Case Law Title: Surjit Singh vs Punjab Gramin Bank and Anr.
Summary
The District Consumer Disputes Redressal Commission in Gurdaspur, Punjab, found Punjab Gramin Bank and Bajaj Allianz Life Insurance Company accountable for unfair trading practices and service deficiencies. The insurance company neglected to process a cheque for Rs. 46,645, which was supposed to be given to the complainant after the insurance policy matured. The complainant, Surjit Singh, obtained a life insurance policy from the bank and was advised to contact the insurance company after the policy matured. The insurance company refuted the complainant’s accusations, arguing that the complainant had already received a cheque for the matured amount. The District Commission found that the bank and insurance company had not paid the amount, leading to the plaintiff’s compensation for mental suffering, harassment, legal expenses, and interest.
About the case
Punjab Gramin Bank and Bajaj Allianz Life Insurance Company were found accountable by the District Consumer Disputes Redressal Commission, Gurdaspur (Punjab) bench, which was made up of members Bhagwan Singh Matharu and President Lalit Mohan Dogra, for unfair trading practices and service deficiencies. As per the agreement, the Bank and the Insurance Company neglected to process the cheque for Rs. 46,645 that was supposed to be given to the Complainant after the insurance policy matured.
Through Punjab Gramin Bank (“Bank”), Surjit Singh (“Complainant”) obtained a life insurance policy from Bajaj Allianz Life Insurance Company (“Insurance Company”) via the bank. The complainant said that the bank had recommended that he purchase an insurance policy for Rs. 10,000 annually. He paid the premium in accordance with the provisions of the policy, and he went to the bank to make the last payment when the policy matured. He was told to contact the insurance company by the bank, which assured him that the money would be credited to his account automatically.
The complaint, nevertheless, never got the money. Afterwards, he discovered that the insurance firm had given the bank a cheque for Rs. 46,645; however, the bank denied receiving it. The complainant, who felt wronged, brought a consumer complaint to Gurdaspur, Punjab’s District Consumer Disputes Redressal Commission (the “District Commission”).
The Bank was sued ex parte as it failed to show up before the District Commission. The Insurance Company, on the other hand, refuted the complainant’s accusations and contended that the complainant had bought the insurance policy with a five-year premium-paying period. They said that the complaint was without merit because the complainant had previously received a cheque for the matured amount, which he had cashed through Axis Bank (Amritsar).The insurance company’s argument that they had already sent out a cheque for the specified amount was rejected by the District Commission, which also pointed out that the company had not produced any statement of account or hard copy proof that the complainant had actually cashed the cheque or verified that the complainant had an account with Axis Bank in Amritsar. The complaint, on the other hand, produced a statement of account held with the Bank, which amply demonstrated that the cash had not been received and suggested that the cheque had most likely been misused. The Bank and the Insurance Company were instructed to inquire on the same by the District Commission.
The District Commission came to the conclusion that there was a failure in service since the Bank and the Insurance Company had not paid the sum of Rs. 46,645/-based on the facts and information provided. As a result, the District Commission found in the complainant’s favor and ordered the Bank and the Insurance Company to reimburse the plaintiff for mental suffering, harassment, and legal expenses in addition to the outstanding sum of Rs. 46,645/-plus interest.
