Western Singhbhum, 15 December (Udaipur Kiran) – The District Consumer Disputes Redressal Commission has ruled against SBI Life Insurance Limited in a case involving mis-selling of insurance by falsely presenting it as a fixed deposit (FD). The commission declared the act as unfair trade practice and directed the company to refund the full amount to the consumer along with compensation.
The case, registered under CC No. 26/2024, was filed by Lakshmi Purti, a resident of village Tuibana, Manjhari police station area, Western Singhbhum district. According to the complaint, Lakshmi Purti had accompanied her mother Jema Kui Purti to the State Bank of India’s Chaibasa branch to open an FD. Bank staff directed them to an SBI Life representative, where documents were signed. Later, it was revealed that instead of an FD, a ‘Retire Smart Plus’ insurance policy worth ₹2 lakh had been issued.
The complainant stated that they were assured they were investing in an FD. When they requested cancellation and refund of the policy, the company did not cooperate. Further, an additional ₹2 lakh was debited through auto-debit, causing severe mental and financial distress.
The commission noted that the insurance company failed to prove that the consumer was fully informed about the insurance product. It clarified that selling insurance by misrepresenting it as an FD amounts to unfair trade practice and that the consumer’s consent was obtained through deception.
The commission ordered SBI Life Insurance to refund ₹4 lakh to the complainant within 45 days. Additionally, the company must pay ₹40,000 for mental agony and ₹10,000 for legal expenses. If the payment is delayed, interest at 9% per annum will be applicable.
It was also directed that copies of the order be provided free of cost to both parties and uploaded on the commission’s official website.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
