ORDER

1.       This Revision Petition has been filed under section 21 of the Consumer Protection Act, 1986 by the Petitioner against the order dated 29.01.2013 passed by the State Consumer Disputes Redressal Commission, Rajasthan at Jaipur (herein referred to as the “State Commission”) in First Appeal No.488 of 2012, arising from the order dated 30.01.2012, passed by the District Consumer Redressal Forum, Bhilwara (herein referred to as the “District Forum”) in Complaint Case No.192 of 2011.  

2.       Case of the Complainant is that her husband was sanctioned loan for a tractor by Opposite Party No.1/Bank with loan account no. 80078895. Insurance Policy was taken from Opposite Party No.2 covering sudden or accident event against loan of tractor vide Sar Surkasha Super Policy No. 40463033. As per the Policy, in case of sudden death of the insured the outstanding loan amount and other liabilities was to be paid to Opposite Party No.1 so as to close the account of the Complainant, noting of HPA removed and issue no objection certificate. Her husband Pyar Chand Bairwa suddenly died on 18/04/2011 at Hinduja Hospital Khandwa (M.P). The husband of Complainant had deposited first installment on 04/01/2011 by cash. The next installment due on 04/07/2011 could not be paid due to his sudden death. As per the terms of the Policy, the balance outstanding amount was to be paid by Opposite Party No.2 to Opposite Party No.1. Though intimation of sudden death was given to Opposite Party No.2 and the available documents were supplied, there was no response from Opposite Party No.2, despite repeated reminders. Opposite Party No.1 started harassing the Complainant for making repayment of loan and threatening to forfeit the tractor. Aggrieved by deficiency in service and unfair trade practice of the Opposite Parties, Complaint was filed with the District Forum with the following prayer:-

"1.The Opposite Party No 2 insurance company is directed to pay within one month the outstanding amount of loan with penalty and other charges out of insured amount of Rs.6.00 lakhs to the opposite party no. 1 and balance amount out of six lakhs to Smt. Shanti Devi within one month with interest.

2. The opposite parties be directed to pay Rs. 1.00 lakh as compensation for mental and physical tension with 18% interest due to their illegal acts.

3. The   costs of the complaint be also directed to be paid.

4. Any other relief which this Hon’ble Forum deems fit and proper be also awarded.”

3.       Reply was filed by Opposite Party No.1 stating that they had given a loan of Rs.2,00,730/- to Pyar Chand Bairwa for the purchase of tractor on 14/07/2010 which was to be repaid in half yearly installments of Rs.43,135/-. A sum of Rs.1,95,656.43/- was due on 30.09.2011 as per the account statement. They stated that they had every right to recover the unpaid loan amount. They prayed that the Complaint be dismissed against them.

4.       Opposite Party No.2 in their reply admitted to having issued Sar Surkasha Super Policy to Pyar Chand Bairwa, according to which in case of an accidental death, payment of the outstanding loan on the insured vehicle or Rs.6,00,000/- whichever is less was to be made, subject to compliance of terms and conditions of the Policy during the period of insurance from 14/07/2010 to 13/07/2013. The insured shall immediately and in any event within 14 days intimate them. The Complainant, however has not given any information/ made any claim in respect of death of the insured in the accident. Settling of the claim, therefore, did not arise. Moreover death of the insured took place due to illness and not due to accident. In the discharge slip issued by the Hospital, the decease is shown as “severe headache”. There was no mention of any accident. The Complainant had not given intimation about the death of the insured within the time mentioned in the Policy nor thereafter any claim had been lodged.

5.       The District Forum after considering the argument of both