UNITED COMMERCIAL BANK Vs. ANITA AIRAN

JUDGEMENT

(1.) THESE two revision petitions, one by the United Commercial Bank (UCO Bank) and other by the National Insurance Company, insurer are against the common order of the Rajasthan State Consumer Disputes Redressal Commission by which the order of the District Forum in a complaint filed by the first respondent-complainant, Smt. Anita, was upheld. Both the insurer and he Bank were held guilty of deficiency in service and were required to pay Rs. 5.00 lakhs to Anita on account of death of her husband Shailash, the insured, in a car accident.

(2.) SHAILASH , the deceased, took Janta Personal Accident Insurance Policy from the National Insurance Company on 25.3.1996 for Rs. 5.00 lakhs when he gave Cheque No. 0882491 dated 25.3.1996 drawn on Bank of Baroda, Nasirabad, for Rs. 1,800/- towards premium at the time of proposal. Insurance Company issued art insurance policy on the following day it being Policy No. 370701/47/96/00918 bearing Cover Note No. 93341. This cheque was sent by the Insurance Company to its banker, UCO Bank for collection on 26.3.1996. The UCO Bank sent that cheque for collection by its letter dated 4.4.1996 to the Bank of Rajasthan which was acting as a clearing house and which received the cheque only on 9.4.1996. Bank of Rajasthan sent the cheque to the Bank of Baroda on the same day but it was returned by the Bank of Baroda on the ground that the account holder had since expired. It is not that Shailash, the insured had no money in his account to honour the cheque and in fact a sum of Rs. 25,597.44 was in his account. The cheque was, therefore, returned unpaid. Shailash, the insured unfortunately died on 2.4.1996 in a car accident. His wife Anita, therefore, made a claim to the Insurance Company for payment of Rs. 5.00 lakhs, the amount of the policy. When Anita made a claim, it was repudiated on the ground that the premium on the policy of her husband remained unpaid and thus there was no policy. She offered to pay Rs. 1,800/- in cash but it was declined. Anita, therefore, filed a complaint before the District Forum complaining deficiency in service against the Insurance Company, UCO Bank. District Forum allowed the complaint and held both the Insurance Company and the United Commercial Bank liable to make payment of insurance claim of Rs. 5.00 lakhs to Anita with cost of Rs. 1,000/-.

(3.) AGGRIEVED by the order of the State Commission both the Insurance Company and the UCO Bank have come before us by way of these two separate petitions under Clause (b) of Section 21 of Consumer Protection Act, 1986.