V.LAXMIKANTHA Vs. BRANCH MANAGER, ANDHRA BANK LIMITED

JUDGEMENT

(1.) THIS appeal has been filed by Smt. V. Lakshmi Kantha aggrieved by the order of the District Forum, Khammam in O.P. No. 246/1997 dated 11.8.1999. The only point to be considered here is whether the District Forum was right in rejecting the claim of the complainant against the opposite parties i.e., Branch Manager, Andhra Bank Limited, Khammam and Senior Divisional Manager, Oriental Insurance Company Limited, Hyderabad. The case of the complainant before the District Forum was as follows : The complainants husband Sri Venkataramana Naidu was an account holder under ˜Abhaya Savings Scheme bearing Account No. 52670 with opposite party No. 1. He died in a road accident on 6.1.1996. The complainant was not aware that an account holder of ˜Abhaya Savings Scheme of opposite party No. 1 was insured under Group Personal Accident Insurance Scheme of opposite party No. 2. On 15.4.1997 she approached the opposite party No. 1 for withdrawing the amount of Rs. 1,000/ - in the account of her husband and learnt that the account also gave insurance coverage in case of accident to the account holder and for that opposite party No. 2 had to be approached. On the same day appellant/complainant sent a claim application to opposite party No. 1 and again on 5.5.1997 and requested it to send the claim forms to opposite party No. 2. On 4.6.1997 opposite party No. 2 informed opposite party No. 1 as follows : You are aware as per the policy agreement intimation of accidents giving raise to claims should be given to us within 90 days from the date of accident. Claim intimations given beyond the stipulated time cannot be considered for settlement. We are closing the claim as No Claim and no further correspondence will be entertained in this regard. 

(2.) IMMEDIATELY after receiving the above intimation from the opposite party No. 1, the complainant got issued a legal notice to opposite parties demanding Rs. 25,000/ - as insurance claim after duly explaining the delay, that she was not aware of the conditions of the policy agreement and that there was no stipulation that the claim intimation had to be made within 90 days from the date of accident and that the pass book did not show such a clause and condition and that, therefore, the condition was self imposed by opposite party No. 2. As there was no reply from the opposite parties the complainant approached the District Forum for redressal on 6.8.1997. The complainant also filed xerox copy of the pass book bearing Account No. 52670 showing a balance of Rs. 1,066/ -, FIR dated 6.1.1996 regarding the motor accident and death of her husband, letter dated 5.5.1997 written by opposite party No. 1 to opposite party No. 2 requesting for the claim forms, letter dated 29.5.1997 written by the complainant to opposite party No. 2 requesting opposite party No. 2 to settle the claim, letter dated 4.6.1997 sent by opposite party No. 2 to opposite party No. 1 rejecting the claim, legal notice dated 4.7.1997 issued by the complainant to opposite parties Nos. 1 and 2 and two postal acknowledgement slips. The complainant sought from the District Forum directions to opposite parties to award Rs. 25,000/ - towards Group Personal Accident Insurance Scheme under Abhaya Savings Scheme alongwith interest at 24% per annum till the date of realisation and costs.

(3.) OPPOSITE party No. 1 submitted in its counter before the District Forum that there was no deficiency in service on its part and that they were not liable to pay Rs. 25,000/ - as claimed by the complainant as the Group Personal Accident Insurance Coverage was by opposite party No. 2 and refused to accept the claim of the complainant against them. The claim was not accepted by opposite party No. 2 on the ground that it was made after the period of limitation of 90 days after the death of the account holder. Opposite party No. 1 also did not accept the reasons given by the complainant for delay in asking for the insurance claim.