ADDITIONAL BENCH STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB, CHANDIGARH.

Date of institution : 16.11.2022 Reserved on : 04.04.2025 Date of decision : 19.05.2025

1. SBI Life Insurance Co. Ltd., Corporate and Registered office, Natraj, M.V. Road & Western Express Highway Junction, Andheri (E) 400069.

2. SBI Life Insurance Co. Ltd., SCO -127-128, 3^rd Floor, Sector 17-C, Chandigarh-160017 Appellants/Opposite parties No.1 & 2 Versus

1. Poonam Sharma, aged 46 years, widow Rishi Raj Sharma, Resident of House No.1235, Jain Street, Rupnagar, Tehsil and District Rupnagar.

.….Respondent No.1/complainant

2. State Bank of India, 6342, Ropar, District Ropar.

Respondent No.2/OP No.3 Argued by:- (in FA/982/2022 )

For the appellants : Sh. Rajneesh Malhotra, Advocate For respondent No.1 : Sh. Ramneek Vasudeva, Advocate For respondent No.2 : Sh. Chandeep Singh, Advocate AND

2) First Appeal No.45 of 2023 Date of institution : 18.01.2023 Reserved on : 04.04.2025 Date of decision : 19.05.2025 Poonam Sharma aged about 46 years widow of Sh. Rishi Raj Sharma, resident of House No.1235, Jain Street, Rupnagar, Tehsil and District Rupnagar.

…….Appellant/complainant Versus

1. SBI Life Insurance Co. Ltd., Corporate and Registered Office:

Natraj M.V. Road & Western Express Highway Junction Andheri (E) 400069.

2. SBI Life Insurance Co. Ltd., SCO-127-128, 3^rd Floor, Sector 17-

C, Chandigarh-0160017

3. State Bank of India, 6342, Ropar, District Ropar.

…………Respondents/Opposite parties Argued by:- (in FA/45/2023 )

For the appellant : Sh.Ramneek Vasudeva,Advocate For respondents No.1&2 : Sh. Rajneesh Malhotra, Advocate For respondent No.3 : Sh.Chandeep Singh, Advocate First Appeals against the order dated 19.09.2022 passed by District Consumer Disputes Redressal Commission, Ropar in CC/31/2021 Quorum:-

Mr. H.P.S.Mahal, Presiding Judicial Member Mrs. Kiran Sibal, Member KIRAN SIBAL, MEMBER This order shall dispose of the above noted two First Appeals preferred against the order dated 19.09.2022 passed by District Consumer Disputes Redressal Commission, Ropar (in short, “the District Commission”), whereby the complaint filed by the complainant against the opposite parties(in short the OPs) was allowed, while granting the relief as under:-

“9. In view of our above discussion, we allow the complaint with observation that Sh. Rishi Raj Sharma is liable to pay only 50% loan amount is still standing as per loan document. Poonam Sharma, complainant is entitled to refund the amount paid by her in the shape of installments after the death of her husband(Rishi Raj Sharma) borrower along with interest @ 7% per annum. The complainant is also entitled compensation to the tune of Rs.50,000/- with litigation expenses to the tune of Rs.22,000/-….. .

First Appeal No.982 of 2022 has been filed by the appellants/OPs No.1&2 for setting aside the impugned order, whereas appellant/

complainant has filed First Appeal No.45 of 2023 for enhancement of the awarded amount. The facts are taken from First Appeal No.982 of 2022 filed by the appellants/OPs No.1 & 2 titled as “SBI Life Insurance Co. Ltd. & Anr. Vs. Poonam Sharma & Anr.”

FA/982/2022

2. It would be apposite to mention that hereinafter the parties will be referred, as have been arrayed before the District Commission.

3. Brief facts of the case for disposal of the appeals are that the husband of the complainant; namely, Rishi Raj Sharma(hereinafter referred as DLA) got himself insured under the Master policy i.e. ‘SBI Life RiNn Raksha’ bearing No.70000011107, having member ID No.46242571, issued by OPs No.1 & 2/Insurance company in favour of OP No.3-Bank. The said policy was purchased by the DLA for covering the loan obtained by him to the sum of Rs.18,50,000/- from OP No.3/Bank. The benefit under the policy was for the repayment of the outstanding loan amount by the insurance company in the event of death of the insured. The complainant alleged that at the time of issuance of the policy, the DLA was medically examined by the OPs and he was not