📷 Image: Wikimedia Commons / Riaz Ahmed
Business
SBI Ordered to Pay Rs 2 Lakh After UP Man Dies in Accident
✍️ The Indian Express
🗓 29 Oct 2026, 10:38 AM
👁 11
A court has directed State Bank of India to pay Rs 2 lakh compensation to the family of a Uttar Pradesh man who died in an accident, citing that insurance premiums were not deducted from his account.
A judicial authority has directed the State Bank of India (SBI) to disburse Rs 2 lakh as compensation to the family of a deceased man from Uttar Pradesh. The order was issued following a dispute regarding the handling of the victim's bank account and associated insurance coverage.
The core issue in the case was that the insurance premium linked to the account was not deducted by the bank, despite the policy being active. The court found that the bank's failure to process this deduction contributed to the financial loss suffered by the family after the man's death in a road accident.
The ruling emphasizes the responsibility of financial institutions to accurately process automated deductions for insurance and other linked services. The compensation amount of Rs 2 lakh is intended to address the specific grievance of the non-deduction of premiums and the subsequent lack of insurance payout or coverage benefits for the bereaved family.
This decision serves as a reminder to banks to maintain strict compliance with account instructions and insurance agreements to avoid legal liabilities in cases of customer death or financial disputes.
The core issue in the case was that the insurance premium linked to the account was not deducted by the bank, despite the policy being active. The court found that the bank's failure to process this deduction contributed to the financial loss suffered by the family after the man's death in a road accident.
The ruling emphasizes the responsibility of financial institutions to accurately process automated deductions for insurance and other linked services. The compensation amount of Rs 2 lakh is intended to address the specific grievance of the non-deduction of premiums and the subsequent lack of insurance payout or coverage benefits for the bereaved family.
This decision serves as a reminder to banks to maintain strict compliance with account instructions and insurance agreements to avoid legal liabilities in cases of customer death or financial disputes.