Same account number for 2 customers, postal department directed to pay Rs 20,000 relief

‘Should have corrected fault’

• The complainant is only the consumer of the postal department and not the consumer of the Lower Selection Grade Postal Assistant or Senior Post Master.
• Once this fault came to the attention of the postal authorities, they should have taken steps to correct the fault. The complainant cannot be made to suffer for the fault of the postal department.
• It appears that the complainant did not submit any Permanent Account Number (PAN) card copy to the opposite parties (postal department).
• According to the department, if PAN is not submitted, Tax Deduction at Source (TDS) will be cut at 20 per cent.
• It is not the case of the department that those who do not have any PAN and those who have not submitted a PAN are not entitled to the insurance maturity amount.
• Non-submission of the PAN card will result only in a 20 per cent tax reduction at source.
• Opposite parties cannot refuse to pay the insurance maturity amount to the complainant just because a copy of the PAN card was not given or the complainant does not have a PAN.

Rural postal life insurance policy

The complainant joined the rural postal life insurance policy of the Department of Posts on February 28, 2019. The monthly premium is Rs 1,796. The sum assured is Rs 1 lakh.

The policy matured on February 28, 2024, but no maturity intimation was given to the complainant.

In May 2024, the complainant visited the post office, submitted the claim form, original insurance policy, Aadhaar card, and the savings bank (SB) passbook, and requested the department to credit the maturity amount in her post office SB account.

The department returned the claim form to resubmit it along with various documents, which were already submitted at the time of opening of the policy. Since the maturity amount is Rs 1 lakh, production of PAN is not necessary, it was claimed.

The opposite parties have not disbursed the maturity amount, it was pointed out, adding that the same was a deficiency in service.

This caused mental pain and suffering to the complainant. So the department must be directed to pay a compensation amount of Rs 50,000 for the same, the complainant argued. Besides, the opposite party is to be directed to return the maturity amount of Rs 1 lakh with interest.

Postal department’s stand

It was submitted that the maturity claim notification was sent to the address of the complainant, and an auto-generated SMS alert was also sent to the complainant.

The department argued that the complainant submitted only the maturity claim policy form, without the necessary documents, but she was required to submit the original policy bond, indemnity bond, self-attested copies of ID, address proof, post office SB passbook, credit or premium receipt book, loan receipt book, cancelled cheque, etc.

According to the department, PAN is mandatory since the maturity value of the policy is Rs 1 lakh and a bonus. The complainant did not submit a PAN card.

If PAN is not submitted, TDS will be deducted at 20 per cent. Hence, the complaint is to be dismissed.

Significance of ruling

This judgment establishes that administrative errors, like duplicate account numbers, are the provider’s responsibility. It clarifies that procedural rules must facilitate service, not justify delays. Crucially, it rules that missing documentation (like PAN cards) only warrants tax deductions, not withholding matured insurance claims.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Tamil Nadu contact: 044-28592828) or dial the National Consumer Helpline at 1915 for assistance.