Kolkata: A District Consumer Disputes Redressal Commission in Nagpur has directed State Bank of India or SBI to pay Rs 5 lakh insurance claim to the spouse of a debit card holder from the bank. There is nothing uncommon in the case till one is told that the wife of the SBI customer filed the insurance claim almost six years after the death in an accident. The spouse of the claimant had an SBI account and also had a debit card linked to the account. He passed away following a road accident in September 2013. The bank turned down the claim, arguing one of the reasons for the decision was the inordinate delay the woman took to file the claim. In its verdict, the DCDRC pointed to the trauma and emotional distress of the wife and said that banks cannot simply reject claims by citing technical deadlines if customers were never properly informed about the insurance benefits in the first place.
The bank’s logic
The woman informed the DCDRC that she or her husband were not told about the accidental insurance coverage offered by the debit card. In March 2019 she submitted all documents to the banks and claimed the Rs 5 lakh insurance. The bank did not play in the grounds that the woman did not file the claim within the 90-day time window after the death. The bank also claimed that her husband had a ‘MasterCard Classic’ debit card, which did not offer the insurance benefit. Failing to get any favourable response from SBI, the spouse of the cardholder appealed to the DCDRC in Nagpur and also added a claim of Rs 50,000 for mental and physical agony.
What the consumer commission said
The consumer commission has directed SBI to pay the insurance claim despite the delay, arguing that “mental shock” after a spouse’s sudden death can lead one to take time to recover. It also said that the 90-day window cannot be used as an excuse to deny the claim, especially when the bank failed to inform customers of their rights. SBI’s attitude was described as “deficiency in service and unjust.” SBI also has to pay 6% interest annually on the Rs 5 lakh compensation. SBI also has to pay Rs 10,000 to the woman for mental agony and litigation costs.
Significance of the directive
The instance has ramifications for the average consumer since many customers are unaware that many debit cards are often spiced with complimentary accidental insurance cover. Consumers must be aware of this feature and also inform the members of the family about the same. They should check all the benefits of their debit cards and safely keep all card related documents. They can also ask banks to furnish policy details in writing.