Complaint filed on: 04-12-2020 & 07/01/2021
Disposed on: 28-07-2022
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
#201, 202, 1st Floor, Indian Red Cross Building Complex,
Ashoka Road, Tumakuru-572 101.
CC.Nos. 77/2020 & 5/2021
DATED THIS THE 28th DAY OF July, 2022
PRESENT
SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER
C.C.No.77/2020
C.Basavaraju S/o Chikkanna
A/a 46 years, R/at Gujjarahalli Village,
S.R.Palya Post, Pavagada Taluk,
Tumakuru District.
C.C.No.05/2021
Smt. Seethamma W/o C.Basavaraju,
A/a 40 years, R/at Gujjarahalli Village,
S.R.Palya Post, Pavagada Taluk,
Tumakuru District.
(By Smt. G.H.Kariyanna, Advocate)
V/s
The Manager, State Bank of India
Arasikere Branch, Pavagad Taluk,
Tumakuru District.
……….OP is same in both the cases.
(By Smt. M.Balakrishna Bhat, Advocate)
:ORDER:
BY SMT.G.T.VIJAYALAKSHMI, PRESIDENT
Both these complaints have filed alleging deficiency in service against the OP and pray to direct the OP to pay Rs.5,35,600/- and Rs.1,03,000/- respectively as part of claim under WBCIS scheme along with Rs.50,000/- as damages together with interest @ 24% P.A. and such other reliefs as the Commission deems fit to grant.
2. In both these cases the complaints are the husband and wife and the OP is same in both these cases. The relief claimed by complainants in both these cases against the OP is similar, as such to avoid repetition of facts and evidence this common order.
3. The brief facts of the complaint are as under:
The complainant in C.C.No.77/2020 and C.C.No.5/2021 are the customers at the OP bank having S.B. Account transaction i.e. S.B.A/c.No.6412984156 & 6412161144 respectively. The complainant in C.C.No.77/2020 has submitted the application for insurance of his Papaya Croft and Pomegranate crops under the Weather Based Crop Insurance Scheme (WBCIS) for 10 acres 8 Guntas of land in Sy.No.176/3 of Arasikere Village, Pavagada Taluk, Tumakuru District and in Sy.No.40/2 for 1 acre of 30 Guntas and Sy.No42/3 for 03 acres 33 guntas of Gollanakunte Village, Nidgal Hobli. The complainant in C.C.No.05/2021 has submitted the application for insurance of her Arecanut Plant and Pomegranate crops under the Weather Based Crop Insurance Scheme (WBCIS) for 2 acres 10 guntas of land in Sy.No.219 and 176/4 for 1 acre 30 guntas of Arasikere Village, Pavagada Taluk, Tumakuru District. After submitting the applications, the complainants have received a message of acknowledgment to their mobile i.e. “application is approved by the OP Bank and further received another message saying that the application is saved and forwarded to Bank manager vide application No. 150831 & 150897 and further stated in the endorsement premium is Rs.27,114/- & Rs.4,493/- respectively.
3(a). It is further case of the complainants that after waiting for considerable period, the complainant heard that their neighbor farmers who submitted application for insurance under the said scheme was considered and thereafter the complainants have enquired the OP’s Bank officials, for that there was no positive response from the OP. After that, the complainants have asked acknowledgment by submitting an application, to which the OP orally informed that the complainants have submitted the application with one T.S.Madhusudhan, the then Manager of OP Bank and who in turn has received the applications on 30.06.2018, but he has not forwarded the same to the concerned insurance company, on the very same day, the bank Manager had given an endorsement stating that WBCIS application dated:30.06.2018 received by T.S.Madusudan on 30.06.2018 when he was in charge.
3(b) The complainants further submitted that after receiving the said information from the Bank, they got shocked, because the complainants being an agriculturists have adjusted the huge amount of insurance premium and deposited in their accounts by raising a loan from the relative and as on the date of submission of the applications, they had had kept sufficient balance in their account. It is further submitted that the complainants had requested the OP to consider their application and release the accrued insurance amount, to which the OP stated that the action has been initiated against the manager who was in charge of the Bank and retired benefits of the said Manager has been withheld by the Bank and as soon as it is clear, they will credit the amount accrued on the policy to the complainants’ account.
3(c). It is further case of complainants that, they approached the OP several time and requested to consider the application, but OP dodged to settle the matter and no fruitful result come out even complained to the Regional Manager, SBI, Tumakuru and Manager Lead Bank, Tumakuru. It is further case of the complainants that if the OP would have sent their application properly, they would have received crop insurance amounts. Due to the negligent act and failure in forwarding the applications of the complainants to the concerned insurance company, the complainants have suffered huge loss, lot of agony and pain. Hence, they issued a legal notice though their counsel and on receipt of the same, the OP has not taken any steps to settle the matter. Hence, the complaint.
4. On receipt of notice by this Commission, the OP appeared and filed the version by admitting that the complainants are the valid customers of OP bank and submitted applications for insurance of their croft and Pomegranate crop under the Weather Based Crop Insurance Scheme (WBCIS) and after submitting the applications to OP Bank and the complainants have received message of acknowledgment to their mobile i.e. application is approved by the OPs and application No.150897 and 150831 respectively and further received an another message saying that the applications is saved and forwarded to Bank Manager vide application No.150831 and 150897 respectively and in the endorsement premium is RS.27,114/- and Rs.4,493/- respectively and denied other averments made by the complainant in the complaint.
4(a) The OP further contended that the complainants have approached the OP/Bank on the last day fixed for filing the application for insurance i.e. 30.06.2018 at closing hours of the Bank. Since it was the last day for acceptance of crop insurance, application and the enrollment and premium debit, the complainant was informed by the OP Bank towards the technical issues and problems faced by the Branch for enrolling and debit transfer of premium to the Insurance Company as the premium to be routed through ‘Samrakshane Portal’ only. The process was complex and complicated on account of many reasons and the portal was not accessible within the Banks internet site most often and due to poor connectivity and technical issue with Samrakshane Portal, the process held without completion and the same was brought to the notice of the complainant.
4(b) The OP further submitted that the complainants who realized the issues and requested the OP Bank to try for the best by taking chance and with an oral undertaking that he will not make any allegations against the OP bank for non acceptance of the crop insurance application by or made claim against the Bank for insurance amount in future in case the application is not accepted by the Samrakshane Portal and complainant hold himself personally liable for the delay in filing the application on the last day. The OP Bank has never debited any amount from the account of the complainant towards insurance premium. The acknowledgment was given to the complainant towards receiving of the application only and the same is not an undertaking or binding on the OP Bank towards acceptance of application by the Insurance Company. The complainant who after the lapse of one year and only after getting information from other neighboring famers who filed the crop insurance application well within the time limit and who received their insurance claim amount has now with an afterthought to obtain a wrongful gain from the OP Bank has now this frivolous complaint which is not maintainable in law.
4(c) The OP further contended that the complainant himself has filed the crop insurance application at the closing time of its acceptance and also having pre information of its non acceptance by Samrakshane Portal and complainants’ oral assurance of non claiming of any insurance amount against the Bank as there is no fault of OP. As such the issue needs to be seen from practical perspective and the constraints obtaining at that point of time, where a rural branch had to manage internet connectivity issues and last moments deluge of applications, updating of data in Samprakshane Portal through different internet PCs and dependence on poor connectivity and slow response from Samrakshane Website server and manually passing the entries and as such the OP Bank is not attributing any lapses as the reasons were beyond the control of the OP Bank. On these among other grounds, the OP prays to dismiss the complaint as there is no deficiency of service on their side.
5. Both parties in both complaints have filed their affidavit evidence. The Complainant in C.C.No. 77/2020 has marked the documents at Ex.P1 to P13 and the complainant in C.C.No.05/2021 has marked the documents at Ex.P1 to P15 respectively.
6. We have heard the arguments of both parties.
7. . The points that would arise for determination are as under:
(1) Whether the complainants proves that there is
a deficiency in service on the part of OPs?
(2) Is the complainants are entitled to the reliefs
sought for?
8. Our findings aforesaid points are as under:
Point No.1: Partly affirmative
Point No.2: As per the final order
:R E A S O N S:
Point Nos.(1) and (2):
9. The complainant’s counsel in C.C.No.77/2020 submits that the complainant had land jointly with Hanumantharaya bearing Sy.No.176/3 measuring 10 acres 21 guntas situated at Arasikere Village, Pavagad Taluk, Tumkur District, Sy.No. 40/2, 2 acres 4 guntas, Sy.No.42/3 for 3 acres 33 guntas of Gollanakunte Village, Nidgal Hobli.
10. The complainant’s counsel in C.C.No.5/2021 submits that the complainant had land in her name bearing Sy.No.219 measuring 2 acres 10 guntas and in Sy.No.176/4 measuring 01 acres 30 guntas, situated at Arasikere Village, Pavagada Taluk, Tumkur District.
11. On 30/06/2018, the complainants have approached the OP/Bank on the last date fixed for submitting the application for insurance at closing hours of the Bank. The acknowledgment was given to the complainants towards receiving of the application by the OP/Bank “ i.e. application is approved by the Bank and application number is 150831 and endorsement of premium of Rs.27,114.90 in CC.No.77/2020 and in C.C.No.5/2021 – application number is 150897 and 150863, premium amount of Rs.4,493/-.
12. Further, the complainants submit that though the OP/Bank received the application on 30.06.2018 under WBCIS for the season 2018-19 for Arecanut, Pomegranate crops and Papaya crop, it has failed to forward the application to Insurance Company. The complainants in their affidavit evidence reiterated the averments of complaints.
13. The documents of the complainants prove that the complainant in C.C.No.70/2020 had S.B. A/c bearing No. 6412984156 in the OP/Bank and the complainant in C.C.No.5/2021 had also S.B.A/c bearing No.6412161144 and as per Ex.P4, both complainants have deposited the premium amount in their accounts.
14. Further, the documents of complainants i.e. the Ex.P5 clearly state that the Bank officials received the applications for insurance under WBICS on 30.06.2018 for the season 2018-19 from the complainants. Ex.P5 reads as under:-
"WBCIS application undated received by T.S.Madhusudhan on 30.06.2018 when he was in charge"
The OP/Bank in his version, affidavit and oral arguments admitted that the complainants have submitted the applications for insurance for their crop under WBCIS and after submitting the applications to OP/Bank, the complainants have received acknowledgement/message to their mobile i.e. application is approved by the OPs and application numbers are 150831, 150863 and 150897 respectively. Further, the complainants received another message stating that application is saved and forwarded to Bank Manager vide application No.15083 and 150897 and 150863 respectively and endorsement premium is Rs.27,114 and Rs.4,493/- respectively.
15. The OP contended that the complainants have approached the OP/Bank on the last day for filing the application for insurance i.e on 30.06.2018 at closing hours of the Bank and informed about technical issues and problems faced by the Branch for enrolling and debit transfer of premium to the insurance company as the premium to be routed through “SAMRAKSHAN PORT” only.
16. Further, the OP contended that, Bank has never debited any amount from the account of the complainant towards insurance premium and the acknowledgment was given to the complainant towards receiving of the application only and the same is not an undertaking or binding on the OP Bank towards acceptance of application by the insurance company.
17. On perusal of the Clause No.17.6.3 of PMFBY, wherein it is categorically stated that: “In case of submission through Bank Branches and their BCs, farmers will submit duly filled proposal form in the nearest branch of a CB/RRB/PACS/DCCB or designated BCs with applicable insurance premium amount and other documents. Bank Branch may, after completing verification of documents accept or reject the application. Premium shall be accepted by the bank branch preferably from the farmer's operational account in the same bank branch itself and the same would be sent to the concerned Insurance Company within the stipulated time for the purpose of insurance coverage. It is the responsibility of the bank/branch to complete the application of farmer in case the farmer is unable to fill the application, bank branch shall be responsible for filing the application on farmer’s behalf, so that not a single farmer who desires to take crop insurance coverage is left out from the purview of crop insurance scheme.” Therefore, it is apparent that the bank has failed to do its duty within time and thereby the complainants are deprived of the benefit under the scheme. Though the Bank received the applications from the complainants, failed to forward the same to the Insurance Company within the stipulated time and it amounts to deficiency in service on the part of OP/Bank.
18. In complaint No.77/2020 the complainant has claimed totally Rs.5,35,600/-. For Papaya crop plants, complainants claimed Rs.4,01,800/-, but RTC relating to Sy.No.176/3 discloses that Papaya crop only in 7 acres i.e. only in 2.833 hectare. To support his claim, the Complainant submitted Senior Assistant Horticulture Director letter dated:28/03/2022, wherein it is clearly stated that per hector Rs.1,08,333.32 sanctioned for Papaya crop during the year 2018-19 under RWBCIS. Hence, the complainant is entitled to Rs.3,06,907.38 for 7 acres or 2.833 hectare.
19. In C.C.No.5/2021, the complainant has claimed totally Rs.1,03,000/-. But, the complainant not specifically mentioned for which crops she has claimed for insurance and extent of area and not submitted any evidence pertaining to crop loss and sanctioned amount during the year 2018-19 under RWBCIS, Hence, complainant is not entitled to claim Rs.1,03,000/-. But due to Bank negligence, the complainant deprived of the benefit under the scheme. Therefore, the bank is liable to pay compensation of Rs.10,000/- to the complainant. Accordingly, we proceed to pass the following:-
:O R D E R:
The complaint Nos.77/2020 and 05/2021 are partly allowed.
The OP is directed to pay Rs.3,06,907.38/- to the complainant in C.C.No.77/2020 with interest @ 7% p.a. from the date of complaint till realization.
The OP is further directed to pay Rs.10,000/- to the complainant in C.C.No.5/2021 as compensation.
The OP is further directed to pay Rs.5,000/- towards cost of the litigation in each complaint.
The OP is further directed to comply the above order within 30 days from the date of receipt/knowledge of this order.
The original of this order is kept in C.C.No.77/2020 and a copy thereof shall be kept in CC.No.5/2021.
Furnish copy of this order to both parties with free of costs immediately.
