Why you should avoid Health Insurance Group policy of Banks?

It is from time to time we come across a standard query-Should I buy policy from a specific bank?

We have always taken the stand:

Avoid it as the bank may stop the policy due to various reasons:

·       Change of InsuranceCompany

·       Cancellation of policy by insurance company due to higher claims.

Recently we have come across from newspaper reports about  the  case of Dr. Abhay Bedmutha’s who  had an account with Nashik Merchant Co-operative Bank Ltd. and was issued a Personal Accident Insurance Policy .  When Dr. Abhay Bedmutha died then his wife was informed that policy was not in force as the bank had discontinued some time back. No intimation was given to client about this fact therefore client was left uninsured.

This Widow/Nominee took matter with Consumer Forum and The National Consumer Disputes Redressal Commission has passed judgement that Bank should pay the following:

              Insurance Amount              Rs. 5 Lakhs

       Compensation Amount             Rs. 3.50 Lakhs

                               ---------- -------------

                                                         Rs. 8.50 Lakhs

How many persons have the courage to take the case to Consumer Forum?

We come to the conclusion that do not buy policies through Bank especially if these are part of Group Policies.