Archive · 17 Sep 2026
SBI Delayed Premium Leaves Accident Victim Uninsured, Commission Orders Payout
Raghuveer Singh had personal accident insurance arranged through SBI.
His insurance policy ended on December 14, 2016.
He died in a motorcycle accident six days later.
The bank deducted the Rs 100 renewal payment only after his death.
Because the payment was late, the insurance company rejected the family’s claim.
A consumer commission said SBI should have renewed the insurance on time.
It ordered SBI to pay the family Rs 2 lakh plus interest and legal costs.
The commission removed a separate Rs 5,000 award for mental agony.
The Uttarakhand State Consumer Commission held SBI liable for an insurance coverage gap.
Raghuveer Singh’s previous personal accident policy expired on December 14, 2016.
Singh died in a motorcycle accident on December 20, six days after expiry.
SBI deducted the Rs 100 renewal premium only on December 31, 2016.
The commission ordered SBI to pay Rs 2 lakh with 6% annual interest and Rs 5,000 in litigation costs.
- Who
- SBI, the Uttarakhand State Consumer Disputes Redressal Commission, and the family of late Raghuveer Singh.
- What
- The commission held SBI responsible for a delayed insurance-premium deduction and ordered it to pay the accident benefit.
- When
- Singh died on December 20, 2016; SBI deducted the renewal premium on December 31, 2016; the commission issued its ruling on September 15.
- Where
- Uttarakhand; Singh’s fatal motorcycle accident occurred while he was travelling from Banchora to Dharasu.
- Why
- The bank failed to deduct the Rs 100 renewal premium when the earlier policy expired, creating a gap in insurance coverage.
Consumer Commission and Family
SBI and Insurer
Responsibility for the coverage gap
Consumer Commission and Family
The commission held that SBI should have deducted the renewal premium when the earlier policy expired and was negligent in failing to do so.
SBI and Insurer
SBI argued that the policy lasted one year and that subsequent premium deductions could occur automatically through its computer system; the insurer said there was no cover on the date of death.
Relevance of delayed death notification
Consumer Commission and Family
The commission ruled that the alleged delay in informing SBI about Singh’s death was irrelevant because the premium should already have been deducted.
SBI and Insurer
SBI relied on the alleged delay in notifying it of Singh’s death as part of its appeal.
Compensation awarded
Consumer Commission and Family
The commission upheld Rs 2 lakh with 6% annual interest and Rs 5,000 in litigation expenses for Singh’s family.
SBI and Insurer
The commission partly allowed SBI’s appeal by removing a separate Rs 5,000 award for financial and mental agony, stating that interest and mental-agony compensation could not both be granted in these circumstances.
- Accident cover
- Rs 2 lakh
- Total sum insured
- Rs 4 lakh
- Annual premium
- Rs 100
- Previous policy period
- December 15, 2015, to December 14, 2016
- Premium deduction date
- December 31, 2016
- Interest ordered
- 6% annually from October 10, 2017
- Litigation costs
- Rs 5,000