- (1.)The revision petitioner Sundaram BNP Paribas Home Finance Ltd. has challenged the decision of the AP State Consumer Disputes Redressal Commission in FA No.1216 of 2010. The matter arose out of a home loan taken by the late husband of the Complainant from the petitioner on 31.8.2008. At the time of disbursal of the loan, the deceased Nagaraju Yanam and his co-borrower/Complainant, agreed to subscribe to SBI Life Insurance Policy. It was allegedly on the representation that the Group Housing Loan Protection Policy would be immensely beneficial in the event of the death of the borrower as the entire outstanding balance of the loan would be written off. As per the consumer complaint, subsequently filed before the District Forum Krishna District, being deeply swayed away by these representations, the complainant's deceased husband gave his assent for the subscription of the above described policy and even authorized the opposite party Nos.1 and 2 to disburse one time lump sum premium amount of Rs.36,464/- (Rupees thirty six thousand four hundred and sixty four only) to SBI Life Insurance Company Limited, Hyderabad i.e. opposite party No.3.
(2.)The complaint petition also states that this amount was subsequently sent by OPs-1 and 2 to OP-3, through a cheque of 31.8.2008. The borrowers also gave authorisation, empowering OP-1 and Op-2 to adjust the claim amount to be received from OP-3 against the entire out outstanding housing loan. The Complainant's husband was informed by OP-1 that the insurance proposal had been accepted by OP-3. But, the policy certificate was never delivered.
(3.)Consequent upon death of the borrower/Complainant's husband on 3.12.2008 the OPs were informed. The Complainant, as advised by OP-1, made a claim under the insurance policy, through OP-1, but heard nothing. Subsequently, a notice was received under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, calling upon the Complainant to pay an amount of Rs.14,86,667/- towards the outstanding balance of the housing loan and an interest. Allegedly the notice was sent in the name of the deceased husband, though the OPs had been informed about his death. A legal notice was issued on behalf of the Complainant on 9.7.2009, asking OP-1 and OP-2 to indemnify the Complainant for the loss caused due to their negligence and inaction in not getting the insurance cover for the Complainant.