Complaint filed on: 15-10-2019
Disposed on: 12-03-2021
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
CC.No.170/2019 and CC.NO.171/2019
DATED THIS THE 12th DAY OF MARCH, 2021
PRESENT
SRI.C.V.MARGOOR, B.Com, L.L.M, PRESIDENT
SRI.KUMARA.N, B.Sc., L.L.B, MEMBER
SMT.NIVEDITA RAVISH, B.A., L.L.B, LADY MEMBER
Complainants: -
1. CC.No.170/2019
R.L.Ningappa
S/o Lingegowda,
Chowlakatte Majare Ramalingana playa, Handanakere hobli,
Chikkanayakana halli taluk,
Tumakuru district
2. CC.No.171/2019
H.C.Prakash
Ex. President,
Handanakere Prathamika Krushi Sahakara Bank, Honnashettihalli,
Chowlakatte post,
Handanakere hobli,
Chikkanayakana halli taluk
Tumakuru district
(By Sri.G.Nagaraj, Advocate)
V/s
Opposite parties:-
- The Manager
State Bank of India
Handanakere Branch,
Chikkanayakana halli taluk
Tumakuru district
- The Manager,
Agriculture Insurance Company of
India Ltd, Regional office,
No.18, 3rd Floor,
Karnataka Krushika Samaja building,
Hudson circle, Bengaluru-01
(OP No.1-Exparte)
(OP No.2-by Sri.Mohamed Afroze Ahamed, Advocate)
COMMON ORDER
SRI.C.V.MARGOOR, PRESIDENT
These complaints are filed under Section 12 of the Consumer Protection Act, 1986 to direct the Opposite parties to pay insured amount of Rs.1,04,452=00 and Rs.64,293=60 with interest for the loss of crop during the year 2017 respectively. The complainants further prayed to award expenses of Rs.20,000=00 and compensation of Rs.10,000=00 for mental agony in each case.
2. The 1st OP is State Bank of India, Handanakere branch and the 2nd OP is Agricultural Insurance Company of India Ltd (the OP No.1 hereinafter called as bank and OP No.2 as insurer).
3. It is the case of complainant in CC.No170/2019 that he being the owner of lands Sy.No.57 measuring 2 acres 15 guntas, Sy.No.45 measuring 2 acres 16 guntas and Sy.No.140 measuring 2 acres 37 guntas. In CC.No.171/2019 the complainant is the owner of land Sy.No.5/3 measuring 1 acre 20 guntas and Sy.No.74/1 measuring 4 acres 7 guntas situated within the limits of Chowlakatte and Honnashettihalli villages, Handanakere hobli, Chikkanayakana halli taluk, Tumakuru district. The complainant in CC.No.170/2019 has insured Green gram and Ragi crop grown in his lands and in CC.No.171/2019 the complainant has insured green gram on 7-7-2017 by paying premium amount of Rs.2,089.05 and Rs.2,485=00 respectively through their 1st OP bank. The 1st OP bank has transferred the amount to the 2nd OP insurer from the SB accounts of complainants. It is further case of complainants that during the year 2017 on account of drought they could not get any crop consequently, sustained loss. The complainants did not receive crop insurance amount, then they wrote a letter to the bank on 11-10-2019, 5-3-2019 and 4-10-2019 for release of crop insurance amount. The complainants have made correspondence with the Secretary Agriculture Department, Bengaluru and other concerned authority but there was no response hence, they approached this Commission.
4. The 2nd OP-Insurer appeared through its learned counsel in response to notice and filed written version stating that the Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented in the country with effect from 23-2-2016. The 2nd OP submitted that the complainants have demanded for claim settlement in respect of Green gram and Ragi grown on rainfed basis pertaining to Handanakere hobli for Kharif 2017 season. The State Level Coordination Committee on Crop Insurance (SLCCCI) has assessed the loss of crop in Handanakere hobli, Chikkanayakana halli taluk as per the guidelines of PMFBY scheme and claim percentage worked out at 40.32% for green gram crop. There is no shortfall in Ragi crop during the year 2017 as such the complainant is not entitled for crop compensation. It is further case of insurer that the bank has not sent the premium amount to it even after expiry of 14 days cutoff date on making payment of premium amount by the complainants. Therefore, the insurer has refunded the premium of Rs.5,36,793.54 on 26-7-2018 to the 1st OP bank. There is no deficiency in service on the part of insurer nor negligence on its part. On the above grounds, the insurer 2nd OP asked to dismiss the complaints.
5. The 1st OP bank despite the service of notice was proceeded exparte.
6. The complainants have filed affidavit evidence and got marked Exs-P1 to P8 in CC.No.170/2019 and Exs.P1 to P12 documents in CC.No.171/2019. On behalf of the 2nd OP its Deputy Manager one J.M.S.Ahmed filed affidavit evidence.
7. We have heard the arguments advanced by the learned by the complainants and the learned counsel representing the 2nd OP and the points that would arise for determination are as under:
1) Whether the complainants prove the deficiency in service on the part of OPs?
2) Are complainants entitled to the reliefs sought for?
8. Our findings on the aforesaid points are as follows:
Point No.1: In the affirmative
Point No.2: In the partly affirmative for the below
REASONS
9. Point No.1 to 2: The learned counsel for the complainants submitted that the complainants though they have paid the insurance premium amount before the cutoff date in the 1st OP bank but it has failed to remit to the insurer before the expiry of 14 days fixed i.e. end of cutoff date which was on 31-7-2017. The learned counsel complainants further submitted that due to negligence on the part of the bank they could not get crop insurance compensation though the drought prevailed in Handanakere hobli, Chikkanayakana halli taluk. As against this the learned counsel representing the 2nd OP urged that there is no fault on the part of insurer since the bank has sent the premium amount to the insurance company 14 days after the expiry of cutoff date.
10. The PMFBY aims at supporting sustainable production in agriculture sector by way of providing financial support to farmers suffering crop loss or damage arising out of unforeseen events and stabilizing the income of farmers to ensure their continuance in farming. Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc. The insurer has not disputed the insurance premium paid by the complainants for green gram and Ragi crop raised in their lands during the year 2017-18.
11. Under PMFBY the State Government has formed the State Level Co-ordination Committee on crop insurance and District Level committee to assess the loss suffered by farmers by using Crop Cutting Experiments (CCE) method. On the basis of report submitted by committee loss yield report is updated in the State Samrakshane portal.
12. The complainants have produced Ex-P4 insurer and proposer data which discloses application no.831390 of complainant in CC.No.170/2019 and 786250 in CC.No.171/2019. These proposals indicate that the complainants have remitted premium for green gram and Ragi crop grown in their lands situated within the limits of Chowlakatte and Honnashettihalli villages, Handanakere Hobli for the year 2017-18. Ex-P1 in CC.No.170/2019 is the copy of bank pass book of complainant and it shows that the 1st OP has transferred a sum of Rs.1,551=00 on 17-8-2017 and entry reads as crop insurance transfer to parking account SBM HA. Whereas the 1st OP bank has not transferred premium amount of Rs.2,485=00 to the insurer though paid by complainant in CC No.171/2019 vide Ex.P10 acknowledgment dated 7-7-2017. No entry is appearing in Ex.P2 passbook of the complainant. Exs-P2 and P10 are the material documents in respect of payment of premium by the farmers/complainants. Ex.P7 letter dated 7-1-2019 issued by the Commissioner of Agriculture, Bengaluru to the General Manager, State Bank of India, Bengaluru to direct all the concerned bank branch managers to take the initiative and settle the claims as per the calculation of the claims within 10 days from the receipt of letter. Under this letter the Commissioner of Agriculture have referred the proceedings of the meeting held on 18-12-2018 under the Chairmanship of Chief Executive Officer, Zilla Panchayath, Tumakuru. The Complainants have produced Ex-P5 proceedings of the meeting held on 18-12-2018 at Zilla Panchayath, Tumakuru under the Chairmanship of Chief Executive Officer, Zilla Panchayath, Tumakuru. It was decided in the meeting that if the concerned bank has sent the premium amount to the insurer beyond 14 days from the date of cutoff then the bankers shall liable to pay the claim amount of the farmers. In CC.No.170/2019 the bank has sent the premium on 17-8-2017 after expiry of the cutoff date of 14 days i.e. 31-7-2017. In later CC.No.171/2019 the bank has not sent premium to the insurer though it was collected from the complainant vide Ex.-P10 acknowledgment date 7-7-2017. Therefore, the 1st OP bank is liable to pay the claim amount as there is negligence on its part in one case as it sent the premium after expiry of cutoff date and in another case not sent the premium amount to the insurer
13. Clause Nos.24.1 and 24.2 of Pradhan Mantri Fasal Bima Yojaya operational guidelines reads as under:
“24.1 Insurance companies should have received the premium for coverage either from bank, channel partner, insurance intermediary or directly. In case of any loss in transit due to negligence by these agencies or non remittance of premium by these agencies, the concerned bank/intermediaries shall be liable for payment of claims.
24.2 In case of any substantial misreporting by nodal bank /branch in case of compulsory farmers coverage, the concerned bank only shall be liable for such mis-reporting”.
14. Further Clause No.35.5.2.1 of Pradhan Mantri Fasal Bima Yojana scheme deals with the role of lead bank/Administrative office of commercial bank, DCCBs, RRBs. Clause No.35.5.2.2 to 7 reads as under:
“35.5.2.2 Communicate Notification, as well as other directives, guidelines, etc. to all agencies within their jurisdictional area.
35.5.2.3 Ensure that all agencies within their jurisdictional area sanction additional loan component to loanee farmers towards premium payable by them.
35.5.2.4 Ensure that all service (subordinate) bank branches within their jurisdictional area serve all non-loanee farmers desiring and eligible to take insurance cover under PMFBY. Such service will include opening bank account of non-loanee farmers, guiding them to fill up proposal forms, accepting premium from them and maintaining records etc.
35.5.2.5 Ensure that the premium for both loanee and non-loanee farmers shall be remitted to concerned Insurance Companies and the related data uploaded on National Crop Insurance Portal within the prescribed time.
35.5.2.6 Lead bank/Administrative Offices of Banks should ensure that all farmers sanctioned crop loans/seasonal operational loans/KCC loan for notified crop(s) are compulsorily insured and the conditions stated in the Operational Guidelines of the Scheme have been complied with. No farmer should be deprived of insurance cover. Lead banks/ Administrative Offices of Banks therefore, should make all efforts and pursue their branches for enrolling all eligible loanee farmers and interested non-loanee farmers under crop insurance. In case, claims have arisen during crop season then respective bank and its branches would be made responsible to make payment of the admissible claims to loanee farmers who were deprived from insurance cover to their crops.
35.5.2.7 Concerned Bank and its branches should ensure upload/submission of notified crop-wise, insurance unitwise Declarations in prescribed format on National Crop Insurance Portal along with details of remittance of premium within stipulated time. A copy/print out of declaration uploaded on Portal may also be submitted to concerned Insurance Companies, if so desired by them. The consolidated premium of farmers’ share will be remitted electronically either through payment gateway of National Crop Insurance Portal or RTGS/NEFT to Insurance Companies followed by compulsory entry of payment details on Portal for proper and timely reconciliation by ICs. If Concerned Bank and its branches are not able to remit the amount of premium collected to Insurance Companies or submit declaration in prescribed format by the defined timelines then they will be liable to pay admissible claims to farmers who are deprived from insurance cover to their crops”.
15. From the perusal of these clauses No.24 and 35 it can be said that in case the concerned bank failed to remit the premium amount within the defined time line then it is liable to pay the admissible claims to loanee or non loanee farmers who were deprived of insurance cover to their crops. In this case on account of negligence of the 1st OP bank the complainants applications came to be rejected as the bank has sent the application and premium amount on 17-8-2017 after expiry of dead line time i.e. 31-7-2017.
16. Topic Sl.No.XVI of Operational Guidelines of PMFBY says with regard to procedure for settlement of claim to the farmers. Under this topic Clause-6 says that the insurance company shall resolve all the grievances of the insured farmers and other stakeholders in the shortest possible time. Clause 7 says disputed claims / sub standard claims, if any will be referred within three months of claim disbursement through State Level Coordination Committee on Crop Insurance (SLCCCI)/State Government to Department of Agriculture Cooperation and Famers Welfare (DAC & FW) for consideration and decision of DAC & FW in case of any interpretation of provisions of scheme or disputes will be binding on State Government /Insurance Company /Banks and the farmers.
17. The 2nd OP insurer has not disputed the payment of premium by the complainants to cover the green gram crop for the year 2017 season. The assessing authority has calculated the loss of green gram crop by taking into average of past 5 years assessed yield and it arrived average yield as 262.56 kg. According to Pradhan Mantri Fasal Bima Yojana scheme level of indemnity for the year 2017 season is 80% then the threshold yield comes to 210.04 kg. Assessed yield for the year 2017 is 36.604 kg then short fall of yield comes to 173.44 kg. The OP has taken into Area Correction Factor as per paragraph no.27.4 of Pradhan Mantri Fasal Bima Yojana scheme then claim percentage comes to 40.32%. The actual loss of yield of Green gram for the year 2017 in CC.No.170/2019 arrives at Rs.10,848=00 i.e.40.32% of insured amount of Rs.26,905=00 and in CC.No.171/2019 arrives at Rs.25,923=00 i.e. 40.32% of insured amount of Rs.64,293=00.
18. In the case of Ravneet Singh Bagga –vs- KLM Royal Dutch Airlines (2000) I SCC 66 wherein it is held that;
“The deficiency in service cannot be alleged without attributing fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which it required to be performed by a person in pursuance of a contract or otherwise in relation to any service. The burden of proving the deficiency in service is upon the person who alleges it”.
19. The insurer in paragraph no.6 of the version has taken contention that there was no shortfall of Ragi crop in Handanakere hobli during the Khariff-2017-18 season. The SLCCCI has taken decision in the meeting “threshold yield” for Ragi crop average yield of 5 years i.e. 2010 to 2015 is 1259.6 kg per hector. Average yield multiplied by 80% level of indemnity working out to be 1007.68 kg per hector. Assessed yield in Handanakere hobli during Khariff-2017-18 season is 1546.71 kg per hector. Therefore, there was no shortfall in Ragi crop yield during Khariff 2017-18 season. The complainant has not produced any document to show that there was shortfall of Ragi crop during the year 2017-18. The complainant in CC.No.170/2019 is not entitled for compensation for Ragi crop grown in land Sy.No.45 and 140 of Chowlakatte village since no shortfall in Ragi crop.
20. The 1st OP bank shall liable to pay the said amount since it has failed to send the premium amount along with proposal to the insurer within the cutoff date time line. Due to negligence on the part of 1st OP the complainants have deprived of the insurance amount for the year 2017 and to seek compensation the complainants have approached the bank and agriculture department etc. and for that they suffered mentally. Therefore, the 1st OP bank shall pay a sum of Rs.5,000=00 as compensation towards mental agony and Rs.10,000=00 towards litigation expenses to each complainant. For the above reasons, we proceed to pass the following;
ORDER
The complaints are partly allowed directing the 1st OP bank to pay a sum of Rs.10,848=00 to the complainant in CC No.170/2019 and Rs.25,923=00 to the complainant in CC No.171/2019 as crop insurance compensation with interest @ 8% p.a. from 1-1-2018 till the date of payment.
It is further ordered that the 1st OP bank shall pay Rs.5,000=00 as compensation and Rs.10,000=00 as litigation expenses to each complainant within 45 days from the date of this order otherwise, it carries interest @ 8% p.a. from the date of filing the complaint till the date of payment.
The case against the 2nd OP insurer is dismissed.
Keep the original order in CC.No.170/2019 and copy of order in CC.No.171/2019.
Furnish the copy of order to the complainants and opposite parties at free of cost.
