Rs 100 premium delay costs SBI Rs 2 lakh after customer dies in road accident

The Uttarakhand State Consumer Commission has ruled that the State Bank of India (SBI) must pay Rs 2 lakh to the family of Raghuveer Singh, who died in a motorcycle accident. The bank was found negligent for its failure to ensure that Singh's personal accident cover was continued after his existing policy expired on December 14, 2016.

Singh's motorcycle collided with another vehicle on December 20, 2016, and he succumbed to his injuries on December 21. The bank deducted the Rs 100 premium for the next policy only on December 31, 2016, after the earlier policy had lapsed. The commission held that the delay in informing the bank about Singh's death was not relevant, as the premium should have been deducted when the earlier policy expired. The SBI's appeal was partially upheld, while the remaining aspects were affirmed by the commission.