Complaint filed on: 10-06-2019
Disposed on: 25-02-2021
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
CC.No.144/2019 AND CC.NO.145/2019
DATED THIS THE 25th DAY OF FEBRUARY, 2021
PRESENT
SRI.C.V.MARGOOR, B.Com, L.L.M, PRESIDENT
SRI.KUMARA.N, B.Sc., L.L.B, MEMBER
SMT.NIVEDITA RAVISH, B.A., L.L.B, LADY MEMBER
Complainants: -
1. CC.No.144/2019
Seetharamaiah
S/o late Nagappa
60 years,
R/at Naruvagal post,
Handanakere hobli,
Chikkanayakana halli taluk
(In person)
2. CC.No.145/2019
Sharadamma
W/o Seetharamaiah
51 years,
R/at Naruvagal post,
Handanakere hobli,
Chikkanayakana halli taluk
(In person)
V/s
Opposite parties:-
- Manager,
Agriculture Insurance Company of
India Ltd, No.18, 3rd Floor,
Karnataka Krushika Samaja,
Hudson circle, Bengaluru-01
- The Manager
State Bank of India
Handanakere Branch,
Chikkanayakana halli taluk
(OP No.1-by Sri.Mohamed Afroze Ahamed, Advocate)
(OP No.2-Exparte)
COMMON ORDER
SRI.C.V.MARGOOR, PRESIDENT
These complaints are filed under Section 12 of the Consumer Protection Act, 1986 to direct the Opposite parties to pay insured amount of Rs.1,38,351.80 and Rs.76,756.40 with 18% interest for the loss of crop during the year 2017-18. The complainants further prayed to award additional compensation of Rs.50,000=00 and Rs.40,000=00 respectively for mental agony.
2. The 1st OP is Agricultural Insurance Company of India Ltd and the 2nd OP is State Bank of India, Handanakere branch (the OP No.1 hereinafter called as Insurer and OP No.2 as Bank).
3. It is the case of complainants that they being the owners of land Sy.No.33/2 measuring 6 acres 32 guntas, Sy.No.163/10C measuring 1 acre 7 guntas, Sy.No.143/2A1 measuring 3 acres 33 guntas and Sy.No.145 measuring 6 acres 31 guntas situated within the limits of Niruvagal village, Handanakere hamlet, Chikkanayakana halli taluk, Tumakuru district. The complainants have insured green gram crop grown in the said lands on 13-4-2017 and 14-7-2017 by paying premium amount of Rs.1,125=00, Rs.1,595.81=00, Rs.275.73, Rs.897.49 and Rs.1,535.13 respectively through their banker OP No.2. The OP No.2 bank has transferred an amount of Rs.3191=00 to the insurer on 17-8-2017 from the SB account of complainant in CC No.144/2019 and complainant in CC No.145/2019 has credited Rs.675=00 on 14-7-2017 as insurance premium to the OP No.2 bank. It is further case of complainants that during the year 2017 on account of drought they could not get any crop consequently, sustained loss. The complainants did not receive crop insurance amount then they wrote a letter to the bank on 07-01-2019 for release of crop insurance amount. The complainants have made correspondence with the Secretary Agriculture Department, Bengaluru and other concerned authority but there was no response hence, they approached this Commission.
4. The 1st OP-Insurer appeared through its learned counsel in response to notice and filed written version stating that the Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented in the country with effect from 23-2-2016. The 1st OP submitted that the complainants have demanded for claim settlement in respect of Green gram grown on rainfed basis pertaining to Handanakere hobli for Kharif 2017-18 season. The State Level Coordination Committee on Crop Insurance (SLCCCI) has assessed the loss of crop in Handanakere hobli, Chikkanayakana halli taluk as per the guidelines of PMFBY scheme and claim percentage worked out at 40.32%. It is further case of insurer that the bank has not sent the premium amount to it even after expiry of 14 days cutoff date on making payment of premium amount. Therefore, the insurer has refunded the premium of Rs.5,36,793.54 on 26-7-2018 to the 2nd OP. There is no deficiency in service on the part of insurer nor negligence on its part. On the above grounds, the insurer 1st OP asked to dismiss the complaints.
5. The 2nd OP bank despite the service of notice was proceeded exparte.
6. The complainants have filed affidavit evidence and got marked Exs-annexure-1 to 5 documents. On behalf of the 1st OP its Deputy Manager one J.M.S.Ahmed filed affidavit evidence and produced Exs-R1 to R19.
7. We have heard the arguments advanced by the complainant and the learned counsel representing the 1st OP in addition to written brief submitted by the complainant and the points that would arise for determination are as under:
1) Whether the complainants prove the deficiency in service on the part of OPs?
2) Are complainant entitled to the reliefs sought for?
8. 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
9. Point No.1 to 2: The complainants submitted that though they have paid the insurance premium amount before the cutoff date in the 2nd OP bank but it has failed to remit to the insurer before the expiry of 14 days fixed i.e. end of cutoff date was on 15-7-2017. The complainants further submitted that due to negligence on the part of the 2nd OP bank they could not get crop insurance compensation though the drought prevailed in Handanakere hobli, Chikkanayakana halli taluk. As against this the learned counsel representing the 1st OP urged that there is no fault on the part of insurer since the bank has sent the premium amount to the insurance company 14 days after the expiry of cutoff date.
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. The insurer has not disputed the insurance premium paid by the complainants for green gram crop raised in their lands during the year 2017-18.
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. The complainants have produced Ex-P1 acknowledgement issued by the 2nd OP bank dated 13-7-2017 and 14-7-2017 respectively. These acknowledgments indicate that the complainants have remitted premium for green gram crop grown in their lands situated within the limits of Naruvagal village Handanakere Hobli for the year 2017-18. Ex-P4 is the copy of bank pass book of complainant and it shows that the 2nd OP has transferred a sum of Rs.3,191=00 on 17-8-2017 and entry reads as crop insurance transfer to parking account SBM HA. Whereas the 2nd OP bank has not transferred premium amount of Rs.675=00 though paid by complainant in CC No.145/2019 vide Ex.P1 acknowledgment dated 14-7-207. No entry is appearing in Ex.P4 passbook of the complainant. Exs-P4 and P1 are the material documents in respect of payment of premium by the farmers/complainants. Ex-R9 is letter issued by the 1st OP to the Deputy Commissioners of all districts and Joint Directors of Agriculture, Deputy Directors of Horticulture in the state of Karnataka and it contained terms and conditions of Kharif-2017 Pradhan Mantri Fasal Bima Yojana. According to Ex.R9 cutoff date for payment of premium by non loanee farmers is 7-7-2017 and for loanee farmers is 15-7-2017. The bank shall remit the premium amount to the insurer within 15 days from the date of cutoff date of loanee farmers and 7 days for non loanee farmers i.e. after farmers enrolment cutoff date. The complainants have paid premium on 13-7-2017 and 14-7-2017 vide Ex-1 receipt (non loanee) though the cutoff date was 15-7-2017. The 2nd OP bank has sent the premium amount of complainants on 17-8-2017 more than one month after the cutoff date and that can be found in Ex-P4 account extract of complainant.
13. The complainants have made correspondence with the bank and agriculture department and 1st OP has produced Ex.R17 proceedings of the meeting held on 15-02-2018 under the Chairmanship of Secretary for agriculture to discus on Kharif 2017. On perusal of bank statement of complainant the 2nd OP has sent the proposal on 17-8-2017 though he had paid the premium amount along with proposal application prior to cutoff date. As already stated the cutoff date was on 15-7-2017 but the complainants have paid the premium on 13-7-2017 and 14-7-2017 vide Ex.P1 acknowledgement.
14. Clause Nos.24.1 and 24.2 of Pradhan Mantri Fasal Bima Yojaya operational guidelines reads as under:
“24.1 Insurance companies should have received the premium for coverage either from bank, channel partner, insurance intermediary or directly. In case of any loss in transit due to negligence by these agencies or non remittance of premium by these agencies, the concerned bank/intermediaries shall be liable for payment of claims.
24.2 In case of any substantial misreporting by nodal bank /branch in case of compulsory farmers coverage, the concerned bank only shall be liable for such mis-reporting”.
15. Further Clause No.35.5.2.1 of Pradhan Mantri Fasal Bima Yojana scheme deals with the role of lead bank/Administrative office of commercial bank, DCCBs, RRBs. Clause No.35.5.2.2 to 7 reads as under:
“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”.
16. From the perusal of these clauses No.24 and 35 it can be said that in case the concerned bank failed to remit the premium amount within the defined time line then it is liable to pay the admissible claims to loanee or non loanee farmers who were deprived of insurance cover to their crops. In this case on account of negligence of the 2nd OP bank the complainants applications came to be rejected as the bank has sent the application and premium amount on 17-8-2017 after expiry of dead line time i.e. 31-7-2017.
17. Topic Sl.No.XVI of Operational Guidelines of PMFBY says with regard to procedure for settlement of claim to the farmers. Under this topic Clause-6 says that the insurance company shall resolve all the grievances of the insured farmers and other stakeholders in the shortest possible time. Clause 7 says disputed claims / sub standard claims, if any will be referred within three months of claim disbursement through State Level Coordination Committee on Crop Insurance (SLCCCI)/State Government to Department of Agriculture Cooperation and Famers Welfare (DAC & FW) for consideration and decision of DAC & FW in case of any interpretation of provisions of scheme or disputes will be binding on State Government /Insurance Company /Banks and the farmers.
18. The 2nd OP insurer has not disputed the payment of premium by the complainants to cover the green gram crop for the year 2017 season. The assessing authority has calculated the loss of green gram crop by taking into average of past 5 years assessed yield and it arrived average yield as 262.56 kg. According to Pradhan Mantri Fasal Bima Yojana scheme level of indemnity for the year 2017 season is 80% then the threshold yield comes to 210.04 kg. Assessed yield for the year 2017 is 36.604 kg then short fall of yield comes to 173.44 kg. The OP has taken into Area Correction Factor as per paragraph no.27.4 of Pradhan Mantri Fasal Bima Yojana scheme then claim percentage comes to 40.32%. The actual loss of yield for the year 2017 arrives at Rs.57,784=00 i.e.40.32% in of insured amount CC No.144/2019 and Rs.30,948=00 in CC No.145/2019.
19. The 2nd OP bank shall liable to pay the said amount since it has failed to send the premium amount along with proposal to the insurer within the cutoff date time line. Due to negligence on the part of 2nd OP the complainant has deprived of the insurance amount for the year 2017 and to seek compensation he has approached the bank and agriculture department etc. and for that he suffered mentally. Therefore, the 2nd OP shall pay a sum of Rs.5,000=00 as compensation towards mental agony and Rs.5,000=00 towards litigation expenses to each complainant. For the above reasons, we proceed to pass the following;
ORDER
The complaints are partly allowed directing the 2nd OP bank to pay a sum of Rs.57,784=00 to the complainant in CC No.144/2019 and Rs.30,948=00 to the complainant in CC No.145/2019 as crop insurance compensation with interest @ 8% p.a. from 1-1-2018 till the date of payment.
It is further ordered that the 2nd OP bank shall pay Rs.5,000=00 as compensation and Rs.5,000=00 as litigation expenses to each complainant within 45 days from the date of this order otherwise, it carries interest @ 8% p.a. from the date of filing the complaint till the date of payment.
The case against the 1st OP insurer is dismissed.
Keep the original order in CC.No.144/2019 and copy of order in CC.No.145/2019.
Furnish the copy of order to the complainants and opposite parties at free of cost.
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