Consumer Forum impose fine of Max Life Insurance Company
Author(s): Vikramditya SharmaFerozepur, March 6, 2014: The Consumer Forum, Ferozepur, has penalised Max Insurance Life Company to pay Rs.6 lakh along with interest to Jassa Singh S/o Teja Singh resident of Village Lohke Khurd, Tehseel...
Ferozepur, March 6, 2014: The Consumer Forum, Ferozepur, has penalised Max Insurance Life Company to pay Rs.6 lakh along with interest to Jassa Singh S/o Teja Singh resident of Village Lohke Khurd, Tehseel Zira, District Ferozepur vide its order dated February 21.
Jassa Singh’s wife Sarabjeet Kaur had purchased an insurance policy for twenty years from Max Insurance Life Company. Under the said policy, she was to get fund value of the policy after the expiry of the policy i.e. twenty years. In case of her death, her nominee was entitled to get the policy amount of Rs. 6 lakh.
Unfortunately, Sarbjeet Kaur died in an accident due to falling from the roof of her house on November 27, 2012. Thus, her husband Jassa singh, who was the nominee of the policy, was entitled to receive Rs. 6 lakh.
A case was also registered at the Mallanwala police station and after the investigation the police had come to the conclusion that her death was a sudden accident.
When Jassa Singh lodged claim of the policy on account of death of his wife Sarbjeet kaur, the company rejected his claim vide letter number February 28, 2013 by saying that the deceased had not submitted the medical disclosure and had kept the company in dark about her illness.
To seek justice, Jassa Singh lodged a complaint in the Consumer Forum, Ferozepur on July 16, 2013. While replying the complaint, the insurance company claimed that the deceased was HIV+ and blamed that the deceased had hide this fact while filling the proposal form.
After hearing and examining the existed evidence from both parties, the Consumer Forum, came to the conclusion that the proposal form was filled by the agents and not by the deceased herself.
The Consumer Forum also found the documents produced by the Insurance Company, proving Sarabjeet Kaur HIV+, were tempered. While making its decision, the consumer forum also kept in mind that Sarabjeet Kaur had died due to a sudden accident and not for being HIV+.
The full bench of the Consumer Forum, comprising President Gurpartap Singh Brar, Beena Bishnoi and Gyan Singh in its order dated February 21, 2014, directed Max Life Insurance Company to pay Rs. Six lakh to the nominee, along with interest at the rate of 9% per annum, from the date of repudiation of the claim i.e. February 28, 2013 till realization.
Besides, the Bench also levied a payment of Rs. 5,000 as compensation for harassment and Rs.3,000 as litigation expenses, on the insurance company to be paid within a period of thirty days from the date of receipt of a copy of the order.