Consumer forum directs firm to pay Rs13.5 lakh to widow

Tribune News Service

Amritsar, July 10

The District Consumer Disputes Redressal Forum has directed a private insurance company to pay Rs 13,50,000 to the widow of a person, who died eight days after purchasing the policy.

The company has been asked to pay interest from the date she (wife of the deceased) had filed complaint and till the time payment is made. The forum has also asked the company to pay Rs 2,000 as litigation expenses. Earlier, the company had denied the claim stating that the policy was acquired fraudulently.

Jasbir Kaur, a resident of Bachiwind village, had filed a complaint against Birla Sun Life Insurance Company stating that her husband, Jaimal Singh, was issued a policy dated July 24, 2014, by the opposite party. She stated that the maturity period of the policy was five years with an annual premium of Rs 30,000. She said the premium was to be paid in two instalments biannually and sum assured was fixed at Rs 13.5 lakh in case of death.

She complained to the forum that a medical examination of her husband was conducted on behalf of the company before issuing the policy. However, Jaimal died due to sudden heart attack on August 1, 2014. Jasbir said being a nominee she filed the claim, which was rejected by the company.

The opposite party in its reply claimed that the husband of the complainant had actually died prior to issuance of the policy and the same was acquired fraudulently. The opposite party also stated that consumer forum had no jurisdiction to deal with the complaint as nominee of the insured could be considered a consumer.

It also stated that the medical examination of the deceased was conducted on August 10, 2014, and how could it be possible that he had died on July 14? The forum stated that it was usual with insurance companies to show green pastures to persons to allure them to purchase policies. When it comes to payment, they make up flimsy excuses to deny the claim, added the forum.