ANDHRA BANK REPRESENTED BY ITS MANAGER, TIRUMALA BRANCH, TIRUMALA, DISTRICT CHITTOOR ANDHRA PRADESH Vs. CHERUKUNURU GEETHANJALI & 3 ORS. W/O LATE GNANA SHANKAR, R/O D.NO. 20

JUDGEMENT

(1.) IA/6956/2016 (Directions) As agreed by the respondent No.1, she is appointed as guardian for minor respondent Nos.2 & 3 who are her children. Conveyance charges have been received by the respondents. The application stands disposed of. RP/1232/2016 Issue notice to the respondents. Mr. G.L.N. Murthy, Advocate accepts notice on behalf of respondents. Heard the learned counsel for the parties.

(2.) The complainants/respondents are the legal heirs of one Gnana Shankar who had opened a Savings Bank Account with the petitioner Bank and who died on 19.10.2013. Late Shri Gnana Shankar opened the aforesaid account with the petitioner Bank on 18.1.2011 depositing a sum of Rs. 100.00 in the said account. Under an agreement with the United India Insurance Co. Ltd., the petitioner Bank had obtained an insurance policy for insuring the life of the account holders. The insurance premium was to be debited to the account opened with the Bank. This is the case of the complainants in the complaint itself, that the insurance premium was to be collected at the time of opening the bank account and on 31st Oct. every year. This is also the case of the complainants/respondents in para 3 of the complaint that the insurance year was 1st Nov. to 31st Oct., every year.

(3.) A perusal of the passbook of the account opened by the deceased would show that when this account was opened on 18.1.2011, insurance premium for the first year was deducted, by debiting the same to the account opened by the deceased. Thus insurance premium upto 31.10.2011 stood paid. The insurance premium for the period from 1.11.2011 to 31.10.2012 ought to have been paid by 31.10.2011. However, the balance in the account of the deceased was only Rs. 1.00 from 1.10.2011 to 2.2.2013. As a result, the bank could not debit the insurance premium to his account on or before 31.10.2011. Consequently, the benefit of insurance did not become available to him for the period from 1.11.2011 to 31.10.2012.