D.SRINIVAS Vs. SBI LIFE INSURANCE CO. LTD

JUDGEMENT

(1.) Leave granted.

(2.) In this appeal, the appellant has questioned the legality and correctness of the order dated 03.02017 in First Appeal No.560/2012, passed by the National Consumer Disputes Redressal Commission, New Delhi (for short 'the National Commission') whereby the National Commission has allowed the appeal filed by the first respondent herein and rejected the complaint of the appellant.

(3.) Brief facts necessary for disposal of this appeal are that the appellant along with his wife, Smt. D. Suguna and son Mr. D. Venugopal obtained housing loan of Rs. 30,00,000/- (Rupees thirty lacs) in the month of September, 2008 from the respondent Nos. 2 and 3 for construction of a house in Hyderabad. On 29.09.2008, a sum of Rs. 78,150/- (Rupees seventy eight thousand one hundred fifty) was debited from their loan account towards SBI Life Insurance Cover under Group Insurance Scheme for home loan borrowers, through master policy holder i.e. State Bank of Hyderabad, covering the Life of Mr. D. Venugopal, who was one of the joint loanees. The proposal form dated 29.09.2008 was accompanied by good health declaration by the insured. D. Venugopal expired on 17.12.2009 due to a massive heart attack. Consequently, the said life insurance obtained in his name came into force, obligating the insurer, the first respondent herein, to pay the outstanding amount in their loan account. The appellant approached the insurer and the bank informing them about the demise of D. Venugopal and requested them to settle the insurance claim and to discharge the outstanding loan amount in their house loan account. Since the insurer did not accede to his request, he filed a consumer complaint before the State Commission.