Tamil Nadu

South Chennai

CC/260/2022

E.Sivaprakash and another - Complainant(s)

Versus

The Centre Manager (Branch Office), Claims Department, Canara HSBC Oriental Bank of Commerce - Opp.Party(s)

M/s. R. P. Paneer Selvam

15 Jun 2023

ORDER

Date of Complaint Filed : 03.08.2022

Date of Reservation      : 06.06.2023

Date of Order               : 15.06.2023

          DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT:    TMT. B. JIJAA, M.L.,                                            : PRESIDENT

                        THIRU. T.R. SIVAKUMHAR, B.A., B.L.,           :  MEMBER  I 

                        THIRU. S. NANDAGOPALAN., B.Sc., MBA.,   : MEMBER II

               

CONSUMER COMPLAINT No.260/2022

THURSDAY,THE 15^th DAY OF JUNE 2023

1.E. Sivaprakash.
   S/o.Easwarappa,

2.Minor.S.Aadharsh,
   (Represented by his father
   E.Sivaprakash),
   No.18, Rajendraprasad Road.
   Gayathri Nagar,

   Hasthinapuram
   Chrompet,

   Chennai - 600 044.                                                     .. Complainants.

-Vs-

1.The Centre Manager (Branch Office),

   Claims Department,
   Canara HSBC Oriental Bank of Commerce,
   Life Insurance Company Ltd.
   Mezzanine Floor, We Scare Tower,
   Door No.16 (16/1 & 16/2),
   Cenotaph Road,

   Teynampet,
   Chennai- 600 018.

 

2.The Manager,

   Canara Bank,

   Hasthinapuram Branch,

   R.P. Road, Chrompet,

   Chennai – 600 044.                                           ..Opposite Parties.

* * * * *

Counsel for the Complainant   : M/s. R.P.Panneeer Selvam

 

Counsel for 1^stOpposite Party    :  (Exparte on 27.10.2022)

 

Counsel for 2^ndOpposite Party    :  Mr.N.Karunanidhi

 

On perusal of records and upon hearing the oral arguments of the counsel for Complainant and the counsel for the 2^nd Opposite Party this Commission delivered the following:

ORDER

Pronounced by the President Tmt. B. Jijaa, M.L.,

(i) The Complainant has filed this complaint as against the Opposite Parties under section 35 of the Consumer Protection Act, 2019 and prays to direct the Opposite Parties to pay the Insurance benefit of Rs.2,00,000/- to the Complainant as assured under the PMJJBJ Scheme with 18% interest per annum and to pay a sum of Rs.2,00,000/- towards compensation for mental agony, physical hardship and financial loss suffered by the Complainant and for the cost of the Complainant.

I.  The averments of Complaint in brief are as follows:-

1. The 1^st Complainant submitted that his wife Smt.M.Logasri, during her life
time operated Savings Bank Account bearing No.5219101000 965 in the 2^nd Opposite Party Canara Bank Branch, situated at No.9, R.P. Road, Gayathri Nagar Hasthinapuram, Chrompet, Chennai-600 044. The customer I.D.No.86737738 has been provided for the above Savings Account. In Specific the Savings Bank Account is a Joint Account with her husband E.Sivaprakash, the Complainant. Further Mrs.M.Logasri, nominated E.Sivaprakash, the Complainant as her nominee for the said Savings Bank Account.

2.     The Complainant further submitted that his wife Mrs.M.Logasri, during her lifetime joined as a member in Pradhan Mantri Jeevan Jothi Bima Yojana
Insurance Scheme. The yearly premium for the Insurance Scheme fixed as
Rs.330/- per annum per member. The said premium has been deducted from Mrs.M.Logasri's Savings Bank Account from Canara Bank Savings Account through "AUTO DEBIT" facility in one instalment. The benefit assured for the said scheme obviously confirmed as Rs.2 Lakhs payable on member's death due to any reason.

3. The Complainant submitted that the Insurance Premium for yearly payment to be paid from 1^st June to 31^st May of (next year) every year according to the provisions of the Insurance Scheme. Regarding this the Complainant's wife being a member of the Insurance Scheme regularly paid her annual premium of Rs.330/- through "AUTO DEBIT" facility from her Savings Bank Account of Canara Bank and on 24.5.2021 for the period of 2021 to 2022.

4. The Complainant's wife Mrs.Logasri expired on 08.02.2022 leaving behind her husband E.Sivaprakash and her minor son S.Aadarsh, aged 7 years. Hence being a nominee/husband of Mrs.M.Logasri, the Complainant filed his claim petition for the death benefit of Rs.2 Lakhs as assured by the Insurance Policy conditions to the Canara Bank Authorities on 04.03.2022 with Death certificate and legal heir certificate of Late Mrs.M.Logasri. The Canara Bank authorities arbitrarily rejected the lawful claim petition dated 04.03.2022 of the Complainant and sent a letter on 31.3.2022 with untenable and inconsistent reasons.

 5.     In the above circumstances the Complainant being the nominee and legal heir of the deceased Mrs.M.Logasri, sent a legal notice to the Opposite Party and the Head office of the Insurance Company through his Advocate on 28.04.2022, both the notices were received by the appropriate authorities, but they did not come forward to redress the genuine claim of the Complainant till date. Hence without any other alternative, the Complainant filed this complaint with his minor son for the redressal of his genuine claim.

II. The 1^st Opposite Party was set ex parte:     

Notice was sent to the Opposite Parties and was duly served to the Opposite Parties. Despite the notice being served to the 1^st Opposite Party and having appeared before this Commission through an Advocate, but did not filed written version on the hearing date i.e. on 27.10.2022. Hence the 1^st Opposite Party called absent and set ex-parte on 27.10.2022. Subsequently, the case was proceeded to be heard on merits.

III. Written Version filed by the 2^nd Opposite Party in brief is as follows:-

6.     The 2^nd Opposite Party is not a necessary party to the above said complaint. Smt.M.Logasri, was maintaining an account with the 2^nd Opposite Party vide S.B.Account No.5219101000965 is hereby admitted. The said same Bank Account is a joint Account with the 1^st Complainant and Mrs. M. Logasri nominated Mr.E.Sivaprakash, as her nominee is to be proved only by the Complainant.

7.     The allegations about the said Logasri during her life time joined as a
Member in Pradhan Mantri Jeevan Jothi Bima Yojana Insurance Scheme (PMJJB4) is also to be proved only by the Complainant. The said Bhima Yojana Insurance Account is liable to be maintained by the Account Holder as per the rules and regulations of the Bank only.

8.     The Auto Debit facility from her Savings Bank Account of Canara Bank
on 24.05.2021 and maintaining the account with sufficient amount for the
period of 2021 to 2022 for payment of Insurance as alleged is also to be proved by the Complainant.

9.     The various allegations about the demise of Mrs. Logasri who expired on 8.2.2022 and her estate was succeeded by the Complainant are to be proved only by the Complainant.  As per the documents submitted by the Complainant, the Account Holder Mrs. Logasri died on 08.02.2022.  The complaint is to filed before the Authorities concerned namely “The complaint Redressal Unit, Gurugram, Haryana” and Insurance Ombudsman who are the competent authority to decide the Insurance matters. Without exhausting the remedy, the Complainant had approached this Hon’ble Court  and the same is not sustainable. In any event, the relationship between the Opposite Party and the Complainant is not in existence.  The entire case is revolving the payment of insurance amount. There is no deficiency in service caused in this matter by second Opposite Party.

10.    The 2^nd Opposite Party submitted that the premium amount of Rs.330/- by way of Auto Debit Scheme could  not be done since there is no sufficient amount on 24.05.2021 lying in the account of the Insurer and if it was available the said amount should have been debited on 24.05.2021. Therefore, the amount of insurance premium is not available in the account of the Insurer to debit the same to the credit of the Insurance premium.

11.    Therefore, the 2^nd Opposite Party submitted that the Complainant was not maintaining the required amount in their account in which the 2^nd Opposite Party has to debit the said amount. In fact an amount of Rs.153.03 alone was available in the account. Without sufficient amount the Complainant cannot expect the Auto debit to pay the premium. As such the contention of the Complainants are liable to be rejected in all canons of law. Therefore, the Complaint is liable to be rejected on the ground of Non-availability of amount in the said account on 24.05.2021 i.e the date of Auto Debit and the same could not be debited, as claimed. There is no deficiency on the part of 2^nd Opposite Party and the said Complainant has to pay damages to the 2^nd Opposite Party for unnecessarily implicating the 2^nd Opposite Party in this matter. Hence to dismiss the complaint.

IV.    The Complainant has filed his proof affidavit, in support of his claim in the complaint and has filed 10 documents which are marked as Ex.A1 to Ex.A10. The 2^nd Opposite Party had submitted his proof affidavit and Ex.B1 was marked on their side. Both the Complainant and 2^nd Opposite Party had filed their written arguments.

V. Points for Consideration:-

1. Whether there is any deficiency in service on the part of the Opposite Parties?

2. Whether the Complainant is entitled for the reliefs sought for?

3. To what other relief,  the Complainant is entitled to?

POINT NO. 1 to 3 :-

12.    The undisputed facts are that the Complainant and his wife Smt.M.Logasri, was maintaining a joint Savings Bank Account with the 2^nd Opposite Party vide S.B.Account No.5219101000965. It is also not in dispute that during her life the Complainant’s wife Smt.M.Logasri joined the Pradhan Mantri Jeevan Jothi Bima Yojana Insurance Scheme. As per Exs.A-4 and A-5 the Complainant's wife Mrs.Logasri expired on 08.02.2022 leaving behind her husband E.Sivaprakash and her minor son S.Aadarsh, the Complainants. Hence being a nominee/husband of Mrs.M.Logasri, the Complainant had filed his claim petition seeking the death benefit of Rs.2,00,000/- from the Opposite Parties under the PMJJBY Scheme on 04.03.2022 as seen from Ex.A-7.

13.    According to the Complainant the Insurance Premium for yearly payment to be paid from 1^st June to 31^st May of (next year) every year according to the provisions of the Insurance Scheme. The Complainant's wife being a member of the Insurance Scheme regularly paid her annual premium of Rs.330/- through "AUTO DEBIT" facility from her Savings Bank Account of Canara Bank and on 24.5.2021 for the period from 2021 to 2022.

14.    Per contra, the 2^nd Opposite Party submitted that the Complainant was not maintaining the required amount in her account in which the 2^nd Opposite Party had to debit the said amount. In fact an amount of Rs 153.03 alone was available in the account. Without sufficient amount the Complainant cannot expect them to pay the premium by Auto debit. Therefore, the Complaint is liable to be rejected on the ground of Non-availability of amount in the said account on 24.05.2021 i.e the date of Auto Debit and the same could not be debited, as claimed.

15.    A perusal of Ex.B-1 would show that on 24.05.2021 a sum of Rs.153/- was alone availed when a sum of Rs.330/- was necessary to auto debit from the Complainant’s wife Mrs.Logasri’s Savings account towards the PMJJBY Scheme Renewal. However on 31.05.2021 when a considerable sum of money was deposited by the Complainant, the 2^nd Opposite Party had debited the balance amount of Rs.176.97 on 31.05.2021. But for the best reasons known to the 2^nd Opposite Party the sum of Rs.330/- was deposited on 01.06.2021 in the account of the said Logasri.

16.    As per the notification of Finance Department, Government of India dated 12.10.2021 with regard to the PMJJBY Scheme, Clause 9(4) reads as “ If the insurance cover is ceased due to insufficient balance on due date or due to exit from the scheme, the same can be reinstated on receipt of appropriate premium as mentioned in para 3 above, subject however to the cover being treated as fresh and the 30 days lien clause being applicable.”

17.    As per Clause 3 “Delayed enrolment for prospective cover is possible with payment of pro-rata premium as described below;

a) For enrolment in June, July and August – Full Annual Premium of Rs.330/- is payable.”

Further Clause 10 states that “It is the responsibility of the participating bank/Post office to recover the appropriate premium in one instalment as per the option, from the account holder on or before the due date through ‘auto-debit’ process.

18.    The Complainant’s wife Mrs.Logasri had authorised the 2^nd Opposite Party to auto debit the premiums to be payable to the PMJJBY Scheme. It is true that on 24.05.2021 a sum of Rs.153.03 alone was available. But subsequently on 31.05.2021 the Complainant’s wife Mrs.Logasri had deposited Rs.19,992/- in her account and the balance amount of Rs.176.97 was auto debited on 31.05.2021. The 2^nd Opposite Party is silent on the subsequent auto debit and deposit on 01.06.2021.

19.    When the Complainant’s wife Mrs.Logasri had authorised the 2^nd Opposite Party to recover the insurance premiums through auto debit, it is the responsibility of the 2^nd Opposite Party to recover the premium subsequently as envisaged in Clause 9(4) and 3 of the said Notification.

20.    The contention of the 2^nd Opposite Party that the Complainant had to make complaint before the Authorities concerned namely “The complaint Redressal Unit, Gurugram, Haryana” and Insurance Ombudsman who are the competent authority to decide the Insurance matters and without exhausting the remedy, the Complainant had approached this Hon’ble Court is not sustainable, as the remedy available under the Consumer Protection Act, it only an additional remedy, not in derogation of any other law and hence the complaint is maintainable. 

21.    Therefore this Commission is of the considered view that the act of the Opposite Parties in rejecting the death claim of the Complainant on the ground that the annual renewal premium for the year 2021-2022 was not received amounts to dereliction of duty and negligent act on the part of the Opposite Parties when the responsibility is on them to recover the premium on auto debit basis as it is well known practice of the banks to recover the deficit amount whenever deposits are made in the accounts, maintained with the Bank.

22.    The Opposite Parties are jointly and severally liable to pay the Insurance benefit of Rs.2,00,000/- to the Complainant as assured under the PMJJBY Scheme with 9% interest per annum, from the date of rejection till the date of realization and to pay a sum of Rs.20,000/- as compensation for the deficiency in service along with a sum of Rs.5000/- towards cost of the litigation within 8 weeks from the date of receipt of the order.  Accordingly the points are answered.

         In the result, the complaint is allowed in part. The 1^st and 2^nd Opposite Parties are jointly and severally directed to pay the Insurance benefit of Rs.2,00,000/- (Rupees Two Lakhs Only) to the Complainant as assured under the PMJJBY Scheme with interest at the rate of 9% p.a from the date of rejection till the date of realisation and to pay a sum of Rs.20,000/- (Rupees Twenty Thousand Only) as compensation for the deficiency in service along with cost of Rs.5,000/- (Rupees Five Thousand Only) to the Complainant, within 8 weeks from the date of receipt of this order.

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 15^th of June 2023.

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                 B.JIJAA

         MEMBER II                       MEMBER I                        PRESIDENT

 List of documents filed on the side of the Complainant:-

Ex.A1	24.12.1993	Xerox copy of canara Bank savings Account pass book of Mrs. Logasri.M
Ex.A2	12.10.2021	Xerox copy of Notification of Finance Depart, Government of India regarding PMJJBY-Scheme.
Ex.A3	18.04.2022	Xerox copy of Mrs.Logasri M Bank Account Statement from 1.1.2021 to 18.4.2022.
Ex.A4	01.03.2022	Xerox copy of  Death certificate of Mrs.Logasri. M died on 8.2.2022.
Ex.A5	07.03.2022	Xerox copy of  legal heir certificate  of  late Mrs.Logasri.M
Ex.A6	18.04.2022	Xerox copy of  PMSBY and PMJJBY claim details for claim petition dated 4.3.2022 from Asha Ram (Staff No.86611).
Ex.A7	31.03.2022	Xerox copy of claim rejection petition from to Mr.Sivaprakash.E  from claim Department.
Ex.A8	28.04.2022	Xerox copy of Legal Notices to the Branch Office, Chennai 600 018 and Haryana -122003 by Mr.Sivaprakash through his Advocate.
Ex.A9	29.04.2022	Xerox copy of postal acknowledgement statement from Chennai 600 018.
Ex.A10	02.05.2022	Xerox copy of  postal acknowledgement statement from Haryana 122 003.

 

List of documents filed on the side of the 2^nd Opposite Party:-

 

Ex.B1

26.10.2022

Xerox copy of Statement of Account issued by the Opposite Party.

 

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                   B.JIJAA

         MEMBER II                       MEMBER I                        PRESIDENT