The Hindu : Insurance company held guilty of deficiency

Online edition of India's National Newspaper
Wednesday, Jul 16, 2003

Other States

Other States - New Delhi

Insurance company held guilty of deficiency

By Mandira Nayar

NEW DELHI JULY 15. It took the National Insurance Company over five years to pay for a theft.

Rajpal Mahana never dreamt that even after insuring the valuables in his house he would need to go to court to get the company to pay what was due to him. Having taken a household insurance policy from National Insurance for Rs. 1,50,000 for a two-year period, Mr. Mahana thought he would be safe from every eventuality. But instead of coming to his rescue when he needed them, the National Insurance Company tried to evade responsibility by claiming that Mr. Mahana didn't live there. Angry, Mr. Mahana took the company to court.

A District Consumer Disputes Redressal Forum has now held National Insurance Company guilty of deficiency and directed the company to pay Rs. 74,750 towards the loss of stolen articles. The company was also required to pay Rs. 5,000 as compensation for undue harassment. A further Rs.1,000 was to be paid by the company towards costs.

In its defence, the National Insurance Company alleged that Mr. Mahana did not disclose the whole truth at the time of taking the insurance. According to the company, he never lived in the house and that as per the surveyor's report the house had been locked for a considerable period of time.

The company further alleged that the telephone bill that Mr. Mahana produced on demand was too small for a family of eight. As Mr. Mahana had not furnished sufficient documents, therefore the claim was rejected.

After going through all the evidence, a bench of the New Delhi Consumer Disputes Redressal Forum stated it was true that Mr. Mahana did not furnish all the documents sought by the surveyor immediately at first but later he did manage to provide all the information needed.

He filed four telephone bills for the period March 16, 1993, till May 15, 1993, and a copy of the First Information Report (FIR) along with the articles stolen and a copy of all the correspondence between with National Insurance, as demanded. With all this proof, it becomes clear that Mr. Mahana was living there, the bench stated.

The surveyor's contention that the "house looked locked for a considerable period of time'' is therefore not tenable, the bench added. The ration card issued in the name of the father of Mr. Mahana further clarifies this issue, it stated.

Not paying Mr. Mahana the insured amount for theft of articles is deficiency of service, the bench held. It directed the company to pay this amount along with compensation to Mr. Mahana.

Printer friendly page
Send this article to Friends by E-Mail

Other States

Stories in this Section

Call for ban on waste burning

Putting a human face on TB

Insurance company held guilty of deficiency

Dilli Haat still reeling under parking crisis

Rich tributes paid to Bhishm Sahni

Kerala 'I' group leaders meet Sonia

'Interact more with Govt.'