State Consumer Disputes Redressal Commission
United India Insurance Company Limited vs The Punjab State Agricultural ... on 3 May, 2010
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
STATE CONSUMER
DISPUTES REDRESSAL COMMISSION,
UNION TERRITORY,
CHANDIGARH.
Appeal case No.1956/2008
Date of institution:18.11.2008
Date of decision : 3.5.2010
United
India Insurance Company Limited, Regional Office, SCO No.153-154, Sector-17-B,
Chandigarh through Deputy Manager. Appellant
V E R S U S
The Punjab State Agricultural Marketing Board (Mandi
Board,), SCO No.149-52, Sector-17-C, Chandigarh through its Secretary
.Respondent
Appeal U/s 15 of Consumer Protection
Act,1986 against
order dated 29.9.2008 passed by Consumer Disputes
Redressal Forum-II,
U.T.Chandigarh.
Argued by: Sh.V.Ram Swaroop,advocate for appellant.
Sh.Vinod Kumar , advocate for respondent
BEFORE : Honble
Mr.Justice Pritam Pal, President
Maj.Gen.S.P.Kapoor (retd), Member
Mrs.Neena Sandhu,Member
JUDGMENT
3.5.2010 Justice Pritam Pal, President
1. By this order we are disposing of following 281 appeals - out of which 276 have been filed by United India Insurance Company Limited (for short hereinafter referred to as Insurance Company) and 5 appeals have been filed by Punjab State Agricultural Market Board (for short hereinafter referred to as Punjab Mandi Board) against the common order dated 29.9.2008 passed by the District Consumer Forum-II, U.T. Chandigarh. The main order had been delivered in complaint case NO.145 of 1990 The Punjab State Agricultural Marketing Board Vs United India Insurance Co. Ltd. whereby a bunch of 298 complaints had been decided. Out of said 298 complaints, five complaints were dismissed for non-production of document annexure P-1 while eight complaints were dismissed as the same did not fall during the period of insurance and nine complaints were dismissed as the date of injury was not mentioned therein. The operating part of the impugned order dated 29.9.2008 reads as under ;
a) The complaints No.277, 342, 343,344 and 437 of 1990 are dismissed for want of Annexure P-1 in them. Further, the claims of Gurmail Singh s/o Mohinder Singh in C.C. No.408/1990, Sewa Singh s/o Bawa Singh & Gursab Singh s/o Gurmej Singh in C.C. No.373 of 1990, Chhotu Singh s/o Gurdial Singh in C.C. No.425 of 1990, Roshan Singh s/o Smapuran Singh in C.C. No.439 of 1990, Rai Singh s/o Mani Ram & Chinder Singh s/o Khairat Singh in C.C. No.449 of 1990, Balwinder Singh s/o Gurdev Singh in C.C. No.465 of 1990, Kuldeep Singh s/o Channan Singh in C.C. No.472 of 1990 and Gurdip Singh s/o Naranjan Singh in C.C. No.514 of 1990 are dismissed as the same do not fall within the period of insurance. Similarly, the claim of Roor Singh s/o Santa Singh in complaint case No.307 of 1990, Nemri w/o David Masih in C.C No.365 of 1990, Satpal Singh s/o Inder Dass in C.C. No.366 of 1990, Bhajan Singh s/o Ujaggar Singh & Baldev Singh s/o Ujaggar Singh in C.C. No.419 of 1990, Surat Singh s/o Labh Singh in C.C. No.448 of 1990, Jagtar Singh s/o Gurbachan Singh in C.C. No.450 of 1990, Ginder Singh s/o Kahan Singh in C.C. No.451 of 1990, Sham Singh s/o Punoo Singh in C.C. No.469 of 1990, Jagraj Singh s/o Jagir Singh in C.C. No.481 of 1990 are also dismissed as the date of injury on the victims has not been mentioned.
b) The Secretary of the complainant-Board is directed to constitute a committee under clause 8 of the Insurance agreement in question and give its due intimation to the OPs who would nominate their representative on the said committee to consider, process and dispose of the cases of claimants whose name figure in Annexure P-1 annexed with each complaint (except the cases of those claimants whose cases/claims have been dismissed and are mentioned in sub para
(a) above). The Secretary of the Board shall constitute such committee within 15 days of the receipt of certified copy of this order while the OPs-Insurance Company shall nominate their representative in the said committee within 10 days of the receipt of intimation of constitution of committee from the complainant-Board. Such committee shall then assemble, undertake and complete the job assigned to it under clause 8 of the agreement within a period of six months from the date it holds its first sitting, which shall be held within two weeks of receipt of intimation of representative of the Insurance Company.
c) For deficiency in service in the cases of persons/claimants whose claim would be found fit to be allowed, the OPs shall additionally pay Rs.10,000/- in the cases pertaining to death claims and Rs.2,500/- in case of loss of one/two limb(s) to each such claimant.
d) The OPs shall also pay a sum of Rs.1,000/- to the successful complainant as litigation expenses in each complaint case.
2. The Insurance company has filed 276 appeals for setting aside the impugned order dated 29.9.2008 while five appeals have been filed by Punjab Mandi Board, the detail of which is as under ;
Sr. No. Appeal No. Complaint Case No. Name of Appellant/complainant Name of Respondent/OP FA/1956/2008 CC/145/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1957/2008 CC/352/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1958/2008 CC/355/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1959/2008 CC/356/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1960/2008 CC/357/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1961/2008 CC/358/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1962/2008 CC/359/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1963/2008 CC/360/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1975/2008 CC/354/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1976/2008 CC/361/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1977/2008 CC/461/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1978/2008 CC/462/2008 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1979/2008 CC/463/2008 United India Insurance Co. Ltd.
Punjab State Marketing Board FA1980/2008 CC/464/2008 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1981/2008 CC/311/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1982/2008 CC/466/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1983/2008 CC/467/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1984/2008 CC/468/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1985/2008 CC/362/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1986/2008 CC/363/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1987/2008 CC/364/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1988/2008 CC/147/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1989/2008 CC/148/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1990/2008 CC/367/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1991/2008 CC/368/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1992/2008 CC/369/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1993/2008 CC/480/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1994/2008 CC/309/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1995/2008 CC/483/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1996/2008 CC/473/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1997/2008 CC/475/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1998/2008 CC/476/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/1999/2008 CC/477/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2000/2008 CC/478/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2001/2008 CC/479/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2002/2008 CC/312/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2003/2008 CC/470/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2004/2008 CC/471/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2005/2008 CC/149/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2006/2008 CC/474/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2007/2008 CC/283/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2008/2008 CC/285/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2009/2008 CC/286/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2010/2008 CC/287/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2011/2008 CC/288/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2012/2008 CC/291/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2013/2008 CC/292/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2014/2008 CC/276/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2015/2008 CC/279/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2016/2008 CC/280/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2017/2008 CC/281/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2018/2008 CC/282/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2019/2008 CC/284/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2020/2008 CC/289/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2021/2008 CC/310/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2022/2008 CC/484/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2023/2008 CC/485/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2024/2008 CC/486/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2025/2008 CC/487/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2026/2008 CC/488/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2027/2008 CC/489/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2028/2008 CC/490/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2029/2008 CC/491/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2030/2008 CC/492/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2039/2008 CC/293/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2040/2008 CC/295/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2041/2008 CC/296/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2042/2008 CC/297/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2043/2008 CC/298/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2044/2008 CC/299/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2045/2008 CC/390/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2046/2008 CC/302/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2047/2008 CC/303/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2048/2008 CC/304/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2049/2008 CC/305/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2050/2008 CC/306/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2051/2008 CC/146/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2052/2008 CC/308/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2053/2008 CC/313/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2054/2008 CC/345/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2055/2008 CC/346/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2056/2008 CC/347/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2057/2008 CC/348/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2058/2008 CC/349/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2059/2008 CC/350/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2060/2008 CC/351/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2061/2008 CC/370/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2062/2008 CC/145/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2063/2008 CC/372/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2064/2008 CC/145/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2065/2008 CC/375/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2066/2008 CC/376/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2067/2008 CC/377/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2068/2008 CC/380/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2069/2008 CC/381/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2070/2008 CC/382/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2071/2008 CC/383/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2072/2008 CC/384/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2073/2008 CC/385/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2074/2008 CC/387/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2075/2008 CC/388/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2076/2008 CC/389/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2077/2008 CC/390/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2078/2008 CC/391/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2079/2008 CC/392/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2080/2008 CC/393/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2081/2008 CC/394/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2082/2008 CC/395/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2083/2008 CC/396/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2084/2008 CC/397/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2085/2008 CC/398/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2086/2008 CC/399/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2087/2008 CC/400/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2088/2008 CC/401/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2089/2008 CC/402/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2090/2008 CC/403/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2091/2008 CC/404/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2092/2008 CC/405/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2093/2008 CC/406/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2094/2008 CC/407/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2095/2008 CC/409/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2096/2008 CC/410/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2097/2008 CC/411/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2098/2008 CC/412/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2099/2008 CC/413/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2100/2008 CC/414/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2101/2008 CC/415/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2102/2008 CC/416/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2103/2008 CC/417/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2104/2008 CC/418/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2105/2008 CC/429/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2106/2008 CC/420/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2107/2008 CC/421/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2108/2008 CC/422/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2109/2008 CC/423/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2110/2008 CC/424/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2111/2008 CC/426/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2112/2008 CC/427/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2113/2008 CC/428/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2114/2008 CC/430/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2115/2008 CC/431/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2116/2008 CC/432/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2117/2008 CC/433/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2118/2008 CC/434/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2119/2008 CC/435/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2120/2008 CC/436/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2121/2008 CC/438/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2122/2008 CC/440/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2123/2008 CC/441/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2124/2008 CC/442/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2125/2008 CC/443/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2126/2008 CC/444/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2127/2008 CC/445/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2128/2008 CC/446/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2129/2008 CC/447/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2130/2008 CC/452/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2131/2008 CC/453/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2132/2008 CC/454/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2133/2008 CC/455/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2134/2008 CC/456/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2135/2008 CC/457/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2136/2008 CC/458/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2137/2008 CC/459/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2138/2008 CC/460/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2139/2008 CC/482/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2140/2008 CC/493/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2141/2008 CC/494/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2142/2008 CC/495/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2143/2008 CC/496/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2144/2008 CC/497/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2145/2008 CC/498/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2146/2008 CC/499/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2147/2008 CC/500/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2148/2008 CC/501/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2149/2008 CC/502/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2150/2008 CC/503/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2151/2008 CC/504/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2152/2008 CC/505/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2153/2008 CC/506/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2154/2008 CC/507/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2155/2008 CC/508/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2156/2008 CC/509/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2157/2008 CC/510/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2158/2008 CC/511/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2159/2008 CC/512/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2160/2008 CC/513/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2161/2008 CC/515/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2162/2008 CC/516/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2163/2008 CC/517/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2164/2008 CC/518/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2165/2008 CC/519/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2166/2008 CC/520/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2167/2008 CC/521/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2168/2008 CC/522/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2169/2008 CC/523/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2170/2008 CC/524/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2171/2008 CC/525/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2172/2008 CC/526/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2173/2008 CC/527/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2174/2008 CC/528/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2175/2008 CC/529/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2176/2008 CC/530/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2177/2008 CC/531/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2178/2008 CC/532/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2179/2008 CC/533/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2180/2008 CC/534/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2181/2008 CC/535/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2182/2008 CC/90/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2183/2008 CC/91/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2184/2008 CC/92/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2185/2008 CC/93/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2186/2008 CC/94/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2187/2008 CC/95/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2188/2008 CC/96/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2189/2008 CC/97/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2190/2008 CC/98/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2191/2008 CC/99/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2192/2008 CC/100/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2193/2008 CC/101/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2194/2008 CC/102/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2195/2008 CC/103/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2196/2008 CC/104/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2197/2008 CC/105/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2198/2008 CC/106/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2199/2008 CC/107/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2200/2008 CC/1267/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2201/2008 CC/1268/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2202/2008 CC/1269/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2203/2008 CC/1270/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2204/2008 CC/1271/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2205/2008 CC/1272/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2206/2008 CC/1273/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2207/2008 CC/1274/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2208/2008 CC/1275/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2209/2008 CC/1276/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2210/2008 CC/1277/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2211/2008 CC/1278/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2212/2008 CC/1279/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2213/2008 CC/1280/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2214/2008 CC/278/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2215/2008 CC/290/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2216/2008 CC/294/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2217/2008 CC/301/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2218/2008 CC/317/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2219/2008 CC/353/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2220/2008 CC/378/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2221/2008 CC/379/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2222/2008 CC/386/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2223/2008 CC/108/1992 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2224/2008 CC/314/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2225/2008 CC/315/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2226/2008 CC/316/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2227/2008 CC/318/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2228/2008 CC/319/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2229/2008 CC/320/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2230/2008 CC/321/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2231/2008 CC/322/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2232/2008 CC/323/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2233/2008 CC/324/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2234/2008 CC/325/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2235/2008 CC/326/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2236/2008 CC/327/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2237/2008 CC/328/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2238/2008 CC/329/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2239/2008 CC/330/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2240/2008 CC/331/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2241/2008 CC/332/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2242/2008 CC/333/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2243/2008 CC/334/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2244/2008 CC/335/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2245/2008 CC/336/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2246/2008 CC/337/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2247/2008 CC/338/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2248/2008 CC/339/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2249/2008 CC/340/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2250/2008 CC/341/1990 United India Insurance Co. Ltd.
Punjab State Marketing Board FA/2034/2008 CC/342/1990 Punjab State Marketing Board United India Insurance Co. Ltd.
FA/2035/2008 CC/344/1990 Punjab State Marketing Board United India Insurance Co. Ltd.
FA/2036/2008 CC/277/1990 Punjab State Marketing Board United India Insurance Co. Ltd.
FA/2037/2008 CC/343/1990 Punjab State Marketing Board United India Insurance Co. Ltd.
FA/2038/2008 CC/437/1990 Punjab State Marketing Board United India Insurance Co. Ltd.
3. Since, in all the above mentioned appeals, common questions of law and facts are involved, so, we are deciding all these appeals by this common judgment which is being rendered in appeal case No.1956 of 2008 United India Insurance Company Limited Vs The Punjab State Agricultural Marketing Board. In order to appreciate the controversy involved before us in these appeals, the facts are culled out from complaint case No.145 of 2009.
4. The parties hereinafter shall be referred to as per their ranking before the District Consumer Forum.
5.. The facts as set out in the complaint are that the Punjab State Agricultural Marketing Board, Chandigarh (for short hereinafter referred to as Mandi Board) was a body corporate as well as a local authority by the name of State Agricultural Marketing Board, having perpetual succession and common seal with power, subject to the provisions of The Punjab Agricultural Produce Markets Act, 1961 to acquire and hold the property and shall be by the said name sue and be sued, whereas, vide resolution No.91 dated 16.1.1989 duly clothed the Secretary of the Board with authority to initiate any legal action for and on behalf of the Board. The OP through their written communication resting under ref. No.PKS:89 dated 10.3.1989 addressed to the Mandi Board expressed their willingness to accept Rs.15.00 lacs as premium for carrying out the Personal Accident Insurance of Farmers, Farm Labour and Mandi Workers throughout the State of Punjab as per the provisions of its Insurance Scheme for the year 1989-90, whereupon the Mandi Board vide its written communication dated 13.3.1989 addressed to the OPs conveyed its decision to take up the abovesaid Personal Accident Insurance throughout the State of Punjab for a period of one year reckonable from 13.4.89 and co-terminus with 12.4.1990 for a net premium of Rs.15.00 lacs as quoted by the OPs with the added stipulation that the terms and conditions thereof shall be embodied in the Insurance Scheme to be signed by the parties. As a sequel to the acceptance of the said proposal, the Insurance Scheme as stipulated stood duly executed and signed by S. J.R. Kundal, IAS the then Secretary of the Mandi Board on one side and Sh. P.K. Sood, Branch Manager of the OP Insurance Co. on the other and this process gave rise to a legal and a binding contract inter se the parties vis--vis the carrying out of the Personal Accident Insurance of Farmers, Farm Labour and Mandi Workers. By virtue of the factum of coming into existence of the said legal and binding contract inter se the parties, the OPs collected the net premium of Rs.15.00 lacs from the Mandi Board towards the above said Personal Accident Insurance vide cheque No.310026 dated 31.3.1989 which was duly got encashed by them on 6.4.1989. Besides other terms and conditions as embodied in the abovesaid Insurance Scheme, term and condition NO.3 inter alia provided that the total expenditure for covering the Farmers, Farm Labour and Mandi Workers would be Rs.15.00 lacs and the said amount shall be paid by the Mandi Board to the OP before 12.4.1989 whereas condition No.4 provided that the said scheme would cover the farmers, farm labour and mandi workers against all accidents arising out of the use of the agricultural machinery, agricultural implements, digging of tubewells, electric current, while watering the fields and snake bites and the scale of compensation would be Rs.30,000/- in case of death; Rs.12,000/- in case of loss of one limb i.e loss of one hand, arm, leg, disablement which the Secretary of the Board would declare; Rs.20,000/- in case of loss of two limbs or disability of two limbs or any other bodily injury, which the Secretary of the would declare; Rs.3,000/- in case of loss per finger, whereas Rs.9,000/- in case of loss of three fingers and Rs.12,000/- in case of loss of four fingers, which shall be deemed to be loss of a complete limb, whereas, term and condition No.5 inter alia provided that the said Scheme would be implemented throughout the State of Punjab through Market Committees and the amount of claim i.e. financial assistance received by way of cases through Market Committees would be paid by the OP in the office of the Mandi Board upto 15th of every month or the next working day, in case it happens to be a holiday, whereupon, the payment thereof shall be made through cheques in the name of concerned persons, whereas, term and condition No.6 inter alia provided that the said Scheme would remain in force reckonable from 13.4.1989 and co terminus with 12.4.1990. As a sequel to the receipt of duly verified and checked cases vis--vis the causation of injuries resulting in death and loss of limb (s) of the Farmers, Farm Labour and Mandi Workers through different Market Committees, the Mandi Board vide its written communication dated 4.12.1989 forwarded 433 duly verified and checked cases for the release of payment of the amount of the claim i.e financial assistance as due thereunder in the office of the Mandi Board within the stipulated period of time upto 15th of every month or the next working day in case it happens to be a holiday towards the discharge of contractual obligations so originating out of the terms and conditions of the Insurance Scheme for making of onward payment to the affected farmers, farm labour and Mandi workers through cheques to be issued in their names but despite the factum of its receipt. As the OPs were not releasing the amount of the claim i.e. financial assistance as due thereunder in the office of the Mandi Board within the abovesaid stipulated period of time, therefore, the complainant (Mandi Board) had to serve upon the OPs a registered AD notice of demand dated 16.4.1990 calling upon them to expedite the release of payment of amount of claim i.e. financial assistance as due thereunder in the abovesaid 433 claims of duly verified and checked cases within 15 days from the date of receipt. It was alleged that out of the aforesaid consolidated set of 433 duly verified and checked cases, five claims were of affected farmers, farm labour and mandi workers of Market Committee, Hoshiarpur, Garh Shanker, Tanda Urmar and Balachaur, District Hoshiarpur vis--vis the causation of injuries resulting in loss of limb(s) of total amount of Rs.93,000/-, details of which were reflected in Annexure P-1. On the basis of the foregoing pleadings, the complainant (Mandi Board) prayed that besides a sum of Rs.93,000/- compensation be also awarded for the loss/injury suffered by the complainant due to negligence of the OPs for the commission of the breach of contract originating out of the abovesaid Insurance Scheme, which had adversely effected the complainant for the loss of its reputation, the non payment of the amount of claim i.e. financial assistance, which was to be received by the abovesaid 5 effected farmers, farm labour & mandi workers of Market Committee, Hoshiarpur, Garh Shankar, Tanda Urmar and Balachaur, District Hoshiarpur, within the above stipulated period of time, the details of which were reflected in Annexure P-1.
Similar relief was sought in other connected complaints.
6. On the other hand, OPs contested the complaint and filed reply. In their written reply the OPs took preliminary objections inter alia that the Forum had no jurisdiction to entertain the complaint and the complaint had not been filed through a person duly authorized to institute the complaint as there was no proper resolution in existence in favour of Shri P. Ram, Secretary to institute the complaint; that no cause of action had accrued in favour of the complainant ; that there was no concluded contract entered in between the complainant and the respondents and as such the complaint under Section 12 of the Consumer Protection Act, 1986 was not maintainable and in fact the complainant did not pay the premium of insurance of Rs.1.25 crores and as such no complete contract took place regarding the personal accident insurance as alleged; that even otherwise the Court of Sh. Gurdev Singh, Sub Judge, 1st Class was seized of the matter as much as though the complainant had already initiated the suit for permanent injunction restraining the OPs from canceling the policy and the suit was pending adjudication and the rights of the parties were being determined in the said suit which was instituted by the complainant before filing of the complaint and as such the jurisdiction of the Forum was barred as the civil court was already seized of the matter and was to determine the rights and liabilities of the parties. On merits, it was admitted that at one stage before the contract could be concluded, negotiations took place between the parties for carrying the personal accident insurance of farmers, farm labour and mandi labour as per the scheme of the complainant for the year 1989-90. It was pleaded that the premium calculated was initially Rs.15.00 lacs but the matter was referred to the head office and instructions were received which were communicated to the complainant vide letter dated 11.4.89 that the premium would be Rs.1.25 crores for the above risk from 13.4.89. The complainant was either to remit an amount of Rs.1.10 crores towards balance premium to enable the OPs to assume risk or to advise the OPs, so that Rs.15.00 lacs already paid as advance could be refunded. The said letter was received by the complainant on 12.4.89 and as the balance premium was not paid, the OPs did not assume any risk w.e.f. 13.4.89 nor any policy of insurance was issued and even the terms of the proposed policy of insurance were not finalized and as no policy of insurance was finalized or issued, no contract of insurance was completed. It was denied a that legal agreement was executed between the parties vis--vis the carrying out of the personal accident insurance of farmers, farm labour and mandi workers. It was pleaded that no completed agreement was executed between the parties and the terms of the agreement were not binding inasmuch-as the terms and conditions of the personal accident insurance of farmers, farm labour and mandi labour stipulated that the OPs may at any time by notice in writing determine the policy provided that the company shall in that case return to the insured the then last paid premium in respect of such persons in respect of whom the claim had arisen less a pro rata part thereof for the portion of the current insurance period which shall have expired. Such notice shall be deemed sufficiently given if posted and addressed to the insured at the address last registered in the companys books and shall be deemed to have been received by the insured at the time when the same would be delivered in the ordinary course of post or the policy may be cancelled at any time by the insured by a notice in writing under certificate of posting or a registered AD and such notice shall be deemed into effective from the date of despatch of same by the insured. According to OP vide their letter dated 11.4.89 it was informed to the complainant that the premium acceptable was Rs.1.25 crores and as the said amount was not paid, so, no concluded contract took place, therefore, no agreement was executed between the parties. The policy of insurance was to become effective from 13.4.89 but as the premium was not paid the risk was not assumed. It was further pleaded that the talks were only at negotiation stage and as a sum of Rs.15.00 lacs was paid as advance and the policy of insurance was to come into force on 13.4.89,therefore the complainant was informed on 11.4.89 that the OPs would only be liable if the full amount of Rs.1.25 cores would be paid. As the said amount was not paid, no binding contract came into existence. It was next pleaded that the OPs had offered to pay back the amount of Rs.15.00 lacs to the complainant as per their letter dated 11.4.89. It was further pleaded that there was no intention on the part of the OP insurance company to defeat or frustrate the contract agreement dated 13.3.89 and as the premium was not paid, therefore, the risk was not assumed. On the basis of these pleadings, a prayer was made for dismissal of the complaint.
7. It is pertinent to mention here that on the application of insurance company dated 7.2.1995 the then learned District Forum vide order 9.10.1996 decided the three preliminary objections raised with regard to concluded contract between the parties, locus standi of Punjab Mandi Board to file the complaint and with regard to violation of provisions of Order 2 Rule 2 of the Code of Civil Procedure inasmuch-as instead of filing a single complaint with regard to all the claims complainant board had filed bunch of complaints unauthorizedly clubbing together with some of the causes of action and leaving out the others arbitrarily. The learned District Forum held all these preliminary objections raised by OP to have no merit and rejected the same. The insurance company feeling aggrieved went in revision before the State Commission and vide its order dated 15.10.1997 the State Commission dismissed the revision Petition No.60 of 1996. The Insurance Company then filed revision Petition No.134 of 1998 before the Honble National Commission which was dismissed vide order dated 4.3.2002.
8. The learned District Consumer Forum after going through the entire record and documents and hearing learned counsel for the parties vide common order dated 29.9.2008 allowed a bunch of 276 complaints and dismissed 22 complaints as indicated in the opening part of this judgment. This is how feeling aggrieved against the said order, insurance company has come up in 276 appeals for setting aside the impugned order whereas Punjab Mandi Board has filed five appeals inter-alia taking the ground that at the time of institution of complaints Annexure P-1 was initially available in the record and during the course of trial of complaints which took around 18 years, at one point of time the entire records pertaining to these complaints were not traceable and with the assistance of the counsel for both parties, the record was completed and order to that effect is available on the complaint case NO.145 of 1990 but District Forum instead of asking the parties to produce the said document like the earlier record, dismissed the complaint for want of Annexure P-1 which complainant is still ready to provide.
9. We have heard learned counsel for the parties and gone through the file carefully. It is argued by Sh.V.Ramswaroop on behalf of Insurance company that the substantial question of law which arose for the consideration of District Forum was with regard to concluded contract between the parties but the District Forum delivered the impugned order by making its base the earlier interim order dated 9.10.96 passed while deciding the preliminary objections and it failed to consider that an order passed at the time of deciding the preliminary objections was interim in nature and did not have a bearing on the final outcome of the case as the interim orders always merge into the final orders and while delivering final orders on merits, interim orders passed from time to time are not considered. Further the orders passed by the revisional authorities clearly indicated that the order upholding the document to be a concluded contract was not upheld by the Honble National Commission on merits which impliedly established that the question was left open and the order holding the memorandum of understanding as a complete contract had not attained finality in view of the observation of the Revisional authority. The learned counsel for Insurance company further argued that the document which has been taken as a concluded contract was only a scheme as is evident from its description Scheme for giving compensation to the victims of accident which took place while using agricultural machineries in the State of Punjab. The scheme was only an arrangement laying down the various conditions and not conclusive in itself. The said scheme had to come into force with effect from 13.4.1989 to 12.4.1990 for which period insurance policy was to be issued as the scheme itself was not a concluded document which could be taken as an agreement. The policy is a document which is a covenant between the insurer and the insured but this aspect has not been taken into consideration by the District Forum.
10. It was argued on behalf of the insurance company that the contract is complete as soon as the proposal is accepted and cover note issued irrespective of whether the policy has been delivered or not. In the instant case the scheme entered into between the parties had not attained finality till the approval thereof had not been granted by the head office of insurance company which placed the scheme before the PSB committee and that committee after discussing the matter at length concluded that the premium claimed as per the scheme was less and in turn wrote back to the officer entering into signing of scheme to demand Rs.1.10 crore more as a premium before issuing the policy and the said officer immediately wrote back to the complainant vide letter dated 11.4.1989 to deposit the additional amount or get back the amount paid by it. Once the letter dated11.4.1989 was issued demanding the additional amount or making an offer to the complainant to take back the amount deposited by it, in the event of non-payment of additional amount demanded, the scheme came to an end and that letter was challenged in the court of law by filing a civil suit where complainant got stay against the insurance company against the wriggling out of the scheme but later on the said suit was withdrawn by the complainant and with the withdrawal of the suit, interim order stood automatically vacated. Thus, according to the insurance company till the effect of that letter dated 11.4.1989 is not decided, it cannot be said that the parties had entered into a concluded contract. The learned counsel further argued that in case this Commission reaches to a conclusion that there was a concluded contract between the parties then that contract has to be given effect as per its own terms and conditions. As per clause 7 of the contract a committee had to be constituted for going into quantum of compensation to be granted and in that eventuality also the complaints were liable to be rejected directing the parties to constitute a committee as per the terms and conditions of the agreement. The above contentions of learned counsel for insurance company have been repelled by the learned counsel for complainant.
11. We have given our thoughtful consideration to the entire matter and find that the main point vehemently argued by the learned counsel for Insurance company is that no cover note or policy document was issued and the agreement entered into the parties was only a insurance scheme as such there was no concluded contract between the parties and the complaint was not maintainable. Further the orders passed by the District Forum,State Commission and Honble National Commission deciding the preliminary objections were interim in nature and have no bearing on the merits of the case. No doubt in the instant case neither any cover note, nor any insurance policy document was issued but this fact itself does not negate the actual contract entered into between the parties. The Punjab Mandi Board after it had decided to provide insurance cover to the farmers, farm workers and mandi workers who may receive injuries or get killed while using the agricultural machinery, approached OP insurance company for issuance of insurance policy and in that regard the Secretary of complainant Board had discussion with the Regional Manager of Insurance company and during that meeting the amounts of insurance and the premium to be paid for the insurance were tentatively agreed. Insurance company wrote letter to the Secretary of complainant board dated 10.3.1989 which reads as under ;
Re: Personal Accident Insurance Farmers & Farm workers whilst using Agricultural Machinery.
Reference your scheme on the subject cited above and the discussions our Regional manager had with you.
We are willing to accept Rs.15,00,000/- (Rupees fifteen lacs only) as premium for he said insurance of farmers, farm and mandi labour throughout the State of Punjab as per provision of your scheme.
The scale of the compensation would be from Rs.3000/- to Rs.30,000/- as per detailed scheme which would be devised in consultation with you.
In reply to the said letter dated 10.3.89 the Secretary of Punjab Mandi Board wrote letter 13.3.89 addressed to the Branch Manager, United India Insurance Co. Ltd. which is reproduced as under ;
We are pleased to inform you regarding our decision to take the insurance policy form United India Insurance Company Limited, Sector 22-A, Chandigarh on the subject noted above for a period of one year from 13.4.1989 to 12.4.1990 for a net premium of Rs.15 lacs as quoted by you.
The terms and conditions of the policy shall be as per the agreement signed by the Secretary Board and yourself.
13. After that the parties had settled the premium, period of insurance and detailed terms and conditions of the insurance policy by entering into written agreement dated 13.3.1989 which was duly signed by Sh.J.R.Kundal,IAS, Secretary on behalf of the Punjab Mandi Board and Sh.P.K.Sood, Branch Manager of insurance company. This document was described as insurance scheme to provide coverage for the claims arising out of the use of agricultural machinery in the farms or in the grain markets throughout the State of Punjab. This document is a detailed one running into several pages. Para 1 of this document deals with the scheme. Para No.2 deals with the scope of the scheme. Para No.3 deals with the financial implications including the amount of premium to be paid and the scale of compensation to be paid to the injured or heirs of the dead worker. Para No.5 deals with the control of the scheme. Para No.6 of the scheme gives the period to be covered by the insurance scheme as from 13.4.1989 to 12.4.1990. Para No.7 of the scheme deals with the procedure to be followed for lodging the claim by the claimants, its processing and depositing the amount by OP in the office of the complainant board at Chandigarh. Para No.8, which is the last paragraph of the scheme, deals with the powers of the Secretary of the complainant board.
14. It is also an admitted fact that the Punjab mandi Board had issued cheque dated 31.3.1989 for Rs.15 lacs favouring the Insurance Co. and this payment of Rs.15 lacs was made by the complainant-Board as per the terms and conditions contained in the Insurance Scheme for accidents to farmers, farm labour and mandi workers arising out of use of agricultural machinery in the State of Punjab well in time before the agreed date i.e. 12.4.1989 and the OP-Insurance Company got the said cheque encashed on 6.4.89. The foregoing admitted and proved facts on record leave no manner of doubt that all the essential ingredients of a valid insurance contract i.e. the risk has to be clearly defined, the duration of risk should be specified, the premium to be paid by the insured has to be fully spelled out and the amount of insurance should be mentioned, were fully completed and complied with as incorporated in the Insurance Scheme which was duly signed by both the parties. So, in the case in hand even though neither any cover note nor any formal document of insurance policy was issued, still a binding insurance contract for all intents and purposes mentioned in the insurance agreement duly executed between the parties had come into existence as it is well settled that if a legal and valid contract of a binding nature is created then that has to be treated as an insurance policy for all intents and purposes. In the instant case, a clear cut proposal for effecting insurance was made by the complainant and in response thereto the OPs expressed explicit and unreserved intention to accept the said proposal and to create complete and concluded contract between the parties by accepting the demanded premium of Rs.15 lacs. The acceptance of the premium of Rs.15 lacs by the OP from the complainant, without any strings or demur, was in line and tune with the demand and offer of creation of a concluded insurance contract and that certainly created valid and binding insurance contract between the parties. Further the insurance contract in this case does not fall in the category of standard policies envisaged by the insurance law and the terms and conditions of standard policies are settled and the same are deemed to be forming part of the standard policies. The law does not envisage any statutory or formal document to make a contract of insurance and if a contract is created by any binding means, then that has to be treated as insurance policy for all intents and purposes.
15. In the letter dated 11.4.1989 written by the insurance company to the Secretary, Punjab Mandi Board , the Senior Divisional Manager of the insurance company Sh.S.P.Kapoor had asked for payment of Rs.1.10 crores towards the balance premium in order to enable the insurance company to assume the risk. Alternatively it was stated that the insurance company may be advised so that Rs.15.00 lacs already paid by the complainant Board may be refunded to it.
16. Thus, according to the insurance company with the issuance of this letter demanding the additional amount or making an offer to complainant to take back the amount deposited by it in the event of non-payment of additional amount demanded, the scheme came to an end. The said letter was challenged in the civil suit wherein complainant got stay against the insurance company against the wriggling out of the scheme but later on withdrawing the suit the interim order stood vacated and the letter dated 11.4.89 had come into force on withdrawal of the suit and as such there was no relationship between the Punjab Mandi Board and Insurance Company. This point of arguments that the contract of insurance was to be concluded only if the complainant had paid the balance premium amounting to Rs.1.10 crores and in the event of non-payment of additional amount demanded the scheme came to an end has no force because the insurance contract had already come into existence between the parties. The competency of the Branch Manager of Insurance company- OP NO.4 to enter into the insurance contract on behalf of insurance company is not in dispute. The Regional Manager of Insurance company was also involved in the negotiations for working out the details of the insurance contract. The premium amount of Rs.15 lacs was agreed to be paid between the parties and pursuant to thereof, complainant had paid the said amount to the insurance company through cheque which was got encashed . Since the insurance in question was not of a standard form, its details had been worked out by the parties in writing which was given the nomenclature of insurance scheme. After the insurance company accepted the demanded premium of Rs.15 lacs it could not come round to demand the enhanced amount of premium unilaterally. The plea of insurance company that the risk was to commence with effect from 13.4.89 and it had written letter prior to that commencement on 11.4.89 demanding the enhanced premium so policy had not come into existence is not tenable for the reason that it is settled law that the parties may mutually fix any date for commencement of the risk and it has nothing to do with the making of insurance contract. Such a date if it is subsequent to the date of agreement that will not keep the agreement open or will in no way detract from the fact that the contract had been completed and concluded. Even otherwise there is no document produced on behalf of insurance company showing that before the conclusion and signing of the insurance agreement in question they had ever informed and communicated to the complainant that the amount of Rs.15 lacs accepted from the complainant through cheque was accepted as an advance amount towards the total premium of Rs.1.25 crore. The receipt of the premium amount of Rs.15 lacs by the insurance company without demur or qualification surely tantamounted to acceptance of the offer and resulted in a valid and binding jural relationship between the parties and subsequent letter dated 11.4.1989 written unilaterally by the insurance company did not have any effect on their agreement entered into between the parties. Even otherwise there is a plethora of judgments wherein it is held that a contract of insurance like other contracts is concluded by offer and acceptance and further a contract of insurance would come into existence even without a policy. In this regard we may refer to P.Abdul Azeez and Co. & others Vs New India Assurance Co. Ltd. AIR 1954 Madras 520 and Life Insurance Corporation of India, Trivandrum Vs L.Kamalamma AIR 1986 Kerala 215 respectively. In Oriental Insurance Co. Vs Mrs. Asha Paul 1996 AIHC 2043 it is observed that if the premium is collected by authorized agent of company against proper receipt, the company becomes liable. Besides this, in Tamilnadu Electricity Board and another Vs N.Raju Raddiar and another (1996) 4 supreme Court Cases 551 it has been observed that where the agreement between the parties was a written one, the parties were bound by the terms and conditions thereof. Thus, in view of these authorities, in the instant case also the subsequent demand of Rs.1.25 crore as premium by means of alleged letter dated 11.4.89 could not disturb the contract which was already complete.
17. Now adverting to the last noticeable point of arguments that since the civil suit was already pending between the parties before the civil court, so, the Mandi Board had no right to file the complaints under Section-12 of the Consumer Protection Act before the District Fora. This point of arguments fails to carry any conviction with us, inasmuch-as that civil suit pending between the parties was got dismissed as withdrawn in the year 1992. Moreover, under Section 3 of the Consumer Protection Act, a consumer /complainant is also entitled to avail the provisions of this Act for getting relief inspite of the fact that same kind of relief could also be sought under any provisions of the law. In other words, the provisions of this Act are in addition to and not in derogation of the provisions of any law for the time being in force. Thus, judging from any angle filing of the civil suit which was ultimately withdrawn could not have been taken as a bar for filing complaint under the Consumer Protection Act.
18. No other point has been urged or argued. In this view of our foregoing discussion, we affirm the findings arrived at by the learned District Consumer Forum and consequently the impugned order dated 29.9.2008 is maintained.
19. In the result, all the 276 appeals filed by the United India Insurance Company are hereby dismissed and at the same time five appeals bearing No.2034/2008 to 2038/2008 filed by Punjab Mandi Board are also dismissed, leaving the parties to bear their own costs. It is further observed that as per directions given in the impugned order the Secretary, Punjab Mandi Board would constitute a committee in which United India Insurance Company would also nominate its representative and this committee shall finalize all the claims of claimants expeditiously whose names figure in Annexure P-1 annexed with each complaint.
20. Before parting with this order, it is observed that five complaints bearing No.277, 342,343,345 & 437 of 1990 were dismissed by the District Forum for want of document- Annexure P-1( which contained details of injuries of the victims). Now in the absence of said document we have also dismissed the five appeals arising out of the aforesaid five complaints. But at the same time we hope and trust that the committee constituted under the directions of the District Forum would also look into the genuine claims of these victims sympathetically, if the aforesaid document annexure P-1 is produced before it. In case their claims are found to be genuine and justified thereupon the committee shall be at liberty for awarding reasonable amount of compensation to the victims whose names figure in annexure P-1.
Certified copies of this order be communicated to the parties, free of charge. The file be consigned to records.
Sd/-
Announced ( Justice Pritam Pal)(Retd.) 3rd May,2010 President Sd/-
(Maj. Gen.S.P.Kapoor)(Retd.) Memebr Sd/-
(Mrs. Neena Sandhu) Member *Js