Mrs. C.G. Sethu Laxmi, Member—The case of the complainant is that under the inducement of the Branch Manager, Indian Bank, Karunagappally he purchased a fishing boat/financed by the Mattancherry Branch of the Indian Bank, who is the 2nd opposite party and the loan was under cronic default.

2. According to the complainant, the 2nd opposite party, the financing Bank is duty bound to insure the primary hypothecate with any insurance company, duly valued by their approved Surveyor Cum Valuator and this obligation is not only under international administrative instructions, but also under RBI directives. It was contended by the complainant that the 2nd opposite party had been debiting premium for ‘All risk Cover’ to his loan account, that a banking company is under the statutory obligation to insure their financial interest in the from of a primary/Collateral hypothecation since they should not expose themselves to financial jeopardy and other risks consequent even to Vis Major, and that in usual course the 2nd opposite party debited premium from his loan account and transmitted the same to the 1st opposite party to renew the insurance policy before due date and the 1st opposite par