BEFORE THE DISTRICT FORUM: KURNOOL
Present: Sri. T.Sundara Ramaiah, B.Com B.L., President
And
Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member
And
Smt. S.Nazeerunnisa, B.A., B.L., Lady Member
Tuesday the 25th day of October, 2011
C.C.No.06/2011
Between:
Smt. Yemireddy Savithramma, W/o Late Yemireddy Abbi Reddy,
R/o H.No.1-26, Chintalacheruvu Village, Chagalamarri Mandal, Kurnool District. …Complainant
-Vs-
1. The Secretary, Primary Agriculture Co-Operative Society Limited,
D.No.167, Chagalamarri (Village and Mandal), Kurnool District-518 553.
2. The Manager, Reliance General Insurance Company Limited,
19-2-27, Vijayabharath Commercial Complex, D.R.Mahal Road, Tirupathi-517 501.
3. Reliance General Insurance Company Limited,
Deccan Chambers, 4th Floor, 6-3-666/B, Somajiguda, Hyderabad-500 082.
4. The General Manager, District Co-Operative Central Bank,
46-1-C, Budhavara Peta, Opp Government Eye Hospital, Kurnool-518 002. ...Opposite ParTies
This complaint is coming on this day for orders in the presence of Sri M.Sivaji Rao, Advocate for complainant and Sri K.Rama Krishna Rao, Advocate for opposite parties 1 and 4 and opposite party No.2 called absent and Sri.P.Ramanjaneyulu, Advocate for opposite party No.3 and upon perusing the material papers on record, the Forum made the following.
ORDER
(As per Sri. T.Sundara Ramaiah, President)
C.C. No.06/2011
1. This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying:-
- To direct the opposite parties jointly and severally to pay the assured amount of Rs.50,000/- with interest @ 24% per annum;
- To pay a sum of Rs.25,000/- towards the compensation for causing the complainants to suffer mental agony and hardship;
- To pay the costs of this complaint;
- To pass any other order or orders that are deem to be fit and proper in the circumstances of the case.
2. The case of the complainant in brief is as under:- Yemireddy Abbi Reddy husband of the complainant was a member in opposite party No.1 society with membership No.3510. The said Abbi Reddy on 11-02-1999 took a loan of Rs.28,500/- from opposite party No.1 for digging a bore well in his land. Opposite party No.1 society took Janata Personal Accident Insurance policy from opposite party no.2 covering the risk of its members. As per the terms and conditions of the policy if any member of the society dies accidentally opposite parties 2 and 3 are liable to pay a sum of Rs.50,000/-. The policy is bearing No.1811383011100003. The period of policy is from 23-02-2008 to 22-02-2009. On 19-02-2009 while the husband of the complainant was going to Allagadda on Motor Cycle a lorry bearing No.AP21 TT 1247 coming from opposite direction and dashed against the motorcycle of Abbi Reddy and he died on the spot. A case in Crime No.13/2009 under section 304(A) IPC was registered against the driver of the lorry in Allagadda Police Station. After the death of Abbi Reddy, opposite party No.1 intimated the same to opposite parties 2 and 4. Opposite party No.1 also sent a claim form to opposite party No.2. Inspite of repeated request opposite parties 2 and 3 did not settle the claim. Lastly on 01-02-2010 opposite party No.3 sent a letter to opposite party No.1 closing the claim as “No Claim”. There is deficiency of service on the part of opposite parties. Hence the complaint.
3. Opposite party No.2 set exparte.
Opposite parties 1 and 4 filed counter stating that the Yemireddy Abbi Reddy is a borrower from opposite party No.1 society. He died in Motor Cycle Accident on 19-02-2009. The claim was submitted to opposite party No.2 along with documents. The policy issued by opposite party No.3 covers accidental death of the members of the society. Opposite party No.3 falsely closed the claim on 01-02-2010. Opposite parties 2 and 3 are liable to pay assured amount.
Opposite party No.3 filed written version stating that the complaint is not maintainable. Opposite party No.3 is not aware that Abbi Reddy took a membership in opposite party No.1 society and took a loan of Rs.28,500/- from opposite party No.1. It is not also aware that the said Abbi Reddy died in the Motor Accident on 19-02-2009. Opposite party No.2 issued policy bearing No.1811383011100003 to opposite party No.1. The period of the policy is from 23-02-2008 to 22-02-2009. The complainant in collusion with the opposite party No.1 impleaded the name of the Abbi Reddy in the list after the death of the deceased in order to get wrongful gain. Opposite party no.1 did not submit the required documents to opposite party No.3 to settle the claim. Therefore the claim was closed as not payable. The complainant is not entitled to sum assured of Rs.50,000/- with interest. The complaint is liable to be dismissed.
4. On behalf of the complainant Ex.A1 to A13 are marked and sworn affidavit of the complainant is filed. On behalf of the opposite parties Ex.B1 is marked and sworn affidavits of the opposite parties 1, 3 and 4 are filed.
5. Both sides filed written arguments.
6. The points that arise for consideration are:
- Whether there is deficiency of service on the part of Opposite Parties?
- Whether the complainant is entitled to the reliefs as prayed for?
- To what relief?
7. POINTS 1 and 2:- Admittedly office of opposite party No.2 issued Janata Personal Accident Insurance Policy bearing No.1811383011100003 in favour of opposite party No.1 for the benefit of members of opposite party No.1 society. The said policy was in force from 23-02-2008 to 22-02-2009. The said policy was issued in favour of opposite party No.1 society by the office of opposite party No.2 as per the memorandum of agreement of Ex.B1 dated 19-02-2008. It is the case of the complainant that her husband of Yemireddy Abbi Reddy was the member of the society; that he obtained a loan of Rs.28,500/- from opposite party No.1 society and that he died on 19-02-2009. It is admitted by opposite parties 1 and 4 that Abbi Reddy was a member of the opposite party No.1 society. According to the opposite party No.3, the complainant husband Abbi Reddy was not a member of opposite party No.1 society and that the name of the Abbi Reddy is included in the registers in collusion. It is for the complainant to show that her husband Abbi Reddy was a member of opposite party No.1 society. To prove the same the complainant filed Ex.A1 copy of the member ship book. As seen from Ex.A1 it is very clear that the complainant joined as a member in opposite party No.1 society in the year 1998. Ex.A3 is the list of the beneficiaries under the policy. It is mentioned in Ex.A3 that Abbi Reddy is one of the beneficiaries under the policy.
8. It is further the case of the complainant that her husband Abbi Reddy died in a Road Accident that took place on 19-02-2009. The complainant in her sworn affidavit clearly stated about the death of her husband in the accident she also filed Ex.A4 to Ex.A6. Ex.A4 is the copy of the F.I.R. in Crime No.13/2009 of Allagadda Rural Police Station. In Ex.A4 it is mentioned that Abbi Reddy died in the accident that took place on 19-02-2009. Ex.A5 is the inquest report and Ex.A6 is the Post Mortem Certificate of Abbi Reddy. Ex.A5 and Ex.A6 also go to show that the Abbi Reddy died on 19-02-2009 in Motor Accident. The opposite parties 2 and 3 did not place any documentary evidence in support of their contention that Abbi Reddy was not a member in opposite party No.1 society and that he did not obtain loan from opposite party No.1. From the evidence available on record it is very clearly that Abbi Reddy was a member of opposite party No.1 society and that he obtained loan from opposite party No.1 society in the year 1999.
9. It is the case of the complainant that thought opposite party no.1 sent a claim to opposite parties 2 and 3 but opposite party No.3 by its letter Ex.A12 dated 01-02-2010 unnecessarily closed the claim. It is submitted by the learned counsel appearing for opposite party No.3 that as per terms and conditions of Ex.B1 memorandum of agreement the complainant is not entitled to assured amount. In Ex.B1 it is clearly mentioned that the members of PACS who have availed loans and which are outstanding as on the date of premium or repaid in the previous year are entitled to the benefits under the policy. According to the complainant her husband availed loan from opposite party No.1 society and the said loan was outstanding by the date of the policy. Ex.A2 is the copy of the loan ledger where in it is mentioned that the loan taken by the Abbi Reddy was outstanding till 30-06-2008. Admittedly the policy commenced on 22-02-2008. By the date of the payment of the premium the loan taken by Abbi Reddy was outstanding. Therefore the contention of the opposite party No.3 that Abbi Reddy was not a borrower and that the complainant who is the nominee is not entitled to the assured amount cannot be accepted. As seen from the available records and evidence it is very clear that Abbi Reddy died in Motor Accident that took place on 19-02-2009. He was a member of the opposite party No.1 society. He availed a loan and the said loan was outstanding till 30-06-2008. Opposite party No.3 did not settle the claim submitted by opposite party No.1. There is negligence on the part of opposite parties 2 and 3.
10. In the result, the complaint is partly allowed directing the opposite parties 1 and 3 jointly and severally to pay assured amount of Rs.50,000/- to the complainant with interest at 9% per annum from the date of Ex.A12 i.e., 01-02-2010 till the date of payment along with cost of Rs.500/-. The complaint against opposite parties 2 and 4 is dismissed.
Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 25th day of October, 2011.
Sd/- Sd/- Sd/-
MALE MEMBER PRESIDENT LADY MEMBER
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant : Nill For the opposite parties : Nill
List of exhibits marked for the complainant:-
Ex.A1 Photo copy of Society Membership extract issued
by opposite party No.1.
Ex.A2. Photo copy of Loan Ledger Extract issued by
opposite party No.1.
Ex.A3 Photo copy List of beneficiaries sent to
opposite party No.2.
Ex.A4 Photo copy of F.I.R. in Crime no.13/2009 of Allagadda
Rural Police dated 19-02-2009.
Ex.A5 Photo copy of Inquest report dated 19-02-2009.
Ex.A6 Photo copy of Post Mortem Certificate issued by Medical
Officer Community Health Center Allgadda
Dated 19-02-2009
Ex.A7 Photo copy of death intimation sent to opposite party No.2 by opposite party No.4 dated 20-02-2009 along with postal receipt and acknowledgement.
Ex.A8 Photo copy of death intimation sent to opposite party No.1 by opposite party No.2 dated 02-05-2009.
Ex.A9 Photo copy of Death Certificate issued to Secretary
Chagalamarri P.A.C.S. dated 25-02-2009.
Ex.A10 Photo copy of Family Members Certificate
dated 04-05-2009.
Ex.A11 Photo copy of J.P.A. Insurance Claim Form sent to
opposite party No.2 dated 30-05-2009.
Ex.A12 Photo copy of claim closer letter sent by opposite
party No.3 to opposite party No.1 dated 01-02-2010.
Ex.A13 Photo copy of letter sent by opposite party No.3
dated 06-03-2010.
List of exhibits marked for the opposite parties:-
Ex.B1 Photo copy of the memorandum of agreement
dated 19-02-2008.
Sd/- Sd/- Sd/-
MALE MEMBER PRESIDENT LADY MEMBER
// Certified free copy communicated under Rule 4 (10) of the A.P.S.C.D.R.C. Rules, 1987//
Copy to:-
Complainant and Opposite parties :
Copy was made ready on :
Copy was dispatched on :
