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2008(2) CPR 256
MAHARASHTRA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, MUMBAI
P.N. Kashalkar, Presiding Member; S.P. Lale, Member
The United India Insurance Co. Ltd. —Appellant
versus
Neha Provision Stores and Ors. —Respondents
First Appeal No. 771 of 2007
Decided on 28.3.2008
Counsel for the Parties:
For the Appellant:Mr. A.S. Vidyarthi, Advocate.
For the Respondents:Mr. V.N. Deshpande, Advocate
Headnote:Consumer Protection Act, 1986—Sections 12 and 17—Insurance claim—Claim in repudiated on ground that policy stood cancelled on account of cheque issued towards premium money was dishonoured—Cheque dated 19.6.2005 towards premium amount was dishonoured—Complainant got bank draft for the amount issued on 8.7.2005 and sent it to op-appellant which was received on 11.7.2005—Appellant on receiving intimation regarding cheque bouncing informed complainant by regd. letter dated 19.7.2005 that policy stood cancelled—Loss occurred on 25.7.2005 due to heavy rain fall—District Forum allowed complaint and directed appellant to pay amount under policy—Appeal—No letter was enclosed with Demand Draft mentioning cheque particulars which had bounced or any particular about policy—It was not possible for appellant-Insurance Company to say that they had received demand draft in lieu of dishonoured cheque—Forum below committed patient error in holding insurance co. liable to pay amount under the policy.
Held: It is the common knowledge that the United India Insurance Company is having thousands of policyholders. It is not possible to keep track on individual cases and therefore, unless that Demand Draft, assuming it was sent by the complainant through Palande Courier Service was accompanied with letter and reference about two policies, which the complainant had purchased, it was not possible for the officials of the Insurance Company to take note of the same in their Register and on their policy, documents that in place of dishonoured cheque sent by Mr. Prabhudas Thakkar, they had received Demand Draft of Rs. 2,391/- from the complainant. Not sending letter, not keeping Xerox copy of the Demand Draft, not producing those two vital documents before the Forum below is in our view fatal to the complainant’s case and this fact is ignored by the Forum below while allowing the complaint of the complainant. If somebody is sending Demand Draft without accompanying a letter as to why it was sent, one cannot be heard to say that the said Demand Draft was sent by Mr. Prabhudas Thakkar towards payment of premium of both the policies, which he had earlier purchased. So, assuming that the appellant might have received the Demand Draft, still in absence of letter accompanying Demand Draft, mentioning all these details, it was not possible for the appellant/Insurance Company to say that they had received Demand Draft in lieu of dishonoured cheque earlier given by the complainant in respect of two policies purchased by him for his grocery shop. This crucial aspect was not considered by the Forum below while allowing the complaint and directing the Insurance Company to pay Rs. 3,45,500/- to the complainant pertaining to both the policies. (Para 7)
Result: Appeal allowed.
P.N. Kashalkar, Presiding Member—Being aggrieved by the order dated 13.4.2007 passed by District Consumer Forum Raigad in consumer complaint No. 43/2006 whereby the Forum below was pleased to direct the O.P./United India Insurance Co. Ltd. to pay amount of Rs. 3,45,500/- to the complainant with interest @ 8% p.a. from 11.11.2005 till realization on entire amount and also pay Rs. 8,000/- towards compensation and Rs. 1,000/- towards cost of litigation, the United India Insurance Co. has filed this appeal.
2. The respondent No. 1/Neha Provision Store through its Proprietor Mr. Prabhudas Pragji Thakkar, resident of Bazarpeth Nagothane. Tal. Roha, Dist. Raigad had filed consumer complaint. He pleaded in his complaint that he was running a grocery store at Nagothane, Tal. Roha in the market area. He had taken two policies, one for Rs. 1 Lakh and another for Rs. 4 Lakhs for the said grocery shop. The policies were in force. In respect of both the policies, he had given cheque of Rs. 2,391/- to the O.P. on 19.6.2005. On 7.7.2005 he learnt that the said cheque was not honoured by the Bank and therefore on 8.7.2005 he approached the Roha Ashtami Urban Bank, Nagothane and took a Demand Draft for the said amount and through Palande Courier Service, he sent the Demand Draft to O.P. No. 1. The O.P. No. 1 received the said parcel on 11.7.2005 and therefore, according to the complainant, O.Ps. received premium amount from him on 11.7.2005. According to the complainant, there has been heavy rainfall in Raigad District on 24th & 25th July 2005. Because of constant rain, he suffered damages worth Rs. 4,34,000/- and his whole grocery, furniture and fixtures were damaged and he suffered loss because of flood. Immediately, he informed the O.P. about the loss sustained by him because of flood. On 3.8.2005 he filed claim petition with the O.P. The cheque sent by the complainant was not encashed and therefore his policies were cancelled and as such the Company was not under legal obligation to honour the policies and to reimburse him for the loss sustained because of heavy flood. Since the Company has repudiated the claim, the complainant filed consumer complaint. The Company informed him by the registered letter dated 19.7.2005 that his policies stood cancelled since inception and there was no risk undertaken by the Company in respect of above policies because of dishonour of cheque. Thus, the complainant filed consumer complaint against the officials of United India Insurance Co. for alleged deficiency in service. He filed affidavit and documents in support of consumer complaint.
3. The O.P./Insurance Company filed written statement and admitted that the complainant was issued two policies by the Company and the complainant had paid premium through one single cheque. However, the cheque was dishonoured for insufficient funds. The Bank informed accordingly to the Insurance Company on 19.7.2005 and on the same day the Insurance Company cancelled the policies and sent intimation to the complainant since by 19.7.2005 premium had not paid by the complainant either in cash or through any other mode of payment. Thereafter, there was heavy rainfall on 25.7.2005. The complainant was informed orally about cancellation of two policies consequence upon dishonour of cheque. By letter dated 11.11.2005 the same was informed to the complainant. According to the Company after receipt of complaint from the District Consumer Forum, they learnt from the complaint that on 8.7.2005 the complainant had sent a Demand Draft of Rs. 2,391/- through Palande Courier Service to Mr. Sandeep Patne, Development Officer of Insurance Company. When inquired, Shri Patne told that there was no draft, but certain documents of insurance policies were enclosed. In the circumstances, the Company took up the plea that the policies stood cancelled and they had not incurred the risk in respect of two policies on the basis of which the complainant had filed complaint. The Company admitted th
