The Uttarakhand High Court has directed a regional bank to release ₹25 lakh insurance compensation to the widow of a police constable who died in a road accident during service. The Court found the bank’s refusal to grant benefits under an accidental insurance scheme unjustified and legally unsustainable.
Background of the Case
The case was filed by Damyanti Negi, whose husband, Late Narendra Singh Negi, served as a constable in the Uttarakhand Police and was deputed with the State Disaster Response Force (SDRF). He died in a road accident on August 7, 2021, while on duty.
Negi maintained a salary account with Uttarakhand Gramin Bank since 2015. The bank had introduced a “Complimentary Police Accidental Death Insurance Cover” scheme in April 2021, under which police personnel holding salary accounts were to receive insurance coverage of ₹25 lakh, with the premium paid by the bank itself.
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After her husband’s death, the petitioner sought the insurance benefit. However, the bank rejected her claim, stating that the deceased’s name was not included in the list of employees covered under the scheme.
Counsel for the petitioner argued that the denial was arbitrary and violated constitutional rights. It was submitted that the scheme applied automatically to eligible police personnel and did not require a separate application.
“The deceased was clearly within the category of beneficiaries. Any failure to include his name cannot defeat the petitioner’s rightful claim,” the counsel contended.
On the other hand, the bank maintained that only 676 employees were covered based on a list provided by the police department, and since the deceased’s name was missing, no premium was deposited for him.
The State government clarified that it had no direct role in the scheme’s implementation and the matter primarily concerned the bank.
Justice Pankaj Purohit noted that the key issue was whether a legitimate claim could be denied merely because the employee’s name was missing from a list.
“The omission to include the name of the deceased is clearly an administrative lapse… The petitioner cannot be made to suffer for such lapse,” the Court observed.
The Court emphasized that the bank was fully aware of the deceased’s employment status, as his salary was regularly credited and even a loan had been sanctioned against the account.
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Rejecting the bank’s argument on non-payment of premium, the Court said the scheme itself required the bank to bear the premium cost.
“The respondent-bank cannot be permitted to take advantage of its own omission,” the bench stated.
It further held that denying the benefit while granting it to similarly placed employees amounted to arbitrary action and violated the principle of equality under Article 14.
Allowing the writ petition, the High Court set aside the bank’s communication dated May 21, 2022. It directed Uttarakhand Gramin Bank to pay ₹25 lakh to the petitioner under the insurance scheme, along with 5% annual interest from the date of entitlement until actual payment.
Case details
Case Title: Damyanti Negi vs State of Uttarakhand & Others
Case Number: Writ Petition (Misc. Single) No. 2446 of 2022
Judge: Hon’ble Justice Pankaj Purohit
Decision Date: 19 March 2026
