A Son's 9-Year-Long Fight Ends Well, HDFC Bank Ordered To Give Him Rs 5 lakh Accidental Death Insurance Cover On Debit Card
An incredible judicial pursuit extending for nine years concluded successfully, with the complainant receiving Rs. 5 lakhs with 9% interest and Rs. 10,000 in compensation. It all started when a HDFC bank branch informed a customer that their debit card holders were insured for 5 lakh each, which is payable to his nominee in case of accidental death of the debit card holder. In an unfortunate incident in October 2013, the HDFC Bank debit card holder died in an accident, and his son approached the bank to claim the insurance cover that they offered with the debit card.
However, the bank had not been ready to fulfil their promise; instead, they were indifferent to the son”s claim. Being annoyed, the son filed a case against the bank in the District Consumer Forum. Although the forum ruled in favour of the complainant, directing the bank to pay the insurance amount with compensation and interest, the bank resisted it by appealing to the higher authorities.
The son had not been ready to hold back; he pursued the case against the bank in the State Consumer Forum in 2016 and also in the National Consumer Commission from 2017 to December 2023.
The David and Goliath fight came to an end when 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.
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 the same is frivolous and vexatious, and the District Forum has 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.”
“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.
