SUNITA W/O LATE BIJENDER SINGH Vs. TATA AIG LIFE INSURANCE COMPANY LIMITED & 2 ORS ; P N B HOUSING FINANCE LIMITED

JUDGEMENT

(1.) The above said cross Appeals have been filed under Section 19 of the Consumer Protection Act, 1986 against the impugned order dated 30.09.2014 passed by U. P. State Consumer Disputes Redressal Commission, Lucknow (in short, 'the State Commission') in Complaint Case No. 64 of 2013. By the said order, the State Commission allowed the complaint of the complainant and directed the OP to pay Rs.26,13,623/- to the complainant.

(2.) The brief facts for the disposal of both appeals are that the complainants, Ms. Sunita and the complainant's husband, Shri Bijender Singh had taken housing loan for the sum of Rs.26,13,623/- from PNB Housing Finance Limited/OP-3 on 31.5.2011. In pursuance of the internal arrangement with the TATA AIG Life Insurance Company/Opposite Party No. 1 and 2, the OP 3 financer purchased a policy of insurance covering the risk of the life of the Borrower/Late Brijendra Singh. The total tenure of the policy was 10 years i.e. till 30.5.2021. Unfortunately, her husband died on 25.7.2011 by heart-attack. The death intimation was given to OP-2 and OP-3 on 3.9.2011. The OP 2/insurance company neither settled the claim nor informed about progress despite several reminders/letters were sent by the complainant. Thereafter, two legal notices were also served to the OPs but the claim was repudiated by OP on 19.3.2013. Hence, aggrieved by the repudiation, the complainant filed a complaint before the State Commission, U.P.

(3.) After due service of notice, the OPs did not file written statement and OPs abstained from the proceedings. Therefore, the State Commission allowed the complaint ex parte and directed the OPs 1 and 2 to pay Rs.26,13,623/- along with interest @ 9% per annum from 3.5.2012. It allowed Rs.2,00,000/- as punitive damage and Rs.15,000/- as costs.