Consumer panel asks bank to pay Rs 2L accident cover linked to ATM card

Jodhpur: The State Consumer Disputes Redressal Commission has ordered Axis Bank to pay Rs 2 lakh to the nominee of a deceased ATM cardholder, under the accidental insurance cover linked to the card. The decision came after an earlier dismissal of the complaint by the District Commission Jodhpur-I.The appeal was initiated by Bhupendra Singh, whose brother had opened a savings account with Axis Bank, naming him as the nominee. Upon receiving a Visa Platinum ATM card, which included an accidental death insurance cover of Rs 2 lakh, the family thought they were protected. Tragically, Singh's brother died after an accidental fall from the rooftop, succumbing to his injuries en route to the hospital. Subsequently, Singh filed an insurance claim for the accident cover, but Axis Bank declined the claim, citing it was not submitted within the required 90 days. This prompted Singh to approach the district commission, which upheld the bank's decision. In a bid for justice, he escalated the matter to the State Commission. Upon reviewing the case, the State Commission noted that the cardholder's death occurred on Jan 16, 2018, and the claim was submitted in March of the same year. Notably, the delay in submitting certain documents was linked to the late issuance of the forensic report and the completion of the police investigation, which only became available in Dec 2018. Once received, the appellant promptly provided these documents to the bank. The Commission found that Axis Bank did not forward the claim documents to the insurance company within the necessary timeframe, leading to an unjust rejection based on a delay not caused by Singh. It concluded that there was no deficiency in service on the part of the insurance company. Consequently, the Commission, consisting of Judicial Member Surendra Singh and Member Liaqat Ali, ruled in favour of Singh, instructing Axis Bank to pay Rs 2 lakh plus 9% annual interest from May 2019, the date the complaint was filed, along with Rs 10,000 towards legal expenses. The complaint against the insurance company was dismissed.