A widow who described herself as ‘illiterate’ was in for a relief after a consumer forum directed State Bank of India and New India Assurance Company Ltd, an insurance company, to pay ₹3.5 lakh as compensation to her. The forum found evidence that the respondents had not informed the complainant that her insurance claim after her husband’s death was settled.
The District Consumer Disputes Redressal Forum, Hyderabad-III, was dealing with a complaint filed by Munni Begum, a resident of Shankarlal Nagar.
Ms. Begum stated that her deceased husband, Shaik Meraa Saheb, had deposited title deeds with the SBI and secured a home loan of ₹19.43 lakh.
He had also obtained a personal accident policy from NIACL. In November 2009, Mr. Saheb met with an accident and succumbed to his injuries. The complainant moved the claim with the SBI, which in turned informed the NIACL.
Ms. Begum stated that the claim was settled on July 2011 for ₹18,14,484, while the claim was for ₹19.43 lakh. She further stated that it was in February 2015 that she came to know that this claim was settled.
Title deeds
For their part, the bank stated that Mr. Saheb had defaulted in payments and that title deeds could not be returned. On the other hand, the NIACL too cited default in payment and settled the claim at ₹18,14,484.
The forum noted that while the claim documents were submitted in April 2010, there ‘is no whisper’ between the respondents to show it was settled.
The forum also noted that the SBI fixed ₹9,11,651 as liability of the complainant. The forum underscored that it took the NIACL almost nine months to settle the claim. It also stated that if it were settled within reasonable time, the complainant could have avoided interest payments.
Interest payments
Taking a lenient view of the complainant’s situation, and holding the respondents accountable, it stated that the complainant cannot be expected to pay interest payments on account of the delay and fixed claim submission date of April 30, 2010 as ‘cutout date’ as against a later date.
It directed the complainant to pay this amount and take title deeds from the respondents.
While directing the respondent to pay ₹3.5 lakh as compensation, the forum imposed costs of ₹50,000.
