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Commission Overrides Delay for Widow's Claim
The Nagpur consumer commission ruled that the natural grief and "mental shock" following a spouse's death can hinder immediate claim processing. The commission used this reasoning to override the State Bank of India's defense, which cited the mandatory 90-day period for filing insurance claims. SBI had also argued that the deceased used a 'MasterCard Classic' debit card, which it claimed lacked insurance protection, and that the bank does not issue separate insurance documents.
Bank's Defense Rejected
SBI contended the case was unfounded, stating it doesn't provide separate insurance details to debit card users. The bank emphasized the expired 90-day claim period and the card's type. However, the commission found no proof that 'MasterCard Classic' cards were excluded from coverage. Evidence showed that other cardholders received insurance benefits at no extra cost, making SBI's different approach unfair and a clear "deficiency in service."
Order Details
The District Consumer Disputes Redressal Commission ordered SBI to pay the ₹5 lakh insurance amount, plus six percent annual interest, calculated from the claim filing date of September 5, 2019. The bank was also ordered to pay ₹10,000 for mental distress and legal costs, deeming the refusal to process the claim based on the delay unjustified.