BANK OF INDIA Vs. JAIMALA

JUDGEMENT

(1.) The Bank of India appeals against the order of the District Forum, Gurgaon allowing the insured-consumer's complaint and burdening the appellant with 50% of the insured claim.

(2.) In view of the fact that the respondentnew India Assurance Company has not challenged the order under appeal which has thus achieved finality against them, the matter now lies in a very narrow compass. The facts may consequently be noticed with utmost brevity. The respondent-complainant Smt. Jaimala had purchased two buffaloes with the proceeds of a bank loan granted by the appellants and these were covered by an insurance policy obtained on the 23rd of April, 1991 from M/s. New India Assurance Company. One of the buffaloes died soon after the insurance was taken and inevitably a claim was lodged with regard thereto by the insured-consumer. However, getting no redress the consumer was compelled to knock at the door of the District Forum whilst arraying the appellant-bank and the Assurance Company as opposite parties.

(3.) On notice being issued the appellant-bank took up the firm plea that the insurance policy was betwixt the insurer and the insured and there is no privity of contract between the bank and consequently they were in no way liable under its terms. On merits also the case was sought to be dismissed. On the other hand, the Insurance Company pleaded that the complainant had not obtained any policy from them but it was the appellant-bank which asked for the insurance of the buffaloes and that proposal was accepted and even allegations of fraud etc. were laid at the bank's door.