WP/9600/2024 of Dumpala Shyamala Vs The Union of India on 21 January 2026

ORDER:

The case of petitioner is that her husband Late D. Jangaiah u'hilc u'orking as a Conductor with Stafi No. 208777 in the Telangana Statc Road Transport Corporation (for short, the Corporation') in Ibrahimpatr-ram Depot, Ranga Reddy District, died on 31.1O.2022 accidentally falling into a lake situated in their',,illage. He has shown petitioner as his nominee in the Salary Bank Account. [t is stated, therc is a Memorandum of Understanding (MoU) between TGRTC and respondent bank, according to which it is mandatory that every employee of TGRTC shall open a salary account with the bank and all the existing bank accounts of TGRTC employees shall be - converted to Union Super Salary Account which :s rrased on the salary that is being drawn by the employees of tr I T(}RTC and sLrch accounr holclers are eligible [or ,free pers( r € I lrccidental lnsurance ztmount Rs. 40,00,O00/ I . 1. petitioner's husband had a Salan. . .r:count with respondent Bank and his salary was being r:rr Jiter:l to his Account No. l3g9 l20IOOO1293. Atter his dear r, 1>etitioner submitted necessary documents claiming tou,ards frce personal accidental insLrrance claim is no1 settled, she approached the obtained copics of certain correspondence and c,l rre [o know that since her husband,s bank accounl $,as not ct tverted into Union Super Salary Account and remained as Slltj 1tN accollnt she is not entitled to accidental insurance claim.

2. The 4ft Respondcnt Union Bank of lrr, ra filed its counter stating that the sole ground lor not honori_ ] the claim of petitioner lor personal accidcnt insurance is Llr r personal accidental insurancc scheme is applir.able for amou r t. Since her .IGRl ,'Bzrnk and ,J .r \. zlCCoUn t holders of Union Super Salary General Savings Bank Account (SBGEN) husband's accoullt was under the scheme code SB( IrN at the time of death of the customer in Octobcr 2O22 and r r rrve rted to Account (USSA) rr r,l not for holders.',:titioner's \

USSA2 after the death of customer in December 2023. SBGEN accounts are not covered under accidental insurance claim under bar-rk policy-

3. The Corporation also filed counter admitting the personal accidental insurance policy applied to its employees. It is stated that the Corporation converted its employees' salary accounts to Union Bank from SBI relying upon the offer letter dated O4.lO.2O2l issued by the Union Bank authorities. It is sta[ed that petitioner's husband who died in al accident occurred on 31.10.2022 was drawing a saiary of more than Rs. 31,OOO/- as such he should have been categortzed as USSA- 2, but the Bank treated him as in SB General Category and not paid any amount. Il is calegorically staled that had petitioner's husband been considercd under USSA 2 based on his salary, he is etigible for Rs. 40 lakhs as claimed by petitioner towards free personal accident insurance. lt is further stated that TGRTC uide letters dated 13.O9.2023 and la.Ol.2024 requested responclent - Bank authorilies to settle the case of iate Sri D. Jangaiah (petitioner's husband) under USSA-II category and pay the eligible insurance amount to his legal heirs - petitioner. But rcspondent Bank is treating him under SB General category and rcfusing to settle his case under USSA-II category.

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4. Heard Sri Saini Aravind, learned r:ounsel for petitioner, learncd Standing Counsel for- Corporation Sri N. Srusl-rman Reddy, M/ s Chavan & Associa i s; Larv Firm, learned counsel for Respondent bank and Sri :-rnivasa Rao Vutla, learned counsel for Respondent No.S I I'rited India Insurance Companl, Limited.

5. From a perusal of the material on recor I and having heard learned counsel on either side, it is to be not( l, the Union Bank of India addressed letter datcd O4_ l(r.2 )21 to the Financial Adviser & Chief Accounts Officer, TGSI'C offering a scheme providing 'lree personal accidcnt insuran: . to a[ pSU employees who have Union Super Salary Accour - (USSA) in Union Bank of India. The Managing Direr:r c - TGSR'I'C addressed the lette r dated 1I.1O.2021 to all its LIrr Officers to inform the employees under their jurisdiction r(, ()pen Bank Accounts with Union Bank of India. TGSRTC sen [:ttcr daLed 18.11.2022 to all its Unit Officers inter alia statinr "Since the above provision (personal accidental insurtrn: ) is or-rly applicable to employees who have Union Supcr Sal ry Account (ussA), Unit officer shall crcatc awarencss arr( rrg all the employees on above Insurance scheme and rdvise the Employees/ Officers to change their nature of ac<;orr I i to Union ) Super Salary Account (USSA), if they have not opred at the time of opening of account.

6. TGSRTC issued Circular No. pD-O7 /2021 daLed. 26.11 .2021 ordering that salarics of all Office rs and Employee s shall be disbursed through Union Bank of tndia only from the salary bill of December, 2O2l pal,able in January 2022. The Corporation also sensitized all its Unit Officers by letter dated 78.11-2022 abou[ thc types of coverage of Free personal Accident Insurance lor PSU Employees viz. USSA-I, USSA-II, USSA III, enclosing the guidelines etcetera. According to it, employees r,r,ho are drar.l'ing rcgular salary of Rs. 25,O00/- to Rs. 7 4 .999 / will come under USSA- category. Accordingly, petitioner's husband opened salary account bearing No. 1389 12010001293 under Account Scheme: SBGEN, on 21.1O 2021. His salary is being credited to this account.

7. The Depot Manager, Ibrahimpatnam Depot addressed lctter dated OI.12.2022 to the Branch Manager, UBI, Ibrahimpatnam Branch, inter alia sta[ing that free personal accidental insurance provision is only applicable to the employees u,ho have 'Union Super Salary Account' (USSA) in Union Bank of India and rcquesting to change their nature of I accor\nts to 'Union Super Salary Accounr; (USSA) if they have not opted at the time of opening of account. The Dr :uw Gcneral Manager & Regional Head, Union Bank of India , <ldressed an intcr offlce letter dated 23.O8.2023 to the C ricl Gcneral mzrnager, Zonal Office, Hyderabad, as bclou,: " We are in receipt of a letter from our I ) rhimpatnam tsranch (1389 1), regarding considerarion of death clairr, :f latc Mr. Dumpala Jangaiah bearing account number 1389 l20i()t C t293. Lare Mr Dumapala Jangaiah u,as a RTC employee arrr r:xpired on 31.1O.2022. he was maintaining salary account u.ith It)r rhimpatnam Branch and salary was crcditing from March 2022. As pcr lhe MOU between TSRTC and UNICIT iANK, cver_,- RTC employee has to open salary account with our banl r rd existing account of TSRTC employees has to open salary account ,! tl1 our t)ank and existing account of TSRTC cmplovees should be (..r ,.rrted in to Union Super Salarv- Account as per the salary reccived r 1 .rccount In the account of l^ate Mr. Dumpala Jangaiah sala6. u,as r r:diting pcr month approx. Rs. 3 I,OO0 from the month of March 202 I ,rnd he rvas existing customer. As per the salary received in account, itr r rtnt should be classified in USSA2, but inadvertenth this accounr rvas I )t convertc.l in USSA2 due to some technical glitch. Nominee Mrs. DUMPALLA SHyAMALA (rvifc I Late Mr. L)umpala Jangaiah) has approached the branch for settler I nt of cleatlr claim with Personal Accident lnsurance (Death) cover for (] rrtral/Slatc Covt., PSU, Police etc. As TSRTC comes under State G( ,. .. and free personal insurance under death by accident is Rs. 40.Oorj I l(hs as l)cr our bartk policy. On the basis of the branch recommendation, \\'i (.qu('st jolr to kindl-y consider the branch request for the settlcmenI o loath ciairr of Late Mr. Dumpala Jangaiah to the nomine<: Mrr,. Dumltalla Shyamala."

8. General Manager, Deposit Mobilization Department, Centrai Officer, Union Bank of India, Mumbai addressed an intcr oflrccr lctter to Chief Generai Managcr, Zonal Office, Hyderabad, datcd 27 .O9.2O23 rejecLing the claim inter alia stating: D. Jangaiah (138912010001293); This Account r.vas uoder the Scheme code SBGEN at the time of death of the customer in October 2022 and converted to USSA2 after the death of the customer in December 2023-SBGEN accounts are not covered under accidental insurance claim under bank policr .

9. From the above, it is clear that the soie ground for rejection of petitioner's claim is that her husband's salary account bearing number 1389 12010O01293 is under the scheme code SBGEN ie. Savings Bank General by the date of death of her husband, hence, she is not entitled to claim free personal accidental insurancc.

10. Now, the question that arises for consideration is who is responsible for non-conversion of petitioner's husband's salary account from SBGEN to USSA II?

11. As statcd above, TGSRTC issued Circular No. PD- 07 /2021 dated 26. 1l .2021 nrdering that salaries o[ all Ofhcers and Employees shall be disbursed through Union Bank of India only from the salary bill of December,2O2l payable in January il - \ 2022. The Depot Manager, Ibi.ahimpatnam Dc ) )r_ addressed lette r dated Ol .12.2022 to the Branch Ma ragcr, LJBI, lbrahimpatnam Branch, requesting to changc lC nature of accounts of its cmployees to 'Union Super Sai ry Accollnt, (USSA) i[ thr:y havc not opted at rhe timc of opelrr q o[ account since the frcc pcrsonal accidental insurance prov sion is only applicable to the employees who have ,,Union S r-rpcr Saierry Account (USSA) in Union Bank of India and. Therr: rre, it is the dutv of the Branch Manager, UBI, Ibrahimpatnilrr Branch, to convcrt the salary account of fhe husband of the p I itioner from SBGEN mode to USSA-II mode, even if the dece,r rt:d has not opted for thc same. The Branch Manager is sok.l .. t.esponsi ble for non-version of the same.

12. Further, the Deput5z General Manager. t[ Regional Head, Union Bank of India addressed an inter ofhcr: [r:ttt:r datccl

23. Oa.2O23 to thc Chief General manager, Zc ral Offir:c, Hvderabacl, stating: As per the MOU between ' S}RTC and UNION BANK, every RTC employee has to open sa i ry urccounr with our bank and existing account.of TSRTC emJrl.; .,:cs has to opcn salary itccount with our bank and existing tccount of TSRTC employees should be converted in to Union Sl Lper Salary Account as per the salary received in account. [n th: eLccount ol

La[e Mr. Dumpala Jangaiah salary was crediting per month approximately Rs. 3 1,O00/ - from March 2022 and he was existing customer. As per the salary received in account, account should be classified in USSA2, but inadvertently, this account was not converted in USSA2 due to somc technical glitch. From this letter, it is clear that non conversion of deceased's salary account from SBGEN to USSA II is the mistake of the Bank advertent or inadvertent, and not of the deceased employee/ petitioner or the TGSRTC. Had the Bank acted limely and vigilantty this mrstake would not have occurred. It is not just and proper to reject the claim of the petitioner for a mistake done by the Bank.

13. That apart the Depot Manager, TGSRTC, Ibrahimpatnam Depot addressed letter dated O5.0i.2023 to the Branch Manager, Union Bank of Inia, Ibrahimpatnam Branch, stating- " This is to submit thar, the Union Bank of India g.as kind enough to inform that they rvill consider the cases of Officers and Employees n'ho died accidentall-v during the period from Ol.O7 .2022 to 3O.11.2022 for payment of personal accidcntal insurance under Union Super Salary Account (USSA), though they do not have Union Super Salar,- Account (USSA) subject to condition that their salaries are credrted to the salary account of Union Bank of India contrnuously for three months i.e., from Mardn 2022 salary bill to May 2Ci22 salary bill. I \

- 1i) Depot (A/c 3t . to.'202'2 Itr this regard D. Jangarah, E. 2O8ZZZ. Con(l ( tor of IBI,M No. 1389120I0001293) has expired .rr.r (tentally on Therefort:, it is kindly requested to pr()\i, (. necess.trl (locurnents t(J a\.ail free personal accidental insurance t1l I (. legal hcirs of thc abo\c rrame(l decease(l employec, please."

Since the-deceased used to draw his s r ary from the UBI from March 202'2 (as seen from inter offi,:t: 1611s1 621.6 23.08.2023), cven il his salary account was no[ co r.rerted from SBGEN to USSA-It, in view of the above letter dater 15.O1.2023 to whicl-r thc Bank lras noL replied, petitioner is t r t itled to get her claim. When .rll the crucial facts such as tr,r fact that petitioner's hr,rsband was an employee (Conductor.) ()t TGSRTC and entitlccl to the provision of Free person: I Accidental Insurance, hc died accidentally on 31.1O.2O22; br. t rat time, he was drau,ing his s.alaqr from UBI, Ibrahimpatnanl Ilranch; at the time o[ tleath. hc was drawing about Rs. 3 :_OO/ p.m. salary and is t-.ntitlcd to bc categorized as USSA-[] .rcetera are admittcd and undisputed ones, rejection of thc . :r im of thc petitioner unclr:r Free Personal Accidental Insuranc. r,n the sole ground that his salary account was not converted ti rm SBGEN code to USSA ll in:rdvertcntly and due to some tec - tical glit<;h (as admitted by the DGB & Regional Head in his .r-rter ofhce l letter dt. 23.08.2023lr is illegal and unjust and denting the welfare measures given to the TGSRTC cmployecs.

15. For the aforementioned reasons the inter oflice Iet[er, DMD:2 608:2O23-24, datcd 27.O9-2023 sent by General Manager, Deposit Mobilization Department, Central Office, Mumbai, addressed to Chiel General Manager, Zonal Office , Hyderabad is set aside and conscqucr-rtly, Respondents 4 and 5 are directed to pay jointly and severally petitioner's claim amount of Rs. 40,OO,O0O/- (Rupccs For[y Lakhs only) under the provision of Free Personal Accidental Insurance to the Employees and Oflicers through Union Bank of India'

16. The Writ Petition is allog'ed accordingly. No costs'

17. Consequently, the miscellaneous Applications, if any shall stand closed. / That Rule Nisi has been made absolute as above Witness The HON'BLE THE CHIEF JUSTICE APARESH KUMAR SINGH' Wednesday, The Twenty First Day O^f. January Two Thousand And TwentY Six Sd A.H.S. GOWRI SHANKAR SISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, St of Finance Department of The Exp ment 3rd Floor, Telangana Union of lndia, Ministry of Fhance' O/o Mi ""#iiri" n""r't'to. 76 i"'lew Delhi - 110001 The Princiole Secretary Transport. Dep s"ireiariai, Tne State of ielangana' Hydera bad, Telangana - 500022. Road TransPort Road, Musheerabad, ilir:m,*:gffi",1.Y' Telanoana State Bhav"an. RTC X The General Manager, Union Bank of lndia' Dep-osit Mobilization Department' iill-"'"'"3'#-'yf;tn,*,:loi::^""11*$$ji,tj*'!'JEil [il]g,["??+""fltiayt"*L:l[ta,li:m8:s;'' sspphire comprex

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6. One CC to SRI B. MALLESHA, Advocate tOpUCl fft"r"": " sRl N BHUJANGA RAo Deputy Soticitor Gen: at of tndia Advocate One CC to SRI N. SRUSHMAN REDDY, SC FOR TSRT() ,Advocate tOpUCl One CC to M/S. CHAVAN & ASSOCIATES LAW FtRtV, Lr vocate [OpUC] .One CC to SRt SR|N|VASA RAO VUTLA, Advocate [OpU, )t TworCCs to Gp FOR TRANSPORT, High Court for the I tate of Telangana, Two CD Copies 46, R

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12. PVL PMK l

HIGH COURT DATED:21 10112026

ORDER

WP.No.9600 of 2024 ALLOWING THE WRIT PETITTON WITHOUT COSTS 1r t:s TA ( L. \t

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