RAJGARH SEHORE KSHTRIYA GRAMIN BANK Vs. RAMGOPAL

JUDGEMENT

(1.) By judgment and order dated 13th August, 2003, M.P. State Consumer Disputes Redressal Commission, Bhopal, allowed the appeal of the complainant and arrived at the conclusion that as the Bank failed to deposit insurance amount with the Insurance Company on due date, there was deficiency in service on its part and was liable to pay damages suffered by the complainants.

(2.) In short, the State Commission arrived at the conclusion that on the instructions of the complainants the Bank debited a premium of Rs. 2,407 and prepared a draft dated 5th February, 2001 in the name of the Branch Manager, New India Assurance Co. Ltd., Shajapur. However, the same was not sent to the Insurance Company on the said date but was sent to the Insurance Company on 15th February, 2001 with an accompanying letter. On the basis of the said draft, the policy covering the risk from 16.2.2001 to 15.2.2002 was issued.

(3.) The tractor for which the insurance policy was taken met with an accident on 11.2.2001. Hence, the Insurance Company was held not liable to pay the damages suffered.