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Nagpur Consumer Panel Orders SBI to Pay Widow Rs 5 Lakh Despite 6-Year Delay

The ruling signals banks must clearly disclose card insurance terms to rely on strict claim deadlines.

Overview

  • The Nagpur consumer commission's order, delivered last month, directs SBI to pay Rs 5 lakh with 6% annual interest from the complaint date and Rs 10,000 for mental agony and legal costs.
  • The panel said the six-year delay was understandable because a spouse’s sudden death can cause shock that slows a family’s actions.
  • SBI argued the claim missed a 90-day window and the customer’s MasterCard Classic had no cover, but it did not file a clear document proving that exclusion.
  • The commission found the bank failed to inform the family about the debit card’s insurance benefit and said a bank cannot lean on short deadlines when it has not told customers their rights.
  • The forum called the refusal a deficiency in service and noted other cardholders received cover without fees, a finding that could shape similar consumer claims if left unchallenged.