UNION BANK OF INDIA Vs. AVINASH GOVIND JOSHI

JUDGEMENT

(1.) Petitioner/Opposite Party has preferred this revision against impugned order dated 24.2.2014, passed by State Consumer Disputes Redressal Commission, Maharashtra, Mumbai (for short, 'State Commission') in First Appeal No.31 of 2013.

(2.) Brief facts are, that Respondent/Complainant got sanctioned housing loan of Rs.10 lacs in August, 2002 on certain terms and conditions and EMI of Rs.11,370/- was deducted from his Saving Bank Account from the next month i.e. from September, 2002. Undisputedly, amount of E.M.I. includes the premium for availing insurance policy to provide insurance cover to the mortgaged property and personal accident cover to the borrowers viz. respondent and his wife. However, respondent's wife was murdered on 01.10.2002. Though, loan was released in August, 2002 and E.M.I. was effectively deducted from the month of September, 2002 (which includes payment of premium for the policy), the petitioner bank failed to avail the policy in month of September,2002. The one time premium as provided for in the agreement amounting to Rs.6,315/- was paid on 05.10.2002 to United India Insurance Co. by respondent to avail the policy. Though policy was issued and claim was preferred after the death of respondent's wife, it was rejected by the insurance company on the ground, that there was no coverage of insurance as on 1st October, 2002, as policy was effective from 05.10.2002. The Insurance Company accordingly, intimated the petitioner bank. Thus, alleging deficiency on the part of petitioner, the respondent filed a consumer complaint praying for following reliefs;

(3.) In its reply, petitioner has admitted that respondent has lodged the insurance claim due to death of his wife. Thereafter, insurance company vide their letter dated 9.09.2003 had informed the petitioner, that proposal for insurance policy was received by them on 10.10.2002. Since, death of insured had taken place on 1.10.2002, that is, much before the assumption of risk and MOU clearly states, that assumption of risk starts from the date of issue of pay order, hence insurance company was unable to accept the liability under the policy.