Consumer Commission Orders SBI to Compensate Widow for Delayed Insurance Claim

A District Consumer Disputes Redressal Commission in Nagpur has ruled against the State Bank of India (SBI), mandating a payout of Rs 5 lakh to a widow for the delayed processing of an insurance claim.

The woman, whose husband passed away in a road accident, faced 'mental shock,' which the commission recognized as a valid reason for her delayed claim submission. The commission criticized SBI for its lack of communication regarding the cardholder's insurance rights, deeming it a 'deficiency in service' and 'unjust.'

The verdict includes an additional Rs 10,000 for the complainant's mental agony and litigation expenses. SBI argued the claim was invalid due to a lapse of the mandatory 90-day period and the exclusion of insurance on 'MasterCard Classic' debit cards, but the commission found no solid evidence supporting this exclusion.

(With inputs from agencies.)