Ballari consumer panel orders Rs 2 lakh payout in PMSBY dispute

Ballari: The District Consumer Disputes Redressal Commission, Ballari, has partly allowed a complaint filed by Prabhugouda Biradar and directed the opposite parties to pay Rs 2 lakh with interest in an insurance claim dispute under the Pradhan Mantri Suraksha Bima Yojana (PMSBY).The complaint, instituted on July 21, 2025, arose after the death of the complainant's wife, Basavva Handiganur, who held a savings account with Karnataka Grameena Bank, Ballari. An annual premium of Rs 20 was being auto-debited towards PMSBY.According to the complaint, Basavva Handiganur fell at her residence and was shifted to Trauma Care Centre, Ballari, where she was declared dead on Sept 13, 2024. A case was registered at Kaul Bazaar police station on Sept 14, 2024.The complainant submitted a claim along with documents. The bank sought additional records, which were furnished on Jan 4, 2025, and later forwarded to United India Insurance Company. However, the insurer rejected the claim on June 16, 2025, stating that the cause of death was "beyond the scope of policy terms and conditions."The bank contended that it acted only as an intermediary, collecting premium through auto-debit and remitting it to the insurer. The insurance company stated that the deceased had a prior leg fracture and was treated at a private hospital in Bengaluru.It said she fell at home while walking with the aid of a stick, suffered a head injury and died. The post-mortem report cited death due to head injury from blunt trauma impact.After examining records and evidence, the commission held that death due to head injury caused by blunt trauma falls within the scope of an accident under the PMSBY scheme.It also observed that the insurer failed to prove that policy terms and exclusion clauses were communicated to the policyholder, and the bank did not establish that such terms were conveyed at the time of premium deduction.The commission concluded that rejection of the claim was not justifiable and amounted to deficiency in service.It ordered the opposite parties to pay Rs 2 lakh with interest at 6% per annum from July 21, 2025, till realisation. It also awarded Rs 10,000 as compensation for deficiency in service and Rs 5,000 towards litigation costs.The commission directed Karnataka Grameena Bank and United India Insurance Company to jointly and severally pay the amount within 45 days, failing which the complainant may initiate proceedings under Section 72 of the Consumer Protection Act, 2019.The order was pronounced on April 9, 2026, by president N Thippeswamy and member Marla Shashikala.