State Consumer Disputes Redressal Commission
Reliance General Insurance Co. Ltd vs Sukhjinder Singh on 10 October, 2011
STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB,
DAKSHIN MARG, SECTOR 37-A, CHANDIGARH.
First Appeal No.1886 of 2010
Date of institution : 28.10.2010
Date of decision : 10.10.2011
1. Reliance General Insurance Co. Ltd., SCO No.212-214, Sector 34-A,
Chandigarh through its Assistant Manager Legal.
2. Reliance General Insurance through its Manager/Principal Officer, 2nd
Floor, SCO 122, Ranjit Avenue, Amritsar.
.......Appellants
Versus
Sukhjinder Singh son of S. Ajit Singh, resident of House No.477/13, Shivala
Colony, Amritsar.
......Respondent
First Appeal against the order dated 22.7.2010 of
the District Consumer Disputes Redressal Forum,
Amritsar.
Before :-
Hon'ble Mr. Justice S.N. Aggarwal President.
Mr. B.S. Sekhon, Member.
Present :-
For the appellants : Shri Maninder Singh, Advocate for Shri P.M. Goyal, Advocate.
For the respondent : Shri Sukhjinder Singh (In Person). JUSTICE S.N. AGGARWAL, PRESIDENT:
Version of the respondent:
The respondent was the owner of Hyundai Verna SX Model 2008. It was insured with the appellants for the period from 9.12.2008 to 8.12.2009 under policy cover note No.20801326416. The respondent had got it renewed with effect from 9.12.2009 and the appellants had assured the respondent that the insurance policy will reach him within one month.
2. It was further pleaded that the insurance policy for the period from 9.12.2009 to 8.12.2010 did not reach the respondent on which the respondent First Appeal No.1886 of 2010. 2 visited the office of the appellants on 28.1.2010 and enquired about it. The appellants did not give any convincing reply. The respondent lodged the complaint on Customer Care Centre on 1.2.2010 on telephone No.180030028282 and the complaint was registered at No.926723 by Ms. Kavita. She also assured the respondent that the insurance policy would reach him within one week. The policy did not reach the respondent till the filing of the complaint. Hence the complaint seeking a direction against the appellants to issue him the insurance policy. Compensation and costs were also prayed.
Version of the appellants:
3. The appellants filed the written reply. The appellants denied for want of knowledge if the respondent had taken insurance policy for the period from 9.12.2008 to 8.12.2009. The version of the appellants, however, was that the respondent had issued cheque No.530248 dated 9.12.2009 for Rs.13,887/- drawn on State Bank of India as the amount of premium. This cheque was presented in the bank by the appellants. It was returned by the bank with the objection that account number of this account holder was required. Accordingly the appellants had written letter dated 16.1.2010 to the respondent requesting him to pay the premium either in cash or by bank draft within 10 days failing which the said letter would be considered as notice of cancellation of the insurance policy and thereafter the appellant would not be liable for any risk arising under the above referred policy. The respondent failed to pay the amount of premium. Therefore the insurance policy stood cancelled for want of payment of premium. It was denied if there was any deficiency in service on the part of the appellants.
Dismissal of the complaint was prayed.
Proceedings before the District Forum:
4. The respondent filed his affidavit Ex.CW-1. He also proved document Ex.R-2 which is cover note of the insurance policy.
5. On the other hand, the appellants filed the affidavit of Rakesh Shankar as Ex.R-1. The appellants also proved documents Ex.R-2 to Ex.R-6. First Appeal No.1886 of 2010. 3
6. Learned District Forum partly accepted the complaint with costs of Rs.5,000/- vide impugned judgment dated 22.7.2010 and the appellants were directed to make the payment of Rs.25,000/- as compensation to the respondent.
7. Hence the appeal.
Discussion:
8. The submission of the learned counsel for the appellants was that since the cheque issued by the respondent in favour of the appellants was not honoured by the bank, therefore, the premium was not paid for which information was given to the respondent vide letter dated 16.1.2010. Since the respondent had failed to pay the amount of premium, therefore, the insurance policy for the period from 9.12.2009 to 8.12.2010 stood cancelled. Hence it was prayed that the appeal be accepted and the impugned judgment dated 22.7.2010 be set aside.
9. On the other hand the submission of the respondent was that there was no merit in the present appeal and the same be dismissed with heavy costs.
10. Record has been perused. Submissions have been considered.
11. The respondent had pleaded that he had taken the insurance policy from the appellants for his Hyundai Verna SX 2008 Model vehicle from the appellants for the period from 9.12.2008 to 8.12.2009 with policy cover note No.20801326416.
This fact was denied by the appellants for want of knowledge. The respondent has also not produced any cover note or insurance policy for that period. However that fact is not very material for determining the controversy involved in this appeal.
12. Further version of the respondent is that since the previous policy was to expire on 8.12.2009, therefore, he had paid the premium amount in cash and had taken the new insurance policy for the period from 9.12.2009 to 8.12.2010. The appellants had issued the cover note and the respondent was assured that the insurance policy would reach within one month. Since the insurance policy did not reach the respondent, he visited their office on 28.1.2010 and thereafter lodged the complaint in the Customer Care Center on telephone No.180030028282 on First Appeal No.1886 of 2010. 4 1.2.2010. The complaint was noted by Ms. Kavita at No.926723 but in spite of that the insurance policy did not reach the respondent.
13. On the other hand, the version of the appellants was that the respondent had issued cheque No.530248 dated 9.12.2009 for Rs.13,887/- as the amount of premium for the insurance policy for the period from 9.12.2009 to 8.12.2010. This cheque was presented by the appellants in the State Bank of India but it was returned by the said bank with the observation that account number of this account holder was required. Accordingly the appellants had written letter dated 16.1.2010 to the respondent requesting him to pay the amount of premium either in cash or by demand draft within 10 days failing which this letter was to be treated as notice for cancellation of the insurance policy.
14. The respondent has placed on the file the cover note as Ex.C-2. The same document has been proved by the appellants as Ex.R-2. It was issued for Verna SX 2008 Model bearing registration certificate No.PB-02-BD-6699 owned by Sukhjinder Singh (son of Shri Ajit Singh) i.e. the present respondent. It was the cover note for the insurance policy for the period from 10.12.2009 to 9.12.2010. It is specifically noted on this cover note that the premium amount of Rs.13,887/- has been paid in cash. Even in the cover note Ex.R-2 produced by the appellants also it is specifically mentioned that the amount of premium of Rs.13,887/- was paid in cash. Therefore the version of the appellants that the premium was paid by cheque dated 9.12.2009 was totally false.
15. The appellants have placed on the file the letter dated 8.6.2010 Ex.R-5 addressed to the respondent and the subject is cancellation of policy. It reads as under:-
"Dear Mr./Ms. SINGH Cancellation of Policy We take this opportunity to thank you for choosing Reliance General Insurance produced name : Motor Private Car Policy No: First Appeal No.1886 of 2010. 5
200370231100030 (cover note no: 109001140621) starting from 10/12/2009 to 09/12/2010.
This is to inform you that the payment, against policy premium, vide cheque no.530248 dated 12/9/2009 for Rs.13887/- drawn on State Bank of India, Amritsar has been returned unpaid by the bank for the reason being ACCOUNT NO OF THIS A/C HOLDER REQUIRED. Please note as a result the above mentioned, the policy stands cancelled ab initio (since inception). Hence, we will not liable for any risk arising under the above referred document. You are requested to return the certificate of insurance and the original policy to the office immediately. You may re-apply for the insurance policy by filling in a fresh proposal form and paying the required premium amount.
If you have any queries, please feel free to call at our customer care number 1-800 3002 8282 (toll free) and 39898282 (local charges apply) or e-mail us at [email protected] and we shall be glad to assist you. Alternatively, you may meet our Customer Service Manager at the below mentioned branch office address.
Looking forward for a long term relationship and assuring you of our best services.
Thank You, Yours Faithfully, For Reliance General Insurance Co. Ltd.
Sd/- and stamped Authorized Signatory."
16. The appellants have placed on the file a copy of the letter dated 16.1.2010 as Ex.R-6. The appellants have not placed on the file any document to show as to whether this letter was sent by post or whether it was delivered by special messenger. Therefore there is no proof if this letter was actually sent by the appellants to the respondent. Moreover, there is no reference of letter dated First Appeal No.1886 of 2010. 6 16.1.2010 in the letter dated 8.6.2010 (Ex.R-5). If the letter dated 16.1.2010 had been sent, its reference must have been made in the letter dated 8.6.2010.
17. The appellants have also not placed on the file any photocopy of the cheque No.530248 dated 12.9.2009 for Rs.13,887/- as the premium amount which was allegedly issued by the respondent in favour of the appellants nor the appellants have placed on the file any note sent by the State Bank of India by which the cheque allegedly issued by the respondent in favour of the appellants was returned by the bank with the observation that the account number of this account holder was required.
18. The appellants have placed on the file a copy of the letter dated 14.7.2010. It was sent to the Unit Head-CMS Operation, HDFC Bank in response to letter dated 8.6.2010. It related to some clearing dated 28.12.2009. Since the particulars of this letter did not tally with the cover note issued by the appellants in favour of the respondent, it may be for that reason, the appellants have not exhibited this document.
19. On the other hand, the appellants have also placed on the file along with the appeal a copy of the letter dated 18.11.2010 issued by the State Bank of India in which it is mentioned that cheque No.530248 for Rs.13,887/- related to the account of Ajit Singh. This, therefore, clearly reveals that the appellants have cooked up this plea falsely to cover up their failure for issuing the insurance policy to the respondent even after accepting the premium amount of Rs.13,887/- in cash from the respondent for the insurance policy for the period from 10.12.2009 to 9.12.2010. Therefore the version of the appellants was totally false and there is no illegality in the impugned order passed by the learned District Forum dated 22.7.2010.
20. There is no merit in the present appeal and the same is dismissed with costs of Rs.5,000/-.
21. The appellants had deposited an amount of Rs.15,000/- with this Commission at the time of filing of the appeal on 28.10.2010. This amount of First Appeal No.1886 of 2010. 7 Rs.15,000/- with interest accrued thereon, if any, be remitted by the registry to the respondent by way of a crossed cheque/demand draft after the expiry of 45 days under intimation to the learned District Forum and to the appellants.
22. Remaining amount shall be paid by the appellants to the respondent.
23. The arguments in this case were heard on 4.10.2011 and the order was reserved. Now, the order be communicated to the parties.
24. The appeal could not be decided within the statutory period due to heavy pendency of court cases.
(JUSTICE S.N. AGGARWAL)
PRESIDENT
October 10 , 2011 (BALDEV SINGH SEKHON)
Bansal MEMBER