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Why SBI has been ordered to pay a widow ₹5L
17 May 2026

The Nagpur District Consumer Disputes Redressal Commission has ordered the State Bank of India (SBI) to pay ₹5 lakh to a widow for an insurance claim that was filed six years late.

The commission noted that the "mental shock" after a spouse's sudden death is natural and takes time to heal.

It also criticized SBI for not informing customers about their rights, calling its refusal a "deficiency in service."

Commission slams SBI for not informing customers about their rights
Compensation details

The commission directed SBI to pay the ₹5 lakh insurance amount along with 6% annual interest from the date of complaint (September 5, 2019).

It stressed that if a bank says insurance protection is not applicable on a particular card, it must provide clear conditions and documents.

The commission also ordered SBI to pay ₹10,000 for mental agony and litigation costs.

Husband held SBI debit card
Case background

The complainant's husband had an account with SBI in Nagpur's Tri Junction Cantonment area.

The widow alleged that insurance protection up to ₹5 lakh was being provided to relevant debit cardholders of the bank, but no information about this was given by them.

Her husband died in a road accident in September 2013, leaving her devastated and struggling to recover from the grief.

Widow approached consumer commission after exhausting all remedies
Claim process

After learning about the insurance scheme, the widow approached SBI on March 26, 2019, to avail herself of its benefits.

However, despite submitting all necessary documents, her claim was kept pending by the bank.

After exhausting all available remedies with no success, she approached the consumer commission seeking justice and compensation of ₹50,000 for mental/physical agony and ₹20,000 for complaint costs.

SBI claims complaint is false and baseless
Bank's defense

In its written response, SBI called the complaint "false and baseless," claiming it doesn't send independent information/documents regarding insurance protection to debit cardholders.

The bank also argued that the deceased held a 'MasterCard Classic' type of ATM/debit card on which no insurance protection was applicable.

It highlighted that there was no submission of any insurance claim within the mandatory 90-day period.