Failure To Settle Personal Accidental Insurance Policy, Panipat District Commission Holds PNB Liable For Deficiency In Service

Brief Facts:

Mrs Phoolpati's husband, the late Ashok Kumar, initially held an account with the Oriental Bank of Commerce. Subsequently, this bank underwent a merger with Punjab National Bank (PNB), resulting in a different account number. The husband of the Complainant tragically lost his life in a road accident and an FIR was registered under Section 279/304A IPC at P.S. Madlauda, District Panipat. The husband of the Complainant had opened a savings account in PNB and subsequently, the officials of the PNB's branch converted the savings account into a salary account. Importantly, the deceased husband availed the facility of a personal accidental insurance policy with PNB, thereby, obligating PNB to disburse Rs.18 lakh to the legal heirs of the deceased in the event of various contingencies. Despite repeated visits to the PNB branch, the matter was unduly prolonged with various pretexts. Subsequently, a legal notice was sent by the Complainant, but PNB neither made the stipulated payment nor responded to the notice.

Feeling aggrieved, Mrs. Phoolpati (“Complainant”) approached the District Consumer Disputes Redressal Commission, Panipat (“District Commission”) and filed a consumer complaint against PNB. PNB didn't appear before the District Commission for the proceedings.

Observations by the District Commission:

The District Commission referred to “RBD (R) Circular 12/2020”, which outlined the modifications in the PNB new salary scheme. According to the circular, all variants were eligible for an insurance cover of Rs. 18 lakh. Given the deceased's salary falling within the 'GOLD' variant, the District Commission held that the Complainant, as the legal heir, was entitled to the insured amount of Rs. 18 lakh. Therefore, the District Commission held PNB liable for deficiency in services.

Consequently, the District Commission directed PNB to make a payment of Rs. 18 lakh to the Complainant within 45 days, along with interest at the rate of 9% per annum from the filing date until realization. Additionally, PNB was instructed to pay Rs. 5,000/- as compensation to the Complainant and Rs. 5500/- as litigation costs incurred by her.