Forum upholds New India Assurance company’s decision to reject insurance claim

Family lost its claim as insurance policy did not cover accidental death on road away from car.

Upholding the decision of an insurance company to reject the accidental death claim of a taxi driver’s widow,a consumer forum here has ruled that the claim can be entertained by the company only if the insured dies while driving,boarding or alighting from the taxi.

In their order,Thane District Consumer Redressal Forum (TDCRF) president Umesh Jhavalikar and member N D Kadam yesterday held that the New India Assurance Company had not resorted to any deficiency in service while rejecting the claim and strictly followed the conditions laid down in the policy document.

The victim had a composite insurance with the company and he could claim compensation in case of death while boarding,driving or alighting from the vehicle.

Kanta P Sharma,the widow of the driver,lodged the claim with the forum stating that her husband,who was driving a taxi,had on February 26,2009,parked his vehicle in Navi Mumbai and was crossing the road to get into a hotel to get some parcel.

At that time,a dumper knocked him down following which he died. In support of her claim,she presented the policy documents and the police papers to the forum.

She lodged a claim of Rs 2 lakh towards the policy amount,which was a personal accident claim,and also a sum of Rs 50,000 compensation and legal expenses.

The forum,after going through the documents on record,ruled that the insurance company was right in rejecting the claim and hence,the widow was not entitled to any compensation as per the provisions of the policy documents.

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The forum cited the rulings in New India Assurance Company vs Panchasheel Jewellers and Surajmal Ramnivas Oil Mills Ltd vs United India Insurance company Ltd,wherein the national forum had given clear cut direction on the settlement of claims by the insurance companies.