A consumer commission in Aligarh has directed State Bank of India (SBI) to pay Rs 2 lakh to a woman whose son died after the bank failed to deduct a Rs 100 insurance renewal premium despite sufficient funds in his account. The insurer had rejected the family's claim, arguing that it had not received the premium and had not issued a policy covering the period in question.
In its order pronounced on October 9, 2026, Aligarh District Consumer Disputes Redressal Commission held SBI responsible for failing to deduct and transfer the renewal premium. It directed the bank to pay the insurance amount, along with interest at 7% per annum, Rs 5,000 as compensation for harassment and Rs 5,000 towards litigation expenses.
