Failure To Disburse Amount Under PM Fasal Bima Yojna, Panipat District Commission Holds HDFC Bank And Universal Sompo Insurance Co. Liable For Deficiency In Service

Brief Facts:

Mr. Ramesh Kumar (“Complainant”) had a joint bank account with HDFC Bank Ltd. at the Madlauda Branch in Panipat and had taken a KCC/Agriculture loan. His crops were insured by the Universal Sompo General Insurance Company Limited ("Insurance Company") under the Pradhan Mantri Fasal Bima Yojna (“PMFBY”). HDFC Bank regularly deducted insurance premiums from the Complainant's account on a six-month basis. Unfortunately, in 2018, Mr. Kumar suffered crop damage due to flooding. He promptly reported this to the Agriculture Department in Panipat, which assessed a 50% loss in his paddy crops, resulting in a loss of Rs. 1,12,680/-.

Despite multiple requests and efforts, both HDFC Bank and the Insurance Company failed to disburse the premium amount. Additionally, HDFC Bank deducted Rs. 9878 as a premium again but did not deposit it with the Insurance Company. Feeling aggrieved, the Complainant filed a consumer complaint with the District Consumer Disputes Redressal Commission in Panipat, Haryana (“District Commission”).

HDFC Bank contended that they had deducted the premium amount from the Complainant's account and deposited it with the Insurance Company following the Pradhan Mantri Fasal Bima Yojna (“PMFBY”) guidelines. They argued that if the Insurance Company did not release compensation to the Complainant, the responsibility for the delay could be attributed to the bank. HDFC Bank claimed that they had no role in providing compensation and were not liable for making any payments to the Complainant.

The Insurance Company denied the contents of the complaint and asserted that HDFC Bank had not deposited the premium amount with them, causing the delay in compensation to the Complainant. They maintained that there was no deficiency in their service and that other aspects of the complaint were false.

Observations by the Commission:

The District Commission noted that the documents, including bank statements and reports from the Agriculture Department, supported the complainant's claim that the premium amount was deducted by HDFC Bank and deposited with the Insurance Company. The District Commission determined that there was a clear deficiency in service on the part of both HDFC Bank and the Insurance Company. They had failed to provide the complainant with the compensation he was entitled to under the PMFBY guidelines. As a result, the District Commission ordered both parties, HDFC Bank and the Insurance Company, to pay the complainant the compensation amount of Rs. 1,12,680/- along with interest and additional sums of Rs 10,000/- for harassment, mental agony, and litigation expenses. The District Commission held both parties jointly and severally liable for making these payments.

Case Title: Ramesh Kumar vs HDFC Bank Ltd. and Anr.

Case No.: CC/22/2000

Advocate for the Complainant: Ritu Rani

Advocate for the Respondent: Mukesh Shandilya and Deepak Malik

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