Orissa

Koraput

CC/15/14

Sri Debendra Kumar Padhi - Complainant(s)

Versus

The Chief Manager, State Bank Of India Main Branch, Jeypore - Opp.Party(s)

Sri R. K. Panda

04 Sep 2015

ORDER

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM KORAPUT AT JEYPORE,ODISHA

Complaint Case No. CC/15/14   1. Sri Debendra Kumar Padhi Qtr.No.F/27,New Revenue Colony,Jeypore. Koraput Odisha ...........Complainant(s) Versus 1. The Chief Manager, State Bank Of India Main Branch, Jeypore At/PO/Via/Jeypore Koraput Odisha ............Opp.Party(s)

BEFORE:     HON'BLE MR. BIPIN CHANDRA MOHAPATRA PRESIDENT   HON'BLE MR. MANAS RANJAN BISOI MEMBER   HON'BLE MRS. Nibedita Rath MEMBER

For the Complainant: Sri R. K. Panda, Advocate For the Opp. Party: Sri R.K. Panda, Advocate

Dated : 04 Sep 2015

Final Order / Judgement The brief facts of the case of the complainant are that he being in need of money approached the Op for a personal loan and furnished all required documents and collateral securities for sanction of loan.  The Op being satisfied processed the loan proposal on 24/12/2014 for Rs. 3.45 lacs at about 7. 20 PM and forced the complainant to sign the SBI Insurance from and when the complainant refused to sign the Insurance form, the Op threatened to cancel the loan proposal stating that the insurance is a precondition for sanction the loan.  It is submitted that, on compulsion, the complainant signed the insurance form as he was in need of money urgently and his Bus timing was 7.45 PM to go to Bhubaneswar on the same day. Being dissatisfied, the complainant on the same day at about 9.27 Pm during his Journey to Bhubaneswar sent SMS requesting the Op to drop the Policy proposal and on 26/12/2014 the Op sent a message to the Mobile phone of the complainant showing credit of Rs. 3.45 lacs in the accounts of the complainant. Accordingly the complainant issued a Cheque but the Cheque was bounced for insufficient fund and according to the complainant this happened due to deduction of insurance premium of Rs. 3277/- by the Op from the loan amount. It is further submitted that the complaint sent a letter on 20/12/2014 to the Op requesting return of insurance amount but the Op replied through his letter dated 05/01/2015 stating that it is not possible to refund the premium.  Thus alleging unfair trade practice on the part of the Op, the complainant has filed this case praying the Forum to direct the Op to refund Rs. 3277/- towards insurance premium with interest @ 12% P.a. and to pay Rs. 50,000/- towards compensation and costs to complainant.    The Op filed counter denying the allegations of the complainant and contended that the business of the bank and the life Insurance segment are different from each other and the Op is working as an agent of the Insurance segment. It is contended that the complainant out of his free will and to avail the benefit of insurance has signed insurance form but not on pressure from the side of the bank. The Op denied any request from the complainant to drop the proposal of insurance.  The Op contended that on receipt of complaint date 30/12/2014 from the complainant, he replied on 05/01/2015 that it was not possible to refund the premium amount which has already paid to the Insurance Co.  it is also further contended that the SBI Life Insurance Co.  Has refunded the premium amount so deducted, to the complainant on 14/01/2015 and the complainant has closed the loan on 26/03/2015.  Thus denying any fault on its part, the Op prayed to dismiss the case of the complainant with costs.   The complainant has filed certain documents in support of his case.  Heard from the complainant as well as A/R for the Op and perused the materials on record.   In this case personal loan sanctioned in favour of the complainant by the Op on 24/12/2014 is an admitted fact.  The case of the complainant is that the Op forced the complainant to sign on the SBI Insurance form while processing the loan application and when the complainant did not agree with the proposal of insurance made by the Op, they stated that insurance is a precondition for sanction for sanctioning the loan.  As the money was urgently required, the complainant was bound to sign the insurance paper.  Further on 24/12/2014 at about 9.27 PM the complainant has requested the concerned Officer through SMS as well as on 30/12/2014 to the Op to drop the insurance proposal. While the concerned Officer did not give any reply, the Op on 05/01/2015 replied that it is not possible to cancel insurance proposal money deducted towards insurance has already been deposited with the insurance Co.   We perused the letter date 30/12/2014 of the complainant addressed to the Op which bears exact SMS at Para- 3 and hence the fact of SMS is well within the knowledge of the Op.  This being the position, the Op stated that the complainant has never contacted the him regarding the loan availed by him and insurance business is the concern of SBI Life Insurance Co. and the Op is working as an agent.  The averment of the Op that the complainant has never contacted him regarding loan does not sound good as because the Chief Manager is the authority of the Bank Branch and final authority to sanction any loan and admittedly the Op is the agent of SBI Life Insurance Co. who helps the insurance segment of SBI in furtherance of its business.  Therefore, the loan as well as insurance in favour of the complainant is more or less within the knowledge of the Op.   The Op stated that the complainant out of his free will and pleasure availed the benefit of insurance.  The complainant stated that the Op did not agree to sanction loan without insurance as a pre condition for sanction of loan. Accordingly to the complainant on compulsion he signed the insurance from and after which only the loan proposal was accepted on 24/12/2014 at about 7.20 PM.  The manager dealing with the loan segment also represents the Op.  Any action by any Officer of the bank is the responsibility of the Op being the head of the bank branch.  If the complainant in his own accord has signed the insurance papers, why should he request the said manager through SMA to drop the proposal of insurance on the same day?.  The fact of SMS with word to word message has been communicated to the Op by the complainant in his letter date 20/12/2014 and the Op has replied to that letter on 05/01/2015.  Copy of all the above referred letters is available on record. From the above facts it can be concluded that the loan as well as insurance refund request was well within the knowledge of the Op and the complainant has signed the insurance papers on compelling circumstances for which the complainant has sent the SMS request as well as letter date 30/12/2014 to cancel the insurance and to refund the insurance amount so deducted. At Para- 7 of the counter the Op stated that to the letter date 30/12/2014 he replied on 05/01/2015 stating that it was not possible to refund the premium amount which was already paid to the Insurance Co. This reply of the Op in our opinion to the complainant is arbitrary and uncalled for.  The Op knows that all Insurance companies as per IRDA guidelines allow 15 days free look period from the date of receipt of insurance certificate faciliting  the policy holders whether to continue with the policy or not and the policy holder has right to cancel the policy within the free look period.  This being the condition of insurance, sharp denial by Op to refund the insurance premium is an arbitrary decision taken him.  However, the complainant on 26/05/2015 intimated the Forum through a petition that the Op has credited the insurance premium of Rs. 3277/- on 14/01/2015 to the SB A/c of the complainant without any intimation and the complainant could know the said fact while updating his passbook on 21/02/2015.  The complainant submitted that the Op has not intimated the fact of return of premium amount to the complainant either through SMS or through any mode and the complainant has no ATM facility attached to the said account in order to know the fact of said return. The Op stated at Para- 10 of his counter that as per request of the complainant, SBI LIC has refunded the premium to the complainant on 14/01/2015.  It is seen from the record that the complainant has never requested to any authority of insurance Co. for any refund except the Op and the complainant has got back his premium.  This fact only shows that the Op is the loan sanctioning authority that fetches the premium to the complainant.  Hence the contention of the Op that the complaint suffers from non joinder of necessary party namely SBI Life Insurance Co. has no meaning at all. From the above discussion it was ascertained that the Op being an agent of SBI Life has illegally deducted insurance premium while sanctioning the loan causing financial loss to the lonee- complainant which in our view amounts to unfair trade practice on the part of the Op.  the Op should not suffer harassment after fulfilling all requirements of the Op for sanction of loan. However, the complainant has got back his insurance amount of Rs.3277/- from the Op but for the sufferings of the complainant he is certainly entitled for some compensation.  Considering the mental agony, harassment, physical discomfort, emotional suffering and other injustice suffered by the complainant, we feel a sum of Rs. 1500/- towards compensation and cost in favour of the complainant will meet the ends of justice. Hence ordered that the complaint petition is allowed in part and the Op is directed to pay Rs. 1500/- towards compensation and costs to the complainant within 30 days from the date of communication of this order falling which the awarded sum shall carry interest @12% p.a. from the date of order till payment.

[HON'BLE MR. BIPIN CHANDRA MOHAPATRA] PRESIDENT   [HON'BLE MR. MANAS RANJAN BISOI] MEMBER   [HON'BLE MRS. Nibedita Rath] MEMBER