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.108/2022
Smt. Manjamma W/o Veeranagaiah,
A/a 51 years, 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 Manager,
Agricultural Insurance company of India,
3rd Floor, C/o Karnataka Pradesh,
Krishi Samaja, No.18, Nrupathunga Road,
Corporation Circle, Bengaluru-560 001.
3. 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. Mohamed Afroze Ahamed, Adv.,)
(OP3 By Sri/Smt. S.Raghunatha Reddy, Adv.,)
:ORDER:
BY SRI.KUMARA.N., MEMBER
This complaint was filed by the complainant, 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, 51,700/- 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 parties are, 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, The Manager, Agricultural Insurance company of India, 3rd Floor, C/o Karnataka Pradesh, Krishi Samaja, No.18, Nrupathunga Road, Corporation Circle, Bengaluru-560 001 and The Branch Manager, Karnataka Grameena Bank, Theetha Branch, Theetha Village, Kolala Hobli, Koratagere Taluk (hereinafter called as OP No.1, OP No.2 and OP No.3 respectively)
3. It’s the case of the complaint, that the complainant obtained two crop insurance policies from the OP No 1 / OP No 2,and premiums of Rs 6,472/- for Areca nut crop and Rs 444/- for Maize crop deducted by the OP No 3 from the complainant saving bank account on 27-07-2018 and the said premium amount transferred / paid to the OP No.1 / OP No.2 by the OP No.3 towards crop insurance under WBCIS / PMPBY, vide proposal number 56670 for Areca nut crop, which was cultivated in survey number 24/1, and proposal number 694611 for Maize crop cultivated in survey numbers 22/5 and 22/7,said RTCs were in the name of the complainant, sietuated in pathaganahally village, Kol;ala Hobli, Koratagere Taluk, Tumkur District. It is further submitted that the said crop insurance is made under WBCIS /PMFBY for the year 2018-19, In-fact, during the year, due to rainfall shortage the complainant suffered crop loss. On enquiry, the complainants came to know that some of other famers of the same area got relief under the crop insurance scheme, but the complainant not got any relief under the said crop insurance scheme and her efforts to get the amount under the policy went in vain, she issued legal notice to the OPs through her advocate on 23.09.2021, but the OPs, not complied nor replied, Hence, this complaint.
4. The complaint registered, notice served to the OP Nos. 1 to 3.After the notice served, OPs appeared through their counsel. But the OP Nos. 1 & 2 filed their separate versions. The OP No.3 did not file any version.
5. The OP No.1 in its, 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 complainant approached the OP for purchase of a policy product for insuring her crop of areca nut, towards which the complainant had filled and submitted application form and the complainant 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.
6. The OP No.2 in its version contended that the complaint is not maintainable both in law and also on facts and the allegations made against the OP is highly imaginary and thus the complaint is liable to be dismissed. It is submitted that Pradhan Mantri Fasal Bima Yojan (PMFBY) is being implemented in the country under the orders of Government of India with effect from 07.10.2016 i.e. Khariff 2016 onwards. The complainant has demanded for claim settlement in respect of Mainze (R/F) pertaining to Pathaganahalli GP, Kolala Hobli, Koratagere Taluk, Tumkur District under PMFBY Kharif 2018-19 season. There is a procedure to fix the threshold yield. The OP No.2 has already settled all the eligible claims as per the declarations sent by Nodal banks and there is no shortfall in yield for the crop/notified area, hence there is no claim pending to be settled as per scheme.
Further, the OP No.2 submitted that the complainant also demanded for claim settlement in respect of Arecanut pertaining to Pathaganahalli GP, Kolala Hobli, Koratagere Taluk, Tumkur District under RWBCIS Khariff 2019-19, but during RWBCIS Kharif 2018-19 season, Tumkur District was not allotted to the OP No 2 i.e. Agricultural Insurance Company during the said season. HDFC ERGO General insurance company ie OP No 1. have implemented all the clusters in Karnataka during RWBCIS Kharfi 2018-19 season, thus under the circumstances, the OP No.2 has not committed any deficiency of service. There is no cause of action for the complainant against this OP. Hence, the OP No.2 is not liable to pay any compensation. On these among other grounds, it is prayed to dismiss the complaint.
7. On behalf of the complainant, the Complainant filed her affidavit evidence and produced some copies of documents. The complainant also filed written arguments. In spite of sufficient time granted, the OP No.3 did not file its version and affidavit evidence. The OP No.1 also not filed affidavit evidence. Smt. D.Usha, Regional Manager, has filed her affidavit evidence on behalf of OP No.2. We heard the arguments of the complainant and OP NO 2.
8. 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?
9. 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
:REASONS:
Point Nos.(1) & (2):
10. Point No.1 to 2: The complainant counsel argued that, Crop insurance premium of Rs 6472/- and Rs 444/- deducted from the complainant SB account, which was maintained at OP No 3, accordingly on receipt of crop insurance premium, OP No 1 / OP No 2 , acknowledged through SAMRAKSHINE port that, proposal No 56670,pertain to Areca nut crop grown in Survey No 24/1 with Sum assured was Rs 129459=20, and proposal No 694611, pertain to Maize crop grown in Survey No’s, 22/5 & 22/7, with sum assured was Rs 15450=00 & Rs 7070=00. The Complainant being a illiterate and small farmer, as advised by the OP No 3, the complainant paid premium to said crop insurance policies. Due to crops failure, the complainant suffered, and prays to allow the complaint, and award compensation. The complainant prove her case, she produced Ex P1 and Ex P2, copy of RTC for the period 2021-22 of Survey Number 24/1, which was in the name of Veeranaganna, Ex P3 RTC of Survey Number 22/2 for the period 2019-20 which was in name of the complainant, Ex P4, RTC of Survey Number 22/7, for the period 2021-22, which was in name of the complainant, Ex P4which were in the name of the complainant, Ex P5, copy of the bank statement, wherein Rs 6492/- deducted. Ex P6 Copy of legal Notice dated 23-09-2021, ExP7. ExP8 & ExP9 were postal receipts, Ex P10 copy of the Adhar of the complainant, ExP11, Ex P12 and Ex P13, copies of check status of proposal 56670 & 694611 in SAMRAKHINE Portal, wherein verified and rejected and proposal No 694611 and Received the proposal No 694611, wherein received.
11. The OP No 2, counsel argued that, with respect to the proposal Number 694611, pertain to Maize crop grown in Survey No’s, 22/5 & 22/7, as per the decision taken in the SLCCCI meeting during kharif season, threshold yields, for Maize Unirri crop the moving average yield ie 1659.158 Kg / Hectare based on the 6 years average yield multiplied by 80% level of indemnity working out to be 1958.421 Kg / Hectare were fixed to Pathaganahally village, Kolala hobli, Koratagere taluk and Tumkur District. There was no shortfall in yield in respect of the Maize crop, as a result question of paying sum assured for the maize crop not at all arises. Further OP No 2 submitted that with respect to proposal No 56670, for Arecanut crop, the insurer were HDFC ERGO General Insurance company of India ie OP No1. OP No 2 counsel prayed to dismiss the complaint against OP No 2, as there is no deficiency of service.
12. 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.
13. 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.
14. (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.
15. 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”.
16. In this case, in the above discussions, the OP No.3, being a responsible agency in PMFBY scheme, having the responsibility and role of educating farmers and motivate the farmers to enroll for the scheme, the OP No 3, even though the RTC No 24/1, which was not in the complaint Name, the OP No 3, blindly filled the proposal No 56670 and deducted the premium of Rs 6472=96 (Ex P5) from the complainant SB account, and send it to the OP NO 1, (ExP11, Ex P12 )which leads to deficiency on the part of OP No 3, and OP NO 3 liable to refund said amount to the complaint with interest @ 8% pa from 26-06-2018. This act of OP No 3, created burden on the Complainant, as OP No 3. Not replied to the legal notice nor properly educated the complainant (Farmer) as per the objectives of the PMFBY scheme, and compelled the complainant to approach this commission by engaging counsel. The complainant prayed to direct the OPs to pay Rs.1,51,700/- and compensation, but the complainant not produced believable evidences to prove that in the said survey number insured crop of Arecanut cultivated and sustained loss during 2018-19. In the result, we proceed to pass the following;
:O R D E R:
The complaint is partly allowed directing the OP No.3 to pay a Rs 6,472=96 with interest @ 9% per annum from 26-06-2018 till the date of payment.
It is further ordered that the OP No.3 shall pay litigation cost of Rs.10,000=00 to the complainant.
The OP No.3 is directed to comply the above order within 45 days from the date of order, otherwise the payable amount under the order carries interest @ 10% per annum from the date of filing of complaint to till the date of payment.
The complaint against OP Nos.1 & 2 is dismissed with no costs.
Furnish the copy of order to the complainant and opposite parties at free of cost.
