Widow gets justice from State Consumer Commission, LIC will pay Rs 14 lakh
Raipur. The State Consumer Commission has found the Life Insurance Corporation of India guilty of lack of service and has decided to pay Rs 14 lakh as insurance claim amount, Rs 15,000 as mental compensation and Rs 3,000 as litigation expenses. If payment is not made within 45 days, six percent annual interest on the said amount will also be payable to the complainant.
According to the information, Butanu Bhaina, a resident of Ward No. 15 Naya Baradwar of Janjgir Champa district, was seriously injured in a road accident. He died during treatment in the hospital on 20 April 2022. While he was alive, he had taken two policies worth Rs 8 lakh and Rs 6 lakh, totaling Rs 14 lakh, from the CAB branch of Life Insurance Corporation of India, Raipur. The name of his wife Phuleshwari Bai was registered as the nominee in both the policies.
After the death of her husband, Phuleshwari Bai presented an insurance claim in the corporation, but the claim was rejected by the corporation citing wrong information regarding previous treatment and disability. Angered by this, Phuleshwari filed a complaint in the District Consumer Disputes Redressal Commission, Janjgir-Champa. Even before the Commission, the Insurance Corporation stated the same basis for canceling the insurance claim. The insurance company’s claim was rejected. After this the insurance company approached the State Consumer Commission.
During the hearing of the appeal, the bench comprising State Consumer Commission Chairman Justice Gautam Chouradiya and member Pramod Kumar Verma found that the insured was treated in the hospital in the year 2013 due to an accident and both his legs had to be amputated, on the basis of non-disclosure of information about the same. The insurance claim was canceled by the Life Insurance Corporation, but it was clear from the documents that while filling the claim, the agent filled the form after seeing the insured himself. Besides, the signature and seal of the licensed doctor of the Insurance Corporation is also affixed on the proposal form. That is, only after physical examination of the insured by the agent and doctor of the Insurance Corporation, the Corporation accepted the insurance proposal and issued both the policies. Therefore the Life Insurance Corporation is the debtor for the insurance claim. On this basis, the appeal of the Insurance Corporation was rejected and the decision of the District Commission was upheld and the payment was ordered.
