In a recent ruling, the District Consumer Disputes Redressal Commission in Panipat, Haryana, found Punjab National Bank (PNB) guilty of service deficiency. The judgement was handed down by the bench led by Dr R.K. Dogra (President) and Dr. Rekha Chaudhary (Member). They ordered PNB to compensate the Complainant with a claim amount of Rs. 18,00,000/- and additional compensation of Rs. 5,000/- plus Rs. 5500/- to cover litigation costs.
Here’s a brief overview of the case:
The Complainant, Mrs. Phoolpati, filed the complaint as the legal successor of her late husband, Mr. Ashok Kumar. Mr. Kumar held an account with the Oriental Bank of Commerce in Israna, which eventually merged with PNB. Tragically, Mr. Kumar died in a road accident and a First Information Report was filed under Section 279/304A IPC. The bank initially set up a savings account for Mr. Kumar, later converted to a salary account by the bank. Mr. Kumar had taken a personal accident insurance policy from the bank, which obligated the bank to pay Rs. 18 lakhs to the legal heirs in the event of his death.
Despite her numerous visits to the bank and efforts to claim the insurance amount, Mrs. Phoolpati faced numerous delays from the bank. She eventually sent a legal notice demanding the payment of Rs. 18,00,000/- as per the policy rules, plus interest, and an additional Rs. 50,000/- as compensation. However, the bank did not respond to the legal notice or make the payment. Frustrated, Mrs. Phoolpati took her complaint to the District Consumer Disputes Redressal Commission.
The Commission’s observations:
The Commission referred to the RBD (R) Circular 12/2020 dated 25.03.2020, which detailed the changes in PNB’s new salary scheme. According to the circular, account holders were entitled to an insured sum based on their salary account variant. The circular stated an insurance cover of Rs. 18 lakh for all variants. Considering Mr. Kumar’s salary, Mrs. Phoolpati’s claim fell within the GOLD variant. Therefore, the Commission found that Mrs. Phoolpati, as the legal successor of her late husband, was entitled to the insured amount of Rs. 18,00,000/-. They found the bank guilty of service deficiency for falsely denying the claim.
As a result, the Commission ordered PNB to pay Mrs. Phoolpati the sum of Rs. 18,00,000/- within 45 days of the order. They also ordered the bank to pay interest at a rate of 9% per annum from the date the complaint was filed until the actual payment. Additionally, PNB was directed to pay Mrs. Phoolpati a compensation of Rs. 5,000/- and litigation expenses of Rs. 5500/-.
The takeaway:
This judgement underscores the importance of banks honoring their commitments to their customers, especially relating to insurance policies. It serves as a reminder that consumers have rights and legal recourse if they feel they have been wronged.
