Skip to main content

Insurer rejects man's claim after dad's death, fined

An insurance company will have to pay nearly Rs 3 lakh as compensation to a Vidyavihar resident after it wrongly rejected his father's life insurance claim on the grounds that the latter had concealed a pre-existing disease while taking the policy in 2007.

Observing that the onus was on the insurance company to prove that there was material concealment of a disease which directly proved to be fatal, the South Mumbai District Consumer Disputes Redressal Forum also told Aviva Life Insurance to pay the heir of the deceased the insured amount of Rs 10.67 lakh. The forum held that the deceased, Balakrishan Makwana, was over 45 years old when he had obtained the policy and a mandatory medical check-up should have been conducted.

Balakrishan had subscribed to a policy plan called "Save Guard", under which he was to pay an annual premium of Rs 3 lakh and was promised an assured amount of Rs 15 lakh.

After paying two premiums, Balakrishna requested the company in January 2009 to convert the annual premium into a monthly premium as he was unable to pay Rs 3 lakh. The company accepted the request.

On April 28, 2009, Balakrishna complained of uneasiness while climbing the stairs and fell down. He was rushed to hospital, where he was declared dead. He had suffered a heart attack.

In May 2009, Balakrishna's son Hemal informed the insurance company officer about his father's death. On May 11, 2009, he received a sympathy letter and a death claim form from the company. Hemal submitted the required documents and filed the claim.

A few days later, he received a repudiation letter from the company stating that Balakrishanhad answered no to a specific question on diabetes and hypertension in the proposal form. Hemal filed a complaint in the consumer forum on August 30, 2010. The forum passed an ex parte order. Hemal told the forum that the company, in 2010, offered him part payment of Rs 4 lakh, which he accepted under protest.

Article referred:http://articles.timesofindia.indiatimes.com/2013-06-24/mumbai/40165265_1_4-lakh-3-lakh-hemal

Comments

Most viewed this month

Deposit Of Minimum 20% Fine/Compensation U/s 148 NI Act Mandatory

In OP(Crl.).No.348 OF 2019, T.K.SAJEEVAN vs FRANCIS T.CHACKO, the appeal was filed against the order of the lower court to deposit 25% of the fine before filling of appeal. The appellant argued that the deposit introduced through the Section 148 of the NI Act after amendment was directory in nature as it used the term 'may' while mentioning the issue of deposit. The Kerala High Court however disagreeing held that in view of the object of the Legislature while incorporating Section 148 into N.I. Act, the word 'may' will have to be read as 'shall'. The imposition of payment contemplated under Section 148 N.I. Act cannot be restricted to some prosecutions and evaded in other prosecutions. Since the amount directed to be deposited being compensation, undoubtedly, it is liable to be ordered to be deposited irrespective of the nature of the prosecution. Therefore, the word 'may' can only be taken to have the colour and meaning of 'shall' and there

NCLT - Mere admission of receipt of money does not qualify as a financial debt

Cause Title : Meghna Devang Juthani Vs Ambe Securities Private Limited, National Company Law Tribunal, Mumbai, CP (IB) No. 974/MB-VI/2020 Date of Judgment/Order : 18.12.2023 Corum : Hon’ble Shri K. R. Saji Kumar, Member (Judicial) Hon’ble Shri Sanjiv Dutt, Member (Technical) Citied:  Carnoustie Management India Pvt. Ltd. Vs. CBS International Projects Private Limited, NCLT Swiss Ribbons Pvt. Ltd. & Anr vs. Union of India & Ors. (2019) Sanjay Kewalramani vs Sunil Parmanand Kewalramani & Ors. (2018) Pawan Kumar vs. Utsav Securities Pvt Ltd 2021 Background Application was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 alleging loan of Rs, 1.70 cr is due. The Applicate identified herself as the widow and heir of the lender but could not produce any documents proving financial contract between her Late husband and the CD but claimed that the CD has accepted that money was received from her husband. The applicant subsequently filed rejoinder claiming the debt t

Jurisdiction of consumer forum is not ousted even if the other party has filed suit on the same matter in Civil Court

In Yashwant Rama Jadhav v. Shaukat Hussain Shaikh, First Appeal No. 1229 of 2017, decided on 18.11.2017,  the grievance of the petitioner before the National Consumer Disputes Redressal Commission was that appellants/complainants had entered into agreements with the respondents for purchase of residential flats, which the respondents were to construct and despite paying the substantial amount to the respondents, the construction of the flats had not been completed. The State Commission dismissed the complaints and ruled in favor of respondents against which the appellants approached the National Commission. The NCDRC held that Section ‘3’ of the Consumer Protection Act, to the extent it is relevant provides that the provisions of the Act shall be in addition and not in derogation of the provisions of any other law for the time being in force. Thus the remedy available under the Consumer Protection Act is an additional remedy, which Parliament has made available to a consumer. Even