Many banks undertake Term insurance coverage of their SB and Current account holders through debit of annual premium on the basis of Consent Cum Authorisation Lettter. Thereby life of the account holder gets automatically covered by the Insurance Scheme. In one case, a bank failed to recover the premium on due date through sufficient balance was available and the account holder subsequently passed away. Since the premium is not remitted to LIC, the Claim papers submitted by the nominee of the insurer is kept pending for more than 2 years without settling the Insured amount of Rs.1.00 Lakh. Though several representations were made Bank is yet to settle the claim. What is the legal course of action apart from Banking Ombudsman.
