Archive · 29 Sep 2026
Amritsar Consumer Commission Orders Bank to Pay Rs 1.5 Lakh
A woman had life insurance through a government-backed plan.
The plan was supposed to take its yearly payment automatically from her bank account.
The payment was Rs 330, but her account had only Rs 223.42.
The bank tried to take the money but then reversed the payment.
The insurance ended because the payment was not completed.
The woman later died in a road accident.
The consumer commission said the bank should have told her that the payment had failed.
It ordered the bank to pay Rs 1.5 lakh, plus Rs 10,000 for legal costs.
The Amritsar District Consumer Commission held a bank liable for failing to report a failed insurance-premium deduction.
A daughter’s PMJJBY policy lapsed after the bank could not deduct the Rs 330 annual premium for 2021–22.
Her account contained Rs 223.42, leaving a Rs 106.58 shortfall, and the attempted debit was reversed.
The commission said the bank should have informed the account holder and could not rely solely on an automated system failure.
The bank was ordered to pay Rs 1.5 lakh compensation plus Rs 10,000 in litigation costs.
- Who
- The complainant, his deceased daughter, and the unnamed bank were involved; the Amritsar District Consumer Commission issued the ruling.
- What
- The commission ordered the bank to pay Rs 1.5 lakh compensation and Rs 10,000 in litigation costs for failing to report a failed PMJJBY premium deduction.
- When
- The disputed premium was for 2021–22; the article does not state the date of the ruling or the accident.
- Where
- The case was decided by the Amritsar District Consumer Commission in Punjab.
- Why
- The commission found that the bank knew the premium deduction had failed and did not inform the account holder, causing the insurance policy to lapse.
Consumer Commission’s View
Bank’s View
Responsibility for the failed payment
Consumer Commission’s View
The commission said the bank, having undertaken the automatic-debit facility, had a duty to notify the account holder when the premium deduction failed and was reversed.
Bank’s View
The bank argued that the account holder was responsible for maintaining sufficient funds and that the insurance company had not received the premium.
Effect of the automated system
Consumer Commission’s View
The commission said the bank could not completely avoid responsibility by attributing the failed deduction to its computer-generated system.
Bank’s View
The bank acknowledged that insufficient funds caused the deduction to fail but maintained that the payment itself had not been received by the insurer.
- Compensation
- Rs 1.5 lakh
- Litigation cost
- Rs 10,000
- Annual premium
- Rs 330
- Account balance
- Rs 223.42 at the attempted deduction
- Shortfall
- Rs 106.58
- Insurance scheme
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Consumer helplines
- Punjab: 1800-425-1082; National Consumer Helpline: 1915