After many months of follow ups when the son did not get the insurance amount, he filed a case against the bank in the District Consumer Forum. The forum ruled in favor of the son and directed the bank to pay the insurance amount with compensation and interest. However, the bank took the fight to a higher level by appealing to the higher authorities.
However, this didn’t deter the deceased customer’s son in pursuing the case. Despite losing his father, the complainant fought in various consumer forums/commissions, and this fight went on for a long time. The son of the deceased HDFC Bank customer went on to fight against the bank in the State Consumer Forum in 2016, and also in the National Consumer Commission from 2017 to December 2023.
The National Consumer Disputes Redressal Commission (NCDRC), via an order dated December 20, 2023, directed HDFC Bank to make the payment of Rs 5 lakh with 9% interest and Rs 10,000 compensation for mental tension and harassment to the son and his family.
Why was HDFC Bank reluctant to pay the insurance amount?
The complainant’s father had a savings bank account and a debit card, too with HDFC Bank. The debit card that was issued to his father had accidental death insurance coverage of Rs 5 lakh. Due to an unfortunate incident in Madhya Pradesh, the complainant’s father died on October 30, 2013. While dealing with the grief of the loss of his father, the son filed an insurance claim with the bank.
After the District Forum passed the Order, HDFC Bank filed an appeal against that Order before the State Consumer Commission. The bank said: “The Complainant has no right of cause of action to file the case and that the same is frivolous, vexatious and that District Forum had no jurisdiction to hear and decide the Complaint. On merit, it is admitted that the deceased, Randhir Singh, had a savings bank account with the bank. However, it is denied that he was ever insured for Rs 5 Lakh, payable in case of his accidental death. As Randhir Singh was not insured with the bank, the question of any insurance coverage for him by the bank does not arise at all.”
How the son countered the bank with facts
“The complainant alleged that at the time of opening the account, the bank had also issued a debit card and further informed that the debit card holders are insured for Rs 5 Lakh each, which is payable to his nominee in case of accidental death of the debit card holder. It was further averred that the bank did not issue any insurance policy to the life assured,” said the State Commission in their Order.The complainant’s father died on October 30, 2013, in a road accident in Madhya Pradesh. On the same day, he filed an FIR. The complainant further claimed to have submitted all the required paperwork to the bank for processing of the insurance claim.
The complainant alleged that the bank informed him that the documents would be forwarded to the insured for payment of a claim. But even after visiting the bank so many times, the insurance claim money was not paid. “The complainant alleged deficiency in service on the part of the bank and thus filed a case with the District Consumer Forum,” said the State Commission in its Order.
After hearing the facts of the case and arguments made by HDFC Bank, the District Forum passed an order on September 18, 2014, mandating the bank to pay the insurance money with interest and compensation. After passing of the District Forum’s order HDFC Bank filed an appeal with the State Commission.
The State Commission dismissed the appeal made by HDFC Bank.
The reason behind the dismissal as given by the State Commission was that the father of the complainant had an HDFC Bank ‘Easyshop Gold Debit Card’, which mentioned the existence of the insurance policy in its terms and conditions. As per Ex.C-6 Easyshop Gold Debit Card insured had insurance cover in case of personal accidental death covered by air, road, rail or road to pay a sum of Rs 5 lakh and along with written arguments usage guide along with terms and conditions was placed on the record.
However, according to the said terms and conditions, the cardholder should have carried out one purchase transaction using the debit card within six months prior to the event date.
The State Commission noted that HDFC Bank has not produced any evidence that the complainant’s father did not transact in the last six months prior to the date of the event.
“Even if those terms and conditions were there before the District Forum, it did not produce any evidence that these were brought to the notice of the insured. Further, there is no statement of account showing no transaction within six months prior to the date of the event. In these circumstances, the District Forum was justified to allow the Complaint. In view of the above, we do not find any merit in the appeal and the same is hereby dismissed,” said the State Commission.
After the Order of the State Commission was passed on November 4, 2016, HDFC Bank filed an appeal with the NCDRC.
NCDRC, in an order dated December 20, 2023, said, “I do not find any merit in the present Revision Petition, and the same is dismissed. Consequently, the impugned Order passed by the learned State Commission is upheld.”
Though the determined son won the case in NCDRC, however, getting the insurance amount is still not guaranteed. An appeal against the NCDRC order can be filed in the Supreme Court within 30 days of passing of the Order. The lesson that such debit card holders draw from this episode is this that they should be conscious about fulfilling the terms and conditions of the insurance cover, keep a record of these and also make the beneficiaries aware about the process of claim.