BEFORE THE ORISSA STATE CONSUMER DISPUTE REDRESSAL COMISSION:

CUTTACK,
F.A No 325/2009

(From the order of the District Consumer Disputes Redressal Forum, Berhampur
dt.22.12.08 passed in C.D. case No.264/2004)
An appeal U/s. 15 of the C.P Act;
1. Union Bank of India, Ghosaninuagaon Branch, through its Branch Manager,
At-Ghosaninuagaon Main Road, Po-Berhampur-760003, Dist- Ganjam.
(Opposite Party No.1 in the District Consumer Dispute Redressal Forum,
Berhampur)
….. Appellant.
Vs.
1. Smt.Bhagyalaxmi Sethi, W/o Late Bhaskar Sethi, At-Kalua Street, Bijipur,
Po-Berhampur-760003, Dist- Ganjam
(Complainant in the District Consumer Dispute Redressal Forum,
Berhampur)
2. Divisional Manager, the Oriental Insurance Co.Ltd, Giri Road, Berhampur-
5, Dist-Ganjam.
3. Divisional Manager, the Oriental Insurance Co.Ltd, R.K.S.Mansion, Bank
Street, Hyderabad-500001.
(Opposite Party No.2 & 3 in the District Consumer Dispute Redressal
Forum, Berhampur)
….. Respondents.

DATE CHART

Date: Particulars:
26.05.01 Bhaskar Sethi, Account holder of Insurance linked Saving
account ASB-1050, husband of the complainant, died.
18.11.02 Written application of the complainant received by the
Bank.
18.11.02 Bank issued a letter by Regd. post to the Insurance
company to issue claim form.
02.01.03 Reminder-1 sent by the Bank to the Insurance Company
06.02.03 Reminder-2 sent by the Bank to the Insurance Company
 17.04.03 Reminder-3 sent by the Bank to the Insurance Company
14.02.03 Letter sent by the Insurance company to the bank stating
claim of the complainant can’t be considered as the
complainant not intimated within 90 days.
13.05.03 Bank received the letter dt.14.02.03 sent by the Insurance
Company
11.06.04 Bank intimated to the complainant vide a letter enclosing
the letter dt.14.02.03 sent by the Insurance company.
22.12.08 Learned district forum passed order on C.D. Case No. 264
of 2004
09.01.09 Advocate of the appellant received the order dt.22.12.08

WRITTEN SUBMISSION
That the Appellants above named submit that they have been permitted by this
Hon`ble State Consumer Dispute Redressal, Commission, Cuttack to submit
written submission. Accordingly, the appellants submit the following written
submission.

That the appellant-petitioners have filed the aforesaid appeal against the order
dt.22.12.08 passed in C.D. Case No.264/2004 by the learned District Forum,
Berhampur directing the OPs to pay insurance claim of Rs.25,000/- within one-
month helding that not settling the claim of the complainant as per the scheme is
deficiency in service on the part of opposite parties.

That the appellants humbly submits that one named Bhaskar Sethi, husband of the
respondent no.1 and the complainant opened an insurance linked savings account
bearing No. ASB-1050 with insurance coverage of Rs.25000/- subject to certain
terms and conditions. That in case of death of the account holder the nominee is
required to inform the Bank within 90 days’ and to prefer the claim by sending the
required documents through the Bank within 180 days from the date of death of the
policy holder.

That the complainant the nominee of the policy holder, had sent a written
application the Bank on dt.18.11.02 to release the insurance coverage amount,
accordingly the Bank immediately sent a letter by Regd. post to the Insurance
company Oriental Insurance Company Ltd to provide the claim form. Thereafter,
the Bank followed up with the Insurance company by sending three reminder
letters on dt.2.1.03, dt.6.2.03 and dt17.4.03. That the OP No.3 the Insurance
company in their letter dt.14.2.03 intimated the Bank which was received by the
Bank on dt.13.5.03 stating that the claim of the complainant can’t be considered as
the complainant did not send the intimation of death within stipulated period of 90
days as per the terms and conditions of the policy and no further correspondence
will be entertained in this regard. That the Bank intimated the content of the letter
dt.14.2.03 sent by the Insurance company to the complainant orally and thereafter
wrote an official letter dt.11.6.04 to the complainant enclosing the letter dt.14.2.03.

That aggrieved by non-consideration of claim by Oriental Insurance Company Ltd

the nominee filed a complaint vide C.D. Case No.264/2004 before the court of
District Consumer Redressal Forum, Berhampur praying for directing the OPs to
release the insurance coverage amount of Rs.25000/- along with compensation of
Rs.10000/- and litigation expense of Rs.2000/- in favour of the complainant. That
the learned district forum illegally allowed the complaint vide order dt.22.12.08,
directed the OPs who are jointly and severally liable to pay Insurance claim of
Rs.25,000/- within one moth of receipt of the order.

That the learned district forum did not consider the written version filed by the
appellant wherein it is categorically stated that Bank has no knowledge about the
death of Late Bhaskar Sethi on dt.26.5.01 due to road accident till the written
application dt.18.11.02 of the complainant received by the Bank. That the appellant
Bank and has taken timely action in facilitating the claim process, by informing the
insurance company through Regd. post letter dt.18.11.02 requesting to send the
claim papers and thereafter sending three reminders on dt.2.1.03, dt.6.2.03 and
dt17.4.03. Therefore, the finding of learned district forum that there is deficiency
of service on the part of Bank is illegal and as such liable to be set aside.

That as per para 29 of the terms and conditions of Abhaya Savings Account Pass
Book issued to the deceased Bhaskar Sethi provides that the depositors under the
scheme are governed under the Group Personal Accident Insurance of Oriental
Insurance Company as para 34 provides that all claims arising out of Insurance
shall be referred to the Insurance company who shall consider the settlement of the
same as per the rules and terms and conditions governing the policy and Bank
takes no responsibility whatsoever in the matter. That the Insurance company in
letter dt.14.2.03 did not consider the claim of the complainant as she had not
intimated within stipulated time of 90 days from the date of death of policy holder
as per the terms and conditions of the policy. That the Bank has taken timely action
in its part in every step of claim process but the learned district forum illegally held
both OPs jointly and severally for the deficiency of service although the appellant
Bank has no role in consideration or not consideration of claims as per the para 29
and 34 of the terms and conditions of Abhaya Savings Account Pass book,
therefore the order dt.22.12.08 of the learned district forum is baseless and liable to
be set aside.

That Oriental Insurance Company Ltd has not considered the claim but the
complainant did not challenge the same rather preferred to lodge a complaint
against the Bank, who is only the facilitator to forward the claim for payment by
the Insurance company. That the learned district forum instead of fixing the
liability against the Insurance Company has illegally directed both OPs to pay the
Insurance amount which is liable to be set aside.

That on the face of allegations the complainant cannot be termed as “consumer” as

defined u/s 2(d) pf the Act. particularly when the complainant is guilty of non-
performance of her obligations to inform the matter timely to the Bank as well as
the Insurance Company.

That the learned district forum allowed the complaint on basis of the ground that
the complainant is an illiterate, widow and is ignorant about the policy which is
illegal. That the appellant humbly submits that ignorance of law is no excuse
therefore the order dt.22.12.08 is illegal as such is liable to be set aside.

For the aforesaid grounds the impugned judgement is otherwise illegal, bad in law
and liable to be set aside.