jeevan Jyoti Jeevan Bima Yojana (PMJJBY).
Details of the scheme: The scheme will be a one-year cover, renewal from year to year. Insurance scheme offering life insurance cover for death. The scheme would be offered/administered through LIC & other life insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with banks for this purpose. Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers. A life cover of 2 Lakhs is available under the PMJJBY Scheme at a premium of Rs.330 per annum per member and is renewable every year. The premium will be deducted from the account holders savings bank account through “auto debit facility”. The savings bank account holder is eligible to enroll under the scheme whose age is between 18 years completed and within 50 years with life cover upto age 55. Participating banks will be the master policy holders. A simple and subscriber friendly administration and claim settlement process shall be finalized by LIC or any other Insurance Company in consultation with the participating bank.
Findings:
The grouse of the Complainant is that he submitted requisite documents and claim applications to the Op no-1 Central Bank of India Parlakhemundi for getting benefit under PMJJBY, but the Op no-1 slept on the matter and did nothing fruitful, causing mental agony and harassment. The stand of the Op no-1 is that after receipt of death claim cum discharge form from the nominee Sudarsana Bhuyan through his guardian Ajay Badamundi on 13.04.2022, this Op forwarded the death claim of Budu Bhuyan (death certificate marked Ext -2) along with all relevant documents of the nominee to the Chief Manager, RD, Regional Office Sambalpur for onward submission to LIC of India for settlement vide its letter dtd:16.04.2022. The Op Central Bank of India also suggest the Complainant ought to have to made a party to the LIC of India in this case as without whom, it is impossible to pass an effective judgment projecting as only a facilitator to help the account holder to subscribe the policy from the LIC of India. In their reply the Op no-1 not dispute the savings bank account bearing No-3547518474 marked Ext-1 operated in favour of late Budu Bhuyan and deduction of premium of Rs.330/- dtd-25.05.2021 towards PMJJBY marked as Ext-1/1. It is also observed that without raising any dispute in respect of the name of nominee after due formalities, the Op no-1 sent relevant papers to the Chief Manager, RD, Regional Office Sambalpur for onward transmission to LIC of India- the Op no-2 for release of amount as per PMJJBY scheme in favour of the nominee vide his letter dtd-16.04.2022 marked Ext-3. Further it is clear and proved from the version of the OP no-2 to whom the premium deposited as not disputed facts. The Op no-2 also averred by admitting the receipt of death claim intimation from the Central Bank of India simultaneously stated that LIC of India has not yet received the discharge receipt duly signed by the claimant and duly attested by the bank and Bank Statement with regard to auto debit of premium of the deceased account and Bank account details of the nominee and to reach the finality of the process with regard to release of the benefits sought all those supra through e-mail dtd:15.03.2024 & 18.03.2024 from the Central Bank of India. Therefore, it is clearly made out that the Op no-1 the Bank failed to remove the objection/query raised by the Op no-2 in respect of early release of benefits in favour of nominee Sudarsana Bhuyan under the PMJJBY scheme. The papers which required to finality the process of release certainly had to be done by the Op Bank as well as Op LIC of India as the LIC of India also slept till date over the papers only after issuing the e-mail on 15.03.2024 and 18.03.2024 which amounts deficiency in service on the part of both the Ops. The Ops are jointly under legal obligation to perform the part of the service in respect of their customer/consumer as required. However, the Ops are failed to do so. It appears that the Ops in order to hide their deficient act take pleas and thrown muds each other thereby misleading this Complainant in respect of his claim. From thorough analysis the Commission observed that the Ops are remain in silent mode and whatsoever only cover up their error and deficient act which is a clear act of negligence and carelessness on their part. Therefore, the present Complaint against the Ops with regard to deficiency of service is very well maintainable as such the Complainant sustained mental agony harassment, loss and has been forced to enter into present litigation. After considering all these observations this Commission finds that PMJJBY was launched by Govt. Of India to the eligible savings bank account holders. The father of the nominee who is the account holder under the Central Bank of India Paralakhemundi who was to act as a master policy holder. The Op no-1 Bank deducted the premium of Rs.330/- on 25.05.2021 which is evidenced from the statement of the passbook. After the death of the policy holder on dtd: 29.10.2021 his only son Sudarsana Bhuyan filed claim to release the benefits through his uncle/guardian Ajay Badamundi the present Complainant but the Ops till date without releasing the actual benefits under PMJJBY kept in abeyance.
O R D E R
Taking into consideration the above discussion and findings, we are of the opinion that the deficiency in service on the part of the Ops no-1 & 2 has been proved. Therefore, the present complaint is partly allowed with direction to the Opposite Parties No-1 & 2 to release Rs.2,00,000/- (Two Lakh rupees only) i.e Life cover on death under PMJJBY in favour of the nominee of the account holder and to pay litigation cost of Rs. 20,000/-(Twenty Thousand rupees only).
This order shall be compiled jointly and severally by the Opposite Parties within a period of 45 days from the date of receipt of copy of this order, failing which they shall be liable to compensate Rs.1,00,000/- (One Lakh rupees only) apart from the above relief and 12% interest shall be levied on Rs.2,00,000/- + 20,000 in total Rs.2,20,000 /- (Two Lakh Twenty Thousand rupees only).
A copy of the order supplied to the parties on their appearance at free of cost as mandated by the Consumer Protection Act, 2019. The parties to the case can also download same from File be consigned to the record room along with a copy of this Judgment duly signed in each page.
Date of Pronouncement 25.10.2024
