Skip to main content

Insurance firm to pay over Rs 4.5 L for deficiency in service

A consumer forum here has asked an insurance company to pay over Rs 4.5 lakh to a man, whose medicalim it had rejected, for indulging in unfair trade practice and deficiency in service.

The North-East Delhi Consumer Disputes Redressal Forum, presided by N K Goel, directed Oriental Insurance Company Ltd to pay Rs 4,53,678 to Delhi resident Vinay Jain towards his medical expenditure, compensation and litigation expenses.

"...We hold that while rejecting the claim in question of the complainant, OP (Oriental Insurance Company Ltd) indulged in unfair trade practice and committed gross deficiency in service," the forum, also comprising members Asha Kumar and Nishat Ahmad Alvi, said.

The forum noted that the insurance company had cited its alleged circular, which was "non-existent" at the time, to justify rejection of the claim.

The company claimed that as per the circular, continuity benefit could be given only if the policy was continuously insured with Oriental Insurance Company Ltd.

"The claim of complainant had been rejected on July 16, 2012, and rejection was confirmed by the competent authority of the OP (insurance company) on October 30, 2012. On October 30, 2012, the alleged circular dated November 6, 2012 was not in existence. It had not taken birth by that date.

"Therefore, how did and how could OP (insurance company) take shelter of any such non-existent circular is beyond our comprehension and imagination," the forum said.

It added, "Before taking such frivolous, imaginary and ridiculous plea before any forum, the officers of the insurance company must think over the matter hundreds of times and must always avoid to take such irresponsible and childish pleas."

Jain, in his complaint, had told the forum that he had obtained the mediclaim policy from the insurance company on May 26, 2011.

Prior to that, he had already taken the mediclaim policy from National Insurance Company Ltd for last about 10 years and thereafter, he got it transferred to Oriental Insurance Company Ltd on May 26, 2011 and the firm had agreed to give him continuity benefits.

Article referred: http://www.business-standard.com/article/pti-stories/insurance-firm-to-pay-over-rs-4-5-l-for-deficiency-in-service-114080100883_1.html

Comments

Most viewed this month

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...

Winding-Up Petition Can’t Be Used If Bona Fide Payment Disputes Pending

The Karnataka High Court, in the case of M/s Uttam Industrial Engineering Ltd vs  M/s Shree Basaveshwar Sugars Ltd, has held that a winding-up petition has serious  ramifications on the financial standing of a company and cannot be used in cases  where there is a bona fide dispute regarding the amount owed by one party to the  other and in such cases the company court should relegate the matter either to the  civil court or arbitral tribunal. In this case, Uttam Industrial Ltd entered into a contract with Basaveshwar Sugars Ltd  to provide machinery and equipment for a sugar plant. Article referred:  http://www.livelaw.in/remedy-winding-petition-cant-relied-upon-bona-fide-payment-disputes-karnataka-hc/

Owner of vehicle is not expected to verify the genuineness of the driving license before appointing a driver

Cause Title : Rishi Pal Singh Versus New India Assurance Co. Ltd & Ors., Civil Appeal No. 4919 Of 2022, The Supreme Court Of India Date of Judgment/Order : July 26, 2022 Corum : Hemant Gupta; J., Vikram Nath; J. Background the truck owned by the appellant met with an accident. The owner deposed before the court that before employing the driver, he had taken his driving test and that he was driving the vehicle satisfactorily and  that the driver was employed with him for 3 years before the date of the accident. He produced his driving license. This was reaffirmed by the driver who deposed that the driving license was obtained from the driver and it was issued from Nagaland, but no such license was produced on record. Both the Motor Accident Claims Tribunal and the High Court have held that the owner has alleged that the driver had a driving license from Nagaland but the same was not produced and therefore, the Insurance Company is entitled to recover the awarded amount...