Insurance company fined

Dharwad: The District Consumer redressal forum has ordered a fine on an insurance company that refused to pay Rs15 lakh in insurance money to the wife of a deceased individual, as well as to provide compensation.

Hanumanth, a resident of Hosakere in Channagiri, Davanagere district, met with a fatal accident while riding his two-wheeler on January 10, 2022. The deceased had taken insurance for this vehicle from HDFC Ergo Insurance Company, which included 15 lakh coverage for the vehicle owner and rider. After Hanumanth’s death in the accident, his wife, Roza, filed a claim with the insurance company along with the necessary documents requesting the insurance payout. However, the insurance company rejected her claim.

The commission determined that the behavior of the insurance company constituted a deficiency in service under the Consumer Protection Act, leading the complainant to submit her grievance to the Dharwad District Consumer Commission on August 27, 2024.

After a thorough investigation of the complaint, the commission concluded, “The complainant is the wife of the deceased Hanumanthappa. The deceased had paid premiums for insurance coverage on his two-wheeler, which was valid during the time of the accident and the death. The insurance policy provides Rs15 lakh coverage for the owner and rider’s protection. Given the circumstances, it is the responsibility of the insurance company to compensate the nominated beneficiaries Rs15 lakh due to the accidental death. However, they have failed to fulfill this duty, thereby exhibiting deficiency in service under the Consumer Protection Act.”

The commission directed the insurance company to pay the Rs15 lakh compensation along with interest at the rate of 10% from the date the claim was filed, within one month of issuing the ruling.

Additionally, the commission ordered the insurance company to pay Rs50,000 for the distress and mental suffering endured by the complainants, along with Rs10,000 to cover the expenses of the case.