Consumer Commission Orders SBI to Compensate Widow for Delayed Insurance Claim

A Nagpur consumer commission ordered SBI to compensate a widow Rs 5 lakh for delaying an insurance claim. The bank's failure to inform cardholders of their insurance rights was criticized as 'deficiency in service.' The complainant received compensation for mental anguish and litigation costs.

A District Consumer Disputes Redressal Commission in Nagpur has ruled against the State Bank of India (SBI), mandating a payout of Rs 5 lakh to a widow for the delayed processing of an insurance claim.

The woman, whose husband passed away in a road accident, faced 'mental shock,' which the commission recognized as a valid reason for her delayed claim submission. The commission criticized SBI for its lack of communication regarding the cardholder's insurance rights, deeming it a 'deficiency in service' and 'unjust.'

The verdict includes an additional Rs 10,000 for the complainant’s mental agony and litigation expenses. SBI argued the claim was invalid due to a lapse of the mandatory 90-day period and the exclusion of insurance on 'MasterCard Classic' debit cards, but the commission found no solid evidence supporting this exclusion.