BEFORE THE TELANGANA STATE CONSUMER DISPUTES REDRESSAL COMMISSION : HYDERABAD.

FA.No.41 OF 2020 AGAINST ORDERS IN C.C.25/2015 DISTRICT CONSUMER COMMISSION, ADILABAD Between:

The Manager, State Bank of India, (Erstwhile SBH)

Ramakrishnapur Branch, A-12, B-Zone, Near Dispensary, Ramakrishnapur, Mandalmarry Mandal, Mancherial District – 504 208.

……..Appellant/ Opp.Party And:

Smt.Bandi Shantamma, W/o.Late Sammaiah, Age: 65 years, Occ: Housewife, H.No.12-134, Sardar Vallab Bhai Nagar, Ramakrishnapur, Mandamarri Mandal, Mancherial District – 504 208.

………Respondent/Complainant Counsel for the Appellant/Opposite Party : M/s. B.Pavan Kumar Counsel for the Respondent/Complainant : Notice served QUORUM :

HON’BLE SMT. MEENA RAMANATHAN, I/c PRESIDENT &

HON’BLE SRI. K.RANGA RAO, MEMBER – (JUDICIAL)

MONDAY, THE FIRST DAY OF DECEMBER TWO THOUSAND TWENTY FIVE **********

Order : (PER HON’BLE SMT. MEENA RAMANATHAN, I/c PRESIDENT) 1. This appeal is filed u/s 15 of Consumer Protection Act, 1986 by the Opposite Party praying this Commission to set aside the order of the District Forum, Adilabad, dated 19.08.2019 passed in CC.No.25 of 2015 and consequently dismiss the complaint filed by the Complainant and pass such other order or orders as this Commission may deem fit and proper in the interest of justice and in the circumstances of the case.

2. For the sake of convenience, the parties are described as arrayed in the complaint. The Appellant is the Opposite Party and the Respondent is the Complainant in CC.No.25/2019.

3. The brief averments of the complaint are as follows:

The Complainant’s husband by name Bandi Sammaiah is the account holder of State Bank of Hyderabad, Ramakrishnapur Branch i.e., Opposite Party vide A/c.No.62023865026. The said Bandi Sammaiah applied for housing loan in the Opposite Party branch and a sum of Rs.4,00,000/- was sanctioned in his favour towards housing loan. While sanctioning the said loan, the Manager of the bank directed the Complainant’s husband to obtain insurance policy under SBI Life Insurance for sum assured of Rs.5,00,000/- for the purpose of security. Accordingly, the Complainant’s husband paid an amount of Rs.28,118/- towards premium by way of transfer to the account of SBI Life Insurance from his Saving account on 19.02.2007.

4. It is submitted that after 15 days, the Complainant’s husband and son approached the Opposite Party bank and requested for original bond papers. They were informed that the bond has not yet been received from the concerned higher authority and it will take another 15 days. Again after 15 days, the Complainant’s son visited the Branch Manager, SBH, Srirampur for collecting original bond. They were informed by the Manager that the original bond will be kept with the bank till completion of EMIs of housing loan for the purpose of security.

5. It is further submitted that the Complainant’s husband died on 29.07.2013 at Ramakrishnapur due to ill health and the same was intimated to Manager, SBH, Ramakrishnapur by the Complainant. The Complainant submitted all the requisite documents but there was no proper response. Despite several approaches made by the Complainant to settle the claim, the Opposite Party delayed the matter on one or the other pretext and was informed that the claim is not honored as the premium amount was not remitted to the account of SBI Life Insurance account and the same was credited to the account of the deceased policy holder.

6. It is further submitted that as on the date of death of the deceased Sammaiah, the outstanding amount of loan was about Rs.2,07,031/- and as per the insurance policy, the said amount will be foregone in case of death of the policy holder and in this case the Opposite Party did not act as per the policy but in an illegal manner they have remitted the entire fixed deposit amount of which the maturity value is about Rs.3,00,000/-. Due to the acts of the Opposite Party, the Complainant’s son approached the Banking Ombudsman, Hyderabad for redressal of his