State Consumer Disputes Redressal Commission
Branch Manager, The New India Assurance ... vs Smt. Kamli Devi on 8 January, 2010
STATE CONSUMER DISPUTES REDRESSAL COMMISSION UTTARAKHAND
STATE
CONSUMER DISPUTES REDRESSAL COMMISSION UTTARAKHAND
DEHRA
DUN
FIRST
APPEAL NO. 07 / 2008
Branch
Manager, The New India Assurance Company Limited
through
Senior Divisional Manager
Astley
Hall, Dehradun
......Appellant
/ Opposite Party No. 2
Versus
1. Smt.
Kamli Devi W/o Sh. Jagat Lal
R/o
Village Paali, P.O. Kuthnaur
Tehsil
Barkot, District Uttarkashi
......Respondent
No. 1 / Complainant
2. Zila
Sahkari Bank
Branch
Barkot, District Uttarkashi
through
its Branch Manager
......Respondent
No. 2 / Opposite Party No. 1
Sh.
M.N. Mishra, Learned Counsel for the Appellant
Sh.
Pradeep Bartwal, Learned Counsel for Respondent No. 1
Sh.
Shardul Negi, Learned Counsel for Respondent No. 2
Coram:
Hon'ble Justice Irshad Hussain, President
C.C. Pant,
Member
Smt. Kusum Lata Sharma, Member
Dated:
08/01/2010
ORDER
(Per:
Justice Irshad Hussain, President):
This is insurer's appeal against the order dated 03.12.2007 passed by the District Forum, Uttarkashi, whereby the consumer complaint No. 06 of 2007 filed by the complainant was allowed and the complainant was held entitled to compensation of Rs. 13,000/- with interest @7% p.a. w.e.f. 21.06.2004, the date of death of the buffalo till payment and Rs. 1,500/- as litigation expenses. The liability to pay the said amount was fastened on respondent No. 2 - Zila Sahkari Bank, which had advanced loan to the complainant for purchase of the buffalo and at the same time, the insurance company was held liable to pay the said amount to the complainant in the first instance, giving it an option to thereafter realize the said amount from the bank. The delay in filing the appeal is condoned and the appeal is admitted for decision on merit.
2. The facts giving rise to this appeal are that the buffalo of the complainant was insured for sum of Rs. 13,000/- vide policy No. 321902/47/04/00119 for the period from 16.06.2004 to 15.06.2007, issued on receipt of the premium from the bank vide cheque dated 16.06.2004. Total premium of Rs. 14,976/- was paid by cheque to the insurance company for and in connection with insurance of buffaloes of 12 villagers including that of the complainant and, as such, the buffalo of the complainant was covered under the policy of insurance from the said date. Complainant's buffalo admittedly died on 21.06.2004, that is, within a period of 15 days and, as such, the insurance company under the terms and conditions of the policy of insurance, was not liable to pay the claim on account of death of the insured buffalo due to disease occurring within 15 days from the commencement of risk. The claim preferred was, therefore, repudiated.
3. The District Forum, on an appreciation of the facts of the case, came to the conclusion that since the policy of insurance has been issued on 16.06.2004 and the death of the complainant's buffalo occurred within 15 days from the commencement of risk, the insurance company has not made any deficiency in service in repudiating the claim by virtue of the terms and conditions of the policy of insurance. The District Forum, however, opined that the bank had been negligent and careless in getting the buffalo of the complainant insured from an earlier date when the premium had been realized by it from the loan amount advanced to the complainant for purchase of the buffalo and, as such, the liability to pay the compensation was that of the bank. The District Forum, however, observed that in the first instance, the amount of compensation shall be payable by the insurance company, which, at its option, may realize the amount from the bank.
4. Having heard the learned counsel for the parties, we see merit in the argument of the learned counsel for the insurance company that the direction given by the District Forum by the order impugned was not legally justified and in the totality of the circumstances of the case, the insurance company could not have been saddled with the liability to pay the amount of compensation to the complainant in the first instance and thereafter to realize the amount from the bank.
5. The reasons for the decision are that under the terms and conditions of the insurance policy, the insurance company was absolved of its liability to pay any compensation to the complainant. The risk commenced from 16.06.2004 and the death of the complainant's buffalo took place within 15 days from the commencement of risk on 21.06.2004 and, therefore, the claim preferred was rightly repudiated by the insurance company. That being the case, there was absolutely no occasion for the District Forum to have directed the insurance company to pay compensation in the first instance to the complainant, giving it an option to realize the amount thereafter from the bank. Further, the bank has not challenged the legality and propriety of the finding of the District Forum by filing an appeal and, therefore, there can be no doubt that the finding that the bank had been negligent and made deficiency in service in not getting the complainant's buffalo insured in time as soon as the amount of premium had been realized by it, does not suffer from any infirmity. The District Forum has, thus, rightly held the bank liable to pay the amount of compensation to the complainant, but fell in error in giving a direction that the amount of compensation in the first instance shall be paid by the insurance company. The direction per-se being illegal, need to be set aside. The appeal, therefore, succeed and is to be allowed accordingly.
6. Appeal is allowed. Order impugned dated 03.12.2007 of the District Forum in so far as the direction to pay the amount of compensation to the complainant in the first instance by the insurance company and giving it an option to realize the amount thereafter from the bank - respondent No. 2 is set aside and consumer complaint No. 06 of 2007 is dismissed against the appellant - insurance company. The respondent No. 2 - bank is directed to pay the amount of compensation etc. awarded by the District Forum to the complainant. Costs of the appeal made easy.
(SMT.
KUSUM LATA SHARMA) (C.C. PANT) (JUSTICE IRSHAD HUSSAIN) K