BEFORE THE BANGALORE I ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, SHANTHINAGAR BANGALORE -  27.

Dated:05^TH DAY OF SEPTEMBER 2022

PRESENT

SRI.H.R. SRINIVAS, B.Sc., LL.B. Retd. Prl. District & Sessions Judge And PRESIDENT

SRI.Y.S. THAMMANNA, B.Sc, LL.B., MEMBER

COMPLAINT NO.09/2022

Vs

BY SRI.H.R.SRINIVAS, PRESIDENT.

ORDERS

1.     Complainant filed this complaint against OP.1 and 2 for deficiency in service particularly against OP2 as OP2 did not pay the death claim of the husband of the complainant one Srinivas who had borrowed Rs.30 lakhs towards housing loan for which he had obtained insurance from OP.2 by paying a premium of Rs.56,474/-  and was been paying the EMI’s towards the housing loan. He died due to COVID-19 on 06.05.2021 and the claim was made with OP-2 and the same was repudiated on the ground of Hypertension and Diabetes whereas he died due to COVID 19 PANDAMIC and inspite of the repeated requests and demand and intentionally not paying the claim amount alleged, deficiency in service and filed this complaint.

2.     On the service of notice, OP appeared before the commission and Op-2 filed the version. OP -1 also appeared before the commission through counsel. Counsel for OP-2 during the pendency of the proceedings submitted that they are ready to pay the balance amount of Rs.19,21,965/- towards the full and final settlement of the claim as they had already paid Rs.47,860/- towards the said insurance. Counsel also submitted that since the insurance is on the reducing cover, the complainant is entitle for the said amount and they will pay the said amount.  OP was also directed to pay along with interest at 12% per annum on the said amount from the date of death of Srinivas till payment of the same whereas OP did not pay the same.

3.     OP also examined its manager as RW-1. We have perused the entire documents and evidence.

4.     When OP.2 has come forward to pay the amount of Rs.19,21,965/- towards the claim made by the complainant, it is obvious that they did not pay the amount when the claim was made and deliberately and intentionally denied the insurance claim, which they ought to have paid as soon as the claim was made. It is also its duty to pay the same along with reasonable interest when they have refuse to pay the same inspite of the genuineness of the claim. Though this Commission ordered to pay the amount which OP-2 has voluntarily come forward to pay the same, with interest at 12% per annum which the complainant had agreed, OP deliberately did not pay the same.  Hence we are of the opinion that in the interest of justice and equity OP.2 to pay Rs.19,21,965/- along with interest at 12% per annum from 06.05.2021  till the payment of the entire amount along with compensation of Rs.50,000/- for causing mental agony, strain and hardship besides financial loss and further to pay Rs.10,000/- towards litigation expenses as OP-2 made the complainant to approach the commission and pass the following:-

ORDER

1) Complaint is allowed in part with cost.

2) OP-2 to pay  a sum of Rs.19,21,965/- along with interest at 12% per annum from 06.05.2021  till the payment of the entire amount to OP-1, if the loan is not cleared. If the loan is cleared, the entire amount to be paid to the complainant and loan is not fully cleared the uncleared portion has to be paid by OP-2 to OP-1 and the remaining balance to the complainant. 

3) Further OP-2 is also directed to pay a sum of Rs.50,000/- towards damages and Rs.10,000/- towards costs of the litigation expenses.

4) OP-2 is hereby directed to comply the above order at within 30 days from the date of receipt of this order and submit the compliance report to this commission within 15 days thereafter.

5) Send a copy of this order to both parties free of cost.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Commission on this 05^TH DAY OF SEPTEMBER  2022)

MEMBER                       PRESIDENT

RAK*