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Chandigarh

Posted at: Apr 10, 2018, 1:30 AM; last updated: Apr 10, 2018, 1:30 AM (IST)

Insurance firm penalised for delay in settling claim

Tribune News Service

Chandigarh, April 9

The district consumer forum here has ordered an insurance firm to pay Rs 8.40 lakh to a customer for not paying the claim amount for three years. A three-wheeler, insured by a firm, had met with an accident in 2015. It had caught fire with it driver losing his life due to burns. However, even after three years, the company did not pay the claim, which was calculated by its surveyor.

M/s Prerna Strips, Chandigarh, through its Proprietor NK Gupta had filed the complaint against The Oriental Insurance Company Limited. As per the complaint, the vehicle was insured on October 9, 2014, and was valid till October 8, 2015. The vehicle was insured for Rs 10.50 lakh and the premium was Rs 21,929. 

However, the vehicle met with an accident on April 15, 2015 and the driver, Baldev Singh had died due to burns. The insurance firm was told about total loss of the vehicle but the claim was not settled. They, thus, filed the complaint.

The insurance firm, in its reply, stated that a surveyor had investigated the matter and recommended the payment of Rs 7.73 lakh to the complainant. The firm claimed that the required documents were not submitted because of which the claim was not processed.

The forum observed that neither the claim for reimbursement was denied nor allowed. The insurance firm had entered into investigation and they have not finalised the report. 

Calling it a clear case of deficiency in service, negligence and inaction, the forum ordered the insurance company to pay Rs 7,73,500 as assessed by the surveyor in his report, along with Rs 50,000 as compensation for deficiency in service and harassment caused to the complainant besides Rs 15,000 as costs of litigation.

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