Ludhiana | Consumer forum asks insurance firm to pay ₹2 lakh

For failing to release an insurance claim to the complainant after her husband’s death in a road accident; Ludhiana consumer forum directed an insurance company to pay ₹2 lakh insurance claim along with ₹5500 compensation to the complainant

Ludhiana District Consumer Disputes Redressal Commission directed an insurance company to pay ₹2 lakh insurance claim along with ₹5500 compensation to the complainant for failing to release an insurance claim to the complainant after her husband’s death in a road accident.

The Ludhiana consumer forum in its order observed that Varinder Kumar Tyagi was the sole proprietor of the firm and since he was covered under the policy in the case of death by accident to the tune of ₹ 2lakh, the insurance firm is liable to pay the same (Representative Photo/HT Files)

Madhu Tyagi of Ludhiana in her complaint against United India Insurance Company Limited and Anish Goyal, insurance officer of the company accused the respondents for deficiency of services.

Varinder Kumar Tyagi, husband of the complainant was the proprietor of Sidhbali Enterprises, Motia Khan, Mandi Gobindgarh in Fatehgarh Sahib.

The case

Varinder had taken insurance, valid from May 21, 2014 to May 20, 2015, from the said company through their Khanna office.

Varinder died in an accident on January 07, 2015. After his death, the complainant was the legal heir of Varinder who had taken the insurance policy for a four wheeler.

A sum of ₹1129 was paid as basic third party liability and a sum of ₹100 was paid towards the insurance cover to the owner and another sum of ₹50 was paid towards insurance cover of driver. In all, a sum of ₹ 2937 was paid as premium and a sum of ₹ 326 was paid as service tax.

After the death of Varinder, a case was registered by the Bassi Pathana police station regarding the accident. Thereafter, the complainant lodged the insurance claim regarding the death of Varinder Kumar Tyagi, the driver of the accidental car, but to no avail.

Resisting the complaint, the legal counsel for the insurance pleaded that the claim lodged by the complainant is not payable under the policy in question.

“The policy covered only own damage claim i.e. loss of the insured car No.PB-48-A-7876 and its accessories. It also covered the third party loss and the employee of the insured. The policy in question does not cover the driver and owner of the insured vehicle. It was not a personal accident policy. It was only a car package policy,” said insurance company.

Consumer forum’s order

The commission in its order observed that Varinder Kumar Tyagi was the sole proprietor of the firm and since he was covered under the policy in the case of death by accident to the tune of ₹ 2lakh, the respondents are liable to pay the same to the complainant,who is the legal heir of the deceased policyholder.

“Respondents shall pay the claim of ₹2lakh along with compensation of ₹ 5,500 to the complainant,” ordered the commission