Case Name: Meena Devi vs The Senior Divisional Manager, National Insurance Co. Ltd. and Others
Case No.: First Appeal No. A/137/2022
The State Consumer Disputes Redressal Commission of Bihar, led by Miss Gita Verma and Mr Raj Kumar Pandey, recently ruled in favor of a complainant, Meena Devi, against National Insurance Co. Ltd. The company was found guilty of failing to honor a legitimate accidental claim, thereby providing deficient service.
The background of the case is quite straightforward. The complainant’s late husband had purchased a ‘Janta Personal Accident Insurance Policy’ worth Rs. 5,00,000/- from Golden Multi Service Club Limited, which was issued by National Insurance Co. Ltd. When the husband tragically passed away during treatment for a head injury at Patna Medical College Hospital, Meena Devi, as the nominee for the policy, filed a claim with all necessary documents. However, despite her efforts, the insurance company failed to pay the insured sum.
The complainant then took the case to the District Consumer Disputes Redressal Commission, in Saran, Bihar. The insurance company, in its defense, argued that only courts in Kolkata had the authority to handle claims against them. The Golden Multi Service Club Limited, on the other hand, claimed they merely facilitated the policy subscription and could not be held responsible for claims settlement.
Contrary to these arguments, the District Commission ruled in favor of the complainant and ordered National Insurance Co. Ltd. to pay Rs. 5,00,000/- and an additional Rs. 50,000/- for the mental suffering caused. They also imposed a 6% annual interest from the date of the order.
Not satisfied with the interest rate, the complainant appealed to the State Commission for an increase. The State Commission, after reviewing the case, agreed with the complainant. They noted the insurance company’s failure to provide a clear reason for not settling the claim despite acknowledging the policy and receiving all the necessary documents.
In light of this, the State Commission modified the District Commission’s order. They directed National Insurance Co. Ltd. to pay Rs. 5,00,000/- with an additional Rs. 50,000/- for the physical, mental, and economic distress caused. They also increased the interest rate to 7% per annum, effective from the date the complaint was filed. However, the appeal against Golden Multi Service Club Limited was dismissed as their liability was deemed limited.
This judgment serves as a reminder of the importance of fulfilling policy obligations by insurance companies. It also underscores the role of the consumer forum in protecting the rights of policyholders, ensuring they get fair treatment and compensation for their claims.
