Order: (Per Smt.Dr.G.Radha Rani, Hon’ble President)

1. This appeal is filed by the Appellant/Complainant aggrieved by the order passed by the District Commission, Ranga Reddy at L.B.Nagar in CC.No.45/2019 dated 19.08.2022.

2. For the sake of convenience, the parties are hereinafter referred as arrayed before the District Commission, as Complainant and Opposite Party.

3.

(a) The case of the Complainant was that, the Government of India announced Prime Minister Fasal Bhima Yojana scheme to provide comprehensive insurance cover against failure of crop, for stabilizing the income of the farmers and to encourage them for adoption of innovative practices. The rate of insurance charges payable by farmers shall be shared equally by the Centre and State. The loss assessment for crop losses due to non-preventable natural risks would be on area approach. The claim amount would be credited electronically to the individual insured bank account. The scheme would be implemented through single window. Premium of PMFBY was to be transferred to insurance company which have tie up with the concerned banks.

(b) The Complainant was having cultivated land of Ac.1.00 in survey No.80A and Ac.1.00 in Survey No.80A, Ghattepally Village, Dharur Mandal of Vikarabad District. When the Government introduced the said scheme for farmers, the Complainant paid insurance premium, an amount of Rs.750/- towards groundnut crop for the year 2017-18 and Rs.375/- towards green gram crop for the year 2017-18 to the Opposite Party through separate D.Ds for a sum insured of Rs.20,000/- and Rs.13,000/- respectively. Due to uncertain events arisen to the Complainant’s crop, she sustained huge loss. Immediately the Complainant informed the Opposite Party as well as Government authorities about the crop loss. The Mandal Agriculture Officer of Dharur and on behalf of insurance company, the District Coordinator-2 Vikarabad visited the Complainant’s field and took photographs and promised that the claim would be settled within a couple of days. But thereafter, there was no information and intimation about the settlement of insurance claim amount. The Complainant along with other farmers gave a representation dated 29.01.2018 to the District Collector, Vikarabad and handed over the copy of the said representation to the Opposite Party and Agricultural Officer, Hyderabad and others. After receiving the said representation also there was no response from the Opposite Party. The action of the Opposite Party in keeping silent after collecting the premium amount without settling the claim, would amount to deficiency of service and unfair trade practice and as such prayed to direct the Opposite Party to pay a sum of Rs.20,000/- towards paddy insurance amount along with interest @ 24% per annum from 29.01.2018 till the date of realization and to pay a sum of Rs.13,000/- towards Ground Nut insurance amount along with interest @ 24% p.a. from 29.01.2018 till the date of realiation and to pay Rs.50,000/- damages for mental agony sustained by the Complainant and to award costs of Rs.10,000/-.

4.

(a) The Opposite Party Insurance Company filed written version contending that there was no failure in performance of service which under the contract of insurance can be construed as deficiency in service as per Section 2(1)(g) of Consumer Protection Act, 1986. The Opposite Party had not issued any policy under PMFBY to the Complainant and not received any premium from the Complainant or Government. The Opposite Party did not know whether the Complainant cultivated the land and her crop was damaged due to heavy rain in the month of August, 2017. There was no intimation either from the Complainant or from the Government authorities regarding the uncertain event occurred in the month of August, 2017 and damage to the Complainant’s crop.

(b) An additional written version was also filed by the Opposite Party Insurance Company stating that the Prime Minister Fasal Bhima Yojana Scheme should