State Consumer Disputes Redressal Commission
Smt. Deepa Soni & Others vs State Bank Of India & Others on 26 March, 2014
CHHATTISGARH STATE
CONSUMER DISPUTES REDRESSAL COMMISSION
PANDRI, RAIPUR(C.G.)
Appeal No.FA/13/197
Instituted on : 13.03.2013
1. Smt. Deepa Soni, W/o Late Amitabh Soni,
2. Ku. Anshika Soni,
3. Ku. Anusha Soni,
Both D/o Late Amitabh Soni,
Both Through Vali Mother & Natural Guardian (Vaad Mitra),
Smt. Deepa Soni, W/o Late Amitabh Soni.
All resident of :
House No.40, Shristi Garden, Opposite Airtel Office,
Ring Road No.1, Telibandha,
Raipur (C.G.) ... Appellants.
Vs.
1. State Bank of India,
Through : Branch Manager,
Branch : Ramsagarpara,
Raipur (C.G.)
2. Zonal Manager,
State Bank of India, Byron Bazar,
Raipur (C.G.)
3. New India Assurance Company Limited,
Through : Senior Division Manager,
New India Centre, 8th Floor, Tide Unit 120700,
17/1, Cooperage Road,
Mumbai Pin No.400 039 ... Respondents.
PRESENT: -
HON'BLE JUSTICE SHRI R.S. SHARMA, PRESIDENT
HON'BLE MISS HEENA THAKKAR, MEMBER
COUNSEL FOR THE PARTIES: -
Shri Sudeep Tiwari, for appellants.
Shri N.K. Shrivastava, for respondent Nos.1 & 2
Shri P.K. Paul, for respondent No.3.
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ORDER
DATED : 26/03/2014 PER :- HON'BLE SHRI JUSTICE R.S. SHARMA, PRESIDENT. This appeal is directed against the order dated 11.02.2013, passed District Consumer Disputes Redressal Forum, Raipur (C.G.) (henceforth "District Forum") in Complaint Case No.346/2010. By the impugned order the learned District Forum, has dismissed the complaint of the appellants/complainants.
2. Briefly stated, the facts of the complaint of the appellants/complainants before the District Forum are : that the husband of complainant no.1 namely Amitabh Soni was posted as Assistant Engineer in Government of Chhattisgarh, Department of Civil Aviation and he obtained Home Loan of Rs.15,00,000/- from respondent No.1/O.P.No.1, of which Account Number was 30083290392. Prior to sanction home loan, as per rules and procedure Amitabh Soni, was insured by the respondent No.3/O.P.No.3 The New India Assurance Company Limited for a sum of Rs.15,00,000/- under Free Personal Accident Policy which was covering accidental death. The deceased Amitabh Soni has separately obtained insurance policy from S.B.I. Life Insurance Company Ltd. in respect of amount payable under the home loan. In addition to it, Amitabh Soni, had also obtained insurance policy on his life. On 14.07.2007 Amitabh Soni died along with two pilots and one technician. On 18.06.2008, the // 3 // respondent No.3/ O.P.No.3 The New India Assurance Company told regarding the claim in respect of death of Ämitabh Soni that according to letter written by Director of Aviation, on 12.03.2008 the deceased Amitabh Soni was there in the helicopter as Maintenance Crew Member, on account of which under the terms and conditions of the policy the amount of insurance is not payable, but on 21.05.2009 the Director of Aviation issued letter from which it is proved that deceased Amitabh Soni was not traveling as Crew Maintenance Member on 14.07.2007 but earlier the Department had issued casually. The respondent No.3/O.P.No.3 assured that within a period of 6 months claim would be accepted and the amount would be paid to the complainants. The complainants contacted many time to O.P.No.3 as well as Government of Chhattisgarh, but only she was getting assurance that she will get the amount of insurance. The complainant sent notice to the OPs seeking compensation under death claim but the respondents/OPs had not paid the compensation. The appellants/complainants filed consumer complaint before the District Forum seeking direction to the respondents/OPs for payment of interest @ 9% p.a. on the amount of Rs.15,00,000/- from 14.07.2008 till date of filing of the complaint, compensation for mental agony and cost of litigation etc. // 4 //
3. The respondent No.1 & 2/Bank filed written statement and denied the allegations leveled by the appellants/complainants in the complaint filed against them.
4. The respondent No.3/Insurance Company filed written statement and denied the allegations leveled against it by the complainant. The respondent No.3/Insurance Company averred that a Memorandum of Understanding was executed between the State Bank of India and Insurance Company under Group Personal Accident Police of which Policy No. was 12070042070500000047 and the period was from 02.07.2007 to 01.07.2008. Under the said insurance policy, the respondent No.3/Insurance Company was having burden to pay the fixed amount without interest on sudden death of the borrower who obtained housing loan from State Bank of India. In the instant case the insurance cover of Rs.15,00,000/- was sanctioned to the Amitabh Soni on the basis of home loan. Exclusion clause of the said insurance policy was binding to the concerned parties, which is as under :-
"EXCLUSIONS PROVIDED ALWAYS THAT ;
The company shall not be liable under this Policy for :
(C) Whilst engaging in Aviation or Ballooning whilst mounting into, dismounting from or traveling in any balloon or aircraft other than as a passenger (fare paying or otherwise) in any duly licensed standard type of aircraft anywhere in the world. (Standard type of Aircraft means any aircraft duly licensed to carry passengers (for hire or otherwise) by appropriate authority irrespective of whether such an // 5 // aircraft is privately owned OR chartered Or operated by a regular airline OR Whether such an aircraft has a single engine or multi engine.
In the claim under the insurance policy, no interest was payable. The main condition of insurance contract executed between the parties is as under :-
CONDITIONS :
(3) No sum payable under this Policy shall carry interest."
5. Learned District Forum, after having considered the material before it by the parties, dismissed the complaint by the impugned order.
6. Shri Sudeep Tiwari, learned counsel for the appellants/complainant submitted that the order passed by the District Forum is not sustainable in the eye of law and is liable to be set aside. He place reliance on United India Insurance Co. Ltd. vs. Suraj Devi Jain, II (2009) CPJ 460 decided by this Commission on 16.09.2008; Maya Appliances Pvt. Ltd. vs. United India Insurance Company Ltd., I (2007) CPJ 3 (NC), I (2007) CPJ 3 (NC); New India Assurance Co. Ltd. vs. Kohinoor Sizing Factory, II (2006) CPJ 237 (NC), Pogu Narayana & Anr. vs. Oriental Insurance Company Ltd. & Anr. IV (2007) CPJ 264 decided by Andhra Pradesh State Consumer Disputes Redressal Commission, Hyderabad on 11.6.2007.
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7. Shri N.K. Shrivastava, learned counsel appearing for the respondent Nos.1 & 2, supported the impugned order.
8. Shri P.K. Paul, learned counsel appearing for the respondent No.3 also supported the impugned order. He placed reliance on New India Assurance Co. vs. Shikha Bhatia & Anr., I (2013) CPJ 42 (NC).
9. The appellants/complainants filed documents before the District Forum i.e. letter dated 05.10.2006 sent by the Assistant General Manager (RASECC), State Bank of India, Raipur (C.G.) to Amitabh Shri (Annexure - 1), operations letter (Annexure - 2), documents containing terms and conditions of housing loan (Annexure - 3), Certificate issued by Assistant General Manager, State Bank of India, Zonal Office, Raipur (C.G.) (Annexure A-4), Certificate dated 19.03.2006 issued by G.S. Godara, Senior Helicopter Engineer, Directorate of Aviation, Government of Chhattisgarh , Raipur (Annexure A-6), letter dated 07.04.2008 sent by Assistant General Manager, State Bank of India, Zonal Office, Byron Bazar, Raipur (C.G.) (Annexure A-7), letter dated 14.06.2008 sent by Assistant General Manager, Zonal Office, Byron Bazar, Raipur (C.G.) to The Senior Divisional Manager, Mumbai (M.S.) (Annexure A-8), letter dated 18th June, 2008 sent by Sr. Divisional Manager, The New India Assurance Co. Ltd. to Chief Manager, State Bank of India, Raipur (Annexure A-9), letter dated 21.05.2009 sent by Commissioner cum Director, Aviation, // 7 // Government of Chhattisgarh to The Senior Divisional Manager, The New India Assurance Co. Ltd., Mumbai copy of which was endorsed to Smt. Deepa Soni (Annexure - 11), letter dated 27th March, 2008 sent by the Assistant Manager Claims, SBI Life Insurance Co. Ltd. to the Branch Manager, State Bank of India, Raipur (C.G.) (Annexure -12), copy of account payee cheque no.282692 dated 28th March, 2013 for Rs.15,24,218/- (Annexure - 13), letter dated 13.02.2008 sent by Assistant Manager Claims, SBI Life Insurance Co. Ltd. to Mrs. Deepa Soni (Annexure 14), letter dated 13.02.2008 sent by Assistant Manager Claims, SBI Life Insurance Company Ltd. to Mrs. Deepa Soni (Annexure 15), copy of cheque no.281368 dated 12.02.2008 for Rs.1,50,000/- (Annexure 16), letter dated 11.01.2008 sent by Sr. Branch / Divisional Manager, Life Insurance Corporation of India, Raipur Sinagar, Khamtarai to Smt. Deepa Soni regarding payment of claim due to her (Annexure 17), legal notice dated 02.07.2010 sent by Thakur Anand Mohan Singh, Advocate to the respondents/OPs (Annexure 18), receipts issued by postal department (Annexure 19) and death certificate of Amitabh Soni (Annexure 20).
10. Respondent Nos.1 & 2/Bank has filed documents i.e. reply of the notice dated 02.07.2010 sent to Shri Anand Mohan Singh, Advocate by Shri N.K. Shrivastava, Advocate (Annexure NA-1), letter dated 09.08.2010 (Annexure NA-2), letter dated 11.01.2008 sent by Sr. Branch // 8 // / Divisional Manager, Life Insurance Corporation of India, Raipur Sinagar, Khamtarai to Smt. Deepa Soni regarding payment of claim due to her letter dated 11.01.2008 sent by Sr. Branch / Divisional Manager, Life Insurance Corporation of India, Raipur Sinagar, Khamtarai to Smt. Deepa Soni regarding payment of claim due to her (Annexure NA-3), Certificate issued by G.S. Godara, Senior Helicopter Engineer, Directorate of Aviation, Govt. of Chhattisgarh, Raipur (Annexure NA-4), copy of account payee cheque no.282692 dated 28th March, 2013 for Rs.15,24,218/- (Annexure - NA-5) letter dated 27th March, 2008 sent by Assistant Manager Claims, SBI, Life Insurance Co. Ltd. to the Branch Manager, State Bank of India, Raipur (C.G.) (Annexure NA06), letter dated 07.04.2008 sent by State Bank of India, Zonal Office, Byron Bazar, Raipur (C.G.) to The Senior Divisional Manager, The New India Assurance Co. Ltd., Mumbai (Annexure NA-
7), letter dated 14.06.2008 sent by the Assistant General Manager, Zonal Assistant Manager, Byron Bazar, Raipur (C.G.) to the Senior Divisional Manager, the New India Assurance Co. Ltd., Mumbai (Annexure NA-8), letter dated 18th June, 2008 sent by Sr. Divisional Manager, The New India Assurance Company Ltd. to Chief Manager, State Bank of India, Raipur (Annexure NA-9), Certificate dated 03.11.2008 issued by Dr. Rajendra Rao (Annexure NA-10), letter dated 21.05.2009 sent by Commissioner cum Director, Aviation, Government of Chhattisgarh (Annexure - 11), letter dated 13.06.2009 sent by // 9 // Assistant General Manager, State Bank of India, RACPC Raipur to Sr. Divisional Manager, The New India Assurance Company Ltd., Mumbai [Annexure - NA-12(1)], letter dated 08.07.2009 sent by Assistant General Manager, State Bank of India, RACPC Raipur to Sr. Divisional Manager, The New India Assurance Co. Ltd. [Annexure NA-12(2)], letter dated 05.08.2009 sent by Assistant General Manager, State Bank of India, RACPC, Raipur to The Divisional Manager, The New India Insurance Co. Ltd. 9 (Annexure NA-13), letter sent by Deepa Soni to the A.G.M. State Bank of India, Zonal Office, Byron Bazar, Raipur (C.G.) (Annexure NA-14).
11. Respondent No.3/Insurance Company has filed documents i.e. Memorandum of Term Loan Agreement For Housing Loan granted to public, letter dated 18.06.2008 sent by Sr. Divisional Manager, The New India Assurance Co. Ltd., letter dated 21.05.2009 sent by Commissioner Cum Director, Aviation, Government of Chhattisgarh to the Senior Divisional Manager, The New India Assurance Company Limited, letter dated 09.03.2011 sent by Assistant Manager, The New India Assurance Company Limited, Mumbai to The Chief Manager, State Bank of India, RACPC, Raipur (C.G.), letter dated 16.03.2011 sent by Manager, Legal Cell - M.R.O. III, to The Branch Manager, State Bank of India, RACPC, Raipur (C.G), settlement intimation voucher.
12. In the insurance policy, it is mentioned that :-
// 10 // "EXCLUSIONS PROVIDED ALWAYS THAT ;
The company shall not be liable under this Policy for :
(C) Whilst engaging in Aviation or Ballooning whilst mounting into, dismounting from or traveling in any balloon or aircraft other than as a passenger (fare paying or otherwise) in any duly licensed standard type of aircraft anywhere in the world. (Standard type of Aircraft means any aircraft duly licensed to carry passengers (for hire or otherwise) by appropriate authority irrespective of whether such an aircraft is privately owned OR chartered Or operated by a regular airline OR Whether such an aircraft has a single engine or multi engine.
In the claim under the insurance policy, no interest was payable. The main condition of insurance contract executed between the parties is as under :-
CONDITIONS :
(3) No sum payable under this Policy shall carry interest."
13. In the case of New India Assurance Co. vs. Shikha Bhatia & Anr. (Supra), Hon'ble National Commission observed thus :
"........Insurance Policy is a contract of faith and both the parties are bound by the terms and conditions of the policy. The plea taken by the learned Counsel for the Respondent No.1 that the terms of the policy had not been supplied to the Respondent No.1 has no force. ....... The Insurance Company cannot be asked to pay more than the sum insured. The Consumer Court cannot by a Court fiat direct the Insurance Company or the Bank to treat the accidental death on the road and the death while in flight as equal for the purpose of payment of compensation. It was matter of contract between the Bank and the Insurance Company. At the instance of the complainant, Insurance Company cannot be asked to change terms of the policy or the coverage taken by the Bank under the policy. The contract was // 11 // between the Bank and the Insurance Company. There was no privity of contract between the Complainant and the Insurance Company as the policy was taken by the Bank for its Card Holders."
14. In the instant case also the contract was between the Bank and the Insurance Company and there was no privity of contract between the complainants and the Insurance Company as the insurance policy was taken by the Bank for its Card Holders. According to the respondent No.3/Insurance Company after death of Amitabh Soni, the Insurance Company had paid sum insured Rs.15,00,000/- to the appellants/complainant and the Insurance Company cannot be asked to pay more than the sum assured and according to the respondent No.3/Insurance Company, the appellants/complainants are not entitled for any interest.
15. Therefore, the impugned order dated 11.02.2013, passed by the District Forum, does not suffer from any illegality or irregularity, hence does not call for any interference by this Commission.
16. Therefore, the appeal filed by the appellants / complainants being devoid of any merit, deserves to be and is hereby dismissed. No order as to the cost of this appeal.
(Justice R.S. Sharma) (Ms. Heena Thakkar)
President Member
/03/2014 /03/2014