{
  "id": 10580894,
  "title": "Bank failed to alert customer about missed insurance premium, told to pay Rs 1.5 lakh",
  "url": "https://urgent.news/2026/09/29/bank-failed-to-alert-customer-about-missed-insurance-premium-told-to",
  "topic": "world",
  "section": "World",
  "published": "2026-09-29T01:30:28.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/legal-news/bank-customer-missed-insurance-premium-told-to-pay-rs-1-5-lakh-10897639/"
  },
  "original_language": "en",
  "account": "The Amritsar District Consumer Commission has ordered a bank to pay Rs 1.5 lakh in compensation to a man whose daughter's insurance policy lapsed due to a failed premium deduction. The commission found that the bank failed to inform the account holder about the non-deduction of the annual insurance premium because of insufficient funds in the account. The commission held that the bank's failure to alert the account holder amounted to a deficiency in service. The man's daughter had enrolled in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) insurance scheme through her account with the bank. The bank attempted to deduct the annual premium of Rs 330 from her account, but the account balance was only Rs 223.42, resulting in a shortfall of Rs 106.58. The bank reversed the debit entry but did not renew the policy nor inform the account holder about the failed premium deduction. The commission emphasized that the bank, having undertaken the responsibility of operating the auto-debit facility, could not absolve itself from the duty to inform the account holder about the failed renewal transaction. The bank was thus ordered to pay the compensation along with Rs 10,000 for litigation costs.",
  "summary": null,
  "key_points": [
    "Bank failed to inform customer about missed insurance premium payment",
    "Bank ordered to pay Rs 1.5 lakh compensation and Rs 10,000 litigation costs",
    "Daughter's insurance policy lapsed due to insufficient account funds"
  ],
  "editors_take": "The bank's failure to alert the customer about the missed insurance premium sets a precedent that banks are liable for deficiencies in service when managing auto-debit facilities for insurance policies.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}