Punjab National Bank Held Liable for Failure to Update Farmer’s Information under PMFBY Scheme

The District Consumer Disputes Redressal Commission, Bhiwani bench, held Punjab National Bank (PNB) liable for deficiency in services due to its failure to upload complete information, including land details and Aadhar details, at the governmental portal. This failure resulted in the rejection of an insurance claim filed under the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme.

Background of the Case

The complainant, who owns agricultural land in Nangla village, had insured her cotton and bajra crops for the 2019 monsoon season under the PMFBY scheme. The crops were insured through PNB and the Agriculture Insurance Company of India Ltd. After her bajra crop suffered damage from natural disasters, the complainant reported the issue to PNB but received no proper response. Other farmers had already received their claims. The complainant also reported the problem to the Agriculture Department, but no resolution was provided. Feeling aggrieved, the complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Bhiwani, Haryana, against PNB and the Insurance Company.

Arguments Presented by PNB and the Insurance Company

PNB stated that the complainant’s missing Aadhar information in the bank account caused the insurance application to be rejected on the government portal. However, PNB claimed that it refunded the credited amount and that the claim was already settled with the complainant. The Insurance Company argued that the deducted amount was for cotton crop insurance, not bajra. It maintained that the application was rejected due to missing land details and that the complainant was not insured for the damaged crop.

Decision of the District Commission

The District Commission noted that PNB’s failure to upload complete information, including land details and Aadhar details, prevented the Insurance Company from covering the bajra crop. It further noted that PNB’s negligence caused the complainant financial loss, mental strain, and hardship. The District Commission held that the PMFBY scheme guidelines hold the bank accountable for compensating farmers for losses due to their errors or omissions. Since the Insurance Company couldn’t provide coverage due to the bank’s incomplete information and returned the premium, the District Commission held the Insurance Company absolved of any liability. Therefore, the District Commission held PNB liable for deficiency in services.

Compensation and Directions

As a result, the District Commission directed PNB to pay Rs. 1,55,400/- (based on the insured amount per acre for bajra crop) to the complainant with interest. PNB was also directed to pay Rs. 10,000/- as compensation for harassment to the complainant and Rs. 5,500/- for litigation expenses.