ATHULURI RAMANA Vs. ANDHRA BANK AND ORS.

JUDGEMENT

(1.) This Second Appeal under Sec. 100 of the Code of Civil Procedure, 1908 ('the Code', for brevity) by the unsuccessful plaintiff/appellant is directed against the decree and judgment dated 04.04.2005 of the learned V Additional Senior Civil Judge, (Judge, Fast Track Court) at Vijayawada of Krishna District passed in A.S. No. 70 of 2002. The learned Additional Senior Civil Judge while dismissing the said first appeal had confirmed the decree and judgment dated 13.03.2002 passed in O.S. No. 928 of 2000 of the learned III Additional Junior Civil Judge, Vijayawada filed for recovery of a sum of Rs. 1,00,000/ - against the 1st defendant -Andhra Bank and 2nd defendant -United India Insurance Company Limited. I have heard the submissions of the learned counsel for the appellant/plaintiff ('the plaintiff', for short) and the learned Standing Counsel for the respondents 1 and 2/defendants 1 and 2 ('the defendants 1 and 2', for short).

(2.) At the time of admission of this second appeal, this Court had formulated the following substantial questions of law:

(3.) The facts that led to filing of this second appeal and the cases of the parties, in brief, are as follows: 'The sole plaintiff is the wife of one Koteswara Rao. They together had opened a Joint Savings Bank Account No. 1295 on 21.01.1998 with the 1st defendant Bank under Abhaya Gold Scheme with "either or survivor" clause. At the time of the opening of the said account, the 1st defendant bank had informed the plaintiff that under Abhaya Gold Scheme, both the joint account holders are provided with accident insurance cover under the group personal accident policy issued by the 2nd defendant -Insurance company and that the insurance cover will be available for all the joint account holders including minors. The plaintiff was specifically informed by the 1st defendant Bank that in case of death of either of the account holders, the benefit is available and the amount of insurance in a sum of Rs. 1,00,000/ - will be paid to the legal heirs on the death or disablement of one of the account holders. The husband of the plaintiff, who is the 2nd account holder, had died on 02.08.1998 due to his involvement in a motor vehicle accident. Immediately thereafter, the plaintiff had submitted a letter requesting the 1st defendant Bank to process the insurance claim. In response, the plaintiff had received a letter from the 1st defendant Bank intimating that the benefits of the policy were not available to the second account holder and therefore, the claim is not payable. The plaintiff and her husband are illiterates and they were not given any copy of the insurance policy or any other details at the time of the opening of the joint savings account. They were made to believe that the insurance benefits are available to both the joint account holders. The plaintiff had submitted necessary documents to the defendants for processing the claim. The plaintiff had got issued notice to both the defendants on 16.09.1999 demanding the defendants to settle the claim and also to supply a copy of the policy. The defendants 1 and 2 had received the notice respectively on 20.09.1999 and 05.11.1999 and had kept quiet. It is the duty of the 1st defendant to pay the insurance premium for both the account holders and to arrange the payment of insurance amount to the plaintiff. Accordingly, the plaintiff is entitled to a sum of Rs. 1,00,000/ - and the defendants are jointly and severally liable to pay the same with interest at the rate of 24% per annum from the date of the suit till the date of final settlement. Hence, the suit is filed.'