Life insurance firm fined for not settling claimhttps://indianexpress.com/article/cities/chandigarh/life-insurance-firm-fined-for-not-settling-claim/

Life insurance firm fined for not settling claim

A penalty of Rs 50,000 has been imposed on a leading insurance company for not settling the claim of a Derabassi resident.

A penalty of Rs 50,000 has been imposed on a leading insurance company for not settling the claim of a Derabassi resident. The SAS consumer forum has also directed United India Insurance to pay Rs 3 lakh to Prithi Sodhi as the insured amount of his vehicle.

In November 2011,Sodhi was looted and his car,a Tavera,was stolen in Yamuna Nagar by five people. Sodhi was left unconscious.

After he regained consciousness,he immediately approached the Chhachhrauli Police Station. He was later medically examined by the police and a complaint was registered. Within three days,Sodhi approached United India Insurance to claim the insurance amount. However,five months and a legal notice later,the company had still not settled his claim.

The opposite party contended Sodhi had violated the terms and conditions of the insurance policy as he was using the car as a taxi for profit-making purposes and had delayed informing them by three days. These contentions were,however,rejected by the forum as the terms and conditions about the policy were never conveyed to Sodhi.

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Also,United India could not prove that the car was used for hiring purposes. The forum maintained that the delay caused in reporting the matter to the company could be explained as Sodhi was busy with the police and had immediately approached the company as soon as he could.

The forum ruled,“The opposite party was wrongfully repudiating the claim”,while holding United India Insurance deficient in services and ordering it to pay the entire amount within a month.