Smt. Laxmi Devi & Ors.

STATE CONSUMER DISPUTES REDRESSAL COMMISSION UTTARAKHAND, DEHRADUN Date of Admission : 06.11.2013 Date of Final Hearing : 20.05.2025 Date of Pronouncement : 26.05.2025 SC/5/A/13/310 New India Assurance Company Limited Registered Head Office at 87-Mahatma Gandhi Road, Fort Mumbai – 400001 Branch Office at Bapu Ashram Palace, 29 Dehradun Marg Rishikesh, District Dehradun Regional Office at 8-6/7 Astley Hall Dehradun (Through: Smt. Savita Sethi, Advocate)

…..Appellant VERSUS

1. Sh. Rajender Singh (Deceased)

1/1. Smt. Laxmi Devi W/o Late Sh. Rajender Singh

1/2. Sh. Surya Pratap S/o Late Sh. Rajender Singh 1/3. Sh. Bhanu Pratap S/o Late Sh. Rajender Singh

1/4. Sh. Akshay Pratap S/o Late Sh. Rajender Singh (Through: Sh. Pradeep Bartwal, Advocate)

….Respondent Nos. 1/1 to 1/4

2. State Bank of India Through Branch Manager, State Bank of India Narayanbagar, Tahseel – Tharali, District Chamoli, Uttarakhand …..None for Respondent No. 2 Coram:

Ms. Kumkum Rani, President Mr. C.M. Singh, Member Smt. Laxmi Devi & Ors.

ORDER

(Per: Ms. Kumkum Rani, President):

This appeal under Section 15 of the Consumer Protection Act, 1986 has been directed against judgment and order dated 28.09.2013 passed by the learned District Consumer Disputes Redressal Forum, Chamoli (hereinafter to be referred as the District Commission) in consumer complaint No. 8 of 2011 styled as Sh. Rajender Singh vs. The New India Insurance Company Limited and Anr., wherein and whereby the complaint was allowed directing the opposite party to pay Rs. 50,000/- insured amount alongwith Rs. 2,000/- for mental and financial loss and Rs. 1,000/- towards cost of litigation to the complainant within a month from the date of judgment and order, failing which the complainant is entitled to get interest @ 6% per annum on the said amount from the date of this judgment and order till the date of actual payment.

2. The facts giving rise to the present appeal, in brief, are as such that the complainant had taken a loan from the opposite party No. 2 – State Bank of India (in short ‘Bank’) of Rs. 50,000/- under subsidy granted by the Government for construction of building. The said building was insured from the opposite party No. 1 – The New India Assurance Company Limited (in short ‘Insurer’) for Rs. 50,000/- for the period from 18.01.2007 to 17.01.2017; that between 17.09.2010 to 20.09.2010 continuous heavy rain fall triggered land slide that completely damaged the said building. The matter was immediately reported to the Tahsildar Tharali, Patwari Chhekuda and the Bank, thereupon the Bank informed the Insurer. The Insurer neither paid the insured amount to the complainant, nor arranged any officer for conducting its spot survey. Finally, on dated 25.11.2010, the Insurer repudiated the insurance claim of the complainant. This denial of Smt. Laxmi Devi & Ors.

the claim resulted in significant mental agony and financial hardship for the complainant, compelling the initiation of the complaint before the District Commission on the ground of deficiency in service.

3. In the written statement, the opposite party – Insurance Company has denied all the allegations made by the complainant stating that they received the information regarding the damages very late on dated 23.11.2010. They contended that according to the terms and conditions of the policy, such incidents should have been reported immediately to facilitate timely site inspection. They further stated that the damage to the complainant’s building was caused due to continuous heavy rain fall, which is not covered under the policy and as such the claim was repudiated by them on dated 25.11.2010. Thus, there has been no deficiency in service on their part, hence, the complaint is liable to be dismissed against them.

4. Opposite party No. 2 – State Bank of India in its written statement has admitted to grant loan to the complainant and the complainant’s building for Rs. 50,000/- was insured with the opposite party No. 1. They stated th