Ferozepur: Consumer forum orders insurance firm to pay ₹19.3 lakh to policyholder’s kin

Mehar Singh Mal, counsel of Dharminder Singh, the nominee of a life insurance policy taken by his father Sukhdev Singh, alleged that despite the timely submission of all required documents after his father’s death on January 8, 2021, the life insurance company illegally rejected the claim.

The district consumer disputes redressal commission, Ferozepur, has directed Bajaj Allianz Life Insurance Company to pay ₹19.3 lakh with 6% annual interest to Dharminder Singh of Makhu, who had filed a complaint following the repudiation of an insurance claim after the demise of his father.

The district consumer disputes redressal commission, Ferozepur, has directed Bajaj Allianz Life Insurance Company to pay ₹19.3 lakh with 6% annual interest to Dharminder Singh of Makhu, who had filed a complaint following the repudiation of an insurance claim after the demise of his father. (Getty Images/iStockphoto/ Representational image)

Mehar Singh Mal, counsel of Dharminder Singh, the nominee of a life insurance policy taken by his father Sukhdev Singh, alleged that despite the timely submission of all required documents after his father’s death on January 8, 2021, the life insurance company illegally rejected the claim. The insurance, purchased through Axis Bank, Makhu, was worth ₹19.3 lakh, and his father had paid a premium of ₹1,93,216 for coverage valid from October 16, 2020, to October 16, 2024.

“Bajaj Allianz rejected the claim citing that the deceased was suffering from chronic kidney disease prior to purchasing the policy, a material fact allegedly concealed at the time of issuance. However, the commission observed that the insurer failed to submit concrete evidence to support this claim. The investigation report submitted by the company relied solely on verbal statements without documentary proof or medical records directly linking the said illness to the deceased. No affidavit from any treating doctor was produced either,” claimed the counsel.

“The commission found this repudiation unjustified, concluding it amounted to a clear deficiency in service. While Axis Bank was absolved of liability on grounds of being only a policy facilitator, Bajaj Allianz was held accountable,” he said.

“The commission, led by president Kiranjit Kaur Arora and member Suman Khanna, directed Bajaj Allianz to pay the insured amount of ₹19.3 lakh with 6% interest from the date of complaint filing (August 13, 2021) until realisation, along with ₹5,000 as compensation and litigation costs. The insurer has 45 days to comply with the order,” he added.