Uttarakhand High Court Directs Bank to Pay Rs 25 Lakh to Constable's Widow
The Uttarakhand High Court has issued a significant ruling, ordering Uttarakhand Gramin Bank to compensate the widow of a deceased police constable with Rs 25 lakh plus 5% annual interest. The court found that the bank's denial of accidental death insurance benefits based on an administrative omission was unjust and unsustainable.
Court Overturns Bank's Rejection of Insurance Claim
In a decisive judgment, Justice Pankaj Purohit set aside the bank's communication dated May 21, 2022, which had rejected the insurance claim filed by Damyanti Negi, widow of late constable Narendra Singh Negi. The court emphasized that the petitioner could not be penalized for lapses beyond her control.
The case centered on the tragic death of Constable Narendra Singh Negi, who was serving on deputation as a driver with the State Disaster Response Force (SDRF). He died in a road accident on August 7, 2021, while performing his official duties. Negi had maintained a salary account with Uttarakhand Gramin Bank since 2015, with his salary regularly credited to it, and had even secured a loan against this account.
Insurance Scheme and Administrative Failure
The bank's 'Complimentary Police Accidental Death Insurance Cover' scheme came into effect on April 12, 2021, covering police personnel whose salaries were disbursed through accounts maintained with the bank. The premium for this insurance was to be entirely borne by the bank itself.
Following her husband's death, Damyanti Negi rightfully sought benefits under this scheme. However, the bank rejected her claim, citing that Negi's name was not included in the final list of 676 employees covered under the policy and that no premium had been deposited for his coverage.
The court thoroughly rejected this justification, labeling it as "unsustainable." It determined that the omission of the deceased constable's name from the insurance list was purely an "administrative lapse" resulting from poor coordination between the bank and the police department. The judgment clearly stated that the widow should not suffer due to this institutional failure.
Bank's Arbitrary Action Violates Constitutional Principles
Justice Purohit made several critical observations in the ruling. The court noted that the bank could not plausibly claim ignorance of Narendra Singh Negi's status as a police personnel, given that his salary account had been active with them for years and was linked to a sanctioned loan. This established a clear relationship that the bank attempted to disregard.
More importantly, the court declared the bank's action as arbitrary and in violation of Article 14 of the Constitution, which guarantees equality before the law. The judgment emphasized that the bank "could not take advantage of its own omission" to deny legitimate benefits to the deceased's family.
Consequently, the High Court directed Uttarakhand Gramin Bank to pay the insurance amount of Rs 25 lakh along with 5% annual interest. This interest is to be calculated from the date Damyanti Negi became entitled to the claim until the actual payment is made. This ruling sets a precedent for holding institutions accountable for administrative errors that unjustly affect beneficiaries.
