STATE BANK OF INDIA Vs. AMBIKA NETAM

JUDGEMENT

(1.) Late Shri D.L. Netam, husband of the complainant had an account with the petitioner bank. Later on, the name of the complainant was also added in the said account. Late Shri D.L. Netam had obtained an insurance cover from the respondent SBI Life Insurance Co. Ltd. The policy was taken for the period from 01.04.2005. The insurance premium for the period 2005-2006 as well as 2006-2007 was duly debited by the petitioner bank to the account of the complainant and was paid to the insurer. The premium for the year 2007-2008 was not debited in his account and was not paid. He having died on 29.06.2007, his widow (the complainant herein), applied for payment of the insured amount of Rs.2 lacs. She was informed that since premium for the year 2007-2008 had not been paid, he was not entitled to any amount.

(2.) Being aggrieved from the denial of the claim, the complainant approached the concerned District Forum by way of a Consumer Complaint impleading the petitioner as well as SBI Life Insurance Co. Ltd. as the opposite parties in the complaint. The complaint was resisted by the bank primarily on the ground that late Shri D.L. Netam had, vide his letter dated 26.02.2007, requested the bank not to debit any further premium in his account and that is why no premium for the year 2007-2008 was debited and paid. The insurer, of course denied any liability claiming that no premium for the year 2007-2008 having been paid, they were not liable to pay the sum assured to the complainant.

(3.) The District Forum having dismissed the Consumer Complaint, the petitioner approached the concerned State Commission by way of an appeal. Vide impugned order dated 27.02.2013, the State Commission allowed the appeal and directed the bank to pay Rs.2 lacs to the complainant alongwith Rs.5,000/- as the cost of proceedings. The interest @ 9% per annum from the date of the complaint was also awarded. Being aggrieved from the order of the State Commission, the petitioner bank is before this Commission.