Court orders Punjab National Bank to pay compensation for not providing insurance amount to customer

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The District Consumer Disputes Redressal Commission, Panipat (Haryana), recently held Punjab National Bank (PNB) liable for deficiency in services. This was due to PNB’s failure to settle the claim of Rs. 18 lakh after the demise of a valid policyholder. The commission directed PNB to pay the claim amount of Rs. 18 lakh to the nominee and also pay Rs. 5,000 as compensation along with Rs. 5,500 for the litigation costs incurred by the nominee.

Case Details

Consumer Complaint

Feeling aggrieved, Mrs. Phoolpati filed a consumer complaint against PNB with the District Consumer Disputes Redressal Commission, Panipat. PNB did not appear before the commission for the proceedings.

Commission’s Decision

The District Commission referred to the “RBD (R) Circular 12/2020,” which outlined modifications in PNB’s new salary scheme. According to the circular, all variants were eligible for an insurance cover of Rs. 18 lakh. Since the deceased’s salary fell within the ‘GOLD’ variant, the commission held that Mrs. Phoolpati, as the legal heir, was entitled to the insured amount of Rs. 18 lakh. Therefore, the commission held PNB liable for deficiency in services.

Commission’s Directives

As a result, the District Commission directed PNB to:

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