Nalgonda: Consumer panel makes SBI pay for suffering of farmer’s wife, grants Rs 2.30L

Hyderabad: District Consumer Disputes Redressal Commission, Nalgonda has directed State Bank of India (SBI) to pay Rs 2 lakh with 9 percent interest to a farm laborer after settling her deceased husband's SBI Life – Pradhan Mantri Jeevan Jyothi Bima Yojana – Master Policy.

It also directed SBI to pay Rs 20,000 towards compensation for causing mental agony and Rs 10,000 towards litigation costs to a complainant.

Case details

M Jayamma is an agricultural laborer and native of Sarvaram Village of Mothey Mandal, Suryapet District. Her husband M Mallaiah with in an accident on May 9, 2018, at Veeram Village of Mahabubabad district. On May 17, 2018, he died while undergoing treatment at Gandhi Hospital, Secunderabad.

In her complaint with the Consumer Court, Jayamma said her husband during his lifetime had taken SBI’s Pradhan Mantri Jeevan Jyothi Bima Yojana. Mallaiah had nominated Jayamma as a nominee for that policy. She said that her husband paid a premium of Rs 330 per year. The premium amount was debited from his account automatically on May 31, 2015, and for a second time on June 25, 2016.

SBI didn't debit policy amount

The SBI had not debited Rs 330 even after having a sufficient balance in her husband's account. Jayamma further said that before the turn of the 4th renewal her husband died on May 17, 2018, as such she approached the SBI authorities to claim the same as she had submitted a claim form along with the Discharge Receipt. The SBI did not give any reply nor granted any claim to Jayamma.

On October 13, 2018, she filed an application to the Head Claims, Group Operations (PMJJBY-SBI Life) for claiming the same but they also did not give any response. Subsequently, Jayamma on May 18, 2019, filed a Pre Litigation Case before the District Legal Services Authority (DLSA), Suryapet, and the DLSA chairman, ordered the petitioner to approach the District Consumer Disputes Redressal Commission.

Policy premium amount paid on holiday

The SBI stated that they have not received any amount from the deceased nor any amount debited towards the policy, i.e. PMJJBY. The SBI also said that the two premiums that were paid by the deceased were paid on the holiday by the deceased himself and not through the SBI. Meanwhile, the Head Claims, Group Operations (PMJJBY-SBI Life) had admitted that the deceased paid two premiums towards the policy, but they did not receive a third premium, as such it was in a lapsed condition.

The sum assured amount cannot be paid as the premium was not paid either by the bank or by the deceased. Jayamma submitted that the said two premium amounts were paid through the bank and also stated that UPI Payments can be made on holidays too, but the Head Claims, Group Operations (PMJJBY-SBI Life) denied debiting the amount towards the policy.

The SBI had not debited the premium for the year 2017-2018 and also did not inform the deceased about paying the premium to the insurance. Head Claims, Group Operations (PMJJBY-SBI Life) did not give any information about not receiving any premium for 2017-2018. After the arguments from both parties, the Court noted that there was a lapse in the payment of premium for the year 2017-2018, for which the deceased fell due and the SBI was responsible for the same.

SBI refused to pay the policy amount to Jayamma

The deceased was covered under the PMJJBY Scheme, under Master Policy. It is the responsibility of SBI that the amount of Rs.330 was debited towards the policy on June 01, 2017, which was not debited due to the fault of SBI and due to which the policy lapsed for the year 2017-2018. Therefore, service is deficient on the part of the SBI and the Head Claims Group Operations (PMJJBY-SBI Life) for not paying the premium, due to which the deceased’s policy lapsed and Jayamma was denied for the payment of the policy amount of Rs 2,00,000.

Hence the Court ruled in favor of Jayamma and directed SBI to pay Rs 2 lakh (with 9 percent interest) towards SBI Life – Pradhan Mantri Jeevan Jyothi Bima Yojana – Master Policy, Rs 20,000 towards compensation for causing mental agony, and Rs 10,000 towards litigation costs to her.