Date of Filing: 23.07.2012
Date of Disposal: 27.05.2013
DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, ANANTAPUR.
PRESENT: - Sri S.Niranjan Babu, B.A., B.L., President (FAC)
Sri M.Sreelatha, B.A.,B.L., Lady Member
Monday, the 27th day of May, 2013
C.C.No.42/2012
Between:
Bestha Lakshmi Devi,
W/o Late B.Chinna Hanumappa,
Gariselapalli Village,
Bathalapalli Mandal,
Anantapur District. … Complainant
Vs.
1. Andhra Pragathi Grameena Bank,
Rep. by its Branch Manager,
Ramapuram(A), Bathalapalli(M),
Anantapur District.
2. United India Insurance Company Limited,
Rep. by its Branch Manager,
Subash Road,
Anantapur. … Opposite Parties
This case coming on this day for final hearing before us in the presence of Sri P.Krishna Swamy Kumar and Sri A.Nagarjuna Reddy, Advocates for the complainant and Sri B.Nagalingam, Advocate for the 1st opposite party and Sri B.Satyanarayana Reddy, Advocate for the 2nd opposite party and after perusing the material papers on record and after hearing the arguments of both sides, the Forum delivered the following:
O R D E R
Sri S.Niranjan Babu, President (FAC): - This complaint has been filed by the complainant under section 12 of the Consumer Protection Act, 1986 against the opposite parties claiming a sum of Rs.1,00,000/- towards insurance amount with interest @ 12% p.a. from the date of accident i.e. 26.08.2010 till the date of payment and Rs.20,000/- towards mental agony.
2. The brief facts of the complaint are that: - The complainant is the wife of one B.Chinna Hanumappa who is the account holder of Sri Anantha Kisan Credit Card issued by the 1st opposite party. The complainant’s husband is having an S.B. account bearing No.2720 in the branch of 1st opposite party and also Kisan Credit Card holder of 1st opposite party insured by the 2nd opposite party vide the policy bearing No.051000/47/10/43/00000129. The husband of the complainant died in a road accident on 26.08.2010 a premium of Rs.5/- was debited in the account of the deceased on 31.10.2009. Subsequently the complainant submitted necessary claim forms to the 1st opposite party to forward it to the 2nd opposite party. In spite of repeated demands made by the complainant the claim amount was not paid to the complainant. Later the complainant got issued a legal notice dt.20.03.2012 but there was no reply for the said notice. Hence the complainant filed this complaint against the opposite parties 1 & 2 claiming a sum of Rs.1,00,000/- towards insurance amount with interest @ 12% p.a. from the date of accident i.e. 26.08.2010 till the date of payment and Rs.20,000/- towards mental agony.
3. The counsel for the 1st opposite party filed counter stating that B.Chinna Hanumappa opened Savings Bank Account bearing No.2720 and he became a Pragathi Kisan Credit Card holder with account bearing No.16022/20080329. The 1st opposite party submits that all Pragathi Kisan Credit Card holders who are below the age of 70 years are covered under the insurance policy. The 1st opposite party submits that an amount of Rs.5/- debited from the account of the deceased and the complainant is eligible to claim a sum of Rs.50,000/- in case of accidental death but not Rs.1,00,000/- as claimed by the complainant. The 1st opposite party further submits that each branch need not submit any statement giving the list of Pragathi Kisan Credit Card borrowers to be covered under PAIS and also need not remit any premium to the 2nd opposite party as per the terms of group master policy agreement entered by the bank, with the 2nd opposite party with effect from 01.08.2007. The policy to be renewed every year by submitting the branch wise details of Pragathi Kisan Credit Card accounts. The Head Office estimated the outstanding Pragathi Kisan Credit Card accounts basing on the information submitted by the branches and paid the premium to the 2nd opposite party for the renewal of the policy for a further period of one year with 5% extra premium to cover the fresh Pragathi Kisan Credit Card limits to be sanctioned. Branches shall obtain the list of the Pragathi Kisan Credit Card holders including LIC/DD and NPA accounts and are required to debit it to borrowers share of PAIS premium of Rs.5/- on due date i.e., after completion of one year from the earlier debit. For fresh Pragathi Kisan Credit Card account holders the premium shall be debited immediately and details shall be informed to Regional Office. Further the 1st opposite party submits that as per rules the 1st opposite party remitted the premium regularly to the 2nd opposite party promptly. Further the 1st opposite party submits the claim made by the complainant was forwarded to the 2nd opposite party and thereby the 1st opposite party fulfilled his duty by forwarding the claim of the complainant. Hence, there is no deficiency of service on the part of the 1st opposite party and it is the liability of the 2nd opposite party to settle the claim of the complainant.
4. The 2nd opposite party filed counter stating that the 2nd opposite party does not know that the complainant is the wife of the deceased B.Chinna Hanumappa who is the account holder of Sri Anantha Kisan Credit Card issued by the 1st opposite party who was having an S.B. Account bearing No.2720 but died on 26.08.2010 in an road accident. The allegation that all the Kisan Credit Card holders of the 1st opposite party are insured by the 2nd opposite party and in fact the 2nd opposite party is issuing policy subject to receiving the premium only and there is a specific condition laid down in the policy that if there is no premium there is no claim. Further the 2nd opposite party submits that the allegation made by the complainant that a premium amount of Rs.5/- was deducted from the deceased account along with the premium of other Kisan Credit Card holders is not true. Further the 2nd opposite party submits that in fact as on the alleged date of death of the deceased B.Chinna Hanumappa the policy was not in force due to non remittance of premium. Hence the question of the deceased covered under insurance policy does not arise. The 2nd opposite party repudiated the claim of the complainant vide letter dt.09.02.2011 stating the reasons for repudiation but the same was suppressed by the complainant. Further the allegation that the complainant issued a legal notice dt.20.03.2012 is also false. Further the 2nd opposite party submits that as the complainant’s husband is not at all a Pragathi Kisan Credit Card holder as on the date of death of the complainant’s husband, the 2nd opposite party has rightly repudiated the claim and there is no deficiency of service on the party of the 2nd opposite party.
5. Basing on the above pleadings, the following points that arise for consideration are:-
i) Whether there is any deficiency of service on the part of the opposite parties 1 & 2?
ii) To what relief?
6. In order to prove the case of the complainant, the complainant has filed his evidence on affidavit and marked Exs.A1 to A10 documents. The 1st opposite party filed his evidence on affidavit and marked Ex. B1, B4 to B8 documents on behalf of the 1st opposite party. The 2nd opposite party filed his evidence on affidavit and marked Ex.B2 & B3 documents on behalf of the 2nd opposite party.
7. Heard both sides
8. POINT: - The complainant’s husband by name B. Chinna Hanumappa opened Savings Bank Account bearing No.2720 in the 1st opposite party branch and he was also a member of Pragathi Kisan Credit Card. The 1st opposite party debited a sum of Rs.5/- from the account of the complainant’s husband as a premium and paid to the 2nd opposite party under Anantha Kisan Credit Card vide policy bearing No.051000/47/10/43/00000129 the said Rs.5/- was debited from the account of B.Chinna Hanumappa on 31.10.2009. Subsequently the said B.Chinna Hanumappa died in an road accident on 26.08.2010. As per the Kisan Credit Card policy all the Kisan Credit Card holders are insured for a sum of Rs.1,00,000/- as per the complainant’s version. After the death of the complainant’s husband the complainant submitted the claim forms with necessary documents to the 1st opposite party to forward it to the 2nd opposite party and as there was no reply from the opposite parties. The complainant got issued a legal notice on 20.03.2012 but there was no reply for that also.
9. The counsel for the 1st opposite party submitted that it is true that the complainant’s husband opened Saving Bank Account with the 1st opposite party branch and he was also a Pragathi Kisan Credit Card holder bearing No.16022/20080329. The counsel for the 1st opposite party submitted that a premium of Rs.5/- was also debited in the account of the deceased on 31.10.2009. The counsel for the 1st opposite party submitted that the sum assured under the policy in case of accidental death of the Kisan Credit Card holder is Rs.50,000/- only but not Rs.1,00,000/- as claimed by the complainant. Subsequently when the complainant submitted the claim forms to the 1st opposite party the same were forwarded to the 2nd opposite party. The counsel for the 1st opposite party submitted that the 1st opposite party was only a facilitator to the complainant and as soon as the claim forms were received the same were forwarded to the 2nd opposite party and thereby their responsibility is completed and there is no deficiency of service on the party of 1st opposite party.
10. The counsel for the 2nd opposite party submitted that the no amount was debited in the account of the deceased B.Chinna Hanumappa towards the premium as on the date of death of the deceased. As no premium is received on behalf of the deceased no claim will be entertained by the 2nd opposite party as no premium is debited in the account of the deceased. Further the 2nd opposite party submitted that the repudiation letter dt.09.02.2011 sent to the 1st opposite party which is marked as Ex.B3 stating the reason that the insured died on 26.08.2010 and the period of insurance under the policy is from 01.08.2010 to 31.07.2011 but the premium was debited as following:
S.No. Date of premium debit Policy Period Date of death
1. 16.03.2009 01.08.2008 to 31.07.2009
2. 31.10.2009 01.08.2009 to 31.07.2010
3. No debit 01.08.2010 to 31.07.2011 26.08.2010
It is very clear that the 1st opposite party has not debited the premium for the policy period from 01.08.2010 to 31.07.2011 during the period the insured died. Hence, as no premium was debited in the account of the deceased. The 2nd opposite party is not liable to pay any compensation as per the terms and conditions of the policy.
11. After hearing the arguments of the complainant and the opposite parties the main contention of the complainant is that the 1st opposite party has debited a sum of Rs.5/- in the account of the deceased on 31.10.2009 which is mentioned in the account extract of the deceased which is marked as Ex.A2. The contention of the 1st opposite party is that the insurance premium amount’s of different branches are collectively sent to the 2nd opposite party prior to the date of debit in the account of the deceased and in support of his contention the 1st opposite party filed a statement containing the total number of account holders of different village along with the sum paid towards insurance premium which is marked as Ex.B4.
12. Further the 1st opposite party wrote a letter to the 2nd opposite party divisional office Kadapa dt.03.09.2011 for which the Divisional Office Kadapa gave a reply dt.06.09.2011 stating that the 1st opposite party bank has paid the premium for all the Kisan Credit Card holders when exception and the matter was communicated to Divisional Manager, Anantapur telephonically at the time of renewing the policy for the year 2010-2011 which is marked as Ex.B6. Thus from the above letter it is evident that the 1st opposite party has paid the premium amounts of all the Kisan Credit Card holders of different branches by consolidatedly paying the premium to the 2nd opposite party. This shows clearly that the 2nd opposite party has received the premium amounts towards the Pragathi Kisan Credit Card holder of different branches from the 1st opposite party and whether the said premium is debited in the account of the Kisan Credit Card holders or not is immaterial to the 2nd opposite party. As soon as the premium amount is received by the 2nd opposite party from the 1st opposite party the Pragathi Kisan Credit Card holders are all covered under the insurance. Further when the claim was made by the complainant through the 1st opposite party to the 2nd opposite party it is the duty of the 2nd opposite party to settle the claim as the premium is received by the 2nd opposite party from the 1st opposite party. Whether the amount is debited in the account of the Kisan Credit Card holder or not and when the said premium amount is debited cannot be questioned by the 2nd opposite party to escape from the liability of paying compensation. As the said premium amount is already received by the 2nd opposite party from the 1st opposite party, the 2nd opposite party cannot escape from the liability of paying compensation. In view of the above observation the 2nd opposite party is liable to pay the compensation of Rs.50,000/- with interest @ 9% p.a. from the date of complaint till the date of realization.
13. In the result the complaint is allowed by directing the 2nd opposite party to pay a sum of Rs.50,000/- with interest @9% p.a. from the date of filing of the complaint till the date of realization within one month from the date of receipt of this order. The claim against the 1st opposite party is dismissed.
Dictated to the Steno, transcribed by him, corrected and pronounced by us in open Forum, this the 27th day of May, 2013.
Sd/- Sd/-
LADY MEMBER PRESIDENT (FAC)
DISTRICT CONSUMER FORUM DISTRICT CONSUMER FORUM
ANANTAPUR ANANTAPUR
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
ON BEHALF OF THE COMPLAINANT:
NIL
ON BEHALF OF THE OPPOISITE PARTIES
-NIL-
EXHIBITS MARKED ON BEHALF OF THE COMPLAINANT
Ex.A1 Attested copy of pass book issued by the 1st opposite party in favour of the
deceased B.Chinna Hanumappa.
Ex.A2 Attested copy statement of account relating to deceased B.Chinna Hanumappa
issued by the 1st opposite party.
Ex.A3 Photo copy Letter sent by the Andhra Pragathi Grameen Bank, Kadapa to the
2nd opposite party.
Ex.A4 Letter dt.22.03.2011 sent by the 1st opposite party to the 2nd opposite party
Ex.A5 Office copy of the legal notice dt.20.03.2012 got issued by the counsel for the
complainant to the opposite parties 1 & 2.
Ex.A6 Postal acknowledgements singed by the opposite parties 1 & 2.
Ex.A7 Photo copy of F.I.R. in Crime No.97/2010 of Bathalapalli P.S.
Ex.A8 Photo copy of inquest report relating to deceased B.Chinna Hanumappa.
Ex.A9 Photo copy of postmortem report relating to the deceased B.Chinna
Hanumappa.
Ex.A10 Photo copy of Charge Sheet filed by the Sub-Inspector of Police, Bathalapalli.
EXHIBITS MARKED ON BEHALF OF THE 1st OPPOSITE PARTY
Ex.B1 Attested copy statement of account relating to deceased B.Chinna Hanumappa
issued by the 1st opposite party.
Ex.B4 Attested copy of outstanding PKCC accounts as on 31.07.2010.
Ex.B5 Letter dt.03.09.2011 sent by the 1st opposite party to the Insurance Company.
Ex.A6 Attested copy of letter dt.06.09.2011 sent by the United India Insurance
Company to the 2nd opposite party.
Ex.B7 Attested copy of letter dt.12.03.2010 sent by Andhra Pragathi Grameena Bank
Kadapa to United India Insurance Company Kadapa.
Ex.B8 Letter dt.16.01.2013 sent by Pragathi Grameena Bank Kadapa to the
2nd opposite party.
EXHIBITS MARKED ON BEHALF OF THE 2nd OPPOSITE PARTY
Ex.B2 Attested copy statement of account relating to deceased B.Chinna Hanumappa
issued by the 1st opposite party.
Ex.B3 letter dt.09.02.2011 sent by the 2nd opposite party to the 1st opposite party.
Sd/- Sd/-
LADY MEMBER PRESIDENT (FAC)
DISTRICT CONSUMER FORUM DISTRICT CONSUMER FORUM
ANANTAPUR ANANTAPUR
