The Mumbai District Consumer Disputes Redressal Commission on Tuesday ordered HDFC Bank to release ₹2 lakh in accident insurance linked to an ATM card, ending a 14-month dispute after a Mumbai resident’s death in a motorcycle accident.
The deceased, 42-year-old Suresh Kapoor of Andheri West, died on December 15, 2024, while riding his Royal Enfield Classic 350 on Jogeshwari-Vikhroli Link Road. His wife, Priya Kapoor, 39, filed the claim under an accidental death policy bundled with his HDFC Bank Debit Card issued in October 2023 with a ₹2 lakh cover for “accidents occurring while using or accessing ATM.”
HDFC Bank denied the claim on April 22, 2025, stating it required proof of death due to “use of the ATM itself,” not “while commuting to/from the ATM.” The bank cited clause 3(b) of the policy document, shared in its May 5, 2025 rejection letter.
And yet, the bank provided no evidence that Kapoor died inside the ATM or ATM premises. Priya Kapoor insisted Kapoor had used his HDFC debit card to withdraw ₹2,000 from a nearby ICICI Bank ATM on the night before his death, around 11:47 pm. Receipt number A2R8192023 confirmed the withdrawal, but HDFC lawyers argued the card’s use alone didn’t trigger the cover.
The Mumbai Consumer Forum bench led by President A.K. Jain concluded HDFC acted in “deficiency of services” by rejecting a valid claim under an RBI-mandated free personal accident cover for basic savings bank account holders from April 2020. The cover excludes death due to illness, natural causes, or suicide. The bank’s rejection letter didn’t cite any exclusion under clause 3(b) tied to Kapoor’s specific death cause.
“The bank is trying to enforce a narrow interpretation that doesn’t align with the RBI’s objective of financial inclusion insurance,” Jain said, reading the 11-page order Wednesday evening. The forum ruled HDFC must pay ₹2 lakh, interest at 6% from December 15, 2024, and ₹15,000 in legal costs within 30 days.
Kapoor’s death was certified accidental by Mumbai Police’s Slg-6 Versova Station under FIR 350/24, registered after his Royal Enfield collided with a tempos at 12:15 am on December 15, 2024. The post-mortem report dated December 16, 2024, confirmed “multiple injuries due to road accident” as the cause of death.
HDFC Bank’s refusal affected Priya’s ₹68 lakh term insurance claim, filed in January 2025 with ICICI Prudential Life. “We had to take a ₹15 lakh personal loan to repay the medical bills because HDFC didn’t pay,” she said Wednesday. “The bank said we needed to sue them. Now they have to pay.”
The RBI’s April 2020 circular mandated Rs 2 lakh free personal accident insurance for all basic savings bank deposit accounts opened after April 14, 2020. HDFC Bank’s policy document, revised in August 2024, defines covered accidents as “activities incidental to daily use,” including ATM use, commuting to/from ATMs, or accessing cash machines.
The forum rejected HDFC’s argument that Kapoor’s death occurred during a “routine journey,” not an “accident linked to ATM use.” “The policy text does not hierarchize the covered activities,” the order stated, questioning HDFC’s selective interpretation of its own clauses.
This is HDFC Bank’s second major consumer loss on accident insurance this quarter. Last month, the Delhi State Consumer Commission ordered HDFC to pay ₹5 lakh for a fatal scooter accident involving an ATM-linked insurance claim filed by a Noida resident.
Priya Kapoor will receive the ₹2,10,900 total (₹2 lakh + ₹10,408 interest + ₹15,000 costs) within 30 days. And HDFC Bank’s stock dipped 0.84% to ₹1,690 on Tuesday after the order.
