12.08.2016

Prem Narain, Member—The order dated 16.07.2012 passed in CC No.63 of 2011 by A.P. State Consumer Disputes Redressal Commission, (in short ‘the State Commission’) has been challenged by way of this First Appeal No.560 of 2012 before this Commission by SBI Life Insurance Company Limited the appellant.

2. In short the case of the complainant/respondent No.1 is that respondent No.1 D.Srinivas along with his wife Smt. D.Suguna and son Mr. D. Venu Gopal, obtained a housing loan of Rs.30,80,000 from the respondent Nos.2& 3 vide loan A/c No.62071944332 in the month of September, 2008 for construction of House on Plot No.8 & 11, admeasuring 448.85 sq. mtr., situated at Pragathi Nagar, Ramanthapur, Hyderabad. On 29.09.2008 a sum of Rs.78,150/- was debited from their loan A/c towards SBI Life Insurance Cover under Group Insurance Scheme for Home Loan Borrowers, through Master Policy Holder, i.e., the State Bank of Hyderabad, covering the life of Respondent No.1’s son Mr. D.Venu Gopal, who was one of the Joint loanees. The proposal form dated 29.9.2008 was accompanied by the good health declaration by the insured. Respondent No.1’s son, Mr. D. VenuGopal expired on 17.12.2009 at H