BHOPAL : The State Consumer Dispute Redressal Commission, on Wednesday, has not found Postal Department deficient in service in case of disbursement of benefit of insurance death cover under insurance scheme.
Setting aside the order of District Consumer Dispute Redressal Forum, Sagar, which had order post office to provide Rs 1 lakh of insurance to deceased nominee, State Commission, in a land mark judgment, said that Forum finding are not sustainable either factually or legally and such deserve to be set-aside.
Rajbai Kurmi was saving bank account holder of postal department, Sagar. Under a scheme of postal department there had been a tie-up with the Oriental Insurance Company (OIC) to provide a personal accidental death insurance cover to saving bank account holders on request basis.
In the event of accidental death of the account holder, nominee is entitled to receive an amount of Rs 1 lakh. On June21, 2008, Rajbai suffered injuries by accidental fall of a wall of her house and died on July3, 2008. The complainant claimed the assured amount with required document. But claim was not honoured. Complainant approached District Forum. Post Office had admitted that there had been an amount of Rajbai with them but she had not opted for insurance by filling the prescribed form. The complainant being nominee of Rajbai was therefore entitled only for the amount deposited in saving bank account. Since no amount of premium was debited from account of deceased, the complainant was not entitled to any amount under insurance scheme.
The complainant approached the District Forum which, in its order, said that as it was tie-up between Post Office and OIC for providing insurance to account holder. As Post Office did not pay the premium so post office was liable to make good the loss suffered by the complainant due to deficiency of service. Postal department challenged the District Forum in state commission.
Senior Advocate Rajiv Jain, who appeared on behalf of Postal Department, said,
“It is landmark judgment of the State Commission which finds that account holder’s nominee could be entitled to the benefit under insurance scheme, if the account holder had filled the acceptance form while opening the account or even subsequently. The Post Office could only deduct the premium only in case where the account holder had opted to join the scheme and filled the acceptance form.”
