Skip to main content

Insurance firm to pay 3 lakh for harassment, unfair trade practice

A consumer forum here has asked an insurance firm to pay Rs 3 lakh to a couple for causing harassment and delay in addressing their plea for cancellation of policies sold to them fraudulently by the company's agent.

The New Delhi District Consumer Disputes Redressal Forum held Aviva Life Insurance Company Ltd guilty of indulging in "unethical behaviour" and "unfair trade practice" which caused "mental agony" and "financial difficulties" to the couple due to deficiency in service in not taking corrective measures immediately.

The couple, whose personal details and signatures were incorrectly or fraudulently filled by the agent of the insurance company, had sought immediate cancellation of the seven policies worth Rs 12.5 lakh in 2010.
The forum presided by C K Chaturvedi also noted that while the company "arbitrarily" cancelled four policies, it had initially refused to cancel the remaining three policies without giving any justification.
The forum said that by delaying the refund of premium amount with interest, the company resorted to unfair trade practice.

It further noted that complainant Sanjay Kumar had to go through severe harassment to the extent of flying back to India from Zambia, where he was working, for presentation of his passport before the company cancelled them after a year.

The forum termed the company's practice as unethical behaviour.

"Opposite party (insurance company) instead of immediately refunding the premium with interest, resorted to unfair trade practice of delaying/ denying the refund. Company's behaviour being evasive is liable for said unethical behaviour by which the complainant suffered mental agony and the financial difficulties....," the forum also comprising its members S R Chaudhary and Ritu Garodia said.

 Article referred: http://www.dnaindia.com/india/report-insurance-firm-to-pay-3-lakh-for-harassment-unfair-trade-practice-1998188

Comments

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more