Insurance Policy – Renewal – Dishonour of cheque by the Bank although sufficient balance in the account but for non-linking MOD with account – Deficiency in Service –
The complainant – respondent is the Co-pilot. He had taken insurance policy for Rs.75 lakhs on 1.1.2015.
The policy was due for renewal on 31.12.2008. The complainant had issued the cheque of Rs.29,128/- dated 29.12.2008 for the premium. The Insurer had presented the cheque through its Bank and same was returned by SBI of the complainant for “insufficient funds”.
On 21.2.2009, the insurer informed the complainant that the insurance had become void as the cheque was returned.
On persuasion with the Bank at various levels, it was informed that the complainant’s bank branch was not linked the Multi Option Deposits to the savings account which had resulted in dishonour of the cheque.
Thus, the complainant was without insurance cover from 1.1.2009 to 20.3.2009 during operation of 50 flights.
The complaint was filed for deficiency and compensation of Rs.76,50,000/-.
By the judgment dated 1.12.2017 of the Tamil Nadu State Consumer Disputes Redressal Commission, Chennai, the compensation of Rs.5 lakhs was granted.
National Disputes Redressal Commission Judgment dated 18.3.2024 in First Appeal No.267 of 2018 of State Bank of India Vs. Captain Jose Hormese with connected appeal.
