The District Consumer Commission in Tamil Nadu’s Kanniyakumari has ordered the Superintendent of Postal Service to pay Rs 20,000 to a woman in compensation for non-payment of her matured rural postal life insurance amount due to an administrative error where two different customers were assigned the same savings account number.A bench of president Y Gladstone Blessed Tagore, and member S Nagendran was dealing with the plea of a woman who filed a complaint against the postal department for non-payment of her Rs 1 lakh matured Rural Postal Life Insurance amount.“It is surprising and shocking how the postal authorities gave the same account number for two different customers, the complainant and one Valarmathi. Giving the same account number to the complainant and to one Valarmathi is the fault of the Postal Department. The head of the District Postal Authority is a party in this case,” the commission said on May 27.Also Read | LIC seeks Rs 83,000 ‘arrears’ after 11 years of payments, consumer wins Rs 20,000‘Should have corrected fault’The complainant is only the consumer of the postal department and not the consumer of the Lower Selection Grade Postal Assistant or Senior Post Master.Once this fault came to the attention of the postal authorities, they should have taken steps to correct the fault. The complainant cannot be made to suffer for the fault of the postal department.It appears that the complainant did not submit any Permanent Account Number (PAN) card copy to the opposite parties (postal department).According to the department, if PAN is not submitted, Tax Deduction at Source (TDS) will be cut at 20 per cent.It is not the case of the department that those who do not have any PAN and those who have not submitted a PAN are not entitled to the insurance maturity amount.Non-submission of the PAN card will result only in a 20 per cent tax reduction at source.Opposite parties cannot refuse to pay the insurance maturity amount to the complainant just because a copy of the PAN card was not given or the complainant does not have a PAN.Rural postal life insurance policyThe complainant joined the rural postal life insurance policy of the Department of Posts on February 28, 2019. The monthly premium is Rs 1,796. The sum assured is Rs 1 lakh.The policy matured on February 28, 2024, but no maturity intimation was given to the complainant.Also Read | After wife’s death, man fought insurer’s claim deductions, wins Rs 1.95 lakh reliefIn May 2024, the complainant visited the post office, submitted the claim form, original insurance policy, Aadhaar card, and the savings bank (SB) passbook, and requested the department to credit the maturity amount in her post office SB account.The department returned the claim form to resubmit it along with various documents, which were already submitted at the time of opening of the policy. Since the maturity amount is Rs 1 lakh, production of PAN is not necessary, it was claimed.Story continues below this adThe opposite parties have not disbursed the maturity amount, it was pointed out, adding that the same was a deficiency in service.This caused mental pain and suffering to the complainant. So the department must be directed to pay a compensation amount of Rs 50,000 for the same, the complainant argued. Besides, the opposite party is to be directed to return the maturity amount of Rs 1 lakh with interest.Postal department’s standIt was submitted that the maturity claim notification was sent to the address of the complainant, and an auto-generated SMS alert was also sent to the complainant.The department argued that the complainant submitted only the maturity claim policy form, without the necessary documents, but she was required to submit the original policy bond, indemnity bond, self-attested copies of ID, address proof, post office SB passbook, credit or premium receipt book, loan receipt book, cancelled cheque, etc.Story continues below this adAlso Read | Ruined Goa trip costs MakeMyTrip, Go Air Rs 1.39 lakh after consumer body steps inAccording to the department, PAN is mandatory since the maturity value of the policy is Rs 1 lakh and a bonus. The complainant did not submit a PAN card.If PAN is not submitted, TDS will be deducted at 20 per cent. Hence, the complaint is to be dismissed.Significance of rulingThis judgment establishes that administrative errors, like duplicate account numbers, are the provider’s responsibility. It clarifies that procedural rules must facilitate service, not justify delays. Crucially, it rules that missing documentation (like PAN cards) only warrants tax deductions, not withholding matured insurance claims.Consumers facing similar grievances may contact the consumer helpline in their respective states (Tamil Nadu contact: 044-28592828) or dial the National Consumer Helpline at 1915 for assistance.