MADURAI: Thoothukudi District Consumer Disputes Redressal Commission directed a private banker to pay a compensation of Rs.36.95 lakh to a complainant due to deficiency in service, sources said on Tuesday.
Earlier, the complainant Vimal Rajesh Raj, a lawyer and resident of Thoothukudi, took a loan from the bank for the construction of a house and paid money to get a life insurance and health insurance policy.
Despite having paid money towards insurance, the policy was not issued to the complainant.
Meanwhile, the complainant died of illness. Since the policy, the document required for the death claim, was not issued by the bank, insurance benefits could not be availed.
Hence, Lavanya, wife of the complainant, approached the bank and demanded a loan waiver and insurance benefits. But the banker did not give her a proper response and without any valid reason refused to pay the settlement.
As there’s no remedy, the frustrated Lavanya took the issue to the legal body and subsequently, a legal notice was issued seeking action, and even then, there was no response. Lavanya then filed a lawsuit against the bank.
After examining, the President of the Commission Thiruneela Prasad and member A Sankar directed the bank to waive off the loan obtained and pay the insurance coverage of Rs 35.85 lakh and Rs 1 lakh as compensation to the complainant for causing her mental agony and deficiency in service, along with Rs 10,000 towards cost of expenses.
The compensation must be paid within a period of two months from the date of receipt of the order, sources said.