Complaint filed on: 30-06-2022
Disposed on: 16-03-2023
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
DATED THIS THE 16th DAY OF MARCH, 2023
PRESENT
SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER
CC.No.107/2022
1. Sri. Nagesh P.K. S/o P.N.Kallaiah,
A/a 36 years,
2. Smt. Parvathamma W/o Late P.N.Kallaiah,
A/a 62 years,
Both are R/o Pathaganahalli Village,
Kolala Hobli, Koratagere Taluk,
Tumkur Dist. Karnataka.
……………….Complainant/s
(By Smt/Sri. Obalesh, Adv.)
V/s
1. The Manager,
HDFC ERGO General Insurance company of India
Ltd., (WBCIS), No.2/1-1, 2nd Floor, 11th Main Road
3rd Block, Opp. Jayanagara Club,
Bengaluru
2. The Branch Manager,
Karnataka Grameena Bank,
Theetha Branch, Theetha Village,
Kolala Hobli, Koratagere Taluk.
……………….Opposite Party/s
(OP1 By Sri/Smt. M.Shahajabi, Adv.,)
(OP2 By Sri/Smt. S.Raghunatha Reddy, Adv.,)
:ORDER:
BY SRI.KUMARA.N., MEMBER
This complaint was filed by the complainants under Section 35 of the Consumer Protection Act, 2019, with a prayer to direct the OPs to pay the total compensation amount of Rs.1,29,495/- and also prays to direct the OPs to pay compensation amount due under the WBCIS policy made by 1st complainant’s Father along with interest @ 12% PA with punitive cost.
2. In this case, the Opposite party No.1 is the Manager, HDFC ergo General Insurance company of India Ltd., (WBCIS), No.2/1-1, 2nd Floor, 11th Main Road 3rd Block, Opp. Jayanagara Club, Bengaluru and the Opposite Party No.2 is the Branch Manager, Karnataka Grameena Bank, Theetha Branch, Theetha Village, Kolala Hobli, Koratagere Taluk (hereinafter called as OP No.1/Insurance Company and OP No.2/OP Bank).
3. It’s the case of the complainant, that the complainants were son and wife of a Farmer namely Sri. Kallaiah P.N. S/o Late Naganna who died on 02.04.2018. The complainant’s submitted that, his / her, Father / husband, was a loanee Farmer with the OP No.2, accordingly on 26.06.2018, the OP No.2 deducted Rs.6,472/- towards crop insurance premium under WBCIS/ Pradhan Mantri Fasal Bima Yojan (PMFBY), vide proposal Number 36522,wherein, the complainants’ Father/Husband, having agricultural land in Survey No.5/2 situated at Pathaganalli Village, Kolala Hobli, Koratagee Taluk, Tumakuru District and cultivated Areca Nut crop, which was insured with OP No 1, during 2018-19. Due to bad weather and shortfall of rain, the complainants sustained heavy loss.
The complainants, Father/wife further submitted that on 25.09.2018 on account of death of his / her, Father/husband, the said land transferred to Smt.Parvathamma W/o Sri. Kallaiah P.N. S/o Late Naganna vide MRH-3/2018/19, dated:25.09.2018. Thereafter, the complainants were, approached the OPs for compensation of insured crop, but the OPs not responded. On 23.09.2021, the complainants issued legal notice to OP Nos. 1 & 2, but the OP Nos. 1 & 2 not responded. Hence, this complaint.
4. The complaint registered and notice to OP Nos. 1 & 2 were duly served and the OP Nos. 1 & 2 appeared through their counsel. But only the OP No.1 has filed its version. The OP No.2 did not file the version.
The OP No.1 in his version contended that the complaint is false, malicious, incorrect and with mala fide intentions and is nothing but an abuse of the process of law. The averments made in the complaint are vague, baseless and with mala fide intention. The complainants approached the OP for purchase of a policy product for insuring their crop of areca nut, towards which the complainant had filled and submitted application form and the complainants did not share his application ID, hence the complainant is burdened to prove the same with necessary application ID document. On receiving the application along with other supporting documents, the OP issued a policy namely whether based crop insurance scheme for the Kharif season of 2018 and it was found while verifying that the survey report was not matching with the crop mentioned in the application, therefore the claim of the complainant was repudiated. The policy product was being purchased to insure the Arecanut crop but instead as Maize crop was being sowed for cultivation purpose, therefore the claim of the complainant was repudiated, hence the complaint is not maintainable neither in law nor on facts. It is further contended that the OP has acted as per the terms and conditions of the policy product being purchased by the complainant, therefore there remains no cause of action for the instant complaint, as there remains no cause of action and therefore the complaint is dismissed on this ground alone. On these among other grounds, it is prayed to dismiss the complaint.
5. On behalf of the complainants, the Complainant No.1 filed his affidavit evidence and produced some copies of documents. In spite of sufficient time granted, the OP No.1 did not file his affidavit evidence. On behalf of OP No.2 one Mr.Ranganatha .R, Manager has filed his affidavit evidence.
6. The points that would arise for determination are as here under:
1) Whether the complainant proves the deficiency in service on the part of OPs?
2) Is complainant entitled to the reliefs sought for?
7. Our findings on the aforesaid points are as follows:
Point No.1: In the affirmative
Point No.2: In the partly affirmative for the below
:R E A S O N S:
8. Point No.1 to 2: The learned counsel for the complainant argued that that the OP NO 2 ( OP Bank) deducted crop insurance premium amount of Rs 6472=00 before the cutoff date from the complainants father/husband account, where in the complainants Father/Husband, Sri Kallaiah PN S/o Late Naganna died on 02-04-2018 and at that time crop cultivated was Areca nut in the said Land, bearing Survey Number 5/4, which was in the complainants father / husband, name and the OP No 2 (OP Bank) sanctioned loan of Rs 260000/- on 16-10-2017. The OP No.2 has not taken any contention or defense regarding the premium amount of Rs 6472=00 was deducted towards crop insurance premium, even though at that time of deducting he was dead. The complainants produced Ex P1, RTC for the period 2017-18 of Survey Number 5/4, which was in the name of the complainants father / husband i.e. Sri Sri Kallaiah PN S/o Late Naganna, Ex P2 RTC of the said land for the period 2019-20, which was in the name of Smt Parvathamma W/o late Sri Sri Kallaiah P.N., she was complainant No 2. Ex P3, The MR bearing No H3 dated 18-07-2018, Ex P4 death certificate of the Sri Sri Kallaiah PN S/o Late Naganna, Ex P5 & P6 copy of Vamsharuksha, Ex P7, copy of statement of SB account of the complainants father / husband, wherein Rs 6472/- crop insurance premium deducted on 20-06-2018, Ex P8, copy of legal notice dated 23-09-2021,Ex P9 & P10, postal receipts, copies of Complainants adhar cards, Ex P 11, copy of Check status of proposal No 36522, wherein, verified & rejected by the OP No 1 after the verification.
9. The complainants produced copy of RTC of survey No 5/4 for the period 2017-18, 2018-19, and 2019-20, wherein the crop recorded was Areca nut, which was in the name of Complainants Father/husband & the complainant No 2 name respectively. The Complainants produced copy of the loan account bearing number 12162130000891 dated 02-09-2000 as a evidence of loanee farmer with the OP No.2.
10. The PMFBY aims at supporting sustainable production in agriculture sector by way of providing financial support to farmers suffering crop loss or damage arising out of unforeseen events and stabilizing the income of farmers to ensure their continuance in farming. Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc.
11. Under PMFBY the State Government has formed the State Level Co-ordination Committee on crop insurance and District Level committee to assess the loss suffered by farmers by using Crop Cutting Experiments (CCE) method. On the basis of report submitted by committee loss yield report is updated in the State Samrakshane portal.
12. (A) Objectives of the PMFBY Scheme; Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of
• Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
• Stabilizing the income of farmers to ensure their continuance in farming
• Encouraging farmers to adopt innovative and modern agricultural practices
• Ensuring flow of credit to the agriculture sector which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.
(B) Functions of Lending Banks Branches / RFIs
17.9; The concerned branches of banks and Nodal Banks/ DCCBs in case of PACS will upload the details of individual insured farmers (both loanee and non-loanee) like farmer’s name, father’s name, Bank Account number, Aadhaar Number, village, categories – Small and Marginal/SC/ST/Women, insured acreage, details of insured land, insured crop(s) etc as prescribed in online application form. Available on National Crop Insurance Portal or CBS integration module and submit the same within stipulated cut-off date as per the seasonality discipline/ The Banks/ PACS must also ensure the premium amount is remitted to the concerned Insurance Company electronically within the stipulated time, failing which they shall be responsible for payment of claims, if any to the farmers. However, any dispute in the matter may be referred to the State Govt. by the concerned Agency/Bank for taking appropriate action within the prescribed cutoff date for reconciliation of premium by banks with all details.
17.10; Insurance companies shall upload requisite information including necessary documentation in respect of non-loanee farmers enrolled through channel partner other than CSCs on the National Crop Insurance Portal within the stipulated date of coverage of non loanee farmers .All intermediaries shall ensure that the documentation is complete in all respect before accepting the premium. It is the responsibility of the concerned Insurance Companies to collect/obtain any documentation of the insured farmers (both loanee and non-loanee) from the bank/financial institutions/ intermediaries/ agents if necessary for verification/acceptance of risk and also to facilitate the banks/ financial institutions/ intermediaries/ agents to submit/ upload all requisite documents/information on the National Crop Insurance Portal within timelines.
17.11; Insurance Companies should also reconcile the details of individual insured farmers uploaded on the Portal with the premium/consolidated declaration received from each branch/nodal bank within the stipulated date and any deficiency/ mismatch may be reported to concerned bank branch/nodal bank. The Bank Branch/Nodal Bank should further send/upload the requisite information in respect of such farmers for whom clarification has been sought, immediately within 7 days. If such rectification is not done/completed by bank branch /nodal bank within the stipulated period, Insurance Companies may recommend to take necessary action to State Govt. under intimation to Central Govt. State Govt. in consultation with SLBC may recommend suitable administrative action against such defaulting branch/bank. However, claims (if any) in such cases of such farmers shall be borne by the concerned bank only.
(C) 35.5.2.1Role and Responsibilities of Lead Bank/Administrative office of Commercial bank, DCCBs, RRBs.
35.5.2.2; Communicate Notification, as well as other directives, guidelines, etc. to all agencies within their jurisdictional area.
35.5.2.3;Ensure that all agencies within their jurisdictional area sanction additional loan component to loanee farmers towards premium payable by them.
35.5.2.4; Ensure that all service (subordinate) bank branches within their jurisdictional area serve all non-loanee farmers desiring and eligible to take insurance cover under PMFBY. Such service will include opening bank account of non-loanee farmers, guiding them to fill up proposal forms, accepting premium from them and maintaining records etc.
35.5.2.5; Ensure that the premium for both loanee and non-loanee farmers shall be remitted to concerned Insurance Companies and the related data uploaded on National Crop Insurance Portal within the prescribed time.
35.5.2.6; Lead bank/Administrative Offices of Banks should ensure that all farmers sanctioned crop loans/seasonal operational loans/KCC loan for notified crop(s) are compulsorily insured and the conditions stated in the Operational Guidelines of the Scheme have been complied with. No farmer should be deprived of insurance cover. Lead banks/ Administrative Offices of Banks therefore, should make all efforts and pursue their branches for enrolling all eligible loanee farmers and interested non-loanee farmers under crop insurance. In case, claims have arisen during crop season then respective bank and its branches would be made responsible to make payment of the admissible claims to loanee farmers who were deprived from insurance cover to their crops.
35.5.2.7; Concerned Bank and its branches should ensure upload/submission of notified crop-wise, insurance unitwise Declarations in prescribed format on National Crop Insurance Portal along with details of remittance of premium within stipulated time. A copy/print out of declaration uploaded on Portal may also be submitted to concerned Insurance Companies, if so desired by them. The consolidated premium of farmers’ share will be remitted electronically either through payment gateway of National Crop Insurance Portal or RTGS/NEFT to Insurance Companies followed by compulsory entry of payment details on Portal for proper and timely reconciliation by ICs. If Concerned Bank and its branches are not able to remit the amount of premium collected to Insurance Companies or submit declaration in prescribed format by the defined timelines then they will be liable to pay admissible claims to farmers who are deprived from insurance cover to their crops.
35.5.2.8 The Nodal Banks/Administrative offices/Bank Branches shall also upload the details of each individual insured farmer on National Crop Insurance Portal through web-form or CBS on or before final cut-off date.
35.5.2.9; The Insurance Company shall acknowledge the receipt of farmers premium and declarations submitted by the banks and any clarification/rectification sought by Insurance Companies should compulsorily be replied/addressed by the bank within 7 days. The banks should cross check with their records and aberrations, if any, should be brought to the notice of the Insurance Company immediately. If no response is received from banks within cut off time/reconciliation period, the details submitted on the Portal shall be considered final and no changes would be accepted later on. Insurance Companies will thereafter act as deemed fit as per applicable provisions.
35.5.2.10; while it is intended that Insurance Companies in consultation with concerned State Govts. will transfer claims directly into bank accounts of eligible farmers, however in case that is not feasible for loanee farmers, the Insurance Companies may transfer claims through bank branches which will credit the claims amount to respective beneficiary loan account positively within seven days. If Bank Branches/ Nodal banks are not able to do so within this time period then they will be liable to pay interest (at prevailing rate of interest for saving account) for the delayed period to the eligible farmers. The Banks shall issue a certificate within 30 days to the insurer that entire money received for settlement of claims has already been credited in to the account of beneficiaries.
35.5.2.11 The list of beneficiary cultivators with claim amount shall be displayed by the Bank Branch/PACS and a copy shall also be provided to the Chairman/ Sarpanch/ Pradhan of the village Panchayat.
35.5.2.12 To permit Insurance Company access to all relevant records / ledgers at the Nodal Bank/ Branch/ PACS for the purpose of scrutiny, if desired by them.
35.5.2.13; Banks should ensure that cultivator are not be deprived of any benefit under the Scheme due to errors/omissions/commissions of the concerned branch/ PACS, and in case of such errors, the concerned agencies shall have to make good all such losses.
(D) 35.5.3; Role of Lending Banks Branches / RFIs
35.5.3.1; To educate the cultivators on the Scheme features.
35.5.3.2; To guide the cultivators on filling up the insurance proposal in the prescribed forms and collecting the required documents, particularly in case of non-loanee cultivators.
35.5.3.3; To collect Aadhaar Number and Mobile number of all eligible farmers well before the start of enrolment/debit of premium.
35.5.3.4; To organize and help in preparation of the consolidated data for loanee and non- loanee cultivators and uploading on the National Crop Insurance Portal, along with the electronic remittance of premium amount to the Insurance Company through payment gateway of Portal or through NEFT/RTGS within 15 days after cut-off date for enrolment/premium debit.
35.5.3.5; maintaining the records of proposal/declaration forms and other relevant documents and statements for the purpose of scrutiny/ verification by Insurance Company or its authorized representatives and DLMC, if necessary.
35.5.3.6; Allow Insurance Company access to all relevant records and registers at offices of Nodal Bank and service (subordinate) bank branches within their jurisdictional area.
35.5.3.7; To capture all relevant data including land and crop details of all loanee farmers covered compulsorily as well as non loanee farmers availing crop insurance through them.
35.5.3.8; To reconcile, validate and provide clarification, if necessary, on the coverage details to the Insurance Company within next 15 days from cut-off date for data uploading on Portal and within 7 days of receipt of such request from Insurance Company
35.5.3.9; To provide the list of insured farmers for whom the premium has been debited but data entry on Portal has not been completed for the IUs/area where preventive-sowing/germination failure or midterm calamity/localized calamity is reported.
35.5.3.10; Debit /collect the applicable premium from the farmer’s account on or before cut-off-date and remit it entirely to the concerned Insurance Company electronically.
35.5.3.11; to credit the payable claim amount to the farmer’s account with 7 days from date of receipt of such claims from Insurance Company. To refund the undistributed claims amount to Insurance Company with reasons and details within 10 working days from receipt of such claims amount under intimation to GOI and the concerned State Govt.
35.5.3.12; Not to re-enroll the farmers under crop insurance for the same crop if the State/District has notified prevented/failed sowing/germination.
35.5.3.13; under administrative mechanism, bank branches are designated as terminal service points for farmers. Hence, it is their duty to ensure compulsory coverage of all eligible loanee farmers and all interested non-loanee farmers. In case of any misreporting by Banks/Bank branches/PACS with respect of farmers’ coverage, concerned Bank/ Bank branches/PACS will be liable for such mis- reporting.
13. As per the operation guidelines of PMFBY “35.5.2.13 & 35.5.3.13; - Banks should ensure that cultivator are not be deprived of any benefit under the scheme due errors/omissions of the concerned branch/ PACS, and in case of such errors, concerned agencies shall have to make good all such losses”.
14. In this case, in the above discussion, the OP No.2 (OP Bank) not performed the PMFBY scheme Roles and responsibilities and not properly submitted and uploaded the crop details to the insurance company i.e. OP No 1, even though farmer/complainant, being loanee farmer and small Farmer(Ex.P12), submitted all necessary details like Survey Number, Crop, Village, Hobli, Taluk along with supporting documents to the OP No.2. The documents produced by the Complainants on 13-02-2023, i.e. copies of RTC of Survey Number 5/4,for the year 2017-18, 2018-19, which was in the name of Complainants father / husband name i.e. PN Kallaiah s/o Naganna, and for the period 2019-20, said RTC was in the name of 2nd complainant, i.e. Smt Parvathamma w/o PN, Kallaiah and the crop recorded was Arecanut, the complainants produced Photo of standing Arecanut crop in the said land and produced copy of loan sanction letter No 1216213000089,and certificate from the Revenue department that in the said land Areca nut crop cultivated since 15 years, which proves that the complainants was loanee Farmer, obtained loan for Areca nut crop cultivation with the OP No 2(OP Bank). The OP 2 (OP Bank) not updated crops as Areca nut even though mismatch message received and the legal heirs/ complainants approached several times to do needful in this regard. In the above discussion, this commission is in the opinion of the OP Nos. 2(OP Bank) committed deficiency in service by not submitting and uploaded the necessary details like crop name of Arecanut with supporting documents to the insurance company i.e. OP No.1, thereby the complainants missed the opportunity of getting PMFBY relief. The OP No 2 deducted crop insurance premium of Rs 6472/- on 26-06-2018 from the complainants father/ husband, SB account Number, even though the complainants father/ Husband, died on 02-04-2018, which is illegal and punishable. The complainant is entitled to crop insurance amount of Rs.129495=00 with interest @ 8% per annum from 07-07-2022 till the date of payment with litigation expenses of Rs.10, 000-00. The OP No.2 (OP Bank) shall liable to pay crop insurance compensation and litigation cost to the complainant. In the result, we proceed to pass the following;
:O R D E R:
The complaint is partly allowed directing the OP No.2/(OP Bank) to pay a sum of Rs.1,29,495=00 with interest @ 8% per annum from the date of complaint i.e. 07-07-2022 till the date of payment.
It is further ordered that the OP No.2 (OP Bank) shall pay litigation cost of Rs.10,000-00 to the complainant within 45 days from the date of order otherwise; it carries interest @ 10% per annum from the date of filing of complaint till the date of payment.
The complaint against OP Nos.1 is dismissed.
Furnish the copy of order to the complainant and opposite parties at free of cost.
