A consumer commission in Uttar Pradesh ’s Aligarh recently directed the State Bank of India to pay Rs 2 lakh to a woman whose son died in a road accident after the bank failed to renew his insurance cover despite sufficient funds in his account.

President Hasnain Qureshi and member Purnima Singh Rajpoot observed that the bank should have deducted a premium of Rs 100, but it failed to do so.

“The OP bank was under obligation to make payment of the premium Rs 100 to the insurance company from the bank account on 18.10.2015 or thereafter within a month. But the OP bank has failed to discharge its obligation which amounts to negligence…and thereby OP bank committed deficiency in service,” the October 9 order read.

Rs 2 lakh payout ordered

According to the complainant, her son had opened a bank account in 2014 and subscribed to an insurance policy providing a cover of Rs 2 lakh for a premium of Rs 100.…