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2026 Supreme(Online)(SCDRC) 3446

STATE CONSUMER DISPUTES REDRESSAL COMMISSION MADHYA PRADESH
Sunita Yadav, President, Monika Malik, Member
MANAGER ICICI LOMBARD GENERAL INSURANCE CO. LTD. – Appellant
Versus
ASHOK S/O RAMESH CHANDRA – Respondent
FIRST APPEAL NO. 1881 OF 2024|FIRST APPEAL NO. 1882 OF 2024|FIRST APPEAL NO. 1883 OF 2024|FIRST APPEAL NO. 1884 OF 2024|FIRST APPEAL NO. 1889 OF 2024|FIRST APPEAL NO. 1891 OF 2024|FIRST APPEAL NO. 1892 OF 2024|FIRST APPEAL NO. 1894 OF 2024

Advocates:
For the Appellants/Petitioners: Amit Tiwari
For the Respondents: None

Under the Pradhan Mantri Fasal Bima Yojna, the nodal bank is solely liable for any financial loss to the farmer resulting from misreporting or incorrect data entry of the farmer's land details on the insurance portal.

Headnote:The matter pertains to the Pradhan Mantri Fasal Bima Yojna, where farmers alleged underpayment of crop insurance compensation for the year 2017. It was found that while the bank deducted premiums and forwarded them to the insurance company, the bank uploaded incorrect land details (wrong Tehsil) on the portal, leading the insurance company to calculate compensation based on the wrong area. The District Commission had previously held both the bank and the insurance company jointly and severally liable for the deficiency in service. The primary issue was whether the insurance company could be held liable for underpayment when the error originated from the bank's data entry on the portal. The court reasoned that according to the guidelines of the Pradhan Mantri Fasal Bima Yojna, specifically Clauses XVII(2), XXIV(e), XXIV(f), and XXIV(4)(m), the nodal bank is solely responsible for any misreporting of farmer coverage and must make good all such losses. Accordingly, the impugned order was modified, directing the bank alone to pay the additional compensation, interest, and costs to the complainants. The appeals stand partly allowed.

Table of Content
1. facts of crop insurance underpayment and the district commission's initial joint liability order. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. appellant's arguments regarding bank's misreporting and the admissibility of portal evidence. (Para 7 , 8 , 9 , 10 , 11)
3. court's finding that the bank uploaded incorrect tehsil information on the portal. (Para 12 , 13)
4. legal liability of nodal banks for misreporting under pmfby guidelines and precedents. (Para 14 , 15 , 16)
5. modification of the order to hold the bank solely liable for compensation. (Para 17 , 18 , 19 , 20)

ORDER

M. P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BHOPAL

PLOT NO.76, ARERA HILLS, BHOPAL

FIRST APPEAL NO. 1881 OF 2024

(Arising out of order dated 22.12.2023 passed in C.C.No.126/2019 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. NEERAJ ALIAS NILESH S/O DARIYAV, R/O VILLAGE-POLAY, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.) … RESPONDENTS.

FIRST APPEAL NO. 1882 OF 2024

(Arising out of order dated 19.01.2024 passed in C.C.No.127/2019 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. RAJESH YADAV S/O DARIYAV, R/O VILLAGE-POLAY, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.) … RESPONDENTS.

FIRST APPEAL NO. 1883 OF 2024

(Arising out of order dated 22.12.2023 passed in C.C.No.128/2019 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. HEERALAL S/O MOOLCHAND, R/O VILLAGE-POLAY, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.) … RESPONDENTS.

FIRST APPEAL NO. 1884 OF 2024

(Arising out of order dated 19.01.2024 passed in C.C.No.129/2019 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. OM PRAKASH YADAV S/O MOOLCHANDRA YADAV, R/O VILLAGE-POLAY, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.) … RESPONDENTS.

FIRST APPEAL NO. 1889 OF 2024

(Arising out of order dated 22.12.2023 passed in C.C.No.492/2020 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. MEHARBAN SINGH S/O NARWAR SINGH SENDHAV, R/O VILLAGE-BAMANKHEDI, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.) … RESPONDENTS.

FIRST APPEAL NO. 1891 OF 2024

(Arising out of order dated 19.01.24 passed in C.C.No.43/2021 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. JITENDRA S/O MOOLCHANDRA, R/O VILLAGE-POLAY, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.) … RESPONDENTS.

FIRST APPEAL NO. 1892 OF 2024

(Arising out of order dated 19.01.2024 passed in C.C.No.53/2021 by the District Commission, Dewas)

MANAGER, ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED, COMMERCE HOUSE, SECOND FLOOR, 201/212, 7, RACE COURSE ROAD, INDORE (M.P.) … APPELLANT.

Versus

1. HAZARILAL S/O DHANNA, R/O VILLAGE-POLAY, TEHSIL-BAGLI, DISTRICT-DEWAS (M.P.)

2. MANAGER, NARMADA MALWA GRAMIN BANK, CHAPDA, TEHSIL-BAGLI, DISTRICT-D

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