IN THE DELHI STATE CONSUMER DISPUTES REDRESSAL COMMISSION Date of Institution: 15.12.2021 Date of Hearing: 13.10.2025 Date of Decision: 05.01.2026 FIRST APPEAL NO.-73/2021 IN THE MATTER OF MRS. TANUJA GUPTA W/O LATE MR. VIMAL GUPTA, RESIDENT OF H. NO. 4604, DEPUTY GANJ, SADAR BAZAR, DELHI – 110006.

(Through: Mr. Rajan Bhatia & Mr. Girraj Singh, Advocate)

...Appellant VERSUS

1. FUTURE GENERALI INDIA LIFE & INSURANCE CO. LTD., THROUGH ITS GENERAL MANAGER, 9^TH FLOOR, ROOTS TOWER, LAXMI NAGAR, DELHI – 110092.

(Through: Law Veritas North )

…Respondent no.2

2. AU SMALL FINANCES BANK LTD., THROUGH ITS GENERAL MANAGER, B – 11E, MALVIYA NAGAR INDUSTRIAL AREA, JAIPUR – 302017.

(Through: Mr. Rajiv Ranjan Dwivedi, Mr. Vishal & Mr. Kapil Chaturvedi, Advocates)

…Respondent no.2 CORAM:

HON’BLE JUSTICE SANGITA DHINGRA SEHGAL (PRESIDENT)

HON’BLE MS. PINKI, MEMBER (JUDICIAL)

Present: Mr. Girraj Singh, Counsel for the appellant (Enrl. No. D/1419/25, Email:adv.girrajsingh1979@gmail.com)

Ms. Avantika Chaturvedi, Counsel for the Respondent No. 1, (Email: litigation@lvnorth.in)

Mr. Vishal, Counsel for the Respondent No. 2 appeared through VC PER: HON’BLE JUSTICE SANGITA DHINGRA SEHGAL, PRESIDENT

JUDGMENT

1. The facts of the case as per the District Commission record are as under:

“1. The brief conspectus of facts as alleged in the present complaint are that Sh. Vimal Gupta, husband of the Complainant obtained a loan for Rs.55,00,000/- from AU Small Finance Bank Ltd., OP-2 herein, vide Loan Agreement dated 02.02.2018 and Loan Account No. L9001060714170625 wherein the Complainant and her son Sh. Akash Gupta, were the co- applicants. Property bearing House No. 4605, Sadar Bazaar, Delhi – 110006 was mortgaged as a collateral property against the said loan. The rate of interest under the Loan Agreement was 11% p.å,. and the loan amount was payable in 123 monthly installments @ 75,763/- per month. The date of payment of first installmant was 10.03.2018 and last installment was to become due on 10.05.2028. Sh. Vimal Gupta purchased a Future Generalli Loan Suraksha Group Life Policy with Policy No.

ML000003 from OP-1, valid for a period of 05 years from 08.02.2018 to 07.02.2023 to cover the loan amount of Rs.55,00,000/-. In the said Group Policy, OP-2 is the policyborder. As per the said policy, in case of death of any one of the joint borrowers where both borrowers are insured on the entire loan amount, the death benefit is directly payable to the master policyholder to the extent of the outstanding loan amount subject to the terms & conditions of the policy and the death benefit amount in excess of the outstanding loan amount, if any, is payable to the nominee/appointee/legal heirs/insured member. Sh. Vimal Gupta was regularly paying the premium to OP- 1 until his death on 25.10.2019 at Ram Manohar Lohia Hospital, New Delhi. Alter the death of the husband of the Complainant, a claim was submitted by her in the office of OP-1 but the same was rejected vide letter dated 31.01.2020 on the ground that Sh. Vimal Gupta was a known case of retroviral disease and was on anti-retroviral medication since 2013 and the said history is prior to the date on which proposal/application for the insurance of the loan amount was signed. Consequent to this, Complainant submitted her petition before the Claims Review Committee of OP-1 vide letter dated 17.02.2020. Vide letters dated 22.10.2020 and 12.03.2020, OP – 1 gave assurance that the admissions of the Complainant have been put before the Claims Review Committee. Vide Letter dated 24.03.2020 OP No.1 conveyed to the Complainant the decision of the Claims Review Committee reaffirming its decision. On 01.07.2000, the complainant lodged her complaint with the Insurance Ombudsman against the rejection of her claim under the said Policy by OP No.1. Demand Notice dated 24.08.2020 issued u/s 13(2) SARFARSI Act, 2002 was issued by OP No2 for the recovery of Rs. 57,45,837/- towards the said loan within 60 days from the date of the said notice.