Skip to main content

Bank's responsibility to inform next of kin

Many persons are unaware of life insurance which comes free with their credit/debit cards but the banks that issue them have a responsibility to fulfil their duty towards its customers. If they fail to get the promised amount from the insurance company, the banks will be guilty of deficiency in service.

The National Consumer Commission held so in its judgment last week, HDFC Bank vs Pooja Kapoor. The bank had issued a gold card to Pankaj Kapoor and wife Pooja with the benefit of insurance for Rs 5 lakh in case of accidental death. The bank's arrangement was with New India Assurance. Pankaj died in an accident, but the widow did not claim the insurance benefit for a long time, though the condition in the policy prescribed a 30-day limit.

She was not aware of the benefit when the bank account was closed due to the death. The bank did not tell her either. Later, she learned about the insurance and she approached the bank. It referred the claim to the insurer, which rejected it on the ground of delay. She moved the Sonepat consumer forum.

It ordered the bank to pay full amount plus litigation expenses for causing harassment and mental agony. The state commission dismissed the bank's appeal stating that when the bank came to know of the death, it was bound to refer the claim to the insurer. The second appeal of the bank to the national commission was also dismissed, though the amount was reduced.

Article referred: http://www.business-standard.com/article/opinion/complaints-regarding-bounced-cheques-115121300680_1.html

Comments

Most viewed this month

Partition proceedings are vitiated even if single co-sharer is not made party or is not served in accordance with law

Cause Title :  Bhagwant Singh vs  Financial Commissioner (Appeals) Punjab, Chandigarh,  CWP-2132-2018 (O&M), High Court Of Punjab & Haryana At Chandigarh Date of Judgment/Order : 31.08.2022 Corum : Hon’ble Mr. Justice Sudhir Mittal Background A large parcel of land was owned by the Nagar Panchayat. Thereafter, some of the co-sharers sold their shares to third parties including the petitioners herein. On 22.11.1995, respondents No.3 to 5 filed an application for partition of the land. The petitioners were not impleaded as parties.  On completion of proceedings, sanad was issued on 28.08.1996. Vide two separate sale deeds dated 28.05.2008 respondents No.3 and 5 sold some portion in favour of respondent No.6 and 7. These respondents sought implementation of the sanad resulting in issuance of warrants of possession dated 05.06.2008. Allegedly, it was then that the petitioners realized that joint land had been partitioned and that proceedings h...

Power of Attorney holder can also file cheque bounce cases: Supreme Court

The Supreme Court has held that a criminal complaint in a cheque bounce case can be filed and pursued by a person who holds a power of attorney (PoA) on behalf of the complainant. A three-judge bench headed by Chief Justice P Sathasivam gave the "authoritative" pronouncement on the issue, referred to it by a division bench in view of conflicting judgements of some high courts and the apex court. "We are of the view that the power of attorney holder may be allowed to file, appear and depose for the purpose of issue of process for the offence punishable under Section 138 of the Negotiable Instruments Act (which deals with cheque bounce cases)," the bench, also comprising justices Ranjana Prakash Desai and Ranjan Gogoi, said. The bench, in its judgement, said, "...we clarify the position and answer the questions in the following manner: "Filing of complaint petition under Section 138 of Negotiable Instruments Act through PoA holder is perfectly legal...

Christian who reconverts as Hindu SC will get quota benefits

Amid the controversy over “ghar wapsi”, the Supreme Court on Thursday ruled that a person who “reconverts” from Christianity to Hinduism shall be entitled to reservation benefits if his forefathers belonged to a Scheduled Caste and the community accepts him after “reconversion”. Citing articles by B R Ambedkar and James Massey, and reports by Mandal Commission and Chinappa Commission, the court said: “There has been detailed study to indicate the Scheduled Caste persons belonging to Hindu religion, who had embraced Christianity with some kind of hope or aspiration, have remained socially, educationally and economically backward.” The bench of Justices Dipak Misra and V Gopala Gowda held that a person shall not be deprived of reservation benefits if he decides to “reconvert” to Hinduism and adopts the caste that his forefathers originally belonged to just because he was born to Christian parents or has a Christian spouse. Expanding the scope of a previous Constitution benc...