Insurance Caselaws

For a deficiency in service, the Panipat District Commission holds HDFC Bank and Universal Sompo Insurance Co. liable for failure to disburse the amount required by the PM Fasal Bima Yojna.

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Case Title: Ramesh Kumar vs HDFC Bank Ltd. and Anr.

Summary

The District Commission in Panipat, Haryana, held HDFC Bank Limited and Universal Sompo General Insurance Co. Ltd. accountable for deficiency in service. The Commission found that the companies failed to compensate a farmer who had incurred losses on his insured crops. The farmer, Mr. Ramesh Kumar, lodged a consumer complaint with the Commission, claiming that the premium amount had been unpaid and withheld.

The Commission observed that the complainant's assertion that HDFC Bank withdrew the premium amount and deposited it with the Insurance Company was corroborated by bank statements and reports from the Agriculture Department. The District Commission held both parties jointly and severally liable for the compensation, plus interest and an additional Rs 10,000 for harm caused by harassment, mental anguish, and litigation costs. The Commission's findings highlight the need for better service and compensation for farmers.

About the case

By holding HDFC Bank Limited and Universal Sompo General Insurance Co. Ltd. accountable for deficiency in service, the bench of the District Consumer Disputes Redressal Commission in Panipat, Haryana, composed of Dr. R.K. Dogra (President) and Dr. Suman Singh (Member), determined that the companies failed to compensate a farmer who had incurred losses on his insured crops. In addition to the reimbursement of the insurance premium, the farmer was awarded a compensation of Rs. 10,000/- from HDFC Bank and the insurance company.