Consumer Commission Finds HDFC Bank, Universal Sompo Insurance Co. Responsible for Delaying Compensation for Crops Damage

Consumer Commission Finds HDFC Bank, Universal Sompo Insurance Co. Responsible for Delaying Compensation for Crops Damage

The Panipat (Haryana) bench of the District Consumer Disputes Redressal Commission, presided over by Dr. R.K. Dogra (President) and Dr. Suman Singh (Member), found HDFC Bank Limited and Universal Sompo General Insurance Co. Ltd. liable for deficiency in service due to their failure to compensate a farmer for losses incurred on his insured crops.

Ramesh Kumar, the complainant, held a joint bank account with HDFC Bank Ltd. at their Madlauda Branch in Panipat and had availed a KCC/Agriculture loan. His crops were insured by Universal Sompo General Insurance Company Limited (Insurance Company) under the Pradhan Mantri Fasal Bima Yojna (PMFBY). HDFC Bank diligently deducted insurance premiums from Kumar's account on a half-yearly basis. In 2018, Kumar's crops suffered damage due to flooding. He promptly informed the Agriculture Department in Panipat, who assessed a 50 per cent loss in his paddy crops, amounting to a loss of ₹1,12,680.

Despite repeated appeals and persistent efforts, neither HDFC Bank nor the Insurance Company disbursed the premium amount. Furthermore, HDFC Bank inexplicably deducted an additional ₹9,878 as a premium but failed to deposit it with the Insurance Company. Feeling aggrieved by this negligence, the Complainant lodged a consumer complaint with the District Consumer Disputes Redressal Commission in Panipat, Haryana (District Commission).

HDFC Bank maintained that they had diligently deducted the premium amount from the Complainant's account and remitted it to the Insurance Company in strict adherence to PMFBY guidelines. They asserted that if the Insurance Company failed to disburse compensation to the Complainant, the bank should not be held responsible for the delay. HDFC Bank emphasised that their role was limited to premium deduction and that they were not liable for making direct compensation payments to the Complainant.

The Insurance Company vehemently refuted the claims made in the complaint, asserting that HDFC Bank's failure to deposit the premium amount was the sole cause of the delay in compensating the Complainant. They steadfastly maintained that there was no deficiency in their service and that the other allegations in the complaint were baseless.

After reviewing the submitted documents, including bank statements and reports from the Agriculture Department, the District Commission concluded that the complainant's claim regarding the premium deduction by HDFC Bank and subsequent deposit with the Insurance Company was valid. The District Commission found clear evidence of deficiency in service on the part of both HDFC Bank and the Insurance Company for failing to provide the complainant with the rightful compensation under the PMFBY guidelines.

Consequently, the District Commission ordered both HDFC Bank and the Insurance Company to jointly and severally pay the complainant the compensation amount of ₹1,12,680 along with applicable interest, an additional ₹10,000 for harassment, mental agony, and litigation expenses.