The Permanent Lok Adalat has ruled that a bank is liable to pay insurance benefits to the family of a deceased account holder if the person held an ATM card with an inbuilt insurance cover.
The case pertains to Pintu Paleshwar Zade, a resident of Kawdak in Ramtek taluka, who worked as a security guard at a private company. He maintained an account with the Bank of Baroda branch in Ramtek and had been issued a Platinum RuPay ATM card, which carried an insurance cover.
On October 11, 2024, Zade died while on night duty after a stack of filled sacks collapsed on him at a warehouse. A complaint regarding the incident was subsequently registered with the police.
Following his death, his wife Dipali approached the bank seeking an insurance claim of Rs 10 lakh, stating that her husband held a valid ATM card with insurance benefits. However, the bank did not take any action.
She then filed a petition before the Permanent Lok Adalat on November 6, 2025. Despite being served notice, the bank failed to appear during the proceedings.
After examining the documents, the bench—headed by President Deepak Bhende along with members Pratibha Ankar and Archana Bagde—directed the bank to pay Rs 2 lakh as accidental insurance within one month.
In case of delay, the bank will be required to pay interest at 7% per annum from November 6, 2025. The court also awarded Rs 10,000 as compensation. Additionally, Rs 1 lakh from the awarded amount will be kept in a fixed deposit in the name of the minor daughter until she attains adulthood.
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