PMSBY Delay Nightmare: How State Bank of India and National Insurance Left a Grieving Family Stranded 💔

Losing a loved one is already a painful experience, let alone having to fight your bank and insurance company for the support you deserve. This is the harsh reality for one family in India, caught in a frustrating struggle with State Bank of India (SBI) and National Insurance Company Limited (NIC) over a claim under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) scheme. Their complaint letters reveal a story of delays, errors, and unfair demands—especially from SBI, whose negligence takes center stage. Let’s dive into their ordeal and uncover the deeper issues in India’s insurance system. 🕵️‍♂️

A Tragic Loss and a Claim That Should’ve Been Easy 💔

The family’s nightmare started when their father died in a lightning strike—a sudden, heartbreaking accident. They filed a claim under the PMSBY scheme, a government-backed plan designed to provide quick financial relief, through their father’s account at SBI’s Boyapalem branch. They submitted all required documents, including a Post-Mortem Report, on July 2, 2024. According to government rules, PMSBY claims should be settled within seven working days. Instead, the family faced a year of silence and obstacles, with SBI leading the charge in this mess. 😞

SBI’s Big Mistake: Two Policies, One Huge Problem 🏦

The family discovered a shocking error: SBI had issued two PMSBY policies for their father in the same year, each with different nominees. This is a clear violation of PMSBY rules, which allow only one policy per person annually. Rather than fixing their mistake, SBI shifted the burden onto the family, demanding an affidavit without explaining what it should include or why it was needed. When the family tried submitting one in good faith, SBI’s branch manager rejected it without reason. It’s unfair to make a grieving family pay for SBI’s negligence. 😤

Unfair Demands from SBI and NIC 🤔

Adding to the chaos, SBI and NIC demanded two extra documents: a Final Police Report and that vague affidavit. But here’s the catch: PMSBY guidelines from the Department of Financial Services (DFS), dated June 2021, state that only an FIR or Post-Mortem Report is needed for accidental death claims. For lightning strike cases, even those aren’t required. The family had already provided the Post-Mortem Report, which confirmed the cause of death. So why were SBI and NIC asking for irrelevant documents? It feels like a deliberate attempt to stall or deny the claim. 😣

NIC shares blame for these demands, but SBI’s role is worse. The family noted that NIC never directly contacted them about the documents—SBI was the one pushing these unclear requirements, making the process even more confusing. 😕

SBI’s Unacceptable Delay 📅

SBI’s handling of the claim was downright negligent. The bank confirmed receiving the documents in July 2024 but did nothing for eleven months. Only in June 2025, after the family escalated the issue, did SBI raise these questionable demands. This violates DFS rules, which require claims to be processed quickly. SBI’s year-long silence left the family in distress, turning a straightforward claim into a prolonged battle. How can a bank ignore a claim for so long and then point fingers at the claimant? 😡

A Systemic Problem in Insurance 🔍

This family’s struggle with SBI and NIC points to a bigger issue in India’s insurance industry. Banks and insurers often impose extra requirements that aren’t in the policy terms, hoping claimants will give up. SBI’s error of issuing duplicate policies and demanding unclear documents is a glaring example of carelessness. NIC’s call for a Final Police Report, which is irrelevant for accidental deaths, adds to the problem. These tactics hit hardest in rural areas, where people may not know their rights or have access to legal help. The PMSBY scheme was meant to be simple and supportive, but SBI and NIC’s actions have turned it into a maze of delays and frustration. 😞

A Family’s Brave Fight ✊

Despite the unfair treatment, this family is standing strong. They’ve written detailed complaints to SBI and NIC, citing PMSBY guidelines and demanding answers. They’ve called out SBI’s policy error and the year-long delay, and they’ve challenged NIC to justify the need for a Final Police Report or affidavit. They’re prepared to escalate to authorities like the Reserve Bank of India or the Prime Minister’s Office if needed. Their determination is inspiring, but no family should have to fight this hard for what’s rightfully theirs. 💪

Conclusion: A Call for Fairness 🌟

This family’s battle with SBI and NIC exposes a system that’s failing those it’s meant to protect. SBI’s negligence in issuing duplicate policies and ignoring a claim for nearly a year is inexcusable, while NIC’s unclear demands only deepened the family’s pain. The PMSBY scheme promises quick relief for families in crisis, but that promise is broken when banks and insurers create unnecessary hurdles. Their story is a stark reminder that India’s insurance system needs stronger oversight to ensure claims are processed fairly and promptly. No family should endure this kind of struggle for justice. 🙏

Disclaimer: This article is based on complaint letters submitted by a policyholder/claimant and aims to raise awareness about issues in the insurance claim process. It is not intended to defame or malign any individual or entity, including State Bank of India or National Insurance Company Limited. All personal details have been withheld to protect the policyholder’s/claimant's privacy.

Image Disclaimer: The image used in this article is AI-generated and intended for representation purposes only. It does not depict any actual individual or party involved in the case.