NAMAKKAL: The Consumer Disputes Redressal Commission (CDRC) of Namakkal has ordered a bank to pay Rs 2. 20 lakh for failing to provide an insurance policy to a loanee, despite deducting the premium amount.
According to sources, S Kumar (48) of Devanankurichi in Namakkal district, has been involved in the textile business and took a loan of Rs 10 lakh for his business from a bank in Erode in 2018. In the same year, the bank deducted Rs 35, 535 from his account as the premium amount for a fire insurance policy.
However, he did not get an insurance policy. When Kumar contacted the bank, he was allegedly informed that he had to approach the insurance company as the bank had already remitted the money to the insurance firm. Though completed the loan payment in a few years, he didn’t get any insurance or his money back.
So, in June 2021, Kumar sent a legal notice to the bank, following which they returned the premium amount of Rs 35, 535 to him. Following this, he filed a petition at CDRC Namakkal in 2021. On Tuesday, the president of CDRC, Namakkal, V Ramaraj, ordered the bank to pay Rs 2 lakh to the petitioner and Rs 20, 000 as litigation cost within four weeks.