Summary
The Supreme Court enhanced compensation against a bank from ₹2 lakh to ₹5 lakh for failing to process an account holder’s accident-insurance application and remit the premium. Concurrent findings established that the bank’s deficiency prevented insurance cover from arising. The National Commission had accepted that deficiency but offered no justification for reducing compensation below the cover the deceased would otherwise have obtained.
Issues
- Whether compensation for the bank’s established failure to arrange accident cover could be reduced from ₹5 lakh to ₹2 lakh.
Held
- All three consumer fora had found deficiency in the bank’s failure to deduct and remit the premium and forward the application. Its account that the deceased withdrew and later resubmitted the form had been rejected; the bank had not challenged the National Commission’s decision. There was no reason to disturb those concurrent findings. (¶ 8)
- Had the bank performed its service, the account holder would have obtained cover on the same terms as other participating customers. No cover actually arose, but that did not justify reducing the bank’s compensation liability from ₹5 lakh to ₹2 lakh. (¶¶ 8, 9)
Result
Appeal allowed to enhance compensation payable by the bank to ₹5 lakh, to be paid within 60 days of receipt of a certified copy of the order. No order as to costs.