ORIENTAL INSURANCE CO. LTD. Vs. KALAWATI

JUDGEMENT

(1.) This revision petition under Sec. 21(b) of the Consumer Protection Act, 1986 (in short, the 'Act') assails the order dtd. 28/3/2017 in First Appeal No. 102 of 2016 of the State Consumer Disputes Redressal Commission, Uttar Pradesh, Lucknow (in short, the 'State Commission') dismissing the appeal of the petitioner against order dtd. 14/12/2015 of the District Consumer Disputes Redressal Forum, Jhansi (in short, the 'District Forum') in Consumer Complaint no. 139 of 2011.

(2.) The brief facts of the case, according to the petitioner, are that as per an Agreement dtd. 19/11/2009 between the petitioner insurance company and the Government of Uttar Pradesh, a Janta Personal Insurance Accident Policy was to be issued by the petitioner for registered farmers in the age group 12 to 70 years to provide insurance cover of Rs.1,00,000.00 against payment of premium on behalf of the insured by the State Government. Farmers were required to be land owners with their name in the khatauni and the premium amount was fixed at Rs.21.84 p per farmer per year. The policy was initially issued for 1 year with effect from 19/11/2009 and covered 12.50 crore farmers. Premium of Rs.54.60 crores was required to be paid by the State Government for the period 19/11/2009 to 18/7/2010; however, only Rs.36,20,05,480.00 was paid and accordingly the policy was issued on pro rata basis. Despite several reminders, copies of which are brought on record, the full premium was not paid by the State Government. Subsequently, the policy was renewed for the next year from 19/7/2010 to 12/10/2010 for which a premium of Rs.12,86,46,575.00 was paid and the policy was extended pro rata. On 19/11/2010 and 11/1/2011 the petitioner informed the State Government that in view of non-payment of insurance premium of Rs.5.47 crores, the policy had expired on the midnight of 12/10/2010.

(3.) Asha Ram, the husband of respondent no. 1 who was a farmer expired on 9/11/2010 during treatment of injuries in a road accident and an insurance claim was lodged with the petitioner. The claim was repudiated on the ground that the policy for 19/11/2009 to 12/10/2010 did not cover the death of her husband who expired after the policy cover had ended due to the lapsing of the policy. Respondent 1 approached the District Forum where the petitioner insurance company could not contest the case and the matter came to be decided ex parte. The District Forum upheld the claim and directed payment of Rs.1,00,000.00 with interest @ 12% p.a. within 2 months along with Rs.5,000.00 as compensation and Rs.5,000.00 as litigation cost. The petitioner insurance company approached the State Commission in appeal which was dismissed. This revision petition impugns the order of the State Commission dtd. 28/3/2017.