Page 53 - The Insurance Times September 2025

Insurance Caselaws

For a deficiency in service, the Panipat Dis- count that Mr. Ramesh Kumar ("Complainant") maintained
trict Commission holds HDFC Bank and with HDFC Bank Ltd. at the Madlauda Branch in Panipat.
The Universal Sompo General Insurance Company Limited
Universal Sompo Insurance Co. liable for ("Insurance Company") insured his crops in accordance with
failure to disburse the amount required by the Pradhan Mantri Fasal Bima Yojna ("PMFBY"). Insurance
premiums were routinely deducted from the Complainant's
the PM Fasal Bima Yojna.
account by HDFC Bank every six months. Alas, inundation
Case Title: Ramesh Kumar vs HDFC Bank Ltd. caused significant crop damage for Mr. Kumar in 2018.
Immediately, he notified the Agriculture Department in
and Anr.
Panipat of the situation. The department assessed a 50%
Summary reduction in his paddy crops, which equated to a financial
The District Commission in Panipat, Haryana, held HDFC loss of Rs. 1,12,680.
Bank Limited and Universal Sompo General Insurance Co. Notwithstanding numerous requests and endeavors, the
Ltd. accountable for deficiency in service. The Commission premium amount remained unpaid by both HDFC Bank and
found that the companies failed to compensate a farmer the Insurance Company. In addition, HDFC Bank withheld
who had incurred losses on his insured crops. The farmer, Rs. 9878 from the insurance company's account as premium.
Mr. Ramesh Kumar, lodged a consumer complaint with the The Complainant lodged a consumer complaint with the
Commission, claiming that the premium amount had been District Consumer Disputes Redressal Commission in Panipat,
unpaid and withheld. Haryana, ("District Commission"), out of frustration.
The Commission observed that the complainant's assertion As per the Pradhan Mantri Fasal Bima Yojna ("PMFBY") regu-
that HDFC Bank withdrew the premium amount and depos- lations, HDFC Bank maintained that the premium amount
ited it with the Insurance Company was corroborated by had been deducted from the Complainant's account and
bank statements and reports from the Agriculture Depart- deposited with the Insurance Company. They contended that
ment. The District Commission held both parties jointly and in the event that the Insurance Company failed to disburse
severally liable for the compensation, plus interest and an compensation to the Complainant, the bank could be held
additional Rs 10,000 for harm caused by harassment, men- liable for the delay. HDFC Bank maintained that it was not
tal anguish, and litigation costs. The Commission's findings responsible for calculating the complainant's payments and
highlight the need for better service and compensation for had no role in providing compensation.
farmers.
The Insurance Company refuted the allegations made in the
About the case complaint and maintained that the premium amount had
By holding HDFC Bank Limited and Universal Sompo Gen- not been deposited with them by HDFC Bank, which conse-
eral Insurance Co. Ltd. accountable for deficiency in service, quently led to the postponement of the Complainant's com-
the bench of the District Consumer Disputes Redressal Com- pensation.
mission in Panipat, Haryana, composed of Dr. R.K. Dogra They contended that their service was impeccable and that
(President) and Dr. Suman Singh (Member), determined that the complaint contained additional unfounded allegations.
the companies failed to compensate a farmer who had in- In the Commission's Observations: The District Commission
curred losses on his insured crops. In addition to the reim- observed that the complainant's assertion that HDFC Bank
bursement of the insurance premium, the farmer was withdrew the premium amount and deposited it with the
awarded a compensation of Rs. 10,000/- from HDFC Bank Insurance Company was corroborated by documents such
and the insurance company. as bank statements and reports from the Agriculture De-
A KCC/Agriculture loan was deposited into a joint bank ac- partment. Both HDFC Bank and the Insurance Company, in

48 September 2025 The Insurance Times