COMMISSIONER, MUNICIPAL CORPORATION Vs. SANTOSH SATNAMI

JUDGEMENT

(1.) THIS appeal is directed against order dated 29.12.2008 of District Consumer Disputes Redressal Forum, Durg (hereinafter called "District Forum" for short), in Complaint Case No. 193 of 2008, whereby the appellant Commissioner, Municipal Corporation (hereinafter called "Corporation" for short) has been directed to pay Rs. 20,000 along with compensation of Rs. 2,000 and cost of litigation of Rs. 1,000 to the complainant. Further direction to the effect that if the amount would not be paid within a period of two months, then it will also carry interest @ 9% p.a., has also been passed.

(2.) BRIEFLY stated, the facts of the case are that, mother of complainant Smt. Kesh Bai has paid Rs. 25 to the appellant Corporation, for his insurance under 'Mini Mata Urban Insurance Scheme,' which was introduced for poor persons living in slums. As per the scheme apart from premium paid by the proposer, Rs. 75 are provided per person by Government for such insurance and then Nodal Agency (which was appellant in this case), was to sent the proposal to the Life Insurance Corporation of India and in case of death of such person Rs. 20,000 as sum assured is to be paid. As per case of the complainant, her mother died after 38 days from the date of deposit of premium i.e. on 15.9.2007, on account of heart -attack. Complainant was nominee of the mother and in the capacity, he preferred claim and filed claim application with the appellant along with all necessary documents. But the appellant has refused to accept that application. Then notice was issued, but even then appellant has not responded. In reply of the notice, Life Insurance Corporation of India has said that L.I.C. of India do not entertain direct claims and do not pay any amount directly to the nominees and such activities are always through the Nodal Agency. Stating all these facts, alleging deficiency in service on the part of appellant Corporation, the complaint was filed before District Forum.

(3.) IN written version, appellant has pleaded that the risk coverage starts from the date when proposal reaches in the office of Life Insurance Corporation of India. It has been submitted that the proposal of group of 25 persons was sent to the Life Insurance Corporation of India along with premium of Rs. 100 each, but the dates were not specified. Other two O.Ps. have denied their responsibilities in the sense that O.P. No. 2 has averred that Government contribution of Rs. 75 has also been provided to the Corporation as Nodal Agency, so it was responsibility of the Corporation to take every step. Similarly, the Life Insurance Corporation of India has pleaded that no claim has been made to the Corporation so question of deficiency in service does not arise.