Insurer told to pay Rs 40k for not paying claim for dead cows

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Jul 08, 2014 10:45 IST

Harassed at the hands of an insurance company which did not make the total payment for claims of dead animals, the district consumer disputes redressal forum directed the company to pay a compensation of Rs 40,000 to Patiala-based Muketshwar Food Private Limited, while disposing of their four complaints.

Muketshwar Food Private Limited had filed four complaints against National Insurance Company Limited for short payment of the dead cows insured with the company.

They had got four cows insured with the company, which later died.

They lodged a claim with the insurer, which made short payment of the dead animals, after which Muketshwar Food moved consumer forum.

Denying any deficiency in services, National Insurance Company said the claim was to be settled on the market value of the animals at the time of death to maintain the principle of indemnity.

The consumer forum presided over by PL Ahuja, on July 3, ordered, “The insurance company could reduce the market value had the cow been not pregnant and/or not yielding milk. We are of the view that the investigator deducted the amount from the insured value of the cow without any rhyme or reason. Such a reduction in the market value is arbitrary and not based on just grounds. Consequently, we are of the opinion that the conduct of the insurance company points out towards adoption of unfair trade practice and deficiency in service.”

also read

HT Report Card: Nothing ventured, nothing gained
Show comments