Claim for damages misrepresentation by bank

You have raised a very important question as it is a very common problem faced by bank customers and insurance policy holders. I must tell you that such practices wherein the bank deducts the amount from the accounts of the customers along with interest has been termed as an ‘unfair practice’ by various authorities like the RBI etc. In a case before the Consumer Court, Tirunelveli, there were similar facts where the bank had deducted an amount of Rs. 12 from the bank account of the customer without his consent towards the premium of an insurance policy held by the customer. The consumer court held that such deduction without the consent of the account holder amounts to an ‘unfair practice’ and imposed a fine upon the bank for deficiency in services and the mental agony so caused.

In your case, since the bank is avoiding the opportunity to settle the claim, you can raise the issue before the Banking Ombudsman. If the issue remains unresolved there, then you can approach the District Consumer Forum, and can simultaneously lodge a complaint with the RBI. One of the ways would surely lead to a favourable solution.

Hope it helps you.