IN THE COURT OF THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, SAMBALPUR
C.C NO-46/2021
Present-Sri Dipak Kumar Mahapatra, President, Smt. Arati Das, Member (W).
Mst Tiki Shree Dehury, Aged about 40 years
W/o Late Soroj Prasad Dehury
C/o Harischandra Pradhan
At- SambaruBarapali, P.O.-Budido (Reamal)
Dist-Deogarh,Odisha-768109. .......... Complainant
Versus
Chief Manager,
Bank of India
Kalibari, Sambalpur, Odisha-768001. ..Opposite Parties
Counsels:-
- For the Complainant:- Sri P.P. Panigrahi, Advocate.
- For the O.P :- None.
DATE OF HEARING :08.11.2021, DATE OF ORDER : 13.12.2021
SRI DIPAK KUMAR MAHAPATRA,PRESIDENT:-Brief facts of the case is that the
Complainant's husband Late Soroj Prasad Dehury was sanctioned on 10.11.2020 for a housing loan (Housing Loan A/C No. 543075110000206) by the OP-Bank for Rs. 25 lakhs with moratorium of 7 months after first disbursement. The loan was repayable with 114 EMI @ Rs.30,022/- The first disbursement was on 10.11.2020 starting with Rs. 20,000/-. According to moratorium, the first EMI starts from 10.06.2021. Out of Rs. 25 lakhs loan, the contribution of the borrower is Rs. 9, 17,201/- i.e the consideration of margin money of deposited with the bank prior to sanction of loan. During the moratorium period and before complete disbursement of loan, the borrower expired on 30.04.2021 due to pandemic corona. By that time the Bank had disbursed Rs. 20.20 lakhs. It means the bank has practically parted with only Rs. 11.02, 799/- if the contribution of Complainant
Rs. 9, 17,201/- is deducted from the disbursed amount. It may not be out of the place to
mention that by the time of death (30.04.2021) during the moratorium period the Bank has earned from the borrower Rs. 36,075/- towards interest by realizing from the loan account. The Bank was informed about the death of borrower due to corona in the mid of May 2021. After death of the borrower, the bank has realized Rs. 41,561/- from the account of the borrower (Rs.11, 539/- towards interest on 29.05.01 and Rs. 30022/- towards EMI on 30.05.2021 which is before the expiry of moratorium due date of 10.06.2021. The elder brother had assured to rescue the Complainant sister by extending all possible helps to meet the crisis but he too expired falling prey of corona pandemic within 15 days of the death of the husband of the Complainant.The Complainant's father had already expired long back during her childhood. There is no major matured male member left in her family relations to help her or extending a helping hand. The Complainant also has unmarried sister and old widow mother and two minor children to look after the mother is a chronic heart patient. Her son could not appear his board exam of 10 since during those days his father and mamu (maternal uncle) expired falling prey of pandemic Alter death of her husband the complainant has been staying with her sister and mother. The whole family in deep grief and shock and have surrendered to the circumstance and situation of ill fate helplessly being no earning man left to support them for food and day to day essential requirements of life. That the husband of the Complainant had been often stating during the last week of February, March and April of 2021 that he had opted for life insurance cover for loan protection under group insurance scheme against the risk of death during tenure of loan for which a premium of Rs. 14,460/ had been realized by the Bank from his loan account. The bank in order to were its loan in the event of death of the borrower use to insure its borrower with its sister concern Star Union Dai-Ichi Insurance Company Ltd: However it is not known whether the Bank has insured or not, the borrower for the loan amount since no document of insurance has yet been supplied to the borrower or his family If not insured by the bank then it is the negligence of the bank and for that the bank is construed as the insurer and the bank steps in the shoes of the insurer for indemnification of the loan amount. The bank had not supplied the borrower the loan agreement copy on which he had signed in good faith on the direction of the bank on dotted line with printed format on a bunch of paper offered by the bank. The Complainant appraised to the Bank vide letter de 09.08.2021 surging therein to help her for all the formalities of the banking work in relation aloe stated loan of her late
husband which may be realized from the insurance indemnification consequently clearing all the loan liabilities and free the property under loan More the matter is delayed by the bank, more will be the stress and harassment to the widow and children of the demised borrower.
Exhibits-
Annexture-1- Bank statement showing deduction of Rs. 14460/- towards Insurance Premium.
Annxutre-2- Requesting letter to Bank to settle the loan,
Annexture-3-Death certificate of the husband of the Complainant.
The O.P despite of service of notice he did not bother to appear and file written statements to his defense before this Commission thus challenging the allegations made by the Complainant. So taking it in to consideration as “IT IS A YEAR OLD CASE”, this Commission has rightly decided to dispose off the case on merit basis considering
POINTS OF DETERMINATION:-
- Whether the Complainant is comes under the purview of Consumer Protection Act-2019?
- Whether the O.Ps has committed any Deficiency in Service to the Complainant?
From the above discussion and materials available on records we inferred that the Complainant comes under the purview of Consumers as she is the wife of the deceased Saroj Prasad Dehury who had availed an Insurance Policy on payment of premium amount as consideration for availing services. It is see that an amount of Rs.14,460/- is deducted from the saving bank account of the deceased husband of the Complainant to cover for loan protection under group insurance scheme against the risk of death during tenure of loan during his lifetime. The husband of the complainant died on 23.05.2012 and the complainant sent letter to the O.P. for exonerating her from the liability of loan on the basis of terms and conditions mentioned in the insurance policy, but the OPs did not respondent her letter. In case "New India Assurance Company Limited Vs Smt. Usha Yadav & Ors.", 2008(3) RCR (Civil)-111(P&H), Hon'ble Punjab & Haryana High Court held as under:-
".It seems that the Insurance Companies are only interested in earning the premiums, which are rather too stiff now a days, but are not keen and are found to be evasive to discharge their liability. In large number of cases, the Insurance Companies make the
effected people to fight for getting their genuine claims. The insurance Companies in such cases rely upon clauses of the agreements, which a person is generally made to sign on dotted lines at the time of obtaining policy. This is, thus, pressed into service to either repudiate the claim or to reject the same. The Insurance Companies normally build their case on such clauses of the policy, but would adopt methods which would not be governed by the strict conditions contained in the policy." Hence the non issuance of policy details and non settlelement of claim in spite of receiving policy premium amounts to deficiency in service as well as Unfair Trade Practice as per C.P Act-209. Hence we order as under:-
ORDER
The Complaint petition is allowed. The O.P is directed to the Bank to free the property from all loan liabilities for which the Bank has released insurance premium from the borrower. Further the O.P is directed to pay Rs. 40,000/- as the compensation for inconvenience, harassment, mental agony and pain caused to the Complainant along with Rs.10, 000/-(Rupees Ten Thousand)towards cost of litigation. All the above orders are to be carried out within 30 (Thirty) days of receiving of this order, failing which, the complainant is at liberty to proceed in due process of law.
Order pronounced in the open court today i.e, on 13rd day of December-2021 under my hand and seal of this Commission.
Office is directed to supply copies of the Order to the parties free of costs receiving acknowledgement of the delivery thereof.
I agree,
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MEMBER(W) PRESIDENT
Dictated and Corrected
by me.
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PRESIDENT
