DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, SUBARNAPUR
C.C. No.5 of 2013
Prakash Kumar Mahapatra, S/o. Late Siddheswar Mahapatra, aged about 53 years, R/o. Ghodaghatpada, Sonepur town, P.O./P.S. Sonepur, District – Subarnapur
………….. Complainant
Vrs.
The Chief Branch Manager, State Bank of India, Sonepur, AT/ P.O./P.S. Sonepur, District – Subarnapur
………….. Opp. Party
Advocate for the Complainant …………. Sri S.K. Meher
Advocate for the O.P. …………. Sri G.S. Panda
Present
1. Sri U.N.Purohit, President
2. Sri H.Padhan Member
Date of Filing Dt.02.08.2013
Date of Hearing Dt.17.01.2023
Date of Order Dt.08.02.2023
J U D G E M E N T
By Sri U.N.Purohit, P.
The complainant files complaint U/s.12 of the Consumer Protection Act 1986.
The brief fact of the complaint is that he is a cultivator and he cultivating lands of Khat a No.118 of Mouza – Sargunamunda recorded in the name of his Mother Binodini Mahapatra who authorized by Affidavit to cultivate the aforesaid khata lands and to mortgage the said land obtaining agricultural loan from the financial institution. Accordingly the complainant obtain KCC loan from SBI Sonepur in the year 2009. As per SOP issued by Government of India for PMFBY/RWBCIS it is the duty of the financer to debit Crop Insurance premium from the loan account and deposit the same to concerned Insurance Company against any financial loan of the Crop. The SBI debited the Crop Insurance premium from his account in the year 2009 and 2010 but inspite of repeated request in the year 2011 the SBI failed to debit the Crop Insurance premium though the KCC loan was continued by that time. Unfortunately in the year 2011 the entire Crop of the complainant were damaged due to short fall of rain and Government declared 83% Crop Loss. As per Government declaration the complainant has to get Rs.83,000/-
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as compensation for his crop loss of the year 2011 but due to negligence/deficiency of service by the O.P. the complainant sustained heavy financial loss of Rs.83,000/- as declared by the Government for the year 2011. The complainant sustained mental agony and pain for harm caused by the O.P. due to negligence and dereliction of duties in debiting the premium. The complainant claims Rs.83,000/- as crop loss, Rs.30,000/- as compensation for mental pain and harassment and Rs.5000/- as cost of litigation.
On the other hand the O.P. filed version denying the allegation of the complaint petition stating that the complainant availed KCC loan bearing loan A/c. No.30814705185 on application of complainant loan was sanctioned the complainant executed hypothecated agreement in the standard form and according to insure the crop against loss or damages; Clause 9 of hypothecation agreement reads as “ The borrowers shall at all times keep such items of security as are of insurable nature insured against loss or damage by fire another risks as may be required by the Bank and shall delivered to the Bank all such policies. In the event of the securities created in favour of the Bank become insufficient the Bank reserve the right to demand such additional securities as may be required. ” The account mentioned above was closed by the complainant on 13.08.2012, the complainant is no more a Consumer as the account is no existence. The present complaint is illegal and out of jurisdiction and the complaint petition illegal to be dismissed. Further the O.P. prescribed that on 13.08.2012 again the complainant applied for KCC loan which was sanctioned by the O.P., the complainant executed Hypothecated agreement on 13.08.2012 for Rs.1,00,000/-. Further the complainant has given authorization letter to the Bank to debit the insurance premium from his loan account or personally deposit the insurance premium to insure their crop. In the present case complainant has failed to give proper authority to the Bank and the prescribed form to debit the insurance premium from his loan account. The complainant has neither approached the Bank verbally to pay the premium for the crop insurance nor he has paid the crop insurance amount in the year 2011, it is
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false to say that the loan sanctioned in the year 2009 is still continuing in fact the loan account 30814705185 was closed on 13.08.2012 on request of the complainant. It is false to say that the O.P. has debited sou moto crop insurance premium in the year 2009 and 2010 as per banking practice the borrower either authorized bank with a standard instruction to debit amount specified for the purpose or he is to offer the debit voucher for the amount towards the insurance premium. The complainant has failed to perform any of the option to pay the insurance premium. It is misconceived by the complainant that the O.P. inspite of several request of the complainant failed to deposit the crop insurance for the year 2011 KCC loan. The complainant has never deposited or given any authority to debit the insurance premium from loan account of the year 2011. The insurance company is a by party contract. 31st July of each year is the cut up date for payment of premium towards the crop insurance. Relevant date for the purpose of cause of action should be 31.07.2011 and the complaint petition filed on 02.08.2013, so it is appeared by limitation there is no deficiency, negligence for service by the O.Ps., the complainant has failed to take care of his crop by paying insurance premium for getting security coverage, the present petition is not maintainable.
From the pleading of both the parties the following questions needs to answer to arrive the conclusion of the case.
i). Is the complainant a Consumer ?
ii). Is the complainant is bound to give option to debit the insurance premium from loan account by the standard form.
iii). Is the SOP issued by the Government of India is binding to the O.P. to deposit the insurance premium from KCC account of the complainant.
iv). Is the O.P. is deficient in service not deducting or depositing insurance premium from KCC loan account.
v). Whether the complainant is entitled to get relief ?
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The complainant is an account holder and it is admitted by the O.P., the complainant availed KCC loan for the year 2011 and the loan account was continuing in the year 2012. The case has been filed in the year 2013 for the deficiency of service by the O.P. for the year 2011 by that time the loan account was operating by the O.P. and the complainant availing Banking service hence the complainant is a consumer.
Going through the pleading the O.P. claims that the complainant has to authorized the Bank in the standard form for debiting the crop insurance premium from his account or debit voucher by the complainant on the other hand the complainant claims that he requested the Bank orally and had been to the Bank for said purpose several times in support of his claim he relied on the standard of procedure (SOP) issued by the Government of India which is circulated by agricultural Business Unit SBI to all the branches regarding PMFBY in Annexure – I it has been discussed including enrolment of farmer (Loanee and non Loanee) facilitated opting out and opting in process of loanee Farmer participating / enrolment. On pre enrolment activities clause 3 shows that :
3. Ensure that all branches within their jurisdiction sanction additional loan component to Loanee farmers towards premium payable by them while issuing KCC.
7. Branch users can download previous year reports of farmer applications enrolled by them. This may include farmer name, account number, Aadhar number, crop insured, village etc. Proper creation and maintaining such data sheet will help bank branch users in verifying farmers application details before enrolling on NCIP.
8. Aadhar is mandatory for coverage/enrolment under the PMFBY/RWBCIS Scheme. Hence ensure all bank branches have updated/latest Aadhar details of all the Loanee farmers/KCC holders. In case of any mismatch, bank may collect latest e-Aadhar to verify the time and date for the correction, if made in his/her Aadhar.
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B. Enrolment of Farmers :
4. Since, the scheme has been made voluntary for all farmers, banks need to keep proper record of farmer declarations who have opted out and should encourage them to opt in again and regularly monitor their numbers.
5. Ensure enrolment of all the loanee farmers who have not opted out of the scheme.
6. Regularly monitor the list of farmers who KCC account has turned into default account. Branch users may guide these defaulting farmers to enroll under PMFBY as non loanee farmers.
G. Other Key Points :
4. Reporting of crop loss intimations received from farmers regarding localized calamities and post harvest losses to implementing insurance companies within 48 hours of receipt of intimations from farmers.
6. Educate loanee farmers about crop change name facility to avoid mismatch in crop sown and crop reporting during loss assessment surveys in case of localized calamities and post harvest losses resulting into application and claim rejection.
Other guidelines for operating functionaries for the guideline for the branches.
iv. Farmers availing/renewing the KCCs after the cut-off date will be eligible for coverage during the next/following season, subject to the loan being standard as on the cut-off date.
v. The Sum insured for the season shall be equivalent to SOP defined in the notification and uploaded in the NCIP.
vi. The Branches should keep the details of the accounts of the farmers who have been sanctioned/renewed KCC loans during the season.
vii. Once the notification is received, the Branches, should debit the accounts of the farmers borrowers and remit the premium amount to the identified insurance company well before the cut-off date.
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D’s for Branches :
# Keep record of willingness/self-declaration for opt out submitted by farmers both in hard and soft copies.
# Cover all loanee farmers (except for those farmers who have submitted self-declaration for opt out, more than 7 days before cut-off date for deducting premium by deducting farmer premium from loan account.
On going through the SOP, evidence, affidavit of both the parties rivalries pleadings, bank account statement, standard operating product, crop loss/damage report by the Govt. of Odisha Revenue and Disaster Deptt. of the year 2011 we are found as per guideline that the O.P. is bound to debit the insurance premium from the loan account of the complainant voluntarily. It is mandatory provision of the KCC loan to deduct the crop insurance premium from the loan account and in case the loanee denying for the same it is duty of the O.P. to keep written consent/hard copy and soft copy for opting out from the facilities of crop insurance.
In this case the Bank/O.P. failed to follow the SOP issued by SBI Agricultural Branch in Standard Operating Procedure to all the Branches thereby caused deficiency in service and derelectory in duty. So the harm caused to the complainant for which he suffered financial loss of crop damage compensation to the tune of Rs.83,000/-
O R D E R
Hence we conclude and directed the O.P. to pay a sum of Rs.83,000/- towards crop damage compensation and compensation for mental agony, harassment suffered by the complainant amounting to Rs.20,000/-. Further the O.P. be directed to pay Rs.4000/- towards the cost of litigation. Comply this order within two months, failing which 10% interest payable till realization of the awarded amount. Complaint is allowed.
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Applications pending, if any, stand disposed of in terms of the aforesaid judgment. A copy of this judgment be provided to all the parties free of cost as mandated by the Consumer Protection Act, 1986/2019. The judgment be uploaded forthwith on the website of the commission for perusal of the parties.
File be consigned to record room alongwith a copy of this judgment.
Dated the 8th day of February 2023
Typed to my dictation
I agree. and corrected by me.
Sri H.Padhan Sri U.N.Purohit
Member President
Dt.08.02.2023 Dt.08.02.2023
