SBI LIFE INSURANCE COMPANY LTD Vs. D LEELAVATHI

JUDGEMENT

(1.) This revision petition has been filed by the petitioner (SBI Life Insurance Company Limited) against the order dated 22.06.2011 of the Andhra Pradesh State Consumer Disputes Redressal Commission, Hyderabad (in short, 'the State Commission') in First Appeal no. 1154 of 2009 filed by the respondent/complainant challenging the order dated 22.09.2009 of the District Consumer Disputes Redressal Commission, Kadapa (in short, 'the District Forum'). By the said order, the District Forum had dismissed the complaint while, by its impugned order the State Commission set aside the order of the District Forum, allowed the appeal of the respondent/complainant and directed the petitioner to waive the loan amount payable under the insurance policy and also pay compensation of Rs.20,000/- to the respondent/complainant towards mental agony caused to her due to the petitioner's deficiency in service in repudiating her claim, and cost of Rs.5000/-.

(2.) The complainant is the widow of D. Kesavulu who was working as the Station Manager, Tirumalapur, Chennai Division, South Central Railway at the relevant point of time. He availed of a housing loan of Rs.5,95,000/- on 08.02.2006 from the State Bank of India, Yerraukkapalli Branch, Kadapa and also the SBI Life Insurance Super Suraksha Scheme by paying a premium of Rs. 41,899/-. The latter Scheme provided the benefit that in case of death of the borrower policy holder/ member of the Scheme, the loan would be waived and the documents deposited with the insurer/ lender Bank would be released/ returned.

(3.) The borrower/life assured died due to heart attack (cardiac and respiratory failure) at Kadapa on 08.02.2007. The complainant thereafter submitted the claim forms along with the supporting documents and the insurance certificate to the opposite parties (OPs) requesting waiver of the housing loan availed of by her deceased husband and return of the documents. However, the petitioner/OP repudiated the claim by its letter dated 12.12.2008 stating as under: