Insurer penalised for denying claim | chandigarh | Hindustan Times
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Insurer penalised for denying claim

chandigarh Updated: Dec 15, 2014 08:41 IST
HT Correspondent
HT Correspondent
Hindustan Times

The District Consumer Disputes Redressal Forum has directed Max Life Insurance to pay Rs1.32 lakh for denying insurance claim to brother of an insurer.

Paras Ram, a resident of Kalka in Panchkula, submitted before the court that his brother Gurdev Singh had obtained life insurance cover from Max Life Insurance on March 7, 2011.

Gurdev died on August 7, 2013. When Ram, a nominee in the insurance policy, had approached the insurance firm to claim the amount, the company denied it and did not contest the case and the forum proceeded against them ex-parte.

The forum headed by president Dharampal and members Anil Sharma and Anita Kapoor, ruled: "In view of the fact that the averments made by the complainant with regard to the facts noticed in the course of the proceeding para are supported by policy documentation and the averments made by the complainant are also supported by an affidavit, we have no reservations in accepting the claim made by the complainant
against Max Life Insurance. Our attention was not invited to any law which would forbid the payment of the insurance claim to a nominee."

The court ordered the insurance firm to pay `1.07 lakh along with 9% interest with effect from one month of Gurdev's death. Besides, the forum also ordered the company to pay Rs 20,000 on account of mental harassment and agony caused to the complainant and `5,000 as the cost of litigation.