Bhiwani District Commission Holds PNB Liable For Failure To Update Farmer's Complete Information Under Fasal Beema Yojna

Brief Facts:

The Complainant, owner of an agricultural land in Nangla village, insured her cotton and bajra crops for the 2019 monsoon season under Pradhan Mantri Fasal Beema Yojna (PMFBY). The crops were insured through Punjab National Bank (“PNB”) and Agriculture Insurance Company of India Ltd. (“Insurance Company”). After her bajra crop suffered damage from natural disasters, she reported the issue to PNB but received no proper response. Other farmers, however, already received their claims. The Complainant also reported the problem to the Agriculture Department. However, no resolution was provided. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Bhiwani, Haryana (“District Commission”) against PNB and the Insurance Company.

In response, PNB stated that the Complainant's missing Aadhar information in the bank account caused the insurance application to be rejected on the government portal. However, PNB claimed that it refunded the credited amount and that the claim was already settled with the Complainant. The Insurance Company argued that the deducted amount was for cotton crop insurance, not bajra. It maintained that the application was rejected due to missing land details and that the Complainant was not insured for the damaged crop.

Observations by the District Commission:

The District Commission noted that PNB didn't upload the complete information, including land details and Aadhar details, which prevented the Insurance Company from covering the bajra crop. It noted that the negligence by PNB caused the Complainant financial loss, mental strain, and hardship.

The District Commission held that the PMFBY scheme guidelines hold the bank accountable for compensating farmers for losses due to their errors or omissions. Since the Insurance Company couldn't provide coverage due to the bank's incomplete information and returned the premium, the District Commission held the Insurance Company was absolved of any liability. Therefore, the District Commission held PNB liable for deficiency in services.

Consequently, the District Commission directed PNB to pay Rs. 1,55,400/- (based on the insured amount per acre for bajra crop) to the Complainant with interest. PNB was also directed to pay Rs. 10,000/- as compensation for harassment to the Complainant, and Rs. 5,500/- for litigation expenses.

Case Title: Chander Pati vs Branch Manager, Punjab National Bank and Anr.

Case Number: 103 of 2020

Date of Decision: 29.05.2024